Citigroup’s Buiter Sees 50% Chance of Greece Exiting Euro Area
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Citigroup Inc. Chief Economist Willem Buiter said the possibility that Greece will leave the euro area in the next 18 months has increased to 50 percent from 25 percent to 30 percent.
The willingness of creditors to support Greece has “fallen substantially,” economists Buiter, a former Bank of England policy maker, and Ebrahim Rahbari, said in a research note today. They projected the costs of a Greek exit to the rest of the euro area as “moderate” because contagion would be “contained by policy action, if needed.”