Greece may be forced out of euro in 70 days: RBS

MADRID: Greece may be forced out of the euro within 70 days as the banking system runs out of money unless its election produces a clear result, Alberto Gallo of Royal Bank of Scotland Group said.

Gallo said there is a 30% chance that the election again leaves no party able to form a government. In that scenario, outflows of deposits from Greek banks may reach $1.3 b a day, exhausting the financial system's collateral in just over two months, he said.

The Bank of Greece would then likely have to issue credit notes, effectively a new Greek currency, in order to fund its banking system. “If you don't have a new government, there is a good chance that Greece is forced by capital flight to exit the euro within months,” Gallo said.