Greek syndrome is eating the Balkan - Greece's collapse will cause a drain of capital from the region?

Greek financial collapse could lead to a severe economic downturn in the region of the Balkans, as well as among other countries which are not in the euro area, but had years of business ties with Greece, warn economic analysts.

No one can predict how events will develop after the parliamentary elections on 17 July in Greece. Fears are not unfounded: Greek banks hold in their hands 15% of the charter capital of credit organizations of neighboring countries. Thus, the primary investments are invested in the economies of Bulgaria, Romania, Macedonia, Albania and Serbia.

Analysts warn of the possibility of a Greek bankruptcy and say that the switch from Euro into Drachma will have negative affect for the business in the region. European Bank for Reconstruction and Development makes a defensive ferrule around Greece, and according to the bank's claims, this could prevent a massive capital drain from the Balkans. Namely, the European Bank reached an agreement with three Austrian banks, large financial investors in the region, for the unfavorable liquidity in Eastern Europe.
Problems arise in the other Western Balkan countries that do not have the Euro, but are financially related with Greece. By itself this means it is possible a deeper crisis in the Balkan countries.
Analysts recall that something similar happened in 2008, when due to the complicated financial situation, the Scandinavian countries withdrew significant funds from banks in the Baltic States, and came to the economic downturn in the region. Because Balkan countries are more unstable in economic terms from the Baltic, the consequences can be very serious.
Analysts believe that the fast transition from Euro to Drachma is not possible. The process will take at least a few years. During that time other foreign banks, among others and Russian, can buy subsidiaries in these countries, and that way replacing the Greek capital.
Experts warn that the outflow of funds to Greece from its Balkan subsidiaries will cause panic among investors and they'll begin to invest in more reliable sources, such as Germany and Switzerland ..

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