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2/22/12

Greece downgraded further to junk status

Greece was downgraded further by Fitch Wednesday as it scrambled to adopt a batch of emergency laws that will further cut incomes and government spending, a day after securing a new bailout and debt relief deal designed to stave off bankruptcy.

The new austerity measures demanded by creditors in return for the rescue loans follow two years of deepening misery, with the Greek economy in free fall, unemployment at a record high and the state of the public finances in worse shape than previously forecast. Angry unions have called two separate protest rallies outside Parliament in the afternoon.

On Tuesday, the 17-country eurozone approved Greece's second financial lifeline in less than two years, worth €130 billion ($172 billion), and a €107 billion ($141 billion) debt write down on banks and other private holders of Greek bonds.

Note EU-Digest: Fitch Ratings is obviously looking out for the financial industry, which unfortunately also include financial speculators, Together with the other US based financial rating companies they carry far too much weight as to the damage they can do to national economies. It is high time something gets done to curb their quasi importance and influence.


For more: Greece downgraded further - Business - CBC News

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