Romania is one of the countries with a high level risk regarding the exposure to Greece, considering that approximately 12% of the banking system is controlled by Greek banks warns Fitch ratings and Capital Economics, quoted by Bloomberg. They indicate that the situation is worse in Bulgaria, where approximately one third of the banking sector is owned by Greek crediting institutions.
"The most probable contagious channel between Greece and South-East Europe is through Greek banks subsidiaries. Any pressure on the Greek parent liquidity could have an impact on its branches' behaviour", Fitch analyst Mark Young declared.
The analysts from the two institutions also indicate that the Greek banks' financing costs will go up, after the rating for Greece was degraded following the governmental deficit increasing to 12.7% last year. Plus, the austerity measures will erode the profitability and the capitals of banks, triggering financial instability likely to spread in the Balkans.
