The Greek finance minister denied talk about Greece discussing a restructuring of debt with its creditors. This is not the first time. Jamie Coleman reports about this and adds details.
Having to deny restructuring / burden sharing / default / not paying debt, so many times, isn’t so hopeful. Too much of “no smoke”, and eventually we’ll see the fire.
My EUR/USD 2011 predictions focused on Spain and weren’t so pro-Euro. Now we got a reminder that the first country that was bailed out isn’t doing to good as well.
A test for the situation in Europe will come from Portugal, which makes its debut debt raising effort. A success on Wednesday’s auction will boost the Euro, while a failure rock the domino cards. Some say that Portugal will be the last domino, rather than just another one before the really big country – Spain.
Spain doesn’t have an auction this week, but has a lot on the road ahead, during the first half of 2011. There’s a fear of “Credit Crunch 2” that will occur this year.
Maybe China will buy Spanish bonds and save the day…
This will certainly be an interesting year.
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