Greek Borrowing Cost Could Top 10%

Following yesterday’s assignment of “junk” status to Greek debt by ratings agent Standard & Poors, the interest rate spread between Greek bonds and the benchmark German bonds, jumped to 7.7 percent. This means that Greece would be forced to offer yields of at least 10 percent in order to attract buyers.

With just three weeks to go before Greece could plunge into default, pressure is mounting for a Eurozone / IMF sponsored bail-out plan.

Source: Associated Press

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