HSBC says Greece will need a post-bailout program

HSBC echoed the concerns of the Bank of Greece, saying a precautionary program or increased monitoring will be necessary for Greece once the country has emerged from eight years in bailout programs.

In statements to the Financial Times in London on Thursday, HSBC regional analyst Fabio Balboni said, “for a number of years, there has been concern about a possible Greek exit from the eurozone. But, having regained access to markets last year, in 2018 Greece might exit its bailout program instead, after eight long years, and nine finance ministers.”

He conceded that a so-called “clean exit” could be feasible, at least for a period of time, but did warn that “a precautionary program, or at least ‘enhanced’ post-program surveillance, might be needed to ensure Greek bonds remain eligible in the ECB refinancing operations,” as Greece is “still far from an investment grade and remains excluded from the QE program.”