PRIME Minister David Cameron met with officials from the Bank of England and Treasury yesterday, to draw up plans to protect British banks and businesses in the event Greece exits the Euro.
The development comes amid growing fears that the new Greek government will not do a deal with Brussels to prop up its finances, and will be forced to exit the euro.
Reports indicate that the head of the Treasury, Nick Macpherson, the Treasury's director of financial stability, Lowrie Kahn, and the Bank of England's international director Phil Evans, all attended the high level meeting. Chancellor George Osborne was a notable absentee, due to his attendance at the G20 in Turkey, but was kept informed of the discussions.
The Prime Minister’s spokesman said: "We need to be prepared to deal with uncertainties in financial markets."
It is thought a contingency plan for a Grexit was made at the peak of Greece’s economic crisis in 2012. The crisis has been revived after Alexis Tsipras and his radical left Syriza party swept to power in the recent elections, vowing to overturn austerity measures that have been imposed on Greece by the troika in exchange for a bailout.