Euro ratings have started climbing upwards in anticipation of news from the Brussels summit of the EU states, which was convened to discuss a second bailout to Greece and problems in other ailing EU economies.
Euro ratings have started climbing upwards in anticipation of news from the Brussels summit of the EU states, which was convened to discuss a second bailout to Greece and problems in other ailing EU economies.
While summit delegates are expected to announce measures set to stabilize ailing EU economies, European markets saw an increase in euro ratings as much as 1.12 percent.
Reports say that the measures will include extending the average maturities for Greece, Portugal and Ireland’s official loans to 15 years from original 7.5, at an interest rate of 3.5 percent, which is a 1 percent decrease from the previous 4.5 percent.
According to the Associated Press, in a draft summit statement the sides also discussed participation of private creditors in a second bailout for Greece.
Nevertheless, says MEP Paul Nuttal from the UK Independence Party, despite the rising hopes the only solution for Greece is to leave the eurozone.
“What Greece needs to do is it needs to come out of the euro,” he said. “It needs to be able to devalue its own currency. It needs to be able to set its own exchange rates and it needs to get its economy moving.”
“Let us look at the last example of a major country which defaulted, which was Argentina,” Nuttal added. “It defaulted in 2001. From 2002 to 2006 its economy grew by 65 percent, so default for Greece would not be the end of the world.”