The leading credit ratings agency Standard & Poor have warned that Greece could still be in threat of default. This comes following the consideration that banks will roll over their holdings of the country’s debt, which is proposed in a recent French plan.

The position of S&P could cause problems on the European attempt to deal with the crisis, especially if Moody and Fitch, a rival company, come to the same conclusion. A ‘selective default’ may trigger insurance claims for Greek bonds and cause further turmoil for the fragile markets.

Both German and French banks had revealed that they were ready to help Greece. But now many officials have stated that a final decision hasn’t been approved. Ultimately holding back on a verdict that seemed to have been made.

Another option was put forward, suggesting that French financial institutions invest 90% of the proceeds of the expiring Greek bonds into newly-issued bonds lasting five years. The plan gained a fair response and could be used as a model similar to the German plan.

Greece will need billions of Euros over the coming years, to aid in assistance. But government officials have postponed a second aid package until they know how much the banks can help.

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