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Greek Crisis Unlikely to Pose Major Risk to Financial Markets - Obama

© AFP 2023 / Brendan SMIALOWSKIUS President Barack Obama speaks on the phone in the Oval Office of the White House
US President Barack Obama speaks on the phone in the Oval Office of the White House - Sputnik International
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A possible Greek default will unlikely have a major systemic impact on financial markets but could still impact European and global growth, US President Barack Obama said at a press briefing on Tuesday.

WASHINGTON (Sputnik) — The US president added if Europe’s economy slows down it could have a “dampening effect” on the world economy.

“This [Greek crisis] is not something we believe will have a major shock to the system. Obviously, it is very painful for the Greek people and can have a significant effect on growth rates in Europe,” Obama said.

The United States, European Central Bank (ECB) and international financial institutions need to develop a contingency plan to ensure financial markets are able to handle a Greek default, Obama said.

Traders work on the floor of the New York Stock Exchange shortly after the opening bell, June 15, 2015 - Sputnik International
US Stocks Rally as Greece Asks EU for New Bailout
Greece, the International Monetary Fund (IMF) and ECB have been in back-and-forth negotiations to implement reforms and provide additional funding to avoid a Greek default and potential exit from the Eurozone.

As a Tuesday night $1.7-billion repayment to the IMF looms, Athens and creditors remain in a deadlock. Greek Finance Minister Yanis Varoufakis said on Tuesday that Greece would not make the IMF payment.

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