Swedish bank predicts Greek eurozone exit
Swedish bank SEB wrote in a newsletter on Friday morning that everything points to Greece leaving the eurozone ”within the immediate future” regardless of the results in Sunday’s general election.
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.
“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
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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.
“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
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