Global rating agency Standard & Poor's believes there is a greater than 50/50 change of Greece leaving the euro or a "Grexit".
While there is a "whiff of optimism" that a deal will be struck between Greece and its creditors, S&P sovereign rating managing director Moritz Kramer says time is running out with a 3.5 billion euros loan due to repaid on July 20.
"Clearly the money is not there," he told a live webcast on the Greek debt crisis later on Tuesday ahead of a crucial meeting in Europe between finance ministers and Greece.
Mr Kramer warned that the problems facing China were a bigger threat to the global economic outlook than events in Greece.
Australia's number trading partner, which is already facing a slowing economy, has undertaken measures to prop up the Chinese stock market after tumbling over 25 per cent since mid-June.
"In my mind, the Chinese challenges outshadow the Greek one by a large margin," he said.
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