|
“(This) upgrade marks the closing of a great cycle for the Greek
economy and certifies the country’s return to European
normality,” Finance Minister Kostis Hatzidakis said, describing
the action as “a success not only of the government, but of all
Greeks.”
Moody’s announced the upgrade to Baa3 from Ba1 late Friday. It
cited public finances that “have improved more quickly than we
had expected” as a key factor in its decision.
The agency highlighted the government’s policy stance,
institutional improvements and stable political environment,
saying it expects Greece to “continue to run substantial primary
surpluses which will steadily decrease its high debt burden."
Although ratings agencies began returning Greece to investment
grade in late 2023, the good news was met with relief by a
government that has been hammered for weeks by strikes and
protests over its handing of a deadly rail disaster two years
ago.
Hatzidakis made the remarks hours before handing over the
portfolio to Cabinet colleague Kyriakos Pierrakakis at a
swearing-in ceremony later Saturday, a day after the government
announced a reshuffle.
“Moody’s upgrade of Greece to Baa3 marks the final step in
restoring our investment grade by all major rating agencies,
highlighting Greece’s significant progress,” Prime Minister
Kyriakos Mitsotakis said in an online post Saturday.
“We remain fully committed to reforms that attract investment,
create jobs, and drive sustainable growth,” he said.
Greece spiraled into crisis in 2010 and received three
international bailouts to avoid bankruptcy and repair its public
finances through successive and grueling austerity programs
imposed by European Union lenders and the International Monetary
Fund.
National debt as a percentage of gross domestic product peaked
in 2020, rising above 200%, but has been steadily falling since
and is expected to drop below 150% this year, according to Greek
central bank projections.
Moody’s praised the government’s ongoing debt reduction efforts.
“Over a number of years, the Greek public finances have
outperformed our baseline expectations, which increases our
confidence that Greek debt will remain on a firm downward path,”
it said.
“These improvements are due to both ongoing expenditure
restraint and tax revenues that are rising quickly in light of
ongoing institutional improvements in tax compliance and
collection.”
All contents © copyright 2025 Associated Press. All rights reserved
|
|
