Algeria’s Key partners in the Eurozone threatened with bankruptcy

Moody’s lowered the credit rating of two French banks on Wednesday because of their direct tie with Greece debts, which highlights the increased risks on the European financial sector due to the crisis of the growing debts in the euro zone.

 The rating downgrades Société Générale and Crédit Agricole with one degree, while BNP Paribas was put under control, as there is no branch of the Credit Agricole in Algeria, while Société Générale is considered the largest French bank in Algeria with lesser degree than BNP Paribas.

Moody’s classifies the current long-term debts of BNP Paribas at “AA2”, the third highest credit rating. The classification of Crédit Agricole is “AA1” the second highest rating, and Société Générale at “AA2”, while its shares fell to 55% in Paris since June 15, the share of Crédit Agricole dropped to 45% and that of BNP Paribas fell to 42%.

BNP Paribas, Société Générale and Crédit Agricole are the largest Banks in France respective.

Crédit Agricole, the third largest French Bank faces the more dangerous threat because of its branch in Greece “Emporiki”. Société Générale, second largest French bank faces risks because of its share in the General Bank of Greece, while BNP Paribas does not have a local unit in Greece, and instead is facing risks due to buying directly the debts of the Greek government.

Barosso admitted that the resolution will not bring immediate solutions to all problems the EU faces and will come as a comprehensive approach to bring more economic and political integration.

The Chinese PM Wen Jia Bao said that Beijing is ready to help its largest business partner but added that Europe has to shift without aggravation of the crisis which threatens Italy now.

The former economist and finance minister Abdelatif Ben Achenhou said that the richer countries in the world lost financial and technology control for emerging nations led by China, India and Brazil, calling on Algeria to strengthen its economic ties with these powers, especially as its key partners in south Europe are the most affected with the crisis in the euro zone unable to solve the problem of debts.