"If unchecked, market concerns about sovereign liquidity and solvency in Greece could turn into a full-blown sovereign debt crisis, leading to some contagion," the report said, adding that this "reinforces the importance of efforts by the Greek authorities to re-establish the credibility of their fiscal policy".
Concerns about sovereign debt sustainability are becoming increasingly widespread.
"And our heightened concerns over sovereign credit quality are not going to abate anytime soon".
Concerns about sovereign debt sustainability in the European monetary union are becoming increasingly widespread.
Stocks closed higher Thursday, helped by rising retail and technology shares, as investors pushed aside concerns about sovereign debt problems in Europe.
The effects of the flagging economy and concerns over sovereign debt have constrained banks from issuing loans to finance large leveraged buyouts.
America's loose monetary policy and concerns about sovereign defaults in the euro zone will encourage capital to flow to emerging economies, making the latter's central banks reluctant to raise interest rates and dampen down inflation.
The country's national trust fund, a key component of the economy, lost 10% of its value in a single month (August) as international equity markets, in which the money was invested, fell steeply amid global concerns about sovereign debt.
Last week Senator Evan Bayh, Democrat of Indiana, the chairman of the Senate subcommittee on security and international trade and finance, who has raised concerns about sovereign fund transparency, traveled to Abu Dhabi to meet with senior ADIA executives.
During the first three months of 2011, the only consistent thing was a lack of consistency, with fears over the nuclear disaster in Japan, uprisings in the Middle East and lingering concerns about sovereign debt in Europe and even in the United States all weighing on the markets.
