‘Grexit’ risk dips even as aid talks go to the wire, investor survey shows

The probability Greece will leave the euro zone in the next year has fallen even as Athens is fast running out of time to reach a cash-for-reforms deal with its EU lenders, a May survey of mostly German-based investors showed.

The survey of around 1,000 individual and institutional investors registered with consultancy firm sentix, found that 41 percent of respondents expected Greece to leave the 19-nation currency bloc, down from 49 percent in April. But this was still higher than the 22.5 percent in a January survey.

“Investors obviously take — despite Greece’s still unclear future — comments of the Hellenic government seriously that the country wants to keep the common currency,” senior sentix analyst Sebastian Wanke said in statement.

Athens said on Monday it intended to make good on its debt obligations but needs aid urgently to be able to do so, after several senior officials insisted Greece had no money to pay a loan instalment falling due next week.

The country, which is running out of cash to pay its bills, must repay four loans totalling 1.6 billion euros to the International Monetary Fund next month, starting with a 300 million euro payment on June 5 that is seen as the next crunch point for state coffers.

Greek two-year yields jumped 278 basis points on Tuesday to 25.76 percent, their highest since the bonds were issued in July 2014, while 10-year yields were 44 bps higher at 11.96 percent. [Reuters]

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