Spain ended 2011 with a deficit of 8.51pc of GDP, well above its 6pc target, Finance Minister Cristobal Montoro says. That will make it harder to meet its public deficit goal for this year of 4.4pc. Standard & Poor's has released a statement that explains the thinking behind placing the EFSF on a negative outlook. To paraphrase: if the countries that back the EFSF aren't AAA-rated, then how can the EFSF be? ...Following the lowering of the ratings on France and Austria on Jan. 13, 2012, the rated long-term debt instruments already issued by the EFSF are no longer exclusively supported by guarantees from the EFSF guarantor members rated 'AAA' by Standard & Poor's or 'AAA' rated liquid securities. Instead, the EFSF's instruments are now covered by guarantees from guarantor members or securities rated 'AAA' or 'AA+'. Therefore, on Jan. 16, 2012, we lowered the long-term issuer credit rating on the EFSF, and the issue ratings on its long-term debt securities, to 'AA+' from 'AAA'. ....The vast majority of German MPs voted for the €130bn rescue package, despite it being ever more unpopular among the electorate, who know Germany will foot the bulk of the bill. A new poll in the Bild am Sonntag newspaper found 62% of Germans are against the rescue package, an increase from 53% in September. Of the 591 MPs present for the debate, 90 voted no and five abstained. It was the seventh time the Bundestag has voted on German aid to faltering countries since the debt crisis began. As anti-German sentiment grew on the streets of Greece, Bild, the biggest selling German tabloid, printed on Monday STOP! in large letters on its front page, urging parliamentarians not to "carry on down this wrong path" but to vote against the bailout---From today Greece is being told how to run its budget and how to spend its funds. That is the price for avoiding a return to the drachma. Before any money is released Greece has to implement 3bn euros in spending cuts. The EU has said that delivery of the funds depends on Greece honoring its promises in a "timely and effective manner". Euro zone governments have also agreed to lower the interest rates on the loans they made for the first bailout. That should reduce Greece's debts by a further 2.8%. The European Central Bank has agreed to forego profits on its holdings of Greek debt, another saving for Greece.
Access Investments-Building Awareness - European Union-ROMANIA
Tuesday, February 28, 2012
Begining today Greece is being told by it's German Governor (Horst Reichenbach) how to run its budget and how to spend its funds.
Spain ended 2011 with a deficit of 8.51pc of GDP, well above its 6pc target, Finance Minister Cristobal Montoro says. That will make it harder to meet its public deficit goal for this year of 4.4pc. Standard & Poor's has released a statement that explains the thinking behind placing the EFSF on a negative outlook. To paraphrase: if the countries that back the EFSF aren't AAA-rated, then how can the EFSF be? ...Following the lowering of the ratings on France and Austria on Jan. 13, 2012, the rated long-term debt instruments already issued by the EFSF are no longer exclusively supported by guarantees from the EFSF guarantor members rated 'AAA' by Standard & Poor's or 'AAA' rated liquid securities. Instead, the EFSF's instruments are now covered by guarantees from guarantor members or securities rated 'AAA' or 'AA+'. Therefore, on Jan. 16, 2012, we lowered the long-term issuer credit rating on the EFSF, and the issue ratings on its long-term debt securities, to 'AA+' from 'AAA'. ....The vast majority of German MPs voted for the €130bn rescue package, despite it being ever more unpopular among the electorate, who know Germany will foot the bulk of the bill. A new poll in the Bild am Sonntag newspaper found 62% of Germans are against the rescue package, an increase from 53% in September. Of the 591 MPs present for the debate, 90 voted no and five abstained. It was the seventh time the Bundestag has voted on German aid to faltering countries since the debt crisis began. As anti-German sentiment grew on the streets of Greece, Bild, the biggest selling German tabloid, printed on Monday STOP! in large letters on its front page, urging parliamentarians not to "carry on down this wrong path" but to vote against the bailout---From today Greece is being told how to run its budget and how to spend its funds. That is the price for avoiding a return to the drachma. Before any money is released Greece has to implement 3bn euros in spending cuts. The EU has said that delivery of the funds depends on Greece honoring its promises in a "timely and effective manner". Euro zone governments have also agreed to lower the interest rates on the loans they made for the first bailout. That should reduce Greece's debts by a further 2.8%. The European Central Bank has agreed to forego profits on its holdings of Greek debt, another saving for Greece.
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Standard & Poor's Ratings Services lowered its "CC" long-term and "C" short-term sovereign credit ratings on the Hellenic Republic (Greece) to "SD" (selective default).
Our recovery rating of "4" on Greece's foreign-currency issue ratings is unchanged. Our country transfer and convertibility (T&C) assessment for Greece, as for all other eurozone members, remains "AAA".
We lowered our sovereign credit ratings on Greece to "SD" following the Greek government's retroactive insertion of collective action clauses (CACs) in the documentation of certain series of its sovereign debt on February 23, 2012. The effect of a CAC is to bind all bondholders of a particular series to amended bond payment terms in the event that a predefined quorum of creditors has agreed to do so.
In our opinion, Greece's retroactive insertion of CACs materially changes the original terms of the affected debt and constitutes the launch of what we consider to be a distressed debt restructuring. Under our criteria, either condition is grounds for us to lower our sovereign credit rating on Greece to "SD" and our ratings on the affected debt issues to "D".
Here it comes ....DEFAULT.
I hope the commie Merkel is prepared now to sponsor Greece from now to eternity...........with the German taxpayers permission that is.LOL.
Congratulations, Grease.
You are the first ever Western country to DEFAULT on its debts in 60 years- after near to a trillion money you've got through structural funds, EU subsidies and official bank loans.
A TRULY HISTORICAL ACHIEVEMENT.
You have every right to be proud of yourselves ....please keep deriding the Nazis that feed you,aparently you've got the winning strategy for the ultimate political blackmail.
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