Greece an emerging market if it leaves euro, says Mobius
Franklin Templeton’s Mark Mobius says Greece could be redefined as an emerging market if the country leaves the eurozone.
The two main parties in the running at forthcoming elections are the conservative New Democracy party, which wants to renegotiate bail-out terms imposed by the International Monetary Fund and the European Union and keep Greece in the euro, while the leftist Syriza party is opposed to austerity measures.
If Greece reneges on its bailout terms and fiscal aid is withdrawn, the country could default, prompting an exit from the eurozone.
“If Greece goes to the drachma, it will probably qualify for being an emerging market,” says Mobius, executive chairman of Templeton Emerging Markets Group.
“Greece is getting there pretty quickly,” he adds.
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