G20 leaders discuss orderly default

The G20 nations are preparing for an orderly default in early November following the G20 summit in Paris.

Sources close to members involved in the meeting in Washington, USA, say that privately a default by Greece is seen as inevitable.

Meetings in Washington this weekend are focused on preparing the ground on how to recapitalise the banks and preparing economies for default.

It is expected that emergency funding will keep Greece afloat through October until an announcement is made at the G20 meeting in Paris next month.

It is not thought that Greek default necessarily means that Greece will have to leave the euro currency.

Yesterday, the Chancellor, George Osborne said that European leaders have just six weeks to save the euro, again an indication that an announcement will be made in early November.

Mr Osborne said: “Patience is running out in the international community. There is a clear sense that there is a deadline for the Cannes summit. The eurozone has six weeks to resolve this political crisis.”

This weekend it seems world leaders are thrashing out the groundwork and detailing what they need to do in preparation for the decision that will be made in six weeks time.

Some analysts believe that this delay will leave the markets in limbo for six weeks until they are sure of what the future policy decision on the euro and the debt crisis will be.

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