World Business
Greece rattles markets as Spain downgraded
(Xinhua)
Updated: 2010-04-29 14:54
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BEIJING: Global concerns over a potential Greek default and spreading debt problems in the eurozone deepened Wednesday as the country's borrowing costs surged, a day after ratings agency Standard & Poor's downgraded Greece's bonds to junk status, which led to sliding stocks around the world.
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The most-indebted country in Europe, relative to the size of its economy, has about 296 billion euros of bonds outstanding, and the government is grappling with a budget deficit of almost 14 percent of gross domestic product, according to data compiled by Bloomberg.
In issuing the downgrade, S&P cited the "political, economic, and budgetary challenges that the Greek government faces in its efforts to put the public debt burden onto a sustained downward trajectory."
