The Bank of England (BoE) is drawing up plans to protect the UK's financial system from the crisis unfolding in Greece, according to governor Mark Carney.
Read more: Mark Carney voices concern about Greek crisis in Bank of England Financial Stability Report
In an interview with Sky News, he said the central bank was going to test out protection methods in the coming days, to ensure the UK suffers as little as possible if Greece does end up leaving the Euro.
He added that compared to other European countries, the UK faced “very little exposure" to Greek banks, but that it was nonetheless best to be prepared. Among the precautions being taken, he said it is important for Greek banks based in the UK to continue receiving the cash flow they need.
Britain is not the only one drawing up contingency plans, according to Carney – other European central banks also looking for ways to minimise the impacts.
He also praised the way ECB President Mario Draghi had dealt with the situation, saying there was nothing he would have done differently. Despite facing pressure to demand more collateral in return for funding, the ECB is continuing to support the Greek banking system.
Last night, Athens failed to meet its 11pm deadline for a €1.6bn (£1.1bn) loan repayment to the IMF, making it the first developed country to miss a repayment to the international creditor.
Fears over a Grexit have intensified, and yesterday stocks across the world fell in anticipation of the worst. Today, however, Athens said it was willing to accept creditors' bailout proposals, as long as some conditions are met.