Trillion USdollar a global debt threatened a high-risk classification

Trillion USdollar a global debt threatened a high-risk classification

The data showed agency Standard & Poor’s has doubled the size of government debt and companies that are likely to reduce classified into high-risk debt to more than four-fold in 2012 due to lower credit quality in the global banking sector to reach one trillion dollars.

Previous rankings

At the end of last year ranked Standard & Poor’s credit rating debt worth $ 984.8 billion from 52 borrowers higher degree and one of the high-risk debt. At the end of 2011 the number of borrowers who have rated the highest score and one of the high-risk debt 38 borrowers and the size of their debts 227.4 billion dollars.

Said Diane won credit analyst at Standard & Poor’s said most of the downward pressure affecting the bond that was rated at investment grade and was reduced due to the European debt crisis. The won was referring to bond issuers who almost classified decline to a high degree of risk.

And 25 borrowers or about half of the credits reduce prone to that degree are from the banking sector and among this group, eight banks in India. The largest number of high-risk entities found in the United States and Europe as each includes 15 of these entities. The Asia-Pacific in the next place it where there are 11 of these borrowers.

Roof America

In America inflation, public debt to 16 trillion dollars due to a number of factors over the past decade, including tax exemptions, in the era of Bush and the war in Iraq and Afghanistan, the recession and the financial crisis and the crisis in the housing sector.

After the dramatic vote in the Senate and House of Representatives in the United States on an agreement to avoid “financial abyss”, emerged a new dilemma concerning public debt ceiling. Republicans, who vowed to feel angry because financial abyss agreement did not contain enough measures to curb the federal budget deficit using the pretext of the debt ceiling to get significant reductions in spending next time.

Republicans believe that they will have the last word on President Barack Obama when considering higher borrowing ceiling in February because of failure to reach an agreement could mean a rebound in U.S. debt or reduction in the credit rating of the United States. And led a similar confrontation in 2011 to reduce the country’s credit rating.

Europe’s debt

And exacerbated the sovereign debt crisis in several European countries, but stand out clearly in all of Portugal, Greece and Spain. The International Monetary Fund agreed on the next tranche of its aid package to Portugal. The Fund agreed to exchange and share worth 838.8 million euros of broader aid package, during a meeting of its Executive Board in Washington.

The funding comes under the bracket aid worth 2.5 billion euros provided by the International Monetary Fund and the European Union and the European Central Bank. Portugal adopted a strict austerity policies in agreement with the European Union and the International Monetary Fund for a rescue package totaling up to 78 billion euros, 100 billion dollars over three years.

New package

The Fund also approved the disbursement of a new batch of bailout loans package for Greece $ 4.3 billion or $ 3.24 billion euros after a review of the economic and financial performance of Athens. The Director of the Fund Christine Lagarde said the program is moving in the right track with a strong fiscal adjustments. The decision of the Executive Board of the Fund on Greece expected after the Greek parliament’s approval last week on a series of tax reforms request for continued international creditors to lend.

Merkel failed

Accused the opposition Social Democratic Party in Germany Chancellor Angela Merkel’s government of not doing enough to reduce the public debt. In referring to this, he went Hubertus Heil, deputy head of the parliamentary bloc of the Social Democratic Party, Merkel’s government, saying in his speech before the parliament Commenting on the annual economic report for 2013: I’ve Diatm the fruits of the good performance of the economy over the next three years.

The German economy minister said in a government statement that Germany has overcome the financial crisis achievement of the German people and the coalition government, which includes coalition Merkel’s Christian Democrats and the Liberal Democratic Party. He believed that the markets regained confidence in the single European currency and the opposition in Germany warned of overload on medium-sized companies in Germany indebted and said that these companies are that achieve prosperity in Germany.