Financial crisis in Greece will have huge consequences on Europe as well as the global economy, Group CEO of Doha Bank R Seetharaman said today, hoping that the Greek bailout referendum due on Sunday has a positive outcome. “Greece is in great trouble. The referendum which is scheduled on 5th of this month is going to say yes. Because if Euro fails Europe fails. It will not confine to Greece alone.
Italy, Spain and Portugal will not live beyond it,” he told reporters here.
Greek Prime Minister Alexis Tsipras on July 1 decided to press ahead with a bailout referendum on accepting creditors’ stringent demands.
Soon after Greece became the first advanced economy to default on an IMF repayment, Tsipras urged Greeks to vote ‘No’ on Sunday to creditors’ current demands.
According to Seetharaman, if the plebiscite is a “No”, then theoretically there will be long term consequences for Euro and Europe as well and the crisis will have huge consequences on Indian currency as well. If Europe is disintegrated, the global consequences will be huge and it will create an additional phase in the current financial turmoil, he said.
“If Greece is going to be bankrupt, there will be a disjointed Euro. What does it mean to the global economic sustainability? How we will sustain the global growth with this kind of issues and in my opinion on 5th of July you will have a yes vote,” he claimed.
Seetharaman was talking to reporters here today on a session organised by the Confederation of Indian Industry (CII) to highlight the opportunities in Qatar and the Gulf Cooperation council (GCC).
“If Greece is declared bankrupt, 350 billion dollar are at stake. Europe will pay a price, American economy will pay a price. As America is the barometer, financially we will face the consequence because it (Indian economy) is linked with dollar,” he said.
However, he said that India will achieve a sustainable growth of 9 per cent for around next five years and with the political stability, he said.”The country will have a sustainable growth for next ten years as the investors from world over want to invest in India, he said.
On Doha Bank’s plan to set up banking services in India, he said they have already two branches in Mumbai and one in Kochi and they are interested in scaling up their operations here. He did not rule out plan to set up a branch in Gujarat as well.
Seetharaman said he wants corporates and the small and medium enterprises from Gujarat and India to come and invest in the Gulf countries.
