LAST UPDATE 12:14
The Minister of Finance, Christos Staikouras, spoke in his statement about an upgrade that brings the country a “step” before the investment level, on the occasion of the Japanese R&I rating agency that upgraded the creditworthiness of the Greek economy.
According to Mr. Staikouras, it is the fourth rating agency, after Standard & Poor’s, DBRS and SCOPE Ratings, which gives to the Greek State a credit rating equivalent to BB +, ie just one rating before the investment.
This is the 11th upgrade of the Greek economy in the last three years.
The statement of Mr. Staikouras in detail:
“Today, another international rating agency, the Japanese R&I, upgraded the creditworthiness of the Greek economy.
An upgrade that brings the country a “step” before the investment stage. It is noted that it is the fourth rating agency, after Standard & Poor’s, DBRS and SCOPE Ratings, which gives to the Greek State a credit rating equivalent to BB +, ie just one rating before the investment.
This is the 11th upgrade of the Greek economy in the last three years, despite the successive, external crises, as a result of the exercise of sound economic policy.
Thus, after achieving the goals of lifting the capital restrictions, the early repayment of the IMF, the reduction of the volume of “red” loans in the banks’ portfolios, the strong recovery and sustainable development of the economy, the gradual fiscal balance, Greece, the brave and effective support of households and businesses, the rational utilization of European funds and the exit of the country from the regime of enhanced supervision, Greece is closer to the realization of its last goal: achieving investment grade.
A national goal of particular importance for the economy and society “.
What R&I says in its report
The Greek economy will most likely remain on a steady trajectory despite the pressure of inflation that negatively affects it, the R&I rating agency estimates in its analysis, which upgraded the country’s credit rating to BB + from the previous BB, with the outlook remaining ” Stable”.
As the house explains, taking into account the increased stability of the country’s financial sector as a result of the progress in the sale of non-performing reports, R&I has upgraded the country’s rating to BB +.
For 2022, he expects that due to rising energy prices and rising inflation, there will be downward pressure on GDP growth. On the other hand, the economy is gaining ground for rising tourism demand and investment based on the full development of the EU recovery fund.
He estimates that Greece will remain on a path of strong growth from 2023 onwards, provided that the factors that put downward pressure on the economy, will decline.
In the future, the focus is on whether the banking sector is able to improve profitability and capital adequacy ratio, along with initiatives to continuously reduce NPs, which is at a higher level than other countries. eurozone.
Also, the primary deficit is expected to fall to 2% of GDP, mainly thanks to strong tax revenues, according to forecasts by the Greek government.
The primary balance is likely to return to a surplus of 1% of GDP in 2023, after the completion of the stimulus package.
The house also believes that attention should be paid to how effectively the Greek government will implement the structural reforms integrated under the recovery fund, which are considered a key factor in determining the paths of economic growth in the coming years.
Source: Capital
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