Photo: Lefteris Heretakis

• Greece triggered default by cancelling bailout negotiations with a surprise referendum for the Greeks to decide once and for all if they want to stay within the Eurozone.
• This has led to capital controls and renewed unrest in Greece. Global stock market plunged as a result. Financial contagion spread to weaker European countries such as Spain, Italy and Portugal.
• Grexit is a serious matter and we should guard against complacency as Singapore could be affected badly.

This article is a follow-up of my previous article, Grexit: The Fallout if Greece Exits the Euro, that was published recently on 27 June 2015. In that article, I wrote about how our export-based economy is vulnerable to the possibility of Grexit. When that article was written, it was still possible for Greece to avoid default and stay within the Eurozone. In other words, there was hope that despite the ......