‘No as verdict’ not necessarily mean Grexit

It is important to clear up one thing heading into referendum over the weekend that a NO vote doesn't necessarily mean a Greek exit from Euro zone.

Many economists, analysts as well as European leaders have pointed out that Greek is likely to exit Euro zone if the verdict on Sunday is NO.

In reality it may not be so at least not without a massacre.

• Technically speaking, on Sunday, Greeks are headed to poll to decide whether or not to accept a bailout proposal from the lenders presented last week. (The offer may not be on the table though). The poll is not about whether or not Greece wants to stay in Euro zone.

• So if Greeks really rejects the proposal, which the Greek government is campaigning for will push the ball to lenders who have to take the call, whether or not to kick Greece out of Euro zone.

• Given such, it will be tough for European leaders to kick Greece out and just discard the Greek voters' opinion right away, instead it is more likely to bring everyone back to the table to negotiate a deal.

At this point if everyone cooperates and soften their stance a bit, a deal might get reached.

However, July 20^th stands as next hurdle before which reaching a deal is vital, when European central bank's payment of €3.5 billion.

Missing ECB payment could trigger off chaos which could then give rise to ELA withdrawal and further massacre.