Greece euro exit chances mount





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Published on Jul 26, 2012

http://www.euronews.com/ The chances of Greece leaving the euro in the next 12 to 18 months have now risen and stand at about 90 percent according to experts at the US bank Citigroup.

They believe that that is most likely to happen within the next six to nine months.

Economists say a return to the drachma would push Greece even deeper into recession.

The country's economy has spiralled down despite two previous bailouts totalling 240 billion euros though not all of the second rescue package has been paid out.

And the future looks grim according to Theodore Krintas, Managing Director of Attica Wealth Management: "What we need right now in Greece is direct foreign investments. It is obvious from what we've seen in recent months is that in Greece the amount of money needed for new investments to restart the economy simply don't exist."

But foreign investors are wary of a country that has been in recession for five years, and where deficit-reductions and economic reforms demanded in return for bailout money are far behind schedule, making a chaotic bankruptcy and eventual exit from the eurozone more likely.

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