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.


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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.