Greek crisis poses questions for Kosovo and Montenegro

Kosovo’s government and Montenegro’s central bank each say the Greek crisis does not pose immediate risks to their countries’ financial systems, but EU Observer notes that some economists disagree. Kosovo and Montenegro both adopted the euro unilaterally in 2002. If confidence plunges in the euro, and that triggers bank runs, Kosovo and Montenegro cannot turn to authorities for help. Since they are not part of the eurozone, they cannot print euros, nor can they receive financial lifelines from the ECB. Kosovo has the added problem that 40 percent of its GDP is based on the cash-in-hand grey market.


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