We know Greece in a financial hole and investors are already betting that Greece will default on its bonds sooner or later. The investosr who think a default akin to Russian default in the 1990s is on the cards are shorting Greece bonds.
When Greece Economic minister was asked by a BBC report about the possibility of a default this is what he said, They will lose their shirt!
But the reality on the ground is that Greece is a sinking ship. They are running out of time, they need to find 9 billion euros by 19th May just to pay off due debt. The public is strongly opposed to any attempts by the Government to cut spending to raise funds. They cant borrow money, lenders are demanding reforms first before any new lending. The greece government is dead broke.
Worse still, on April 26, Greece debt was downgraded to junk status by rating agency standard & poor. In the report S &Pwarned holders of Greek debt that they only had an “average chance” of between 30% and 50% of getting their money back in the event of a debt restructuring or default.
written by Constantine Njeru
\\ tags: 1990s, Amp, Attempts, Bbc, Bbc Report, Betting, Bonds, Cards, Debt Restructuring, Financial Hole, Greece, Greece Government, Investor, Investors, Junk Status, Money Lenders, Running Out Of Time, Russian Default, Sinking Ship