Obama: No ‘major shock’ to US from Greece crisis

by Jordan Fabian - 06/30/15 1:40 PM ET

President Obama on Tuesday said Greece’s debt crisis poses little threat to the U.S. financial system.

“In layman’s term for the American people, this is not something that we believe will have a major shock to the system,” Obama said during a press conference with Brazilian President Dilma Rousseff.

{mosads}Obama said Greece’s financial woes are “primarily of concern to Europe” because it could dampen growth rates there, which could cause a ripple effect on the global economy.

The administration has been monitoring the situation and has been planning for contingencies if Greece defaults on its debt, Obama said.

In the past three days, he has phoned British Prime Minister David Cameron, German Chancellor Angela Merkel and French President François Hollande to discuss the crisis and potential reforms for Greece.

Obama said international financial markets have “properly factored in” the risks presented by Greece’s financial straits.

Greece is hours away from a Tuesday deadline to repay approximately $1.8 billion to the International Monetary Fund as part of its bailout.

The Greek government is seeking an additional last-minute bailout that would last two years. Leaders in the Eurozone are reportedly weighing the proposal.

Stocks fell sharply around the world Monday amid the uncertainty.

Tags Greece