The debt key progress: European situations reproduce unrest

In the European central bank refinancing operation and the European Union implementation summit, international trust the agencies reaches out again, with one action of Greek sovereign letter into the "selective breach" and a reduction in EFSF looking to negative. German chancellor Angela merkel warned that despite the support and agreed to Germany to Greece ESM capital injection of 11 billion euros, but she does not guarantee that the Greek bail-out must succeed.

Affected by this, the euro was badly hit nearly points, the dollar fell to 1.3365 from 1.3460 near a line, then the exchange rate in small picks up, and at 1.3400 trading near concussion. Tuesday (February 28) and the pan, the euro/dollar temporarily steady in 1.3400 above, the current report 1.3403.

The European central bank (ECB) on Wednesday (February 29) started the second round the refinancing long-term operation (LTRO), with 1.0% of the European banking ultra-low interest rates to provide unlimited 3 10-year credit, prevent the euro zone in the credit crunch trouble. LTRO measures are thought to be to prevent the debt crisis of the slowdown in the main tool, on Wednesday is expected to action will be prompted Europe to further improve the situation.

In addition, the leaders of the European Union will on March 1-2, held a summit in Brussels, expanding European firewall negotiating scale. About the eurozone integration European financial stability mechanism (EFSF) and European stability mechanism (ESM) two major relief fund plan, the German government hasn't been comment, but the German chancellor Angela merkel has suggested in the European Union summit, to assess the program held open attitude.

The following is a key European debt progress:

Merkel: does not guarantee that the Greek bail-out must succeed

German chancellor Angela Merkel, Angela Merkel, said he supported the German aid Greece, and agree to ESM capital injection of 11 billion euros, but does not guarantee that the bailout of Greece to be successful.

In the Greek parliament on Monday voting eve, Angela merkel to members of congress say, save Greece is not only for Europe, but also for Germany. If the second round of the Greek aid can't get through, threaten to Spain, Italy and Portugal, and even the global economy.

She says, Germany will ESM capital injection to 11 billion euros, half of which funds will be in the money this year, but the German considers it is necessary to expand the scale of European firewall, 500 billion euros of ESM enough to deal with the crisis.

Angela merkel, points out that he agree with many people worry that Greece was "a bottomless," but he weighed the pros and cons of the Greek default, that bailout plan is still to new Europe and in Greece, to risk too.

Greek ejected from the euro zone face call, and Angela merkel warned, it will cause "immeasurable serious consequences for the euro zone, and the other edge national irresponsible".

Greece bail-out success, in debt is the key. Angela merkel says, private participation in debt restructuring negotiations, the euro area is an unprecedented process, "to conquer or to die".

She said the March 10 days can be informed, how many Greek creditors agreed to swap debt; If the participation rate low, may force of the euro area's collective action clauses, or even credit events to force all the creditors to join.

Germany's parliament through the second round of Greece bailout plan

In the German chancellor Angela merkel's lobbying and weigh the pros and cons under, Germany through the house of Commons in the second round of Greece's 130 billion euro rescue plan, although some of the ruling Christian Democrats/Christian socialist alliance and the liberal Democratic Party (LDP) by congress voted against cast or abstained.

Base civilian/base club league congress voted against cast of 13, 2 abstentions, the LDP has voted against four tickets, a abstained.

Because the opposition social Democrats and greens support this resolution, and the vote is still in an overwhelming majority of through. 591 a vote at the congress, 496-vote.

Once the suggestion from the foundation of the euro zone should be Greece awol club interior minister Friedrich (Hans-Peter Friedrich) voted for.

Standard &poor's a reduction in the EFSF letter to negative outlook

International trust the agencies s&p (Standard & Poor 's) announced on Monday will be the European financial stability mechanism (EFSF) believe review prospects come down to "negative", this would mean EFSF existing letter in the next two years the possibility of further down the level. 1 month, from France and Austria AAA top letter by the reduction, EFSF also lost the highest credit rating.

S&p in a statement, the agency is not expected from all the EFSF will be able to obtain enough financing support, this makes the EFSF AAA rating a return to become a claim.

The agency also warned that if the member states to provide security for the EFSF sovereign rating was further down, then the EFSF rating will likely suffered the same fate.

S&p Greek sovereign letter fell to breach the selective

The Greek announced and folk creditors in debt after the plan, the s&p announced on Monday will be the Greek sovereign credit rating from long-term "CC" down to a "Selective Default" (Selective Default)

S&p says, "we will Greek sovereign debt to SD, to reflect the letter of Greece and change the conditions of the debt folk creditors." Once completed in debt, may revoke its default choice, and will be based on the rise to CCC categories (CC to C).

But the s&p stressed that if there is no enough acceptable to the creditor in debt, "we think that Greece will face thoroughly debt default".

Another letter last week the agencies fitch ratings of Greek rating has dropped to "C" moody's, a reduction in the warning.