Grexit could cause a confidence shock & disrupt govt debt markets – Moody’s

FXStreet (Mumbai) - Alastair Wilson, a managing director at Moody’s warned on Thursday that 'Grexit' might be a bigger problem than markets anticipate.

Key Quotes:

"The direct impact might be limited because of Greece’s limited trade links and lower financial market exposure to Greece in other euro area countries. But its exit could nevertheless cause a confidence shock and disrupt government debt markets,"

"Greece leaving the euro area would offer an example that might be followed in future,"

"That would inevitably influence the course of future reform and fiscal consolidation programs. It would raise, even if only a little, the likelihood that they too could end in default and exit."