The Euro debt crisis is really so critical?

When it comes to debt, currencies play a major role to affect the market.

Currencies are important for all the investors around the world. You should remember that the Euro was in the news recently because of its falling down values.

Europe has been under financial crisis that is affecting its currency too. A fall of its currency value is also affecting the markets of the other nations where the deals are made in Euros. Due to the fall in the value of Euro, several other nations that share this currency has come under the scanner of negative credit watch now.

The declining value of Euro raises a tension among the investors leading them to think whether the businesses and the people of the country will be able to pay off their loans taken.

There are different credit agencies like "Standard & Poor" who determines a rating score, that is higher the rating, lower the interest have to be paid. According to S&P, 15 countries of the world dealing in Euros are currently under ‘negative credit watch’.

Countries like Italy are under severe debt crisis with a debt amount to the tune of 1.9 trillion Euros. They also allocate the risk level of the bond that has been issued by the country. S&P wants the country to come together to solve the deficiency caused due to the fall in the currency value.

Europe has to deal with the problem as soon as possible before it collapses down. Every country is interlinked with each other, the stock and bond market connects them and the countries sharing the same currency need to act swiftly to take control of the situation that may go out of control worsening the problem even further.

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