Ireland Was Relegated To &Nbsp; Greece's Debt Crisis Was Resurgent.

Local time on April 16th, the Greek Ministry of Finance issued a statement that the government plans to cut the budget deficit by 26 billion euros in the next five years, and raise 50 billion euros through the sale of state-owned assets. Two measures are expected to reduce the total debt of Greece to 76 billion euros by 2015.

Papa Constant G Nur, Greece's finance minister, said the new plan would reduce the deficit to 1% of GDP in 2015 and target 7.4% this year. At the same time, he also tried to tell investors that the Greek government would not violate the promise made last year to get 110 billion euros from the EU and IMF. As part of the fiscal tightening, the Greek government will cut about 1 billion 200 million euros in defense spending, 2 billion euro civil service pay and 2 billion 500 million euros in pensions, while strengthening tax evasion efforts will bring 3 billion 500 million euros in revenue to the government, which is expected to account for 5.4% of GDP in 2015.

A large-scale action involving privatization made the market full of imagination for Greece's current debt restructuring of about 340 billion euros. Last Friday Greece also raised the premium rate of 10 - year Greek bonds to benchmark German bonds from 13.156% to 13.83%. The market interpreted it as Greece likely to restructure its debt, forcing bond holders to extend their repayment time or directly reduce their loans. But Greek Prime Minister Papandreou declared that Greece would not restructure its debt structure. The austerity measures were just the beginning of a series of structural reforms, and he hoped that Greece could solve its current predicament through structural reforms. On the same day, Borges, director of European affairs at IMF, said that Greece might be longer than expected in avoiding debt default, and did not rule out the possibility of further injection into Greece.

Juncker, chairman of the euro group and Prime Minister Luxemburg, said in Washington that "all rumours about Greek debt restructuring are nonsense, which is not even in our consideration." To better help Greece out of the mire, the rest of the eurozone decided to reduce Greece's lending rate by 1% and extend the repayment period from the previous three years to seven and a half years.

On the same day, Moodie Investors Service Inc issued a statement to lower Ireland's sovereign credit rating from two Baa1 to Baa3, only one step away from the junk level. Meanwhile, Moodie gave a negative outlook to Ireland, after which Iceland, Tunisia, Romania and Brazil were all reduced to a minimum investment grade Baa3 by Moodie. Moodie said that the Irish government's financial strength will further decline, and will cut its deficit target through tighter fiscal tightening. Meanwhile, the weak demand of Irish consumers and the gloomy economic outlook have lowered its economic growth in 2011 and 2012. The country's GDP growth is only 0.9% and 2.2% in two years.