Athens/Brussels- Greece Monday after eurozone policymakers senior martelé credit rating agencies acknowledged that Athens will need a second rescue soon plan to avoid a disorderly obligations of debt consolidation.
Officials, said the European Union was also seeking to lower interest rates on loans of Ireland rescue in the weeks and consider easier terms of rescue for the Greece as the common currency area more deeply floundered in the crisis.
But the rating agency Standard & Poor offers much more radical measures were to be of 327 billion for sustainable Greece euros ($470 billion) debt mountain, saying Athens can do to reduce the nominal value of its obligations up to 70%which implies large losses for investors.
S & P downgraded the Greece credit rating deeper into junk territory-B, just one notch above Pakistan, striking Greek bank stocks investors seeking safety in German bonds. The euro slipped to its lowest level in three weeks against the dollar.
Investor Service of Moody threatened to downgrade the Greece by several cuts, placing the Athens B1 sovereign rating on review because of concerns increased it might seek to impose losses on private bond.
Fitch Ratings said it still rated the Greece to BB + with a negative perspective and did not comment on a report in the German newspaper Sueddeutsche Zeitung that it was considering downgrading the rating of the Greece to b or B - this week.
The Executive of the European Commission said he hoped a decision within weeks to reduce the rate of interest required in Ireland to make more sustainable debt of Dublin.
"The Commission is clearly for lower rates," said a spokesman for EU economic and Monetary Affairs Commissioner Olli Rehn. "The Commission is against the debt restructuring."
IRELAND IS EXPECTED CUT
Irish Minister Enda Kenny told Parliament that without a return to strong economic growth, "sustainability issues will remain" on the debt of his country.
"Il there is no doubt that a reduction in the rate of interest on the money, we are borrowing Europe would be useful and appreciated", he said, predicting that il could be delivered to a meeting euro-zone finance ministers next week.
Submission of the new Irish Government for lower interest payments has so far been blocked by the Germany and the France, who want to Dublin to abandon the right of veto on the harmonization of the tax for companies in Europe in Exchange or to raise its own rate low corporate tax. Kenny clearly that he would not consent to raise tax on corporations.
In Germany, a legislature than the Conservative Party of Chancellor Angela Merkel said another cut of the rate on emergency loan to the Greece, already reduced by a percentage point in March, would be justified if it carried out more reforms.
Michael Meister, finance policy spokesman Christian Democrats in Merkel, told German radio he is opposed to any idea that Athens should restructure its debt or that it should consider leaving the euro.
Calls to low interest rates came after a group of decision makers in area euro top was not-so-secret talks in Luxembourg Friday on how to stem the crisis.
One of the German Government economic advisers, Peter Bofinger, said television Reuters Insider that unless there was a comprehensive solution for all euro-zone debt problems, "I don't know if the euro zone will remain intact for the next 12 months."
ANGELA MERKEL TO MEET EU TOP BRASS
The cost of insuring Greek, Irish and Portuguese debt against default were increased and European shares fell on signs, that the three States are mounting a war of auction for easier terms pointing to make concessions to each other.
A report by the German magazine Der Spiegel on Friday alleging that the Greece considering leaving the euro drew denials is unworthy of Athens and the EU Ministers.
Spokesman for Merkel said that she would meet with the President of the European Commission José Manuel Barroso, head of the executive body of the EU and President of the European Herman van Rompuy, who chairs the regular summits of the block, on Wednesday to examine the situation.
Output Greek euro was never under discussion and was not now, he said at a press conference.
The euro area and EU Finance Ministers are due next week to approve a rescue of 78 billion euros for the Portugal amid persistent uncertainty about the opportunity to meet the Finland, was an interim Government, which has not yet begun talks on a new coalitionwill be able to give the required agreement.
Pressure is mounting for these meetings deliver decisions on the Ireland and the Greece as well, but the sources of the euro area said that no action was probably on the Greece until June at the earliest.
The Finance Minister Greek George Papaconstantinou, who attended the meeting of Luxembourg, said investors did not believe that his country could return to the capital markets of the next year, as foreseen in its plan of EU and the IMF, so it may be necessary to alternative financing.
Jean-Claude Juncker, President of the Eurogroup of Finance Ministers of the 17-nation euro zone, said after the talks Friday there was a consensus that Athens would require a second rescue operation.
Greece, which has a mountain of debts of 150% of the gross domestic product, is supposed to raise 27 billion euros in the market in 2012, according to the rescue plan existing.
"For the moment, the most likely outcome is for policy makers to commit to provide Greece with additional funds and may extend the maturity of its existing loans of rescue, effectively postponing a Greek restructuring," Ben may, European Economist at Capital Economicswrote in a note to clients.
Market analysts are convinced that Athens would have to reduce its debt essentially by a mixture of rescheduling of the deadlines, a decrease in the rate of interest and private investors convincing to take voluntary loss to avoid a messy failure.
Some believe also is unable to repay its debt, set to 120% of GDP in Ireland and will be facing political pressure to make the holders of Bank share the cost of mounting.
On Sunday, an Irish Minister said that Dublin a look to see what he can win his rescue EU/IMF plan if the Greece is given a new contract to solve the crisis of concessions.
