By TraderVox.com
Tradervox (Dublin) – The Head of Sovereign Ratings at Standard & Poor’s, Moritz Kraemer has indicated that Greece might require another debt restructuring that will include the bailout partners such as the IMF and the European governments. Kraemer went ahead to state that Greece bailout will have to include its official creditors again. This statement have come at a time when the new government bonds offered by the Greece government are performing adding to the speculation in the market that the debt crisis in Greece might be far from over.
Maritz Kraemer was talking at the London School of Economics where he was accompanied by IMF mission chief to Greece, Paul Thomsen. At this event, Thomsen indicated that despite the drastic changes done on Greece fiscal structure, it might take up to a decade to wholly complete the reforms. On March 21, the acting Greece Prime Minister Lucas Papademos secured a parliamentary approval to pave way for the 130 billion-euro bailout package.
Concerns about the future of Greece are coming at a time when the country is set to go into an election set to any day from next month. Thomsen talking about the election in the country indicated that after the election the country will have to reduce its fiscal deficit and expressed doubt on the timeline of Greece’s return to the market.
These comments are coming at just a day to the euro area Finance Ministers meetings to be held on Friday 30. Despite these negative reports, the market is upbeat on the formation of a stronger financial firewall. Thomsen said there is doubt as to when Greece will return to the market as a result of the great amount of risk associated with the restructuring and the possible resistance to the program.
The euro has continued to increase against the dollar and the pound as investors wait for the results of tomorrow’s meeting. The euro rose by 0.1 percent against the US dollar trading at 1.3334.
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