Europe to regulate credit rating agencies
CREDIT rating agencies' regulation has been welcomed by Plaid's MEP Jill Evans.
The European Parliament has approved the legislation.
In future these bodies will only be able to issue sovereign debt ratings at specific times and they will be liable for damages in the event of "ill-founded ratings".
Unfavourable credit ratings have led to soaring public debt in many countries which has caused financial hardship for a great number of people.
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Speaking after voting in favour of the legislation, Ms Evans said:
"Decisions made by credit rating agencies can see the cost of a country's public debt soar overnight. The knock-on effects of this include cuts in public spending which leads to real financial hardship for many families.
"It's absolutely right that these agencies should be held to account for their decisions. If you buy a house on the basis of bad advice, you can quite rightly hold to account those who gave you the bad advice. The same should be a true for Credit Rating Agencies.
She added: "I regret that we were not able to move away from crude triple letter ratings to a more serious figure based system. But on the whole what has been approved should bring about greater stability in the system."