German economist Dirk Schumacher, a top analyst with Goldman Sachs, is open to the possibility of a new Greek debt “haircut”.

Stating that Greece has been in an extremely difficult position for a while, the German economist said there “might” have to be yet another haircut.

He explained that great effort is required for the country to find its footing yet again, but the country in and of itself is not in immediate need of huge refinancing.

He added that if Greece’s growth rates in the coming years are high, then the debt sustainability could be stabilized.

On a potential Grexit, Schumacher said this would be connected to make risks for all those involved, and stressed that if Greece proceeds with needed reforms, it would be best if it stayed within the Eurozone.

In his view, a Grexit would raise interest rates in other southern European countries, since there will have been a set precedent.