London, Monday, 30 January 2023
Greece's credit rating was raised by Fitch Ratings on Friday to BB+ with a stable outlook, bringing it closer to investment grade.
Thanks to greater nominal growth and a favourable debt service structure, Fitch now anticipates better deficit and debt performance and improved predictions for 2022–24.
Finance Minister Christos Staikouras stated immediately after the report’s issue that the credit rating upgrade by Fitch Ratings “confirms that the national goal of reaching investment grade by 2023 – with multiple benefits for society and the economy – is possible.”
The country's better fiscal outlook, decreased banking sector risks, structural momentum, macroeconomic outlook, and the accelerated pace of reforms, as well as stable finance costs, are all taken into account in the upgrading.
The general government deficit is predicted to drop even more, from an anticipated 3.8% of GDP in 2022 to 1.8% of GDP in 2024. This suggests a 0.9% surplus in 2024. (and a balanced position in 2023). Although the agency acknowledges that there is some uncertainty around fiscal measures in the wake of the approaching parliamentary elections, the risks are limited by widespread commitment and a recent track record of fiscal responsibility.
(Report by: The Decision Maker – Banking & Finance editors)
Picture by: Wikimedia Commons)