Citigroup warns 90% chance of Grexit

Investment bank Citigroup has forecast a 90% chance Greece will leave the euro in the next 12 to 18 months.

The bank has raised the probability of an exit from 50% to 75%, and said it was most likely to happen in the next two to three quarters, Bloomberg reports. It pinpoints 1 January 2013 as the date Greece will leave the euro, but adds this is not a precise forecast. "Before the Greek election, the troika members were willing to be patient, while Greece slipped off-program in expectation that the election might produce a government that was able and willing to get the program back on track," Michael Saunders, chief western European economist at Citigroup, said in the note. "It is now ...