The interest rate of Greek debt reached 8.28%

The beginning of the meetings with the European Union and the international monetary fund, didn’t prevent a new record on the price of defaulting insurances of Greek debt. The fears are getting bigger until the point of boosting the interest rate of the 10 years Greek debt to 8.28%, with 500 basic points of difference from Germany. Spain also increased the interest rate of hist debt to 80 basic points.

Investors of public debt are fairly opting to reduce its risk profile. The German debt becomes winner in a tendency that affect the surrounding markets.

credit default swaps (CDS) to 5 years of Greek debt also reached a new maximum of 489 basic points, what means that the cost of insurance $10milion grows to $489,000.

Not just the Greek debt is in trouble

The Greek debt isn’t the only in trouble, the defaulting insurances got also more expensive for other surrounding countries. In the case of Portugal , the CDS to 5 years increased to 219 basic points, from the previous 200, while in the case of Spain increased from 144.8 basic points to 152.2.

The record alerts on the financial health of Greece coincided with th beginning of the meetings on the Greek debt with the European Union and the International Monetary Fund, after two days of delay caused by the aerial collapse.

The market considers the option of prolongation of the meetings for about 2 weeks, and according the analysts, and they are thinking in giving 45,000 millions of Euros in aids and save the Greek debt. The Greek governments asked for help before the end of “official” conversations.

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2. The Greek National Debt Isn’t Trash After All
3. The European Interest rate is likely to continue low in 2010
4. The International Monetary Fund will asses on the Greek National Debt
5. The rating of the Greek national debt has been downgraded