The countdown for the financial meltdown in Greece is still approaching.
Standard and Poor's (S&P) downgraded the level of the Greek bond into junk status. It thinks that Greece would not accomplish the payment for national debt properly without deep economic restructure. The interest rate on the two-year Greek bond is now almost 24%.
The Guardian: Greece at substantial risk of default, say experts
Greek officials have repeatedly requested to delay loan repayment to the International Monetary Fund (IMF). But the negotiation was not successful. Now, it seems to consider to transfer the state-owned enterprises to the Bank of Greece, as the last resort.
The Telegraph: Greece plans to raid coffers as creditors dash hopes of resolving cash crisis
Now, the national debt of Greece has reached 175% of its GDP. It is not surprising because the ratio is 231% in Japan. However, Greece has scarce domestic retention money, different from Japan. It means that Greece will soon bankrupt when the national bond possessed by foreign investors turns into a sale. The amendment of rating by S&P can be a trigger of it.
The debt of Greece is not a recent incident. It underestimated the fiscal burdening at the time of entering the EU. Even if the procedure of accounts is standardized, thoughts against the money and degree of delicacy upon the financial work differ between the countries. I think that many Greek people still do not understand the severity of this issue. It is the same in the leaders. Syriza will have a tough time.
My past entry: Anti-austerity won the election in Greece
My past entry: Greek financial crisis