12:45 GMT25 February 2020
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    A return to drachma may pose serious challenges for Greece. The Greek economy will shrink and the country will face severe inflation, experts claim.

    If Greeks decline proposals by international lenders, Athens will have to introduce a new currency, the head of the European Parliament Martin Schulz stated.

    The introduction of a new currency would mean exiting from the Eurozone, Schulz said.

    In the event of a “No” vote, Greece may face not only financial, but also technical difficulties. According to Greek Finance Minister Janis Varoufakis, there are no machines to print the national currency after production was stopped in 2000.

    The Greek drachma withdrew from circulation in 2002. One euro at that time was worth 340 drachmas.

    According to experts, a "new drachma" may depreciate against the euro by as much as 80 percent and lead to a rise in import prices.

    "The chaos will remain for a very long time, probably for years," Barry Eichengreen from the prestigious University of Berkeley told the newspaper "Welt am Sonntag," adding that the Greek economy will shrink and the country will face severe inflation.

    However, some economists expect long-term benefits. According to a number of experts, Greece will offer cheaper products for export and become more attractive for tourists.

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    Tags:
    crisis, devaluation, drachma, Greece
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