MOODY'S: GREECE IS NOT EXCECTED TO GO BANKRUPT
There is no imminent bankruptcy of Greece, said, Moody’s Vice President, Thomas Byrne, in an interview with the American network CNBC. ” We do not think Greece faces an imminent bankruptcy, especially when the aid package they have received from the IMF and the EU, enables Greece to fund their deficits for the next three years without having to resort to the markets ‘. “On the other hand, there are certainly long term challenges for Greece, which are extremely serious,” he said. “We take seriously any evaluation, whether it’s a small or big country.
Scenarios on Greece’s restructuring of the debt and will probably not come forward before the end of 2011, thereby giving the country the opportunity to prove it deserves the support it has been given, states Anke Richter to FT, executive director at Conduit Capital Markets.
Richter, also considers that if the country shows that it deserves the support given, it will receive further assistance from its lenders, thus the scenarios on restructuring are out of the agenda.
“It is definite that Greece will make progress in budgetary consolidation, however we are less sure they will achieve their goals,” and stated that it is not convinced that the EU and the IMF rescue package will lead to financial sustainability.
“We believe that they see it as a trial period for Greece, which is required to prove that it deserves their support … we believe that Greece will receive further support if it proves it self,” Ritcher, stresses and adds that restructuring will be discussed only if the financial progress seems to have no hope.In this case, they provide a 40-50% haircut and the possible removal of Greece from the euro zone.
(Greek Reporter)