Failure to reach an agreement on Greece’s bailout could result in rapid economic deterioration, geopolitical disruption and increased risk of terrorism in Europe and the United States, experts told CNBC on Wednesday.
Greece went into arrears Tuesday after failing to make a 1.6 billion-euro debt payment to the International Monetary Fund. The country has limited the amount of money Greeks can withdraw from banks as the country’s financial institutions run dangerously low on cash.
The capital controls are just the tip of the iceberg, said Anastasios Economou, founder of international investment holding company iGroup. Greece’s businesses are already finding it difficult to purchase products and have started turning down credit cards, and shortages of critical goods may come next, he said.