Bailout Fund Not So Stable: Fitch Downgrades Credit Rating Of European Stability Facility

16 Jul

Emptied your bank account yet?

The global ratings agency Fitch has downgraded the eurozone’s temporary bailout fund from AAA to AA+, following its downgrading of France’s credit rating.

On Monday, Fitch announced that the European Financial Stability Facility’s (EFSF’s) had lost its credit rating, saying that France’s downgrading had had a “high weight” on the EFSF fund’s credit status.

“EFSF’s ratings rely on the irrevocable and unconditional guarantees and overguarantees provided by euro area member states,” the ratings agency said in a statement.

On Friday, Fitch announced that France had lost its top credit rating, citing concerns about the lack of growth and the buildup of government debt in the second largest economy of the European Union.

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2 Responses to “Bailout Fund Not So Stable: Fitch Downgrades Credit Rating Of European Stability Facility”

  1. bushbunny July 17, 2013 at 11:50 am #

    Hi, I don’t really understand the significance of this? Maybe you could explain. I rarely have much in my bank account so I don’t think they will rob me of what I haven’t got?

    • The Blissful Ignoramus July 17, 2013 at 12:04 pm #

      It is simply another indicator of what a farce the continued attempts to obscure the insolvency of the Western banking system are. In this case, simply, the European Stabilisation Facility Fund — purportedly for bailing out banks/countries in trouble — would be actually funded by the same (insolvent) countries it is supposed to bail out. The whole thing was a propaganda campaign to avert total collapse — to create an impression that the EU would come together to finance bailouts if/when needed. Now that France — one of the two biggest countries and supposed contributors to the Fund — has had its own sovereign credit rating downgraded, that impacts on the credibility (thus, credit rating) of the bailout Fund it is supposedly going to contribute to. In essence, the truth that the Emperor (Western banking system) has no clothes, is slowly but surely coming into view. Meaning, bail-ins are drawing nearer.

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