Fresh trouble for Greece amid downgrade fears

Date: Thursday 25 Feb 2010

There was more trouble in store for Greece today following fresh warnings from two rating agencies.

Moody’s Investors Service warned in the early hours of Thursday morning that any changes in its ratings on Greece depend on the government of Greece doing what it has promised.

Rival ratings agency Standard & Poor's said yesterday that it could further downgrade Greece's BBB-plus rating by one or two notches within a month.

The news comes amid rumours that the Greek government plans to issue a new 10-year bond next week.

The government aims to raise between €3bn and €5bn from the issue, Dow Jones Newswires reported, citing people familiar with the matter.

Tensions were also running high after Greece lashed out at fellow euro zone member Germany, the country thought most likely to carry most of the cost if Greece needs to be bailed out.

Deputy prime minister Theodoros Pangalos said Germany had no right to reproach Greece for anything after it devastated the country during the second World War.

‘They took away the gold that was in the Bank of Greece, and they never gave it back. They shouldn't complain so much about stealing and not being very specific about economic dealings,’ he told the BBC.

He added that EU leaders were of ‘very poor quality’. ‘The people who are managing the fortunes of Europe were not up to the task,’ he said.

Yesterday’s general strike in Greece resulted in violent clashes between protesters and riot police in Athens.

The strike shut down air, rail and maritime transport in Greece as tens of thousands protest against the government’s austerity measures. There were no flights in and out of the country's airports, with train, bus and ferry services also cancelled nationwide.

« Go back to news channel

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE