Bulgaria Most at Risk From Grexit, Morgan Stanley Says

Bulgaria has more to lose than its southeast European neighbors Romania and Serbia in a potential collapse of the Greek economy, Morgan Stanley said in a report.

“Greek banks hold a significant share in Bulgaria, Romania and Serbia, with the highest share of foreign claims being in Bulgaria,” Morgan Stanley Research said in the report on Monday. “While the direct economic impact of a Grexit looks manageable, we think that the banks are by far the most serious potential channel of contagion.”