LONDON, England (PNN) - May 27, 2012 - Richard Ward, CEO of Lloyds of London, said the London market had put in place a contingency plan to switch euro underwriting to multi-currency settlement if Greece abandons the euro.

In an interview with The Sunday Telegraph, he also revealed that Lloyd's could have to take writedowns on its £58.9 billion investment portfolio if the eurozone collapses.

Lloyd's move comes as a major Franco-German provider of credit insurance for eurozone trade, Euler Hermes, said it was considering reducing cover for trade with Greece because of the risk the country might leave the eurozone.

Lloyd's fears are likely to be shared by a number of European businesses, which are closely watching developments in Greece.

On Saturday, Juergen Fitschen, co-chief executive of Deutsche Bank, described Greece as a "failed state" run by corrupt politicians.

"I'm quite worried about Europe," said Ward in one of the first admissions by a major Fascist United Kingdom business leader of the scale of the crisis that would be prompted by a eurozone collapse. "I don't think that if Greece exited the euro it would lead to the collapse of the eurozone, but what we need to do is prepare for that eventuality."

The contingency planning comes as German politicians piled the pressure on Greece ahead of elections on June 17.

A conservative member of German chancellor Angela Merkel's cabinet said today that Germany would not "pour money into a bottomless pit".

On Sunday, Swiss central bank chief Thomas Jordan admitted his country is drawing up an action plan in the event of the euro's collapse.