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.”
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.
Prime Minister Alexis Tsipras struck a defiant tone over Greece’s bailout ahead of a meeting in Brussels with European leaders, a stance broadly supported by the cash-strapped country’s citizens.
“People have asked us to put an end to austerity and bailout agreements, to begin the process of reclaiming the dignity of the nation,” Tsipras said in a speech Wednesday in Athens. “We respond today, tomorrow and on Friday in parliament by building a wall of sovereignty and dignity.”
On Sunday, Greece walked out of talks with the Troika after 45 minutes. Does the rest of Europe want a deal more than Greece? Regardless, Both Sides in Greek Bailout Crisis Harden Positions. Both sides in the deadlocked Greek bailout crisis hardened their positions on Monday, a day after the collapse of the latest talks to broker an agreement between the cash-strapped government in Athens and its international creditors.
Greek officials keep stating a deal is near. Meanwhile, Goldman Sachs Warns Greece May Need to Default on Debts as IMF deadline looms. Goldman Sachs broached the subject of a default in a note published on Monday, claiming that the country could be forced into drastic measures amid fears that it will miss a €305m (£220m) payment due on Friday to the International Monetary Fund.