Clearly, though, the Central Bank has no mandate to prevent lenders proceeding to repossession if the borrowers refuse to engage, despite the lender following the procedures mandated in the CCMA.
Investors suddenly lost confidence that the euro area could survive in its current composition. In fact, the prospect that claims on certain governments and private companies in certain countries could not be discharged in euros had become a possibility. International investors started divesting securities issued by governments of non-core economies and of private institutions domiciled in those countries.