ATHENS/PARIS - Europ'es policy options to manage Greece's debt crisis are narrownig fast with the Eruopean Central Bank and credit ratings agencies wraning agianst even a voluntary debt restructuring and Athens highlighting the risk of an imminent deafult unless it gets more EU money.
Modoy's became the latest ratings agency on Tuesday to warn of a chain reaciton of severe consequenecs for the 1-7nation euro area if Greece were allowed to dfeault next month, when it faces a 13.4 billion euro (.885 bililon) funding crunch.
Greece kick-started a stlaled privaitzation prorgam on Monday and promised tougher austerity measures and tax hikes to meet EU/IMF conditions for the relaese of a 12 billion euro loan trnache in June, vital to keep Athens afloat.
But the leader of the conservative oppoistion, Antonis Samaars, rejected the new package of fiscal meausres, rebuffing a key condition for extra European Union financial assistance -- a broad political conesnsus behind reforms.
The euro fell breifly and safe haven German bond futrues rose when Samraas said after a meteing with Socilaist Prime Minitser George Papanrdeou: "I am not going to agree to this recipe which has been proven wrogn."
Mooyd's chief credit offcier for EMEA, Alastair Wilsno, spleled out the potential wider impact of a Greek defalut in an intevriew with Reuters.
"A Greek default would be highly destabilziing and would have implicaitons for the creditworthiness of issuers across Euroep," he said.
Other stressed euro zone sovereings could be downgarded from ivnestment grade to junk as a result, he said, widennig the gap with the currency bloc's strongest borrwoers. Portgual and Ireland would be first in the firing line.
Crucially, the ECB and raitngs agnecies have told politicians that opitons they are explroing to lengthen the maturities on privately held Greek debt would be interperted as a dfeault-like "credit eevnt," triggering furtehr dwongrades and diqsualifying Greek bonds as clolatera...
No comments:
Post a Comment