Investment guru Mark Mobius rules out Grexit, advises sell-offs

Greece’s future in the eurozone is not in question and the government will reach a deal with the country’s creditors, Templeton Emerging Markets Group Chairman Mark Mobius said in an interview published by Naftemporiki daily on Tuesday.

Mobius, who was in Athens on an invitation by Eurobank, appeared upbeat about Greece’s prospects but warned that the government will have to implement measures to boost investments.

“Greece will stay in the eurozone, there is no issue,” the investment guru told Naftemporiki. “The stock market is cheap and we are buyers.”

Mobius appeared critical of what he termed “punishing” measures being imposed on Greece by its eurozone partners and the International Monetary Fund, saying that “the emphasis the new government is placing on renegotiating the austere terms that have been imposed on the country is positive, it will boost optimism.”

However, he added, “Greece’s ability to renegotiate its debt and repayment terms will prove a very big challenge.”

Mobius supported the need for “radical changes” to deal with sovereign debt crisis in Greece and Europe more generally, adding that the European Union needs a bold investment plan for Greece and other indebted member states in order to encourage growth.

Promoting privatizations is the basis on which the Greek government could attract more foreign investment and shift sentiment, Mobius said.

“Give businesses to the Chinese. Give ports, railroads, don’t be afraid of them,” the veteran investor advised. “They have huge capital and want to build profitable companies.”

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