BUSINESS

Fitch warns of a downgrade for Greece

By Leonidas Stergiou

Fitch warned on Thursday that it will downgrade the Greek economy at its next scheduled review on May 15 if Athens and the eurozone do not reach an agreement soon or if a there is no program to secure funding for Greece.

Asked by Kathimerini if a “bridge deal” with the eurozone – proposed by Greek Finance Minister Yanis Varoufakis – is possible, Fitch’s director for Europe Ed Parker said the firm’s baseline scenario is for a temporary solution to ensure the funding of Greek banks by the emergency liquidity assistance (ELA) mechanism.

Meanwhile Bloomberg on Thursday raised the figure of outflows from Greek bank accounts to 14 billion euros (from 11 billion) since early December, including 11 billion in deposits that has been removed this month.

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