Stock markets and the euro traded lower Friday as Greek debt swap talks were put on hold and France’s finance minister confirmed that Standard & Poor’s has downgraded the country’s credit rating.
Francois Baroin confirmed media reports that the rating has dropped one notch from the top triple-A level to AA+. Various reports said Germany and the Netherlands would keep their top ratings.
Earlier, representatives of private bondholders said crucial negotiations between the Greek government and its private creditors on a deal needed to avoid default had been "paused for reflection," which raised concerns the negotiations were close to collapse.
The talks are aimed at renegotiating the face value of bonds Greece has issued in order to reach an agreement on how much of a haircut the banks will take voluntarily. By making the deal voluntary, Greece would dodge a legal default, which risks triggering a much deeper financial crisis that could curtail European lending.
For more: French downgrade sends stocks slumping - Business - CBC News
No comments:
Post a Comment