Athens/LONDON - rating agency Fitch declared that Greece as a result of a second bailout in temporary standard would be, said the Athens respite had bought it.
But the Agency required to Greece give a higher, "low speculative-grade" assessment had been exchanged after its bonds and said Athens had some hope of combating their debt, which most economists still expect to obtain a deeper restructuring in the future.
An emergency summit of Heads of State and Government of the 17-nation area agreed a second rescue package Thursday with an additional 109 billion euros ($157 billion) of government money, as well as a contribution from private sector of bond holders are expected to total about EUR 50 billion by mid 2014.
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"Fitch holds the type of participation of the private sector... limited default event represent one", said David Riley, Director of sovereign ratings at Fitch.
"The decline in interest rates and extending the maturities potentially offers but Greece window again solvency, despite the enormous challenges that it is for you," he said.
The Summit agreed the region Rescue Fund, the European facility for financial stability are allowed to buy bonds in the secondary market, when the European Central Bank, which is deemed necessary to cope with the crisis.
There can be also for the first time States preventive credit lines before they are closed by credit markets and Governments give money to the recapitalisation of banks, both movements which Germany earlier this year blocked.
As part of the package the euro-zone leaders a temporary standard made detailed provisions for the limitation of damage-the first in the 12-year history of the euro.
"It is a great breath of relief for the Greek economy and this on gradually on the real economy passes" reporters Greek Finance Minister Evangelos Venizelos. "But this does not mean that we can relax our efforts."
Among other steps agreed the Guide to terms of bailout loans to Greece, to facilitate Ireland and Portugal; Terms be extended cut now around 3.5 per cent to 15 years of 7.5 and interest of 4.5-5, 8 per cent.
It doubts remain about whether the plan went, but far enough to not only Greece debt sustainability, assure Ireland, Portugal and other highly indebted countries.
The package was "more than expected, but not enough to give us sleep comfortably", said Barclays economists. They were disappointed that the European Heads of State and did not agree Government, to extend a euro-zone Rescue Fund.
The advanced EFSF role is to prevent that larger States of the euro area such as Spain and Italy of markets because of fears a weaker country excluded by default.
Sufficient resources, so far, but the burden could rise significantly. A preventive credit line for a large country like Italy could more than 500 billion euros over several years as a whole, overwhelming the EFSF current 440 billion euros.
Debt
French President Nicolas Sarkozy said on the Summit agreed debt of Greece would measures by 24 percentage points of GDP by about 150 percent today.
Remain still a colossal debt for an economy deep in recession with no way to a competitive devaluation.
In addition, the figures are based on what analysts say optimistic projections for growth and returns from a sweeping privatization program.
"Our estimates of Greek debt/GDP ratio will fall around 25 percentage points more than 5 years as a result are these measures but still a whopping 120 percent in 2016, even on the assumption that the full 50 billion privatization be implemented measures," said analysts at JP Morgan.
"We therefore believe that spreads (bond) to expand, scattered again short coverage and reality sinks."
Euro brushed close to a two week high prices for Greek, Irish and Portuguese bonds jumped, and the cost of insuring their debt fell Friday. But traders said that expectations of a larger restructuring on the street were visible.
The European leaders promise a "Marshall Plan" to help the European public investment, to revive the Greek economy can help, although details were thin.
Agencies standard & poor's and Moody's are likely to rating Fitch example to follow, because banks and insurance companies write the value of Greek bonds to around 20 percent, with perhaps more casualties are expected to follow.
"We have long held, that the most likely result for Greek bondholders would she would followed first by a larger at a later date a small haircut." "Greece a real chance they give have likely a write down close to 65 percent, to", said Gary Jenkins, head of fixed income research on development.
The Summit accord was based on a common position by hand by Merkel and Sarkozy in late-night talks in Berlin Wednesday with the Jean-Claude Trichet of President of the ECB.
The ECB has drawn and it signaled standard was prepared to let Greece temporary – so long as it was strictly a one-time.
But Fitch said that similar creditors private participation in future help for Ireland and Portugal would expect, if she had stabilized its finances, not until 2013.
Many economists believing the only way out of the euro zone debt crisis in the long run may be closer integration of the national Steuerpolitiken--for example a common euro-zone countries loans and issuance of bond guarantee one common euro-zone, to finance all countries. Germany has this against.
Sarkozy, is to at least looking more radical reforms.
He said that to improve the governance of the block, "our vision of the future of euro area highlight." would make proposals by the end of August France and Germany
Merkel said that she would allow no Union of automatic transfers from wealthier poorer States. "This will not happen ever I believe", she told a press conference.
Copyright 2011 Thomson Reuters.
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