Italian impact highlights need for a precautionary credit line
The recent rally in Greek bond yields due to the political crisis in Italy once again illustrated how vulnerable Greece is to external shocks. Analysts at foreign firms told Kathimerini that the Italian unrest will have consequences on Greece, stressing that the choice of a "clean exit" contains great risks as it must come with a huge cash reserve.
They add that the current instability in the markets is not conducive to a new bond issue and recommend that Greece reviews the option of a precautionary credit line.
Goldman Sachs managing director Silvia Ardagna warned in an interview with Kathimerini that Greek bonds are the most vulnerable in the eurozone, and that this will become even more evident after the country exits the bailout program in August.
Likewise, Jens Peter Sorensen, chief analyst at Danske Bank, told Kathimerini that the climax of the Italian...
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