Overview

This briefing from Herbert Smith considers some of the issues which would arise if a Member State were to leave the Eurozone. The article outlines the various potential methods by which a Member State could exit, and sets out some of the key issues creditors would face recovering euro-denominated debts from borrowers based in countries leaving the Eurozone. Sample questions include:

• If a euro-denominated loan or bond is made under English law, does English law decide the currency of account?


• How could a creditor force a borrower to repay Euro? Would the English and local courts take the same approach?


• Could the exiting member state introduce capital controls / moratorium? Could the EU stop it?


• Does the standard LMA documents wording contemplate all these potential outcomes?

For the answers to all these questions and more, click 'View Briefing'.