Financial Crisis and National Currency

financial system: The plan envisions a default similar to the one implemented by Iceland during the 2008 financial crisis, along with the nationalization of the Greek banking system, according to Russia Today. The party faction considers the continuing negotiations with European creditors useless, The Telegraph reported Monday citing sources familiar with the matter. Tags Bailout, Crisis, Greece, IcelandA wing of Greece anti-austerity Syriza party is eyeing a plan to default on government debt and replace the euro with its own national currency in case negotiations on a bailout with its creditors fail, media have reported. It also foresees controlling capital movements and the establishment of a sovereign central bank to serve as a basis for a new financial system. This goes well beyond the Left Platform. The introduction of a dual currency is possible, the source said, but would violate the terms of membership in the eurozone, which could mean a quick return to Greece previous currency, the drachma. ‘Last attempt’ debt negotiations fail as Greece rejects more austerity The initiative was put forward by 30 MPs from Syriza Left Platform, but some members of other factions, and even some MPs from the right-wing Independent Greeks party, which is also represented in the government, have also supported the idea. (news.financializer.com). As reported in the news.