Tuesday, July 26, 2011

7/26/2011 - Moody's says likelihood of Greek default 'virtually 100%'


Ratings agency Moody's warned on Monday that the chances of a default by Greece was "virtually 100%" and could undermine confidence in other countries in the eurozone.
The warning came as the cost of borrowing for Italy and Spain rose amid fears that Slovakia could lead a revolt against the EU's Greek bailout agreement.
All eurozone parliaments must offer their support for the deal, which includes a measure to reduce Greece's debts using a "voluntary" writedown of loans to European banks.
Markets jumped last week after the deal was agreed by European leaders, but criticism of the measures as insufficient and concerns over the need for each parliament to offer support has made investors increasingly nervous.


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