Greece being kept in euro 'while EU banks retrieve money'

Greece is only being kept in the euro to enable banks in northern Europe to retrieve money they have in the stricken nation, said Old Mutual's Christine Johnson.

Johnson, manager of the group's Corporate Bond fund, said Greece has so far escaped ejection from the eurozone because of the exposure of French banks to its sovereign debt. "Greece has not remained in the eurozone because it is beneficial to Greek voters," she said. "It has been kept there while northern European institutions retrieve any money they may have in the country. Much of the money lent so far to 'bail out Greece' has flowed back out to service debts held elsewhere, most notably in France." Johnson, running one of the most successful corporate bond funds of the last thre...