Unwavering creditors of Greece must see they are playing with fire
A GREEK exit from the euro currency looms like a tragedy, and yet views of the threat as harmless comedy have dangerously percolated through the market.
Six years after Greece suffered its first credit ratings cut, the Mediterranean country is once again hurtling towards another deadline to repay its massive debts - this time by the end of June. Unless a deal is reached in the coming days between Greece and its creditors - most of whom are other governments - the country could well be forced out of the euro, and eventually the European Union.
Compared to six years ago, the chatter in the market surrounding the Greek situation is considerably less dire. Global fund managers polled by Bank of America Merrill Lynch in the week of June 5 had 43 per cent expecting a positive resolution, 42 per cent expecting a default but no exit from the euro, and 15 per cent expecting a Greek exit.
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