RBS predicts 'violent' Greek default by December

RBS expects Greece will experience a hard default this December in a move it says will cause "violent contagion" in global markets.

In a note to clients, RBS European rates strategist Harvinder Sian said Greece will default on or around the IMF's 11 December review of its fiscal reforms. The note pointed to the inability to implement reform, over-aggressive austerity targets, an absence of further compromise from the IMF and EU and the increasing difficulty of passing laws through the Greek parliament as factors influencing its forecast. "The only reason for suspecting the 11 December review is still the more pivotal date [than the 11 September review] is the idea Greece has at one more iteration of promises to ma...