





Fitch and Capital Economics: Romania and Bulgaria present a high level risk to Greek crisis
"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.