Cyprus-Forum.com

[insan]

Standard and Poor's downgrades Cyprus' credit rating

Nov 16, 2010, 19:47 GMT

Athens - International credit rating agency Standard and Poor's downgraded Cyprus' long-term sovereign credit rating from A plus to A on Tuesday amid concerns over the exposure of its financial systems to neighboring Greece.

The agency said that Cyprus' financial system is vulnerable to credit risk because of its exposure to the Greek government as well as the country's corporations.

Greece is in the process of implementing a wave of austerity measures to slash its massive debt in exchange for 110 billion euros (140 billion dollars) in emergency loans by the International Monetary Fund (IMF) and European Union.

Cyprus' Economy Minister Harilaos Stavrakis expressed his trust in the country's banking system, adding that the 2010 fiscal deficit is expected to remain unchanged at 6 per cent of gross domestic product.

He said that the 2011 budget will achieve a 4.5 per cent deficit target through relatively relaxed measures such as additional duties on petroleum and tobacco.

http://www.monstersandcritics.com/news/ ... dit-rating

Wassup mates? Mama Greece pulling you where she goes?

[insan]

President of the Republic of Cyprus Demetris Christofias has called on the social partners and the political parties to show understanding and responsibility in an effort to agree on measures which will help the country get out of the economic crisis.

http://famagusta-gazette.com/president- ... 970-69.htm

Heyyy! Even Chris calls for HAEELLPP! Embargoed by some of the EU's corrupt governments or what?

[lola-tulip]

S & P attracted a lot of criticism because of not always acting impartially. Either that or deliberately fixing gradings for financial gains. They are like a betting shop.

[insan]

'Euro crisis dangerous for EU'
Agence France-Presse
Brussels, November 17, 2010
First Published: 00:08 IST(17/11/2010)
Last Updated: 00:12 IST(17/11/2010)

The head of the European Union warned on Tuesday that the 27-nation bloc will not survive if it fails to overcome a debt crisis plaguing euro currency governments. Hours from a meeting of finance ministers in Brussels to grapple with an exploding debt crisis that has already brought Greece to its knees, and now threatens Ireland and Portugal, Van Rompuy said the EU and eurozone were in danger from alarm on financial markets.

“We all have to work together in order to survive with the eurozone, because if we don’t survive with the eurozone we will not survive with the European Union,” he said in a speech.

He said he was “very confident” the EU would overcome the crisis, thanks to “courageous measures” taken by states “to reduce expenses at a time of populism, despite massive protests on the street and knowing they risk electoral defeat.”

Van Rompuy’s stark warning raises the stakes after an admission by Ireland that it was holding talks about a possible rescue, six months after international partners had to rush to aid Greece with a 110-billion-euro bailout.

Portugal has also warned that it is at “high” risk of needing financial support, unable to borrow money on open markets other than at prohibitive rates.

The three countries are only the weakest links in a chain of debt coursing through the 16 nations that share the euro, with almost every other member bursting at fiscal seams.

http://www.hindustantimes.com/News-Feed ... 27289.aspx

[insan]

Brussels - Germany hit back on Tuesday at Greek criticism of the reforms of European Union bailout mechanisms under which Berlin wants private investors to bear some of the cost of state rescues, in a bid to encourage more responsible lending.

Greek Prime Minister George Papandreou said on Monday that Germany's tough stance, expressed at an EU summit last month, fuelled market jitters that are bringing Ireland and Portugal on the brink of an EU bailout.

German Finance Minister Wolfgang Schaeuble retorted that Greece should show more humility after being rescued itself from bankruptcy in May, thanks to a 110-billion EU and International Monetary Fund loan.

"The Greeks got a lot of European and German solidarity, but solidarity is not a one-way street. Greece must not forget about that," Schaeuble said in Brussels, ahead of talks with eurozone counterparts that were expected to focus on Ireland and Portugal.

Current EU bailout arrangements fully cover government bond holders. On German insistence, EU leaders agreed that after 2013 a new mechanism will make sure that investors are forced to bear at least some losses in case of default.

After the announcement, the cost of borrowing for cash-strapped eurozone countries rose sharply, prompting criticism from Papandreou.

He said the German move "created a spiral of higher interest rates for countries that seemed to be in a difficult position, such as Ireland or Portugal," he said during a speech in Paris.

"This could create a self-fulfilling prophecy ... this could break backs and could force economies towards bankruptcy," the Greek leader added.

http://www.earthtimes.org/articles/news ... forms.html

Will EU destroy itself by it's own policies and crisis?

[insan]

Greek rescue frays as Irish crisis drags on
The eurozone bail-out for Greece has begun to unravel after Austria suspended aid contributions over failure to comply with the rescue terms, and Germany warned Athens that its patience was running out.

The clash caught markets off-guard and heightened fears that Europe's debt crisis may be escalating, with deep confusion over the Irish crisis as Dublin continues to resist EU pressure to request its own rescue.

Olli Rehn, the EU economics commissioner, said escalating rhetoric in Europe was turning dangerous. "I want to call on every responsible European to resist the centrifugal tendencies and existential alarmism."

Swirling rumours hit eurozone bond markets, while bourses tumbled across the world. The FTSE 100 fell 2.4pc to 5681.9, and the Dow dropped over 200 points in early trading. The euro slid two cents to $1.3460 against the dollar as the US currency regained its safe-haven status.

http://www.telegraph.co.uk/finance/econ ... gs-on.html

[insan]

A newspaper vendor in Dublin, Ireland this morning. Ireland is talking with other European Union governments about how to handle its troubled finances




Homeless people beg for money on O'Connell bridge in central Dublin as Ireland came under intense pressure on Tuesday to request aid over its debt crunch

[Get Real!]

Standard and Poor's downgrades Cyprus' credit rating

Have faith in Cyprus' banking & finance industry...

[kurupetos]

Still better than Turkey!

[Get Real!]

What's the US doing in green???

It goes to show that these ratings are full of shit!