Eurozone: Creditors arrive in Greece and Germany faces downgrade
The European stock markets painted a mixed picture at open this morning (July 24th), as creditors arrived in Greece to hold talks that will ascertain whether the country has earned a fresh rescue fund and Moody's threatens Germany with a downgrade.
Auditors from the European Union (EU), the International Monetary Fund (IMF) and the European Central Bank (ECB) have come to Athens to quiz the new government - which came into power last month - over how to put its troubled structural reforms back on track.
The report from the so-called troika of Greek creditors will determine whether Greece will get fresh loans worth €31.5 billion (£24.5 billion) by September under its current debt rescue programme.
Athens policymakers agreed to €11.5 billion in spending cuts in 2013-2014, which the country was meant to identify in June under agreements set out earlier this year.
Without this next tranche of rescue funds from the EU, IMF and ECB, the Greek government will be unable to redeem maturing debt and maintain domestic salary and pension payments.
Meanwhile, Moody's has warned the outlook for Germany's AAA credit rating is negative, which could mean Europe's largest and most resilient economy may be downgraded.
The agency stated the nation is in danger of the heightened risk of Greece's exit from the euro and the need to pump more money into ailing Spain, as the chances of it requiring a full bailout grow.
Luxembourg and the Netherlands - which are also AAA-rated economies - were put on a negative watch as well.
Moody's has said there is a chance Greece - despite much international intervention - may have to leave the single currency and return to the drachma, which "would set off a chain of financial sector shocks".
At 09:20 BST, the Germany Dax was down 0.2 per cent to an index value of 6401.1 points, while the French Cac 40 shed 0.2 per cent to 3093.8 points.
Spain's Ibex continued its downward trajectory, plunging 1.2 per cent to 6097.7 points and outside the eurozone the UK FTSE 100 was lower by 0.1 per cent to 5527.3 points.
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