Fitch notes slow progress in reforms

TAGS: Finance

The additional disbursement of Greek bailout funding agreed on Monday highlights the improvement in relations with official creditors this year, as well as the continuing challenges to program implementation, Fitch Ratings commented on Tuesday.

The latest approval demonstrates that relations between Greece and its official creditors remain on a firmer footing than in 2015, particularly in view of the highly front-loaded policy conditionality of the ESM program, it added.

“However, progress in meeting the milestones has been slower than expected, even though they are less demanding than the earlier measures required under the first program review, such as pension and income tax reform. We think this reflects the Greek government’s competing policy priorities and relatively weak domestic political ownership of the program,” said Fitch.