Soros: Default Risk for Greece Remains Remote

George Soros, the billionaire investor, suggested on Thursday that the Greek government would not be allowed to default on its debts despite growing budgetary difficulties and market concerns. Greece, the lowest-rated country in euro region, is struggling to cut a budget deficit of 12.7% of GDP.

“There has to be pressure on Greece to put its house in order but I’m sure that Greece will not be allowed to default,” Soros told Sky News television. [Reuters]

Investors are increasingly concerned Greece may be the first major country in the Euro Zone to default on its debts since WWII. Former Bank of England policy maker Willem Buiter who will join Citigroup (C) as its chief economist next month, said, “We could see our first EU 15 sovereign default since Germany had it in 1948.”

Buiter however, pointed out that default is not unavoidable. “But unless there are radical fiscal actions, lasting cuts in spending and tax increases of at least 7% of GDP, the writing is on the wall” for Greece, he said. [Bloomberg]

Fitch Ratings cut Greece’s debt rating to triple B-plus with a negative outlook on Tuesday prompting the 10-year Greek yield spread over Bunds to increased to more than 220 bpt, the widest level since April.

Fitch’s downgrade marked the first time in 10 years a major ratings agency has put Greece below an A grade — citing fiscal deterioration in the euro zone’s weakest member.

3 Comments on Soros: Default Risk for Greece Remains Remote

  1. George $oros is wanted for fraud in France & was chased out of the Balkans for inciting friction between FyroMacedonia and Greece, both countries, didn’t appreciate being “played” by $oros. Typical George $oros double talk, Greece won’t be allowed to default, then goes on to say default remains remote, one has to question where he placed his bets before making these statements. Take what he says about the Balkans with a grain of salt, he has been humiliated and chased out of that area.

  2. Greece and Spain won’t pay back. The only thing Germans can do is:
    REPOSSESS 170 Leopard 2AEX Battle Tanks from Greece, and 190 Leopard 2A6E Battle Tanks from Spain.
    U.S.A must REPOSSESS 170 F-16 Jet Fighters from Greece, … the rest is gone with the wind …forever …
    Greece must stop paying lucrative pensions with borrowed money, reform the free health care system, and cut down, 4 times the military budged.

  3. REPOSSESS 170 Leopard 2AEX Battle Tanks from Greece, and 190 Leopard 2A6E Battle Tanks from Spain.
    U.S.A must REPOSSESS 170 F-16 Jet Fighters from Greece, … the rest is gone with the wind …forever …
    Greece must stop paying lucrative pensions with borrowed money, reform the free health care system, and cut down, 4 times the military budged.
    Don’t worry; the ECB, the Fed or both will print the money.
    And all of us will share the pain, with our hard-earned money.

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