While
Greece is being rescued by the “United European Forces” economists raise other
concerns about other EU country, signaling that Portugal is the number one
candidate to be the “Next Greece”.
In
spite of the fact that governing council of European Central Bank, speaking
after the last week meeting, said “the recent three-year long-term refinancing
operation (LTROs) had been an unquestionable success and had removed tail risk
from the environment”, quantitative analysis of some experts points to the
existence of “tail risk”. Namely, 2% rise of 10-year borrowing costs might be
regarded as initial symptoms of unpleasant future. Having sovereign date of 102.7%
of GDP in 2011 makes it harder for Portugal to avoid 2nd bail-out. Furthermore,
Citi analysts argue that for clearing its fiscal path Portugal has to undertake
around 50% haircut in the form a reduction in the debt held by the private
sector.
reed more
0 comments:
Post a Comment