Greek default 'could cost eurozone €1trn'

A 'disorderly' default in Greece could cause more than €1trn (£833bn) damage to the eurozone, a confidential report has warned.

A document published by the Institute of International Finance (IIF), obtained by Reuters, suggested a default would leave Italy and Spain needing outside help to stop risks spreading. "There are some very important and damaging ramifications that would result from a disorderly default on Greek government debt," the IIF said. "It is difficult to add all these contingent liabilities up with any degree of precision, although it is hard to see how they would not exceed €1trn." The IIF has called on bondholders to sign up by a Thursday deadline for a bond swap deal aimed at saving Gree...