Credit agency S&P downgraded Greece’s credit rating from B-/B to CCC+/C with a negative outlook which came after latest Greek figures on Wednesday showed Greece’s deficits in 2014 were higher than government forecasts and the country’s economy shrunk 1 percent during the past 6 months.
Greece’s short term bond yields jumped over 25 percent on the news.
Athens is scrambling to come up with cash to pay its international creditors in May and submit a list of parliamentary approved reform measures that will allow the cash strapped country to receive its last €7.2 billion disbursement in bailout loans.
Greece’s newly elected leftist government has been reluctant to embrace reform measures that Greece’s creditors want the country to follow.
On April 24th Greek government officials will meet with their creditors from Riga, Latvia.
A €750 million payment is needed by May 12th and the country is struggling to find the cash to meet its debt obligations.