According to the review: “…default risk expectations have increased sharply in Greece amid heightened political uncertainty.”

The same review states that the reactions of the credit markets to the Greek developments have been limited,  but, should there be further delays in reaching an agreement “the risk of an upward adjustment of the risk premia demanded on vulnerable euro area sovereigns could materialize”.

Furthermore Reuters reports that Greece faces a one in three possibility of a Grexit due to its inability to secure new loans which would allow the country to repay older debts.

According to Karsten Julius, an economist who works for Bank Sarasin, no one seems willing to undertake the political responsibility of a decision for Greece to stay in, or move out of the Eurozone.   As a result the economy keeps weakening and its ability to pay its debts is becoming almost impossible.