Deterioration of Greece’s creditworthiness accelerates

The cepDefault-Index for Greece has now fallen below the level of 2010

While other crisis states of the Eurozone are gradually seeing their situation improving, a recovery in Greece is nowhere in sight. The cepDefault-Index for Greece released this Monday shows that the deterioration of the creditworthiness of the country not only continued in 2014 but in fact accelerated. The index has now fallen below the level of 2010, when the country first applied for international help. Co-author Matthias Kullas told German weekly Welt am Sonntag that another debt cut for Greece, which is currently discussed, would make no sense. “Any debt cut would only impact on existing government debt. However, the fundamental cause of the Greek problems, namely the lack of competitiveness, would not be eliminated. Thus, a debt cut would at best ease Greek pains for a short while,” Kullas argued.