With the downgrade of sovereign credit rating, the borrowing cost of Greek government has greatly increased. The Greek government had to take austerity measures, and Greece held round after round of strikes, which made the economic development worse. By February 20 12, Greece was still relying on the bailout loans from Germany and France. In addition to Greece, the financial situation of Portugal, Ireland and Spain has also attracted investors' attention, and the sovereign credit ratings of many European countries have been downgraded.
Affect the consequences
Or leave the euro zone.
On June 5438+February 1 1 day, 2009, Standard Bank of South Africa issued a research report predicting that the economic situation of Greece and Ireland and other countries could be unbearable, which might lead to these two countries receiving external assistance and even being forced to leave the euro zone before the end of 20 10.
German Chancellor Angela Merkel said last week that while Greece is coping with the debt crisis, Europe's biggest concern is to maintain the stability of the euro exchange rate, and will discuss with those countries facing great difficulties how to maintain the stability of the euro. She also said that Greece is currently in deep financial crisis, and the EU has a common responsibility for Greece.
Standard Bank pointed out in June 5438+February 2009 1 1 that the possibility that Greece and Ireland were forced to leave the euro zone before the end of 20 10 could not be ruled out. Analysts at the bank pointed out that the ability of countries such as Ireland and Greece to get out of the crisis was questioned by the outside world. Lower interest rates, currency devaluation and fiscal stimulus have limited the recovery of these countries.
declining stock market
The sovereign debt crisis triggered by the downgrade of Greece's sovereign credit rating showed great power at the beginning of the outbreak: after the opening on February 8, 2009, the major markets in Europe and America fell rapidly by more than1%; The risk aversion preference of global investors triggered by it has put great pressure on the commodity futures market by pushing up the dollar.
On Tuesday (20 10), Standard & Poor's downgraded Greece to junk status. Standard & Poor's had previously downgraded Portugal because of concerns about its ability to implement the reforms needed to solve its high debt burden, saying it was worried about Portugal's ability to cope with high debt due to weak economic prospects. Concerns about the details of the Greek aid program further exacerbated the negative popularity of the euro. The euro fell against other major currencies, and the euro/dollar fell to a one-year low on Tuesday, recording the biggest one-day percentage drop in a year. EUR/JPY fell to 122.57, a drop of more than 2.5%, and risk aversion generally benefited the JPY. The dollar index rose 1% to 82.3 19, but the dollar fell 0.8% against the yen to 93.20, with an intraday low of 92.82.
credit risk
The yield difference between Greek and German bonds widened to the widest in 12, and the yield of short-term German bonds fell to the lowest point since the introduction of the euro, because investors holding Greek bonds demanded a higher premium. The cost of guaranteeing the debts of Greece and Portugal has reached a new high, reflecting the expansion of credit risk in the euro zone, which some analysts say may lead to cracks in the euro system. Strategist Brian Dolan said that the market is really worried about the sovereign debt problem in Europe, and pointed out that the spread of Greek credit default swaps "has touched the level of Argentina today.