If they follow Iceland's example, they basically repudiated all foreign creditors' claims. Iceland did guarantee domestic savings, though.

Iceland did pretty well for itself, overall, and mostly recovered in a short period of time, by basically telling the international bankers that they weren't going to let themselves and their children and grandchildren become indentured serfs to them. Individually, many Icelanders are still really hurting, but overall, the country is doing pretty well considering the impossible financial situation they were put in just a few short years ago. Actually, the Greeks are in a similarly impossible financial situation with the added shackle of being part of the Eurozone.