Greek contagion risks underestimated: World Bank

The risks of turmoil from a cash-strapped Greece should not be underestimated by markets, World Bank President Jim Yong Kim warned on Tuesday.

Talks between Greece and its international lenders for further cash in exchange for reforms have been deadlocked for months, raising concerns about a default and Greece’s possible exit from the euro zone.

“Some of the commentary I’m hearing from people who have been through many of these crises is that there are always surprises,” Kim told CNBC in an interview aired on Tuesday.

“You think that the market has already calculated the impact of a problem in Greece but you never know, so I would urge everyone at the table to come do as much as they can to come to an agreement that is good for Greece, is good for Europe and will of course be good for the world,” he said.

CNBC

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