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Fitch Lowered Greece's Rating To B+&Nbsp; The Eurozone Considered Rescue The New Agreement.

2011/5/21 14:35:00 50

Financial Stability Fund Assistance Fund European Debt Crisis

Fitch, a well-known rating agency, announced on Friday that it will be the Greek company. credit rating From BB+ to B+, B+'s rating is placed on the negative outlook list. Fitch points out that the main reason for the downgrade is the enormous challenges faced by Greece in ensuring solvency and laying the foundation for economic recovery. In a study, Fitch analysts wrote that the risks faced by Greece have continued to rise as Greece has to take further tightening measures to achieve its goal of reducing the deficit, and more emphasis on privatization will increase the IMF and the EU's possible delay in payment. Aid fund Risks. Fitch also said that the factors that were considered in the rating included the expectation that the EU and IMF would eventually provide sufficient funds to Greece, and that Greece's debt would not be "soft restructured" or "rewritten". Fitch points out that if such a situation occurs, Fitch will consider it a Greek default, and the rating of Greece and its debt will also be adjusted accordingly. According to reports, eurozone sources said Friday that the euro zone member governments are considering a plan to prevent Greek debt default, which will require private investors to maintain their exposure to Greek bonds, while Greece will receive new assistance from the European Union and IMF.


IMF speed up financial stability fund


At the same time, IMF said, European debt crisis Putting forward comprehensive measures is now a top priority. Europe needs to rapidly upgrade the European financial stability fund (EFSF) to make it more flexible in coping with the crisis. IMF said that the European Central Bank continued to provide liquidity to banks in troubled countries. It is imperative for all euro zone countries to have stringent banking stress tests. After the banking stress test, part of the lending industry may need to restructure or close.

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