ATHENS: Standard and poor’s stated on Wednesday that Greece is at substantial risk of a default, as it downgraded the debt of the struggling eurozone country. Standard & Poor’s said the drawn out negotiations between Athens and its creditors were damaging the economy and had resulted in a fresh cut in Greece’s credit rating, which is already at junk-bond status.
Interest rates on two-year Greek bonds stand at almost 24%, an indication that investors expect the country either to have its debt burden eased or to default. The Syriza-led coalition has been at loggerheads with the so-called Troika of the International Monetary Fund, the European Central Bank and the European Union since coming to power in late January. Athens has been told that unless it submits a revised economic plan to Brussels, eurozone finance ministers may decide not to provide Greece with financial help to pay its debts.
