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Will New Greek Drama Threaten European Periphery?
Markets are reacting badly to Greek plans to exit its bailout program early. Uncertainties are being heightened by the prospect of early general elections. The end-result has been a sharp sell-off in Greek sovereign bonds, which has raised fresh concerns about the potential for spillover from Greek risks to other peripheral markets. Greece’s government is negotiating the country’s exit from its financial assistance program when it concludes at year-end. Under current agreements, Greece’s European Union (EU) loans stop at the end of 2014, but its IMF program continues through early 2016. Prime Minister Antonis ... (full story)