Worsened debt crisis menacing the Euro
Credit crisis has gradually in expansion at the Euro-zone, especially directing the country of <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Iceland and Greece. The top international rating agency, the Moody’s said on 6 it would drop Iceland credit rating below zero. In Greece, it sees its sovereign credit loan at the historical record as its bond yielding rate presenting higher than that of Germany.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
In Moody’s report, U.K. and Netherlands have imposed pressure onto Iceland for the compensation to Icesave. Presently, Iceland has gained the rating of Baa3 under the Moody system, the falling of its degree implies the deterioration of its credit nothing but zero.
Greece is in the same condition that it faces sharp fall of its treasury bond, when previously nerved its European rescuers. On April 6, the price-earning ratio of Greek ten-year bond stood at the gap of 408 percentage points against that of Germany, hitting its record since ten years when stepped into Euro-zone. Moreover Greece’s two-year bond sees the P/E ratio soaring above 1.2 percent up to the point of 6.48, a new record for a single day.
The credit crisis in Greece has resulted again the concerns over euros. On 7th Asian exchange market, the rate between euro and US$ was hovering at 1.33, nearing 1.3265 new lower point produced on March 25. Just at 16:10 April 7 exchange rate of euro arrived at 1.3387 against the dollar, down by 0.12 percent.
