Sources OF SUBIC for Moody’s: Expected non-investment grade return – had upgraded us six months ago

Within a programme they characterize circles of the Ministry of Finance ( ) the announcement of the house on Friday (15.3.2024) to maintain the credit assessment of the Greek economy in Ba1 with stable prospects, as two tiers had been upgraded only six months ago (15.9.2023). Therefore, the sources of the SUBIC stress that no further upgrade was envisaged by Moody’s in such a short period of time as the standard practice of the rating agencies is to mediate a reasonable period of time between upgrades, and with regard to the evaluation and outlook prospects. It is noted that Moody’s is the last house from which the investment level already awarded to the Greek economy by Standard and Poor’s, Fitch, DBRS, R&I and Scope with the benefits of upgrading is already visible at the cost of borrowing the State and the de-escalation of spreads already moving at levels lower than other eurozone countries. The key points of Moody’s assessment for Greece Development: This was set at 5.6 % in 2022 and despite slowing the rate to 2% in 2023, mainly due to persistent inflation and interest rates, Moody’s plans to increase real GDP by 2.4% in 2024 and 2.3% in 2025, supported by domestic demand, exports, EU funds and private investment. Budget deficit: It quickly reduced to less than 1% of GDP in 2023 from 2.4% in 2022 (according to the estimates of the house, as the official figures from ELSTAT have not yet been announced). Moody’s predicts that the fiscal deficit will stabilise to 0.9% of GDP in 2024-25, while primary surpluses will form around 2% of GDP. Public debt: estimated at 161% of GDP at the end of 2023 from 172.6% in 2022 and projected further decline to 148% at the end of 2025. External balance: Moody’s notes the decline in the current account deficit from 6.4% of GDP in 2023, from 10.3% in 2022. Inflation: A further reduction to 2 % is expected in 2024 – 2025. Red loans: the “significant reduction” of NPLs in previous years is noted. Reforms: Moody’s notes that the continuation of reforms that improve the functioning of Greece’s labour and product markets and achieve fiscal primary surpluses can produce greater than expected positive results.