Greek default, “a real possibility” – The Economist

Fitch leaves note in “CCC”, vulnerable and dependent to meet its obligations

The no access to the debt market and doubts about the refund, the argument.

The rating agency Fitch confirmed the rating” CCC “from Greece, but said the risk of default on its debt is” a real possibility “.

” The non-market access (debt), uncertain prospects for repayment as of the aid by the official institutions and the very low liquidity of the domestic banking sector placed Greek government finances under extreme pressure , “said Fitch.

” We hope that the Greek government survive the current pressure without falling behind in their obligations to the private sector, but default is a real possibility, “said the agency.

In March, Fitch had lowered to “CCC” the sovereign rating of Greece’s debt, citing “high risk” planning on the financial situation of the country.

The rating agency expects zero or even negative growth, the Greek economy this year and pressures on liquidity of companies because of arrears in payments from the state and pressures on bank financing.

Fitch believes, however, a possible deal between Greece and its creditors, who asked Athens legislative measures that enable it to receive new funds.

Tsipras warned

Alexis Tsipras, Prime Minister Greece, warned that foreign creditors would not pay Athens in May to 750 million euros due to the International Monetary Fund (IMF), unless they delivered him immediate liquidity daily Kathimerini reported. Athens finally paid on May 12, using reserve funds.

Citing European sources, the newspaper said Tsipras made the threat in a letter to Jean-Claude Juncker, President of the Commission EU, Christine Lagarde, IMF Managing Director, and Mario Draghi, president of the European Central Bank.

The letter was considered a “possible simulation” and reinforced the climate of mistrust between the two sides, he said daily.