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Lloyds preparing for eurozone collapse

A major British and global financial institution, the Lloyds of London insurance market, is making contingency plans ahead of the potential collapse of the eurozone, it has emerged.

Richard Ward, chief executive of Lloyds of London, indicated that the insurance market his company opoerates is preparing for an eventuality where the economic block breaks up due to the pressure it is coming under from struggling member states, such as Greece, Italy and Spain.

During an interview with the Sunday Telegraph yesterday (27 May), Mr Ward explained there is a genuine possibility that the issues being seen in Greece could lead to the end of the eurozone ahead of the nation's second round of elections.

Should the next Greek government opt to stop implementing austerity measures, this is likely to result in the country ending its use of the euro.

"We've got multi-currency functionality and we would switch to multi-currency settlement if the Greeks abandoned the euro and started using the drachma again," the official noted.

Mr Ward went on to admit: "I'm quite worried about Europe."

By Gary Cooper