Ratings agency Standard & Poor’s (S&P) has estimated the cost of the devastating fires that hit southern Greece and caused the deaths of 66 people to be in the range of 3 to 5 billion euros, or between 1.4 to 2.4 percent of gross domestic product (GDP), and could also have a negative impact on the vital tourism sector.

Greece’s development and, as a result, its budget revenue growth could be reduced because of the forest fires which may also harm the country’s tourism business, the agency said yesterday.

The impact of the fires is not expected to result in any downgrade of the country’s credit rating which could increase borrowing costs for the Finance Ministry.

The cost of the fires along with pre-election promises are expected by many financial experts to result in a loosening of fiscal policy for the 2007 and 2008 period.

S&P added that one of the top priorities for the next government elected on September 16 needs to be reform of the social security system.