Bulgaria stands more to lose than Romania and Serbia if Greece exits the Eurozone – a so-called Grexit, according to a Morgan Stanley report.

Greek banks have a significant market share in all the three countries, but they record the highest level in Bulgaria.

“Even if the economic impact of a Grexit can seem manageable, we believe that banks represent the most dangerous channel to propagate the negative effects of such an evolution,” reads the Morgan Stanley Research report.

Greek banks generate  14% of their turnovers from the South-Eastern European markets, according to Morgan Stanley.

In Bulgaria, Greek banks completely own United Bulgarian Bank, Piraeus Bank Bulgaria, and Alpha Bank. In Romania, Greek parent banks control four local banks.

editor@romania-insider.com