Greek credit costs high to revive bank downgrade

Panrong's uncertain future bailout package and continuing massive strikes have pushed Greece back into the forefront of the debt crisis, and the S & P rating company has again warned that it will downgrade Greece's domestic banks in the future. Bank credit ratings have continued to fall in response to deteriorating domestic and foreign conditions, and the agency released a report over the weekend saying the future profitability of the country's big banks is facing serious challenges and that bank credit ratings are likely to be downgraded continuously.　　Earlier this month, 16th, the ratings agency had downgraded the outlook for the Greek banking system from 4 to 5 (the rating was 1~10, with 1 representing the bank's healthiest and stable). Angela Cruz, head of research at the financial institutions of the S & P, said Greece's economic outlook was gloomy in the next few years, with Greece expected to remain mired in recession in 2010 and GDP to remain negative by 2011, and a bad economy that would lead to a significant increase in bank credit losses, eroding the bank's future performance In the previous quarter, the Greek bank of Greece's biggest banks (National Bank of Greece) lost a net loss of € 870 million (about $1.18 billion).　　Cruz predicts that the future growth of Greek banks will be constrained by high credit costs. Last December 17, S & P downgraded the long-term credit rating of Eurobank and Alpha banks from "BBB" to "BBB", and Fitch Ratings Inc. also February 23, the long-term credit rating of large Greek banks, including Eurobank, Alpha and National Bank, from "BBB + "to the BBB" and give a negative rating outlook.　　The Bank of Greece's credit losses climbed to 323 million euros in the previous quarter.　　Cruz said the bank's credit rating would continue to fall if credit continued to deteriorate and banks ' profitability was not getting better. The rescue package is confusing. Although the European Union's monthly meeting of 16th this month prompted the EU to prepare for a Greek bailout, Greece later said it was considering turning to the IMF because of dissatisfaction with the EU's reluctance to decide on a specific bailout time and plan.　　Investors fear that if the EU summit this week does not yet agree on a bailout for Greece, Greece will really be forced to seek aid from the IMF, when the eurozone and other European markets will fluctuate sharply.　　At the same time, another massive strike in Greece has cast a shadow over the next month's new debt issue, with Greece's 10-year debt soaring again to 6.35%, and the government's refinancing pressure to increase. Robert Ward, the Economist's national prediction expert, told the first financial daily that Greece is now playing games with EU members for help from the IMF, but that Greece will eventually need aid to resolve the crisis. Given the size of its previous debt and its inability to solve its own debt problems alone, the key is whether the rest of the euro zone, led by Germany, will give up Greece for a long time to come after the eurozone's long-term developmentLayout。 If the eurozone eventually refuses to provide aid, other members must take on the role of relief.