Eurozone Crisis Continued – Second Greek Bailout package, etc.

The Eurozone crisis continues to dominate the headlines with the IMF approving its €28 Billion contribution to a second bailout package for Greece on 15 March 2012. Click here to read the IMF Press Release.
As suggested in our December 2011 Client Briefing Eurozone Crisis: Will Europe Win the Battle? – Practical Advice to Address Your Redenomination Risks, we are now seeing a subtle shift in the position of market participants towards the consideration of the implications of either the exit of one or more of the member states or alternatively, albeit more unlikely, the complete collapse of the Euro. It is not surprising given the current news backdrop that a number of counterparties are considering their financial and legal redenomination risks, including a consideration of their LMA-based facility agreements and change of currency clauses and the knock-on effects of an amendment to such clauses within loan arrangements.