Despite the downgrade of Greece’s credit rating to the lowest in the Eurozone, the country won’t default on its debt, says hedge fund legend George Soros.
In an interview with Sky Television, he said the U.K., whose credit rating may be at risk, and Dubai, which is suffering a financial crisis, won’t default either.
"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. The same applies to the U.K.,” Soros said. (more)
The economic crises in Greece and Ireland may necessitate financial bailouts or even an exit from the euro for these countries, according to Standard Bank analyst Steve Barrow.
“Countries like Ireland and Greece may not be able to grow out of the current crisis,” Barrow, head of G-10 currency strategy for the bank, told Bloomberg.
“With interest-rate cuts, exchange-rate depreciation and significant fiscal support all off limits for these countries, bailouts or even pullouts from EMU (European Monetary Union) may happen next year.” (more)
