Saturday August 30, 2014 Search
Weather | Athens
31o C
24o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
S&P sees economic outlook as stable

 GDP will recover if Athens speeds up reforms or if banks channel more credit into the market, it says

By Sotiris Nikas

After the international money markets, Greece is now getting positive messages from the rating agencies, because even if they haven’t yet upped the country’s credit rating, they are admitting that the economy is displaying some positive developments.

On Friday Standard & Poor’s (S&P) announced it is not changing its sovereign rating for Greece (it remains at B-) or the country’s outlook, which it continues to rate as “stable.” This came as no surprise to the Finance Ministry, which is now anticipating Moody’s report on April 4 as that is likely to include a rating upgrade.

S&P notes in its report that the fiscal adjustment Greece has achieved is important, that the government has moved ahead with reforms and that the Greek debt profile is now much better than a few years ago, while the funding gaps of the streamlining program are now under control.

It added that its decision not to upgrade Greece’s economy was due to its estimate that growth will not come before 2015 as it expects a 0.3 percent economic contraction for 2014. It anticipates growth to amount to 1.9 percent next year. S&P has not ruled out the possibility of another forced bond swap due to possible problems regarding political stability or the scheduled support from Greece’s official creditors being delayed.

S&P further argues that “the general government debt and the economy’s external debt remain at high levels,” and considers that it is still possible local banks could exhaust the Hellenic Financial Stability Fund’s reserves of 11.5 billion euros for their recapitalization, even though the stress tests by the Bank of Greece and BlackRock showed capital needs totaling 6.38 billion euros.

According to the rating agency, the Greek economy’s “stable outlook” stems from the balance between the government’s focus on fiscal and structural reforms and the economic and political challenges Athens is facing in order to implement those reforms. S&P states that it will revise its rating for Greece upward if the country’s gross domestic product rebounds earlier than forecast. This could happen through the faster promotion of structural reforms or if banks boost credit to the economy.

ekathimerini.com , Friday March 21, 2014 (22:18)  
Ministry launches work experience program for unemployed graduates
Tax burden in Greece among EU’s heaviest, study reveals
Coalition bent on protecting weaker groups
Loaded agenda for Paris talks
New Democracy aims to ease tax burden, attack SYRIZA’s policies as leaders’ Thessaloniki speeches near
New Democracy is to follow a two-pronged strategy in the coming days as it attempts to win over voters by pledging to tend to their tax concerns while also mounting a campaign to discredit S...
Infrastructure Minister assures officials over coastal revamp
A radical overhaul of the southern Athens coast at Faliro Bay will be put to tender in December, Infrastructure Minister Michalis Chrysochoidis said Friday at a meeting with officials from t...
Inside News
SOCCER
Tough draw for Greek sides in Europe League Greek stage
Following Thursday night’s high, when all three Greek teams competing in the Europa League made it into the group stage of the competition, a harsh reality struck Friday as they found out wh...
JUDO
Greek judoka Iliadis triples up as Aguiar stuns Tcheumeo
Greek star Ilias Iliadis claimed his third world title in the under-90kg category in Chelyabinsk on Friday as Brazilian Mayra Aguiar and Colombian Yuri Alvear won gold in the women’s under-7...
Inside Sports
ANALYSIS
Greek quest for debt relief faces hurdles in Paris
As Greek Prime Minister Antonis Samaras tries to follow Ireland and Portugal out the bailout exit door, he faces a month of bargaining. For a nation that’s already gone through the biggest d...
COMMENTARY
Stifled dreams
At more or less the same time every year, we see the same images of high school graduates looking through the Education Ministry’s lists of those who passed and those who failed the national...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Ministry launches work experience program for unemployed graduates
2. Tax burden in Greece among EU’s heaviest, study reveals
3. New Democracy aims to ease tax burden, attack SYRIZA’s policies as leaders’ Thessaloniki speeches near
4. Coalition bent on protecting weaker groups
5. Infrastructure Minister assures officials over coastal revamp
6. Deadline for ENFIA tax pushed back to September 30
more news
Today
This Week
1. Strong undersea quake occurs off island of Milos, felt in Athens
2. Greek quest for debt relief faces hurdles in Paris
3. Dozens of migrants intercepted in the Aegean
4. Gov't jet carrying Venizelos back from Turkey conducts emergency landing
5. Rendi shootout leaves would-be hypermarket robber dead
6. Tight security in place for City of Athens ceremony as GD MP, supporters to attend
Today
This Week
1. Attack on gay couple in Athens leaves one man needing surgery
2. Purification rituals
3. The battle against progress
4. Thessaloniki mayor Boutaris sworn in wearing yellow star amid Golden Dawn protests
5. Athens finalizes Paris talks goals
6. Aftershocks rattle Halkidiki after strong 5-Richter quake
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.