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Swedish bank predicts Greek eurozone exit

The Local · 15 Jun 2012, 15:33

Published: 15 Jun 2012 15:33 GMT+02:00

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The bank also said it would not be surprised if there will be new rules issued to stem uncontrolled capital flows.

Despite these predictions the bank also said that the focus on Greece is somewhat exaggerated. Governments, central banks and other agents are, according to SEB, ready to handle a controlled Greek exit.

However, Swedish minister for finance, Anders Borg, expressed his continuing concerned about Sunday’s election in Greece and what consequences the outcome will have.

"In a best case scenario we will have a very serious situation come Monday," said Borg to news agency TT.

He was unwilling to answer what the worst case scenario would entail. However, he said that the situation is unlikely to be settled by Monday.

”This is a process which will drag out for months. If this results in Greece being out of funds or if they choose to make decisions regarding their relationship to the euro, remains to be seen,” Borg said.

The repercussions of the Greek crisis on other European economies are hard to predict, according to Borg.

Story continues below…

“We will, together with the Riksbank, the National Debt Office (Riksgäldskontoret) and the Financial Supervisory Authority (Finansinspektionen), follow these developments very closely. But we don’t judge it will necessarily have serious consequences for the entire European economy, for the world economy or for Sweden,” said Borg to TT.

TT/The Local/rm


The Local (news@thelocal.se)

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Your comments about this article

16:57 June 15, 2012 by Abe L
The sooner they exit the better. Any efforts to keep them within the Eurozone would just be postponing the inevitable and would just keep harming the EU over a longer period of time. Kick them out, suck up the blow and move on and be much more critical next time someone applies for Euro membership.
23:51 June 15, 2012 by HelmiVainikka
It's better to make a painful break than draw out the agony.
10:50 June 16, 2012 by Marc the Texan
It's too late now. Everyone will be exiting the Euro.
13:03 June 16, 2012 by riose
@Marc the Texan

Or they will start pinting notes, like UK did, devaluating their currency a 30% in one year.

21:46 June 16, 2012 by B Slick
The exit of Greece from the eurozone would be a boost for the euro money and that just what the euro needs right now at this time. The eurozone should only be for countries that can control their finances, its just that simple. The eurozone and the euro money should be about quality NOT quantity!
18:48 June 17, 2012 by towns
Even if SYRIZA becomes the largest party in the Greek parliament tonight, they'll fall short of a majority, meaning they have to form a coalition. No other major party supports the "leave the Euro" platform, therefore if they want to form a successful coalition they'll have to compromise. The only way they can do this is to stay in the eurozone and attempt to "renegotiate" the conditions of their bailout with the other eurozone nations. I can guarantee that Finland and very likely Germany won't agree to "renegotiate" so the Greeks are going to be back to where they started all over again. This is all going to be "all blow and no show" and will just keep the Greek economy in recession (more like depression by this point) for another few years, unfortunately, as I see no long term solution coming on the table right now.
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