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Greek crisis could cost UK £336bn: British exposure `significantly underestimated`
Date 22/06/2011 22:18  Author webmaster  Hits 1642  Language Global
22 JUN 2011

• Government wins vote of confidence in Athens, but protests continue
• Greek PM must now pass 28billion euro budget cuts and new taxes

By Tim Shipman | Mail Online

Britain could be hit with losses of up to £366billion from the collapse of the Greek economy, it has emerged.

The warnings came as the Greek government last night won a vote of confidence in the Athens Parliament, clearing the way for a second bailout to go ahead. The crunch will come next week when the Greeks vote on a £25billion austerity package demanded by the EU before they hand over any more cash.

The potential devastation of banks and other City institutions would be equal to 24 per cent of our annual national output, or £14,640 for every family in the UK.

Ministers had claimed that British banks have 'only' £2.5billion of exposure to Greek government debt, while the Bank of England says the potential losses would be just £8billion.

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