Thu, 31 July
27.1 C
Yerevan
USD: 383.94 RUB: 4.85 EUR: 450.25 GEL: 141.78 GBP: 516.63

Jean-Claude Trichet Calls for Ending Oligopoly of Credit Ratings Agencies

YEREVAN, July 13, /ARKA/. European Central Bank President Jean-Claude Trichet said today the world needs more than three major credit ratings agencies because their actions exacerbate market swings.

According to the French daily Liberation, Trichet said the three major credit ratings agencies- Fitch, Standard & Poor`s and  Moody’s, in general tend to amplify rises and falls in financial markets. “You can see it still today very visibly. That goes against financial stability,” he said in an interview with the French daily.

It is probably appropriate not to continue to have a worldwide oligopoly of three agencies. But the underlying issue is to attenuate or cancel out this amplification to which the rating agencies contribute,” he said.

Earlier the three major agencies were criticized harshly by the International Monetary Fund (IMF), the Elysee palace  and the European Commission. Particularly, their decisions to  downgrade the sovereignty ratings of Greece, then Portugal and Spain  affected trading at European stock  markets.

Earlier French economy minister Christine Lagarde said the practice of international credit ratings agencies to downgrade or raise the sovereign ratings of some countries 15 minutes before the closure of trades in Europe help  stock exchange players to get richer. In May she called for a tighter control of the agencies. -0-

spot_img

POPULAR

Armenia’s economy to stabilize on 5.5% growth trajectory in 2025 – EDB forecast

According to EDB forecasts, Armenia's economy will stabilize on a 5.5% growth trajectory with domestic demand remaining the main driver of development.

Insurance market of Armenia is in embryonic state

Insurance market of Armenia is in embryonic state

Fitch expects inflation in Armenia to remain within the target level until 2027

International rating agency Fitch expects inflation in Armenia to remain within the target level until 2027, although soft fiscal policy and the projected moderate weakening of the dram create certain risks.

Ranking of most profitable banks in Armenia based on results of first quarter of 2025

ARKA news agency publishes the ranking of the most profitable commercial banks in Armenia based on the results of the first quarter of 2025.

Armenia approves EAEU agreement on allowing brokers and dealers to trade on exchanges of union countries

t a meeting on Thursday, the Armenian government approved a proposal to sign a draft agreement on granting permission to brokers and dealers of one Eurasian Economic Union member state to participate in organized trades of exchanges (trade organizers) of other EAEU member states.

LATEST NEWS

spot_imgspot_imgspot_img