Greece stepped up the pressure on its private creditors Tuesday to sign on to a crucial bond swap without which the country will default on its debts this month, but which some investors fear may prove unsuccessful.
ATHENS, Greece — The Standard and Poor’s rating agency downgraded Greece’s credit grade further into junk status Wednesday, saying the country’s financial commitments would be unsustainable without “deep economic reform or further relief.”
The agency downgraded Greece to CCC+ from B-, with a negative outlook “given the risk of further worsening in liquidity for the sovereign, the banks, and the economy.”
A marathon nannycrat session ended with no deal as the IMF played hardball insisting Greece reduce debt to 120% of GDP by 2020.
Not to worry, Jean-Claude "Lie When It's Serious" Juncker says progress was made.
AP - Greece's talks with private creditors over a bond swap deal that is a vital part of the country's second international bailout are making progress and are close to reaching an agreement, officials said Tuesday.
The Financial Times reports Eurozone delays Athens rescue funds
Eurozone members have delayed approval of more than half of the €130bn bail-out for Greece after deeming that Athens has yet to meet all the terms set as the price of a second rescue.
However, finance ministers from the 17-country currency bloc meeting in Brussels signed off on funds to underpin a €206bn debt swap to cut the value of the Greek bonds held by private investors.
ATHENS – Greece said it would spend 10-billion euros to buy back bonds at a price range that topped market expectations, boosting hopes it can cut its ballooning debt and unlock long-delayed aid.
A successful buyback is central to the efforts of Greece’s foreign lenders to put the near-bankrupt country’s debt back on a sustainable footing and would clear the way for the funding Athens needs to avoid running out of cash.
By Daryl Montgomery: Greece is set to swap its privately-held government bonds today for new ones that will represent a three-quarters loss of the original investment. The deal will allow the country to receive 130 billion euros in funds from its second bailout. Like the money from the first bailout, those funds will eventually run out, however.