January 16, 2009
Greek problem
Story link: Greek problem
Another economy falls what seems like may be the first hurdle. As suggested its very unusual for such a wealthy economy to be selling off debts like that, which does indicate they fear much worse to come in the near future.
“The ongoing global financial and economic crisis has, in our opinion, exacerbated an underlying loss of competitiveness in the Greek economy,” said the credit-rating agency. The country was placed on negative watch just days ago.
The moves comes days after a €2.5bn (£2.2bn) debt sale by Greece that was entirely issued at short-term rates, much of it in three-month notes. Such an action is highly unusual for wealthy countries tapping the sovereign bond markets. It suggests that Athens fears that investors may be unwilling to purchase long-term bonds in the current climate.