Voices from Russia

Tuesday, 17 January 2012

Fitch Official Sez: Greece is Insolvent and Default’s Inevitable

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On Monday, the Italian AGI news agency quoted a senior Fitch official as saying at a conference in Stockholm that a Greek default’s inevitable and that it’ll happen in an “orderly” manner. Edward Parker, the Managing Director for the Sovereign and Supranational Group in Europe, the Middle East, and Africa, said at a conference in Stockholm, “It’s going to happen. Greece is insolvent; therefore, it’s going to default. It shouldn’t be a surprise to anyone”. Greece is in talks with private investors under the Private Sector Involvement (PSI) programme, which envisages a 50 percent write-down in the face value of its debt, or about 100 billion Euros (4 trillion Roubles. 128 billion USD. 84 billion UK Pounds). PIMCO chief executive Mohamed el-Erian said a write-down of 50 percent would be insufficient, as it would “still leave open way too many questions about Greece’s economic and financial outlook, which wouldn’t simulate growth”. If the Greek government fails to agree with private investors, Greece won’t receive another tranche of international financial aid and will default on its debt in March.

Click here for an interactive map of Europe… if you mouse over each country, it’ll show the credit rating and outlook for each one.

17 January 2012

RIA-Novosti

http://en.rian.ru/business/20120117/170805272.html

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