Worries over Greece continue to affect the Euro

The Euro fell yesterday on the foreign markets, against most of the major currencies, amid speculation that European leaders aren"t exactly happy to provide new financial aid to Greece, fueling worries over the restructuring of the country"s debt.

At 10.01, the Euro had an exchange rate of 1.4298 on the New York Market, 0.8% lower than on the previous day, when it stood at 1.4409 dollars.

On Tuesday, German chancellor Angela Merkel said that Greece needs to meet its budget deficit targets to be able to obtain an extension of the package of 110 billion Euros which it gained last year.

"We can only show solidarity if Greece proves its stability and desire for reform", Merkel said, who added: "We can only exit this dangerous situation if we rebuild this foundation in an adequate manner, not just to provide help without Greece doing anything".

Greece yesterday faced a new 24-hour general strike, which affected urban, railway and sea transport, flights, medical and education services. The strike was launched in protests against the austerity measures and the privatization plans announced by the government of Athens.

On Tuesday, financial ratings agency "Moody"s Investors Service" placed the ratings of eight major Greek banks on downgrade review: "National Bank of Greece" SA, "EFG Eurobank Ergasias" SA, "Alpha Bank" AE, "Piraeus Bank" SA, "Agricultural Bank of Greece", "Attica Bank" SA, "Emporiki Bank of Greece" and "General Bank of Greece". This step was taken one day after the agency announced it could cut the "B1" rating of Greece"s government bonds denominated in foreign currency and in Euros.

On Monday, "Standard & Poor"s" lowered Greece credit rating and warned the country may fail to raise the funding it needs. On Tuesday, Greece sold treasury notes worth 1.625 billion Euros, at a similar cost to that of the previous auction.