Charles Dalara: Greece is no risk for the markets

Former International Financial Institute (IIF) head Charles Dalara said the risk of destabilization of the global markets due to the Greek reality is no longer visible and called on Europe to recognize the magnitude of the reforms the country has implemented.

Speaking to CNBC, the "architect" of the agreement on the restructuring of the Greek debt in 2012, excludes Greece and China from the list threats that could drag the markets along with them.

“Greece is no longer on the table,” Dalara notes, observing that Europeans continue to provide financial aid and demonstrating willingness to become a little more generous.

As he pointed out, Greece has run a long period of adjustments and believes that the time has come for Europe to recognize that the country has achieved a lot, especially on the financial level.

Regarding the borrowing cost in countries like Greece, Ireland, Portugal and Italy that has fallen on low levels, Dalara notes that this is not an indication of a dramatic improvement in the economies of these countries, and hastens to add that the risks are certainly smaller.

In the case of China, Dalara does not see a significant systemic risk. He believes that although it might bring volatility in the markets, it is quite harmless, as it cannot cause a complete destabilization.