Soaring Interest Rates Hit Markets

Fears over Greece’s deteriorating economic situation rose higher on Thursday as interest rates reached a new record of 7.5 percent. Interest rates rose with investors’ concern that Greece might not be able to pay back its debts.
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Soaring Interest Rates Hit Markets
4/9/2010
Updated:
4/10/2010

Fears over Greece’s deteriorating economic situation rose higher on Thursday as interest rates reached a new record of 7.5 percent.

Interest rates rose with investors’ concern that Greece might not be able to pay back its debts, which have reached over $400 billion.

This drop in confidence mainly affected Greek banking stocks and also impacted other European markets. It came despite guarantees of financial support for Greece given by European countries and the IMF just weeks ago.

The 7.5 percent interest rate is a jump from 5.1 percent in a matter of days. In an attempt to restore some trust, President of the European Central Bank Jean-Claude Trichet said on Thursday that Greece is in not in danger of defaulting on its debts.