In an insights report for Q1 2015, CFSGAM said that mounting tensions between Greece and its creditors – the European Union, European Central Bank and the International Monetary Fund – have raised the risk of a Greek exit.
Greece needs to unlock emergency funds before its €760 million debt repayment to the International Monetary Fund is due on 12 May.
“Mounting tension between Greece and its creditors have raised the risk of a Greek exit from the eurozone, with Greek 10-year yields rising from 9.75 per cent to 11.63 per cent over the quarter,” CFSGAM said.
Greek deputy prime minister Yannis Dragasakis expects a deal to be reached in early May.
However, Mr Dragasakis said it is likely to be a “minimum agreement”, quoted in The Guardian.
“Now we are going to a minimum agreement with actions that can be taken immediately. But [in the long term] not just any solution will suffice,” Mr Dragasakis said.
“The solution has to be viable.
“After the interim agreement a long discussion about the debt, primary surpluses, investment and growth will follow,” Mr Dragasakis said.
Greece’s left-wing Syriza party was elected on the premise of reducing austerity measures imposed by its creditors.
If Syriza’s current list of reforms are approved by its creditors, a third bailout program could be endorsed by eurozone ministers on 11 May.
