G20 meeting to focus on eurozone debt crisis
14 Oct 2011
G20 finance ministers and central bankers are meeting in Paris later today to a find solution to the debt crisis in the eurozone in wake of the downgrade of Spain's credit rating.
The downgrade of Spain and Greece will dominate the talks at the meeting, but fears of the crisis spreading to other highly indebted eurozone countries such as Italy and exposed European banks will also be the highlight of the meeting.
Next month, Greece will require its next bailout to avoid defaulting on its debt.
Standard & Poor's (S&P) cut Spain's credit rating by one notch, from AA to AA-, while Fitch Ratings, last week, had also cut the country's rating, which will increase Spain's borrowing costs. (See: Fitch cuts Italy, Spain ratings; says outlook negative)
Earlier this week on Tuesday, S&P as well as Fitch had downgraded the credit ratings of top Spanish banks, including Santander and BBVA, over poor growth prospects.
S&P had said the "tougher-than-previously-anticipated macroeconomic and financial environment in Spain" prompted the downgrade of ratings of the 10 banks.
