European stocks lower amid concerns about Greece
22.02.2012
European stock markets were lower today, although the euro held steady, as the positive spin created by the Greek bailout was replaced by growing concern that the deal can work.
There are serious doubts now about Greece's ability to meet the targets set.
International ratings agency Fitch cut Greece’s CCC rating to C – just one notch above the lowest at D – and today said that it now considers a Greek debt default to be “highly likely in the near term”.
News of a slowdown in eurozone private sector activity added to the negative tone, according to dealers.
And while the bailout agreement ticks all the boxes in terms of financing and Greek commitments, the country’s economy is still weak and facing a huge task in sticking to the plan, they added.
Greece is currently seeking to finalise the legislation needed to implement the bailout deal.
Karina Corbett