CNBC: Reneging on pension cuts could undermine credibility with creditors

Greece tests markets and creditors with the 2019 budget, notes the international network, commenting on the double draft for pensions.

Turning back on reforms that have been agreed, Greece is raising concerns in the markets at a time that it remains vulnerable to external pressures that it can not control says the report. As a prominent example, it cites the rise in Greek borrowing costs last week due to turmoil in Italy.

The pension cuts had to start in January and it was one of the toughest reforms that resulted in an agreement. Possible changes to pensions or other reforms could cause controversy with the European institutions and the International Monetary Fund (IMF), it notes.

And he adds: The IMF said last month that the 2019 pension cuts are part of the reforms that the Greek government agreed to, and that Greece needs to show it is investor-friendly.