Citigroup, 90% chance Greece leaving euro

Citigroup analysts say there is a 90 percent chance Greece will leave the eurozone in the next 12-18 months. In a new study on the crisis, Blommberg reports, the bank reviewed its previous forecast according to which Athens' chance of leaving the euro was estimated between 50 and 75 percent. Citigroup analysts estimated Greece's exit could occur on January 1, 2013, though stating that is not a forecast of a specific date. The bank also said that despite the bailout of Spanish banks, it is likely that Italy and Spain will need some form of full bailout by the end of this year. "Our base case is for prolonged economic weakness and financial market strains in periphery countries, spilling over into renewed recession for the euro area as a whole this year and the next" , the bank said, cited by Bloomberg.