The possibility of Greece leaving the common European currency is relatively unlikely now than it was in 2012, at the peak of the Eurozone crisis, when there was the risk that a Grexit would have a domino effect, Moody’s ratings agency said on Wednesday.
With Greeks going to an early vote in less than two weeks, leftist SYRIZA party has a steady lead in opinion polls. The party’s position is that it will renegotiate the country’s bailout program, asking international creditors for a generous haircut of the Greek debt and a lift of all austerity measures imposed.
“The likelihood of a Greek exit is still lower than during the peak of the crisis in 2012 and remains relatively unlikely,” Moody’s said, but added that political uncertainty in Greece has increased the chances of such a scenario.
“This higher risk could have negative credit implications for other members of the European single currency, despite contagion risks being materially lower than at the peak of the crisis,” said the report.
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