Displaying items by tag: investment grade

The recovery of the investment grade in 2023 is looming on the horizon, even if it is still too early for safe conclusions. The achievement of an almost balanced budget in 2022 also works in this direction. The initial estimates spoke of a primary deficit of 1.6%, however it seems that the better course of the budget - due to inflation which brought much more revenue to the state but not to citizens – leads to an almost zero deficit last year, something that the political leadership of the Ministry of Finance has also mentioned.

Greece is on the threshold of regaining investment grade after 12 years, declared the Governor of the Bank of Greece Giannis Stournaras to the Financial Times, while calling on the country's next government to maintain fiscal prudence.

The eyes of the government financial staff are focused on Greece's meeting with the Fitch rating agency today. Some analysts are not ruling out an upgrade to 'BB+', although the odds are leaning towards the ratings agency waiting until national elections, which are scheduled to be held by July. The government has set a target for the upgrade within 2023 and analysts' expectations put the time frame after the summer as the target. The main reason is the increased likelihood of consecutive elections due to the change in the electoral system, which increases electoral uncertainty and scenarios for a third round at the polls.