Saturday October 25, 2014 Search
Weather | Athens
19o C
12o 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)  
Nicosia says reforms are bringing results
TAIPED waits for green light from Eurostat
Trade deficit shrinks on big drop in imports
SMEs unable to claim subsidies
Samaras pledges action after flash floods in Athens
Authorities began on Saturday assessing the damage done by flash floods in various parts of Athens a day earlier, with Prime Minister Antonis Samaras pledging that all those affected would b...
No court hearings for civil cases
Greek courts are to stop conducting hearings, which include witness questioning, for civil cases, according to plans drawn up by the Justice Ministry. Kathimerini understands that in a bid t...
Inside News
BASKETBALL
A win is a win is a win for Olympiakos
A bad Olympiakos defeated a worse Laboral Kutxa 63-57 to make it two out of two in the Euroleague on Friday. In a game where the two teams had an overall field goal rate of about one in thre...
SOCCER
Panathinaikos snatches point at Eindhoven
Panathinaikos offered its fans a glimpse of its glorious past in European competitions snatching a draw at PSV Eindhoven, on an otherwise bad night for Greek soccer in the Europa League, as ...
Inside Sports
COMMENTARY
End of reason, end of humanity
The effects of a slew of new and increased taxes introduced since the start of the crisis were first observed in the wages of those still fortunate enough to have jobs, who saw their take-ho...
EDITORIAL
Banks need to step up
What has been leaked so far regarding the results of the stress tests on Greeces lenders, which are due to be published on Sunday, appears positive. Greece needs a healthy, private banking ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Nicosia says reforms are bringing results
2. Samaras pledges action after flash floods in Athens
3. No court hearings for civil cases
4. Greeces lenders seem adamant that govt must act on bailout commitments
5. Future of Attica trash set to become clearer
6. Policeman admits to murder of his cousin-in-law
more news
Today
This Week
1. End of reason, end of humanity
2. Banks need to step up
3. Samaras pledges action after flash floods in Athens
4. Nicosia says reforms are bringing results
5. Greeces lenders seem adamant that govt must act on bailout commitments
6. No court hearings for civil cases
Today
This Week
1. The past, present and future of the Greek debt crisis
2. Greeces closed society is central to its current malaise
3. Greece must stick to reforms, says Schaeuble
4. At least 11 banks to fail European stress tests, three in Greece, report says
5. Cyprus to block Turkey's EU talks after EEZ violation
6. Stop moaning and get in the game
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.