NEW YORK (CNNMoney.com) — The yield on Greek bonds soared to record levels again, a day after Standard & Poor’s slashed its debt rating on the country to junk and amid reports that the IMF is considering more loans to the beleaguered country.
Reuters: S&P Debt Ratings Lowered for Portugal and Greece
NEW YORK, April 27 (Reuters) – The euro slid broadly on Tuesday as downgrades of Greece and Portugal’s credit ratings added to worries aid for Greece could be blocked to raise fears the euro zone’s debt problems were spreading.
Standard & Poor’s downgraded Greek ratings into junk territory on doubts about its ability to implement reforms needed to address its high debt burden. For details, see [ID:nWNA9645]
The agency also downgraded Portugal’s ratings earlier on Tuesday, citing concerns about its ability to deal with high debt levels given its weak economic outlook. [ID:nWNA9638]
“There is such a fear of contagion in the euro zone between the downgrades of Portugal and Greece,” said Carol Hurley, senior market strategist at Lind-Waldock in Chicago. “There is a lack of resolution on Greece and how aid will go to Greece and how it will affect other countries.”
WSJ: German Leaders Maintain Hard Line On Greece
BERLIN (Dow Jones)–Leading figures in the German government continued to steer a hard line on Greece Tuesday, demanding harsh reforms ahead of a meeting with the head of the International Monetary Fund here.
IMF Managing Director Dominque Strauss-Kahn is scheduled to meet with German members of parliament Wednesday to make a case for launching a financial rescue for Greece. Jean-Claude Trichet, president of the European Central Bank, also will be present.
The senior officials will make their pitch amid strong popular opposition in Germany to bailing out Greece. A survey by Dimap institute for Die Welt newspaper and France 24 television published Tuesday showed that 57% Germans regard financial aid to Greece as a “bad decision” while only 33% support it.
