Citigroup’s chief economist, Willem Buiter, said Thursday that there’s a 90% chance Greece will flee the euro currency in the next 12 to 18 months. The so-called Grexit — a term coined by Buiter — would most likely take place by early 2013, the Citigroup report said.
Buiter and his team had previously assessed the probability of a Greek exit at 50% to 75%.
Greece’s creditors had been willing to give the nation a break in the hope that a new government would help get its fiscal house in order, said Buiter. But that doesn’t appear to be the case anymore.