difficult to reach intended to reduce the Greek deficit target, the increase in risk of debt default. 12 Greek bond yields soaring, the market generally believes that debt default in Greece is likely to be difficult to avoid.
12 – Greek bond yields surged to a 117%, two bond yields close to 70%. The Greek five hedge the risk of credit default swaps Treasury prices soared 937 basis points, reaching a record high of 4437 points to become the world’s most expensive credit default swap products.
All this indicates that the Greek case of default may be difficult to avoid. Bloomberg reports that the Greek debt default in the next V to the probability of occurrence of up to 98%. Market participants believe that Greece will be the default with the “inevitable event.”
Greek government expects the economy will shrink this year more than 5%, far higher than previously expected the European Commission’s 3.8 percent decline. Greece’s budget deficit this year compared to the first eight sharp growth of 22% over the same period, the Greek government acknowledged that this will not be scheduled after completion of the deficit reduction target, which makes the Greek can not meet the EU and the International Monetary Fund conditions.
the EU and the International Monetary Fund on the progress of Greece’s debt reduction dissatisfaction, Greece, originally scheduled for 915 days issued to the sixth pen rescue loans may be delayed. The Greek Deputy Minister of Finance 12, Filippo Sani Meredith said that the current government spending enough money on hand to the next. If you then still can not get assistance, the Greek government will officially “hungry.”
the International Monetary Fund (IMF) statistics, as of March end, in addition to domestic banks outside of Greece, the Greek government bonds held by German banks up to a total of $ 14.1 billion, the French banking sector holding $ 13.4 billion. Because the risks associated with exposure to the Greek debt is too large, sources said, the international rating agency Moody’s has cut or will the French Industrial Bank , BNP Paribas, Credit Agricole’s credit ratings. Dragged down by this, the French bank stocks generally fell, the three banks share price plunged more than 10% 12.
Greek debt increased risk, it also raised concerns about the spread of the market crisis, other European countries facing the pressure of debt used to hedge the risk of credit default swaps of debt prices rose. The same day, Italy, Portugal and France are credit default swaps hit a record high prices.
affected, 12 euro also fell against the Japanese yen exchange rate hit an intraday low of ten than 103.90, the dollar also touched a low of seven than 1.3495.Tags: A 117% bond yields soared to Greece to avoid breach of contract converting, avoid debt, income, yield