国际英语新闻：Greece rattles markets as Spain downgraded

Although the European Commission insists that the bailout of Greece will not involve restructuring its debt, German Christian Democrats' budget spokesman said Tuesday that his party would raise the idea of forcing investors to take a discount on Greek debt with the IMF and the European Central Bank Wednesday.

Even if Greece obtains international aid this year and over the next few years, many analysts think its uncompetitive economy may continue to struggle in the eurozone's monetary straightjacket, ultimately forcing a debt default, Reuters said.

A Reuters poll of about 50 economists last week found them estimating a 23 percent chance of a Greek default within five years.

Holders of Greek bonds may recover only 30 to 50 percent of their investments in the event of a Greek restructuring or default, according to S&P.

Zhao Xijun, a finance professor at Renmin University of China, told the Global Times that it's hard to estimate now the influence that Greek debt woes will have on world financial markets.

"Except for the substantial losses to bondholders, it will create panic fears among investors of the global financial market," Zhao said.

The IMF warned in its World Economic Outlook report last week that the world risked a "debt explosion" if public finances weren't reined in.

"There will be some negative impact to most credit space, including emerging market sovereign and quasi-sovereign bonds, but I don't think it will be long lasting," Desmond Soon, head of fixed income at DBS Asset Management in Singapore, was quoted by Reuters as saying.