Friday August 22, 2014 Search
Weather | Athens
32o C
25o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Fitch raises sovereign rating one notch

 Greece rises from B- to B with a stable outlook, thanks to primary surplus and increased cash flexibility

Fitch Ratings upgraded Greece one notch from B- to B, with a stable outlook, on Friday, stressing that the fiscal streamlining, as confirmed by its primary surplus in 2013 – which is set to grow bigger this year – will allow the country to enjoy more funding flexibility.

The firm attributed its upgrade to the adjusted primary budget surplus amounting to 0.8 percent of gross domestic product last year and forecast that it will grow to 1.4 percent of GDP this year. It also saw the economy expanding 0.5 percent this year and 2.5 percent in 2015.

Fitch points out that “near-term sovereign liquidity risk has fallen, although this remains contingent on Greece staying on track with its program. The government is not fully funded by EU and IMF lending over 2014-15 but there are several plausible options for bridging this official funding shortfall. These include the use of subsector deposits through repo transactions, and the unused portion of the official funds earmarked for bank recapitalization.” It adds that a better fiscal track record has been established.

“Fitch is one of the strictest agencies, but the words it has chosen are notable as it refers to a remarkable adjustment,” Finance Minister Yannis Stournaras said on Friday after informing Prime Minister Antonis Samaras of the upgrade, adding, “This means that the sacrifices of the Greek people are being acknowledged internationally and we need to safeguard them.”

Nevertheless, Fitch warns that the political risk remains high as “the loss of a junior coalition partner and defections by individual MPs have significantly eroded its majority. An early general election in the first quarter of 2015 is the most likely scenario, although a snap election this year cannot be discounted.”

The ministry confirmed on Friday the primary surplus figures for the first four months of 2014, saying it had reached 1.046 billion euros against a target for 742 million.

Indirect tax revenues lagged as value-added tax on fuel came in 382 million euros short and the special consumption tax on energy commodities fetched 182 million less than planned.

Net revenues missed their target by 7.1 percent, or 1.05 billion euros, amounting to 13.84 billion, while spending was 578 million euros below target at 17.28 billion.

ekathimerini.com , Friday May 23, 2014 (19:24)  
Spanish government bonds rise with Italy´s before Draghi speech
Greek peach farmers await Brussels decision on compensation
Report: Greek banks sturdily positioned
Economy stunted by property tax demands, report says
Hardouvelis hears grievances of coalition MPS to unified property tax bill
Finance Minister Gikas Hardouvelis on Friday briefed MPs from junior coalition partner PASOK on the proposed improvements to a contentious unified property tax, known by its acronym ENFIA, a...
Avramopoulos, Hagel hammer out ´roadmap´ of defense cooperation
Defense Minister Dimitris Avramopoulos emphasized, after talks with his American counterpart Chuck Hagel late on Thursday, the "truly excellent level of the Hellenic-American defence coopera...
Inside News
SOCCER
Panathinaikos, Asteras Tripolis notch up vital wins in Europa League
Thursday proved a very productive night for two of the three Greek teams performing in the Europa League as Panathinaikos and Asteras Tripolis secured vital wins in the first legs of their p...
SOCCER
Greek soccer officials in refereeing probe to face prosecutor on Sept 15
Eleven soccer officials were on Wednesday given until September 15 before they have to face prosecutor Aristidis Koreas, who is investigating allegations that the draws to decide which match...
Inside Sports
COMMENTARY
Nationalism on steroids
Bodybuilders are in a league of their own. They rarely make headlines for their achievements, their performance, or being role models. In contrast, they’re more likely to make the news due t...
EDITORIAL
Time to kick a stupid habit
Official figures indicate that tax dodging continues unabated across Greece’s tourist areas. According to data made available by the Finance Ministry following checks conducted between July ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Hardouvelis hears grievances of coalition MPS to unified property tax bill
2. Avramopoulos, Hagel hammer out ´roadmap´ of defense cooperation
3. Spanish government bonds rise with Italy´s before Draghi speech
4. Greek peach farmers await Brussels decision on compensation
5. Justice Minister seeks postponement to debate in Parl´t of anti-racism bill
6. Coast guard intercepts 180 migrants in Aegean in two days
more news
Today
This Week
1. Coast guard intercepts 180 migrants in Aegean in two days
2. Aftershocks rattle Halkidiki after strong 5-Richter quake
3. Avramopoulos, Hagel hammer out 'roadmap' of defense cooperation
4. Greek peach farmers await Brussels decision on compensation
5. Spanish government bonds rise with Italy's before Draghi speech
6. Justice Minister seeks postponement to debate in Parl't of anti-racism bill
Today
This Week
1. Carved sphinxes at Ancient Amphipolis tomb will not be removed
2. Treating Amphipolis with care
3. Canada’s fiscal adjustment has lessons for Greece
4. Greece to offer law on restructuring bad loans next month
5. Ministry sys ‘no’ to debt collection agencies
6. Karatzaferis eyes ND-LAOS alliance to stop Tsipras
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.