http://www.boston.com/news/world/europe/articles/2012/05/02/sp_upgrades_greece_out_of_selective_default/
This article talks about how the Standard and Poor's rating agency recently upgraded Greece's credit status from selective default to CCC. This rating is still junk status and is not investment grade, however it is a step in the right direction for Greece. Standard and Poor's said it made this upgrade because Greece has successfully finalized a bond swap which has wiped 100 million euros off their debt. Greece negotiated this deal which caused private bondholders to lose about 75% or the value of their investment.
Greece has been in a recession for six straight years and it leads to question whether their economic system is effective. A huge problem Greece is facing right now is that they are unable to pursue monetary policy since they are a part of the European Union and have no central bank.
1 comment:
Yeah, that's tricky. If Greece decides to return to the drachma, they could have more control over their monetary and trade policies. But a lot of people (Greeks included) believe that departure from the eurozone would create a lot of turbulence in the global economy and initiate nothing but chaos in Greece.
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