ID :
188457
Tue, 06/14/2011 - 12:09
Auther :
Shortlink :
https://oananews.org//node/188457
The shortlink copeid
Watch out for Greece's debt crisis
SEOUL, June 14 (Yonhap) -- International concerns about the debt crisis of Greece are rising after global credit appraiser Standard & Poor's Rating Services (S&P) downgraded the European country's sovereign credit rating by three notches on Monday to "CCC" from "B," saying that the debt-ridden country "will likely" face debt restructuring. The CCC grade is just four notches higher than the default grade of D, and Greece has been branded with the world's lowest credit rating by S&P.
Another influential ratings agency, Moody's Investors Service, lowered Greece's sovereign credit rating earlier this month to Caa1 from B1. Financial experts predict the Greek crisis may start a global financial crisis similar to the previous crisis that followed the Lehman Brothers' failure in 2008.
An emergency gathering of finance ministers of eurozone countries indicated the seriousness of the situation.
The eurozone countries and international financial organizations, like the International Monetary Fund (IMF), are moving to support Greece, but there is skepticism over whether these moves will work to save Greece from default.
"Risks for the implementation of Greece's EU/IMF borrowing program are rising, given Greece's increased financing needs and ongoing internal political disagreements surrounding the policy conditions required," S&P said in a statement.
The Greek crisis may not impact South Korea's economy directly or immediately. However, the South Korean government should make thorough preparations for possible impacts of the Greek situation on the Korean economy.
The Bank of Korea (BOK) reportedly predicts that the local economy will maintain its upturn trend despite the overseas risks. But there is also negative news: International raw material prices are showing signs of fluctuation due to jitters about a global economic recession, and it's difficult to expect an early recovery of the U.S. economy.
There's fear that a "perfect storm" of fiscal woes in the U.S., an economic slowdown in China, European debt restructuring and stagnation in Japan may converge on the global economy.
"There's a one-in-three chance the factors will combine to stunt growth from 2013," New York University professor Nouriel Roubini said in a June 11 interview in Singapore.
The BOK said in a report early this month that there is a possibility that the Greek financial crisis will last for a long time.
The government says the national debt is controllable, but there is a diagnosis that household debts have surpassed a critical point. The head of the central bank urged government ministries to map out pan-national measures to counter the problem of household debts.
The government should closely monitor the international financial situation and set up measures to minimize the possible impacts of the Greek crisis on the local economy.
Another influential ratings agency, Moody's Investors Service, lowered Greece's sovereign credit rating earlier this month to Caa1 from B1. Financial experts predict the Greek crisis may start a global financial crisis similar to the previous crisis that followed the Lehman Brothers' failure in 2008.
An emergency gathering of finance ministers of eurozone countries indicated the seriousness of the situation.
The eurozone countries and international financial organizations, like the International Monetary Fund (IMF), are moving to support Greece, but there is skepticism over whether these moves will work to save Greece from default.
"Risks for the implementation of Greece's EU/IMF borrowing program are rising, given Greece's increased financing needs and ongoing internal political disagreements surrounding the policy conditions required," S&P said in a statement.
The Greek crisis may not impact South Korea's economy directly or immediately. However, the South Korean government should make thorough preparations for possible impacts of the Greek situation on the Korean economy.
The Bank of Korea (BOK) reportedly predicts that the local economy will maintain its upturn trend despite the overseas risks. But there is also negative news: International raw material prices are showing signs of fluctuation due to jitters about a global economic recession, and it's difficult to expect an early recovery of the U.S. economy.
There's fear that a "perfect storm" of fiscal woes in the U.S., an economic slowdown in China, European debt restructuring and stagnation in Japan may converge on the global economy.
"There's a one-in-three chance the factors will combine to stunt growth from 2013," New York University professor Nouriel Roubini said in a June 11 interview in Singapore.
The BOK said in a report early this month that there is a possibility that the Greek financial crisis will last for a long time.
The government says the national debt is controllable, but there is a diagnosis that household debts have surpassed a critical point. The head of the central bank urged government ministries to map out pan-national measures to counter the problem of household debts.
The government should closely monitor the international financial situation and set up measures to minimize the possible impacts of the Greek crisis on the local economy.
