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He argued that while financial ministers would concentrate today (January 24th) on convincing Greece to strike a deal with its creditors in the private sector, the overall picture remains gloomy in the long term.
Despite International Monetary Fund head Christine Lagarde's calls for a firewall to protect European countries from debt contagion in order to protect the common currency, the situation could continue to degenerate.
Looking at the big picture, "the question is posed as to whether all the genuine time and effort that is being invested in endless discussions will actually produce a viable solution", said Mr Gaywood.
He added that the prospect of Greece defaulting on its debt had to be considered by financial chiefs.
Reuters reported today (January 24th) that Standard & Poor's is likely to downgrade Greece's rating to "selective default" later in the week.
Posted by Greg Secker
