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Markets optimistic after European aid for Greece

29 March 2010 / 16:03:55  GRReporter
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This week, the eurozone countries finally agreed to make a plan for the possible support of Greece. The members of the eurozone decided that if Greece needs help with liquidity it will receive joint funding from the European Central Bank and the IMF. 

Greece will issue a new wave of securities by the end of March - said the director of the agency, which manages the government debt Petros Hristodoulou. The government hopes to collect about €5 billion by the end of March and another €20 billion by May. Expected is another tender in April. Prime Minister Papandreou told the weekly publication Investment World: "This is our chance to start anew, to admit the mistakes of the past and to make a system that will work better than the failed systems of the past decades. We have already managed to convince our Euro partners that we are not just begging for money and securities prices are starting to grow." 

The Greek investors liked this news and the Athens Stock Exchange index jumped 4 percent on Friday. Worldwide indices also closed with gains. The British FTSE 100 increased with 1.9 percent and reached 5703.1 points. In the U.S Dow Jones closed with a 1.1% increase at 10,850.2 points. Nasdaq closed the week with 2395.4 points, or 0.8% growth. The Japanese Nikkei increased with 0.6 percent and closed with 10,850 points. 

In other news, Fitch rating agency lowered the credit rating of Portugal from AA- to AA. According to analysts, the problems in Greece have caused the credit ratings review of eurozone countries with the weakest finances - Portugal, Spain and Italy. Other countries such as Slovakia, Iceland and Malta are also under criticism. 

The Euro also fell against the Dollar - from 1.356 USD per euro to 1.33 USD – under the barrier of 1.34 USD for the first time in 10 months.

Tags: Greece Economy Portugal Dow Jones market Crisis
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