Since Greece announced that its budget deficit for 2009 was close to 13%, concerns on the sustainability of Greek debt have mounted. A default may be unlikely, but the saga could continue to create turbulence and directly impact Greek economic growth, and thus the strategy of Greek companies abroad. Greek banks also provide a key transmission channel for SEE, where Greek banks have a significant role: there are 4 Greek-controlled banks among the top-10 in Bulgaria, 3 in Serbia, 2 in Romania and one in Turkey.
A slowdown of the Greek economy could therefore have an real impact on the open and small South Eastern European economies.
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