The record for last year came after Greece’s credit rating was reduced to its lowest level.The euro fell to its lowest levels against the dollar since a year in trade in New York in connection with the increased risk of default of the Greek debt. The euro was trading below 1.32 dollars for first time since April 28, 2009, after Greece’s credit rating was lowered Tuesday to its lowest level. The euro has lost about 2 cents to 1.3172 dollars compared with 1.3408 on Monday. On May 10, will most likely be activated mechanism for assistance to Greece. EU leaders examine whether to convene an extraordinary session of the summit of euro zone countries on May 10 in connection with activation of the support mechanism of Greece, the world record agencies.
The conference will be to activate the rescue plan for Greece with loans worth 30 billion euros from euro zone countries for 2010 and 15 billion from the IMF if the European Commission and European Central Bank confirmed that the application of the fund is warranted. Expected euro zone finance ministers to discuss the May 4, the results of negotiations of the IMF and European Commission conference in Athens by the connection.
Standard & Poor’s lowered by three degrees the credit rating of Greece – the category of speculative or “junk” (high risk debt). Earlier on Tuesday the agency drop by two degrees and credit rating of Portugal. Lowering the rating means Athens will pay more interest on their loans if they decide to come back the debt markets. Decrease is the result of the revised estimate of the political, economic and budgetary challenges facing the Greek Government in its efforts to curb debt crisis, said an analyst at Standard & Poor Marco Mrashnik.
According to rating agency after Greece failed to reassure markets that are worried about the insolvency of Athens or her debt restructuring “Every day is getting worse Greece is a razor blade without plans and without any direction for tomorrow, “said today the Greek newspaper Apogevmatini. According to Greek newspaper economy indicate that it processes beyond the control of government, which seemed helpless to deal with them. “Greece is experiencing a debt crisis, speculators do whatever they want, Germany and the IMF insist on” unconditional surrender “and the background of all this … Erdogan comes with ten Turkish ministers on 19 May, the newspaper said.
C. Ta Nea “warns that” the threat of the domino effect is awakened Europe and that speculators are now attacking and Portugal.
C. “Logos” citing central bank Governor George Provopulos which warns that a recession next year in Greece will be greater than 2% and call
new measures as early as this year.
C. Metro indicated that markets were highlighted on Tuesday “picture of the total bankruptcy of Greece” and that this was due to a catastrophic scenario for the country in recent days circulated by Germany, as their statements Germanic senior more strongly challenged the issue of renegotiating the Greek government debt.