Lagarde: Grexit a possibility but …’it’s probably not the end of the euro’

IMF chief Christine Lagarde reiterated on Thursday, on the sidelines of the G7 summit from Dresden, that a deal between institutional creditors and the cash-strapped Greek state is unlikely “very soon”.
“We are all in the process of working towards a solution for Greece and I would not say that we already have reached substantial results … Things have moved, but there is still a lot of work to do,” she added, joining a recent chorus of international political and economic leaders that disputed the SYRIZA government’s rosier predictions.
Moreover, in comments carried by FAZ, Lagarde is quoted as saying that a breakthrough by Sunday — the day cited by a Greek government spokesman — is a long shot.
Other Lagarde highlights on Greece stated:
“After positive signals from Athens 10 days ago, we’ve been sobered in the last week”
“There is still a lot to do on Greece”
She ruled out more loans without a “clean reform agreement”
Finally, she again warned that the recession-battered country now run by the radical left could “potentially” leave the euro area, “it’s probably not the end of the euro”