Friday, April 22, 2011

Papandreou slams rating agencies 'trying to shape Greece's future'

April 22, 2011

Greece's prime minister, George Papandreou, has launched a new attack on credit rating agencies amid mounting expectation that Greece was considering ways to restructure its debts.

On the first anniversary of the Greek bailout by the International Monetary Fund and the EU, Papandreou said on a government website that agencies were "seeking to shape our destiny and determine the future of our children".

His outburst came as the Greek authorities focused on a London trader at US bank Citigroup in their attempts to get to the bottom of rumours that the government would restructure its debt as early as this Easter weekend.

In an email sent on 20 April Paul Moss, a Citigroup employee, outlined "market noise" about a possible restructuring, when rumours were rife in the markets. Shares in Greek banks fell 4.7% that day, infuriating the Greek authorities, which have called in Interpol. Citi is adamant that neither it nor its employees have done anything wrong. Greek authorities said they were awaiting news of what they hoped would be an in-depth investigation.


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