The time has come for Greece to ask the European Union and IMF for cash, a senior analyst at Fitch Ratings told Reuters on Thursday, saying spiraling bond spreads and lack of clarity over EU support meant this should not be delayed.
"It is now up to the Greek government to go publicly to the EU and IMF and ask for the cash and the support; the matter cannot be long delayed," said Chris Pryce, Fitch's senior analyst for Greece.
Greek assets took a severe beating on Thursday. The premium investors demand to buy Greek government bonds rather than benchmark German Bunds surged to a fresh euro lifetime high and Greek stocks tumbled over worried on the country's fiscal woes.
Pryce said Athens should ask the EU and International Monetary Fund to trigger the aid package agreed last month "because the spreads are getting higher, because despite everything the EU and the euro zone have done there is still a lack of clarity (and) confusion about what they intend to do, when they intend do it and how much would be involved."
The premium investors demand to buy Greek government bonds rather than benchmark German Bunds surged to a euro lifetime high above 450 basis points on Thursday. (One basis point is equivalent to 0.01%, or one-hundredth of a percentage point.)
"It's time the euro zone and the Greek government fully recognize the extent of their problems," Pryce said.
Fitch currently rates Greece BBB plus with a negative outlook.
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