“Eurasiatrade”– How Long Before Greece Restructures Debt? …

FOR IMMEDIATE RELEASE
new york city, New York, United States of America (Free-Press-Release.com) November 23, 2010 -- “Eurasiatrade” says that although Ireland’s acceptance of the EU/IMF bailout for the country’s banks may calm market jitters about the sector’s exposure to them, it is Greece’s sovereign debt that will most likely score the next hit on the European banks’ balance sheets.

In contrast to Ireland, it was the Greek government and its unsustainable budget deficit that needed to be bailed out.

One condition for the Greek rescue package was that the country should achieve targets on its tax revenue and on public spending reductions but as a “Eurasiatrade” analyst said, “Put simply, they’ve failed and, even though the next infusion of funding will be forthcoming despite objections from Austria, there is little chance they will turn it around”.

The firm suspects that Greece will eventually have to ask investors and institutions holding its bonds to negotiate a restructuring of the country’s debt which will almost certainly include the dreaded “haircut”.

“Eurasiatrade” believes that an event of that nature could create panic among investors holding sovereign debt of larger EU members like Italy and Spain and result in significantly higher yields demanded in return for shouldering risk.

“The Irish bailout is not the end of the EU’s troubles by any stretch of the imagination”, said the “Eurasiatrade” analyst.

EurasiaTrade