Greece will probably default but will not leave the euro zone, Fitch credit ratings agency said on Tuesday, as pressure increased on the Greek government to push through with fiscal reforms.
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Fitch Ratings said on Tuesday that it would regard a voluntary rollover of Greece's sovereign bond maturities as a default and would cut the credit rating appropriately, keeping pressure on Athens ahead of a confidence vote in parliament.
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The euro clung to small gains on Tuesday as market players bet the euro zone will cobble together a plan to prevent Greece from defaulting on its debt, though its advance could stall ahead of a confidence vote on the government in the Greek parliament.
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Fitch became the second ratings agency to threaten Belgium with a credit downgrade on Monday, saying a lack of government undermined budget efforts in one of the euro zone's most indebted states.
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