23.04.2012
By Simon Miller
Greek businesses will be able to pay back loans to the European Investment Bank (EIB) in a non-euro denomination according to reports.
The so-called "Drachma-clause" will allow Greek enterprises to renegotiate a loan agreement should Greece leave the eurozone or should the euro break up.
The first such deal was a €70m (£57.3m) loan negotiation between the EIB and Greek electricity giant Public Power Corporation.
In addition to the drachma clause, the contract has also been placed under British law in case of any irregularities in the payback process.
According to reports, the currency-change clause will also be rolled out to other troubled countries such as Portugal and Ireland before being extended across all eurozone countries.
However, EIB spokeswoman Helen Kavvadia denied that it was anticipating a Greek exit and said that clause merely allowed companies to repay loans in a different currency from the one in which it was disbursed.
"The bank, certainly in this crisis and very volatile environment is adjusting its security contracts in many countries, not only Greece," Kavvadia told the Associated Press. "The fact that a company will repay (a loan) in a different currency does not mean that the currency of the country will change."
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