S&P downgrades Spain, highlights deepening recessionOctober 11, 2012 - 12:00 AMT PanARMENIAN.Net - Ratings agency Standard & Poor's has downgraded Spain's credit rating, highlighting a deepening recession and mounting pressure on Madrid's finances, BBC News reported. S&P cut Spanish debt from BBB+ to BBB-, one level above junk status, and warned of possible further downgrades. Spain is struggling with high debt levels and the highest rate of unemployment in the eurozone. Madrid has introduced drastic spending cuts and tax rises, but many think it will have no option but seek a bailout. "The downgrade reflects our view of mounting risk to Spain's public finances, due to rising economic and political pressures," S&P said. "The deepening economic recession is limiting the Spanish government's policy options." Last month, the government unveiled its latest budget designed to make savings of around 13bn euros ($16.7bn; £10.4bn) next year, by cutting public sector wages, education, health and social services. The cuts were the latest in a series of austerity measures that have sparked angry protests across Spain. Despite the cuts, tax rises, labour market and pension reforms, the Spanish government has said the country's overall debt levels will rise next year to more than 90% of total economic output. The country's borrowing costs have remained high for months, leading many analysts to argue it is only a matter of time before Madrid is forced to ask its eurozone partners for financial assistance. However, last week, Spanish Economy Minister Luis de Guindos denied his country would be asking for help. "Spain does not need a bailout at all," he said. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Macron honors Charles Aznavour on 100th anniversary French President Emmanuel Macron has paid tribute to the memory of French-Armenian crooner Charles Aznavour. Erdogan’s approval rating falls below 40 percent: survey A total of 53.4 percent of respondents said they disapprove of the performance of Erdoğan. Blinken says U.S. reviewing a number of aid requests from Armenia He said the U.S. is reviewing the requests to determine what more it can do to increase its assistance to Armenia. At least 2 CSTO members participated in preparing 44-day war against Armenia – PM Nikol Pashinyan has declared that at least two CSTO member countries participated in preparations for the 44-day war against Armenia. |