Moody’s rating concerning Greece declines


The chaos was gone for a while, but Moody’s rating is going to change that. In Moody’s opinion the Greek government has made progress but is too ambitious and is facing new and more severe problems.

Moody’s dropped Greece’s rating to B1. This means that long-term debts are expected to not be paid. They calculated that the financial bill must be reformed in 2013. This will have its effect on the their stock market and probably on Europe as well. Last time, Europe handled the pressure quite well. They got Greece out of trouble, for the moment. The dangerous situation will be monitored by the International Monetary funds. If the situation gets worse, IMF and Europe will give new economic help, but Greece will have to accept the conditions.

The current situation in Greece is bad. Debts are rising and people have to give up a lot. Taxes are rising, and will continue to rise in the future. The people of Greece have protested against the new rules that were temporarily implied a few months ago but the government has made some progress. Eventually Europe will not let Greece go bankrupt, because that would lead to a chain reaction that involves a lot of countries in Europe.

On the other hand, the Greek government considered the move as “completely unjustified”. In their opinion, Greece is doing well and needs some credit to conquer a better position. Further on, Greece refers to the bailouts of Spain, Portugal and Ireland. They think the decisions to downgrade the rating is ‘uncomprehensible’ and it will affect the progress the country has to make to not get in trouble again.

The European Union will meet to imply the necessary measures to ‘rescue’ Greece from a new bankruptcy further on this week. The European Union already admitted that they expected this situation, but they look at it on the long run.

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