Barclays CEO bets on potential 11th hour solution for Greece

Anna Edwards, Renee Bonorchis and Stefania Bianchi, Bloomberg
7:34 AM, E.T. | June 4, 2015
Economy, International

Barclays Chief Executive Officer Antony Jenkins said he expects a solution to the standoff between Greece and international creditors, which risks ousting the country from the eurozone.

“When you look at what’s going on in the EU and the Greece situation, there is clearly a process of negotiation happening at the moment,” Jenkins said in an interview Thursday from Cape Town. “Past experience shows that there is generally a solution found, albeit at the 11th hour. My money would be on that happening in this situation.”

Months of antagonism and missed deadlines have given way to a greater urgency to decide the fate of Greece. Without access to capital markets, the country has to meet four payments totalling more than 1.5 billion euros ($1.7 billion) to the International Monetary Fund in June, while its euro-area-backed bailout also expires this month.

Another round of top-level talks failed to resolve the standoff between Greece and its creditors as Prime Minister Alexis Tsipras Thursday rejected proposals that would unlock bailout funds necessary to avert a default.

Limited Impact

Greece’s exit from the euro area would have limited impact on Barclays because it does little business in the country, Jenkins said at the World Economic Forum on Africa. He added that the bank is still thinking about the “second order consequences” of a possible departure.

The Bank of England is pushing U.K. banks to have plans in place in case the Greece crisis escalates or the country leaves the bloc. While lenders have reduced ties with Greece, the BOE said in April that exposure to highly indebted euro-zone nations remain “significant” and carry “material risks.”

Thursday, June 4, 2015