Feb
15Debt fears plague global markets
Tagged Under : Global, Global Markets
Concerns about nations’ debt levels are spooking global market investors.
Greece, of course, has made headlines in recent weeks for its sovereign debt woes. The country’s budget deficit is 12.7 percent – more than four times the 3 percent limit to which European Union member states agree – and the Greek government’s announcement that it would slash public-sector pay was met with strikes and protests in the street.
Fears about either a Greek default or the ramifications of a euro-zone bailout sent the euro lower in the past four trading days. Tuesday could be the fifth, as investors hoping for guidance on the Greece situation may be disappointed by EU finance ministers’ refusal to give details on the nature of a potential bailout.
Greece will report on the effectiveness of its debt-cutting measures on March 16.
Dubai, too, is still struggling with debt. The emirate sent shock waves through the markets in November when it requested extra time to pay its property management firms’ debt obligations.
On Sunday, a Dow Jones report indicated that Dubai would offer 60 percent repayment and a government guarantee or 100 percent repayment that includes property assets but lacks a guarantee.
Neither option is likely to be palatable to creditors.
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