The Dutch government resigns; eyes on the Dutch bond sale

By @ibtimes on

The Dutch Prime Minister, Mark Rutte, alongside with his cabinet stepped down today after the split over the budget cuts demanded by the European Union, where Netherlands should rearrange its financial position in order to avoid losing its triple-A credit rating.

The premier will appear before the parliament today in a debate on how to enforce the austerity needed and also to set the timing of the elections. In addition, the Dutch Treasury is to sell bonds with two different maturities today, the thing that pulled that attention of worrying investors to closely watch this auction amid a collapse of the Dutch government.

Tension pressures the nation as well, where the rating agency Moody's considered the collapse of the government as a credit-negative. However, the rating agency maintained the triple-A rating of Netherlands will stable outlook, but warned that a weakening commitment to fiscal discipline might trigger changes to the current debt ranking.

This development is clearly credit-negative for the Dutch sovereign given that it generates both political and policy uncertainty, Moody's analysts said, explaining that having said that, the Netherlands is entering this testing period from a position of relative strength.

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