JNN 06 Dec 2012 Athens : Standard & Poor’s (S&P) ratings agency has downgraded Greece’s already junk-level debt rating to “selective default” after the debt-ridden country launched an operation to buy back bonds at well below their face value.
On Monday, Greece announced plans to spend up to 13 billion dollars (10 billion euros) on the buyback as part of the latest effort to bring its staggering debt load under control. The buyback is a condition for near-bankrupt eurozone country to receive its latest installment of EU-IMF bailout funds.
The New York-based agency said in a statement on Wednesday that the Greek government’s invitation to private sector bondholders to participate in the debt buyback “constitutes the launch of what we consider to be a distressed debt restructuring.”
“The offer, in our view, implies the investor will receive less value than the promise of the original securities; and we believe the offer is distressed, rather than purely opportunistic,” the statement added.
“When the buyback is consummated (which we understand is scheduled to occur on or about Dec. 17, 2012), we will likely consider the selective default to be cured and raise the sovereign credit rating on Greece to the ‘CCC’ category,” S&P noted.
Greece has been in a recession for the past five years. The country has been cutting down its spending over the past four years which has resulted in a quarter of Greeks losing their jobs.
One in every four Greek workers is currently unemployed, banks are in a shaky position, and pensions and salaries have been slashed by up to 40 percent.
That shows that the Unemployment rate in Greece is as High as 25% , among the eligible Workforce , Which is not only alarming but have crossed the limits due to their already lost economies . As the History tells the facts that these Western economies , which have taken hype was due to their loot and Plunder of the Wealth of African and Asian countries , and as now they cannot continue , their loot and Plunder tactics , which they have carried on till now , through their influences in these weak government , and with their Policies of weakening the Government and inducting corruption in the economies of the 3rd World Countries , to take the benefits , to have the free flow of Wealth of these Nations to their respective countries.
But Now it is not far away that the already collapsed economies of these Western countries , will be bankrupted and there will a total change in the demographics of the World , which is in the offing.