Written by Γεωργιος Καρακατσανης
Thursday, 04 March 2010 15:09
We read about a possible deterioration in the creditworthiness of Greek banks. What effect this might have on interest rates?? There will be reasonable to expect further interest rate increases??
The deterioration of creditworthiness of a bank leads to limited liquidity and rising borrowing costs for this and considered less reliable. As a result of expected higher interest rates on deposits, and further allocations.