Greek contagion risks underestimated: World Bank

The risks of turmoil from a cash-strapped Greece should not be underestimated by markets, World Bank President Jim Yong Kim warned on Tuesday.

Talks between Greece and its international lenders for further cash in exchange for reforms have been deadlocked for months, raising concerns about a default and Greece’s possible exit from the euro zone.

“Some of the commentary I’m hearing from people who have been through many of these crises is that there are always surprises,” Kim told CNBC in an interview aired on Tuesday.

“You think that the market has already calculated the impact of a problem in Greece but you never know, so I would urge everyone at the table to come do as much as they can to come to an agreement that is good for Greece, is good for Europe and will of course be good for the world,” he said.

CNBC

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Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam