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European Economics Update

European Economics Update

Could a banking crisis add to Greek woes?

Greek bond yields have continued to surge as doubts remain over whether the euro-zone will actually be able to provide financial support to Greece. But a growing worry is that the ongoing crisis prompts Greek households and firms to remove their money from domestic banks and deposit it elsewhere, causing a domestic banking crisis. Needless to say, this would only add to the Government’s woes.

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