Greece’s Central Bank Warns of ‘uncontrollable crisis’

Greece’s central bank has warned that the country could experience an “uncontrollable crisis ” and could ultimately leave the euro zone, if talks with lenders – which remain stuck in deadlock – fail.

The Bank of Greece said on Wednesday that a failure to reach an agreement with creditors would “mark the beginning of a painful course that would lead initially to a Greek default and ultimately to the country’s exit from the euro area and – most likely – from the European Union.”

“A manageable debt crisis, as the one that we are currently addressing with the help of our partners, would snowball into an uncontrollable crisis, with great risks for the banking system and financial stability. An exit from the euro would only compound the already adverse environment, as the ensuing acute exchange rate crisis would send inflation soaring,” it said in a monetary policy report published Wednesday.