Standard and Poor's raring agency is expecting an early Greek default.
A senior official of Standard and Poor's (S&P) ratings agency has forecasted that Greece will soon default on its debt obligations.
"Greece will default very shortly,” Moritz Kraemer, the head of the agency's European sovereign ratings unit told Bloomberg Television on Monday adding, “Whether there will be a solution at the end of the current rocky negotiations, I cannot say."
The S&P official went on to say, "There is a lot of brinksmanship on and a disorderly default will have ramifications on other countries but I believe policymakers will want to avoid that ... the game is still on."
The EU and the IMF have so far provided Greece with two rescue packages in return for specific austerity measures, which include the cutting of public sector salaries and pensions, increasing taxes and overhauling the pension system.
While the bailout packages have provided the Greek government with a yearly budget, the austerity cuts they entailed have so far only caused damages to the economy.
Greece has the highest debt burden in proportion to the size of its economy in the entire 17-nation eurozone.
In addition, 2012 marks the country's fifth year of recession fuelled by the government's austerity programs.
Europe plunged into a deep financial crisis in early 2010. Insolvency now threatens heavily debt-ridden countries such as Greece, Portugal, Italy, Ireland, and Spain.
