Mohamed El-Erian: 85% Chance of Greece Leaving Eurozone

Former Chief Executive Officer of Pacific Investment Management Co. (Pimco) Mohamed El-Erian predicts there is an 85% chance that Greece will leave the eurozone within the next few weeks. This would possibly spark a period of extreme market volatility. (Source: Bloomberg, June 29, 2015.)

On Sunday night, Greek Prime Minister Alexis Tsipras announced that Greek banks would be closed, imposing a daily withdrawal limit of 60 euros on bank machines. The Greek banks are not expected to reopen until after a national referendum on July 5th.

The decision to close down banks was made after the European Central Bank’s (ECB) announcement that it would not provide further emergency loans to Greece. The Greek government feared that funds would run dry soon and shut down the banks.

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