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The ratings agency Standard and Poor’s recort & oacute!; Actual rating on Friday & oacute; n sovereign long-term debt Greece
& quot; B & quot; from & quot; B & quot ;, warning that liquidity constraints on local banks limit & iacute;. an soon will the new government to close a deal with its creditors
Prime Minister Alexis Tsipras was elected does just two weeks with a promise to move past & aacute; s unpopular austerity measures imposed under the bailout agreement EUR 240,000 million (270,000 million d DOLLARS) and renegotiate debt pa & iacute; s
Despite. a tour of European capitals in b & uacute SEARCHING support for condonaci & oacute; n. of debt, the government seems isolated in the euro area
Adem & aacute; s, the European Central Bank forbade & oacute; this week to Greek banks using government as collateral bonds to borrow from the central bank while there is no prospect of agreement on the bailout program
& quot;. Although the newly elected Greek government has been in power for less than two weeks, we believe their limited cash reserves and their suggestions for condonaci & oacute; n debt (…) restrict their flexibility to negotiate & quot ;, said S & amp;. P said in a statement
& quot; Liquidity constraints have limited the time frame in which the new government of Greece can reach an agreement with its official & quot creditors;.
The agency said debt ratings short- and long-term outlook remained negative, implying that can be cut again, and warned & oacute; that prolonged negotiations may cause a worsening of the situation & oacute; n econom mica in the pa & iacute;. s
& quot; An extension & oacute; n of negotiations with official creditors can lead to … a retreat dep & oacute; sites and, at worst, the imposition & oacute; n of capital controls and the p & eacute; loss of access to lenders STILL ultimately, what could & iacute; to result in the exclusion & oacute; n of Greece from the Uni & oacute ; n Econ & oacute; Economic and Monetary & quot;.
QU & Eacute; ASKS GREECE TO EUROPE
Back in Athens after a European tour with few results, the leaders of the new Greek government reiterated their demands of a plan to help the pa & iacute; s, maintaining its position & oacute; n before dif & iacute; cult meetings a week pr & oacute;. XIMA
Greece maintained its pol & eacute; mica search request & oacute; n financing before concluding new agreements with creditors, and considers that there should having, as he negotiates, no & quot; action & oacute; n unilateral & quot; party, sec STILL on Friday said a government source
The Government asked 1,900 million euros at the European Central Bank and the central banks of its partners, and the extension & oacute;. n of its borrowing capacity set by its creditors at 15,000 million euros in 2015
The DEGRADATION & oacute; n. note, imposed by Standard and Poor’s maintains the pa & iacute; s on negative watch because of uncertainty about the restructuring & oacute; . No debt
A DECISIVE WEEK
Greece financially distressed and a new government since Sunday, start & aacute; one week decisive, and in particular my & eacute; Wednesday, face & aacute; one diff & iacute; cil MEETING & oacute; n of the finance ministers of the euro zone. The ability to finance pa & iacute; s now rests on the facilities of the ECB to not go bankrupt, which could & iacute; to trigger a p & aacute;. Nico with unpredictable consequences in the markets
After sending a message rigor to Greece, the ECB opened & oacute; however a door to give some ox & iacute; geno Greek banks, which could & iacute; n borrow from the institution & oacute; n. to 60,000 million euros
The program of European aid to Greece ends at late February. Greek leaders anti-austerity reiterated on Friday its commitment to renegotiate the immense debt pa & iacute; s, despite having returned with the vac & iacute hands. Ace touring Europe where only they found allies to their cause
& quot ; The government respect & aacute; the mandate of the people who voted & quot ;, & oacute; by the end of austerity and renegotiation & oacute; n debt, Reiter & oacute; . on Friday, spokesman executive, Gabriel Sakellaridis in Antenna string
Tsipras and his finance minister, Yanis Varoufakis, toured Par & iacute; s, London, Rome, Fr & aacute; ncfort, Brussels and Berl & iacute; n in the past six d & iacute; as to explain their plans to alleviate the situation & oacute; n. a financially cornered Greece
The tour Empez & oacute; But some samples comprehension & oacute; n, but Ahab & oacute; . bad
The German Minister & aacute; n finance Wolfgang Sch & otilde; uble Reiter & oacute; the opposition & oacute; n of his pa & iacute; s –primera economy & iacute; ay l & iacute; der of euro– area to renegotiate the Greek debt and expres & oacute; skepticism about plans to restructure these Athens cr & eacute; appropriations. This is a & ntilde; adi & oacute; adem & aacute; s the decision & oacute; n the European Central Bank (ECB) cut off access of Greek banks to one of its channels FINANCE & oacute; n.
Summary of agencies
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The ratings agency Standard and Poor’s on Friday cut the rating of long-term sovereign debt
Greece to “B-” from “B” warning that liquidity constraints on local banks limit the time within which the new government to close a deal with its creditors.
Prime Minister Alexis Tsipras was elected just two weeks ago with the promise to leave behind unpopular austerity measures imposed under the bailout agreement 240,000 million euros (270,000 million) and renegotiate the debt.
Despite a tour of European capitals in search of support for debt relief, the government seems isolated in the euro area.
In addition, the European Central Bank this week banned Greek banks use government bonds as collateral to borrow from the central bank while there is no prospect of agreement on the bailout program.
“Although the newly elected Greek government has been in power for less than two weeks, we believe their limited cash reserves and debt relief tips (…) restrict their flexibility to negotiate, “said S & P said in a statement
” Liquidity constraints have limited the time frame in which the new government of Greece can reach an agreement with its official creditors. “
The agency said the debt ratings short and long term remained negative outlook, which means they can be cut back, warning that the prolonged negotiations may cause a worsening of the economic situation in the country.
“A extension of negotiations with official creditors can lead to … a withdrawal of deposits and, at worst, imposing capital controls and loss of access to lenders of last resort, which could result in the exclusion of Greece Economic and Monetary Union. “
ASKS WHAT TO EUROPE GREECE
Back to Athens after a European tour with few results, the new Greek government leaders reiterated their demands for a plan to help the country maintain its position before tough meetings next week.
Greece maintained its controversial funding request before concluding new agreements with creditors, and believes that there should be, while no “unilateral action” of the parties negotiated, he said on Friday, a government source.
The Government asked 1,900 million euros at the European Central Bank and the central banks of its partners, and the extent of its borrowing capacity set by its creditors at 15,000 million euros in 2015.
The degradation of the note, imposed by Standard and Poor’s keeps the country on negative watch because of uncertainty about restructuring its debt.
A DECISIVE WEEK
Greece, financially distressed and a new government since Sunday, start a decisive week, particularly on Wednesday, will face a difficult meeting of finance ministers of the euro zone. The country’s financing capacity now rests on the facilities of the ECB to not go bankrupt, which could trigger a panic with unpredictable consequences in the markets.
After sending a message rigor to Greece, the ECB opened a door however to give some oxygen to Greek banks that could borrow from the institution to 60,000 million euros.
The program European aid to Greece ends in late February. Greek leaders anti-austerity reiterated on Friday its commitment to renegotiate the huge debt of the country, despite having returned empty-handed from a tour of Europe where only they found allies to their cause.
“The government will respect the mandate of the people” who voted for an end to austerity and debt renegotiation, reiterated Friday executive spokesman, Gabriel Sakellaridis in Antenna chain.
Tsipras and his finance minister, Yanis Varoufakis, toured Paris, London, Rome, Frankfurt, Brussels and Berlin in the past six days to explain their plans to alleviate the situation in a financially cornered Greece.
The tour started well, with some signs of understanding, but ended badly.
The German finance minister Wolfgang Schõuble reiterated his country’s opposition –primera economy and leader of the area euro– to renegotiate the Greek debt and expressed skepticism about plans Athens to restructure these loans. This was further added to the decision of the European Central Bank (ECB) cut off access from the Greeks to one of their channels of financing banks.
Summary of agencies
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