BUSINESS

Greece 'to default within 5 years'

Greece is virtually certain to default on its huge debts within the next five years, according to a report by the Bank of England made public on Friday.

According to the bank?s report, Greece has a 100 percent chance to default on its debt within five years while Portugal faces a 60 percent risk of bankruptcy followed by Ireland and Italy with rates of 50 and 40 percent respectively.

The British central bank?s governor, Mervyn King, reportedly emphasized that these conclusions were not a theory put forward by the bank but had been calculated based on the impact on market prices of the debt crisis in each individual country.

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