S & P further lowered the credit rating of Greece – BBC Russian

• 16 April 2015

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credit rating downgraded Greece again and talks to Facilitate borrowing from the EU to no avail

The international rating agency Standard & amp; Poor’s downgraded the sovereign credit rating of Greece from the level of B- to CCC + with a negative outlook. Analysts S & amp; P fear for the solvency of the country and noted that a number of financial parameters is deteriorating.

and lowered the short-term and long-term ratings of the country. The consequence of this will be more expensive for Greece borrowing on international capital markets because, in terms of the S & amp; P, increases the likelihood of non-refoulement its debt.

Among the financial indicators affect this assessment – released on Wednesday data on deficit the state budget for last year.

It turned out to be much higher than the government forecast 3.5% of GDP instead of the planned 0,8%.

Meanwhile, talks between Greece and donor countries to Facilitate borrowing continued without much success.

“So far we do not have a single solution, and I think that next week there will not be,” – said German Finance Minister Wolfgang Schaeuble.

The Government of Alexis Tsipras is difficult negotiations with the International Monetary Fund and the eurozone countries to reduce the amount of payments on loans, scheduled for May 12. On this day Greece must return to creditors 750 million euros (800 million dollars).

Before the Greek Prime Minister Tsipras face difficult choices: either pay off the IMF, or to send money for pensions and salaries Greeks, comments on the current situation Head of Economic Research Analytical Centre Open Europe Raoul Ruparel.

“For a pronounced left-radical government last option is very tempting,” – said the expert.

Time outcome

Earlier, the Financial Times, citing informed sources said the Government’s willingness to declare a default of Greece, if the end of April will not be able to reach a compromise with creditors.

Later, the Greek authorities have denied these reports, stating that – “to the dismay of some” – are not prepared to any bankruptcy.

We expect that no further economic reforms or new borrowing debt of Greece and its other financial obligations will be unstable

Press Release S & amp; P

However, the economic situation of the country is uneasy. Statistics show that over the past six months, the country’s economy shrank by 1%, despite the favorable economic conditions: relatively cheap oil and the low rate of the euro.

“We expect that further economic reform without any new borrowing debt of Greece and its other financial obligations will be unstable, “- said in a press release, S & amp; P.

Analysts point out that emerging in 2014, positive trends in the public sector were this year under the impact of the weak entrepreneurial activity and poor tax collection.

In November 2014 the Greek banks observed outflow of deposits, which during that time was already 14%.

S & amp; P warned that the situation could worsen if the country can not agree on the allocation of a new tranche of 7.2 billion euros from the IMF and the eurozone countries.

“If the current crisis in the negotiations between Greece and its official creditors will not be overcome until mid-May, then the Greek Parliament may simply not have time for it to approve the new terms of the loan program, whatever they were, “- says the agency.