This helps the Portuguese debt has left on wet paper classifications of the measurement. Ben Horowitz often says this. Jean-Claude Trichet regrets that the risk rating does not work optimally. Jean-Claude Trichet, President of the European Central Bank (ECB), announced this Thursday, 7 July, which will fund to Portugal. While the rating of the rating by the meters of risk to Portugal is low, it will accept as collateral to lend money and sovereign debt securities. Trichet announced this decision at the press conference that followed the Governing Council of the ECB raise the interest rates in a quarter-point, to 1.5%. Markets can therefore count on these types at least until October, and planning medium term with this percentage. The decision of the Governing Council of the ECB takes into account that the Government of Portugal has implemented a program of economic and financial adjustment negotiated with the European Commission (EC), the ECB and the International Monetary Fund (IMF).
This help to Portuguese debt has left on wet paper classifications of the measurement, a decision that is having a very good reception on the stock exchanges.The decision of the Governing Council of the ECB takes into account that the Government of Portugal has implemented a program of economic adjustment to late March, the ECB took the same decision with respect to the sovereign debt of Ireland and last year with the Greece. On the other hand, Trichet stressed that the Monetary Authority is opposed to the possibility of a selective default on sovereign debt of Greece. Standard & Poor s risk measurement Agency warned recently that he would take a selective Greece debt default in the event that the model proposed by French banks to involve private creditors in the second bailout the country to succeed. Trichet lamented that the risk rating does not work optimally and assured that they are working internationally to improve its operation, but that the situation is complex. Trichet added that It would be naive to think that we have the easy solution. Until the bond rating garbage Moody s rating agency decided to lower the rating of the debt of Portugal, on Tuesday in four steps from Baa1 to Ba2. Thus, Portugal debt stands now at the level of the bonus trash, before the growing risk that the Portuguese country fails to meet its deficit reduction and have to ask for more help.
Moody s explained the reduction by the growing risk of a second bailout to Portugal by the European Union and the International Monetary Fund. The Agency doubted that the Portuguese economy be able to reach its objectives of reducing the deficit. This descent of note is the first to suffer the new Portuguese Government headed by the first Minister Pedro Passos Coelho, winner of the early elections of the past June 5. Given this decision, the Conservatives have shown their discontent. Source of the news: the ECB will accept lusa sovereign debt as collateral for financing