Moody’s: Improvement and constraints in Greece


Moody’s said in a report issued late on Tuesday that Greece’s credit profile is improving, but high public debt and uncertainties regarding effective implementation of reforms remain constraints.

It explained that Greece’s credit metrics are on an improving trend, with economic growth turning positive and the public finances on more solid footing than in past.

Moody’s also expects Greece’s debt burden to stabilize this year and start declining slowly from next year onwards, reaching 176 percent of gross domestic product in 2018.

The country’s credit profile remains constrained by high level of public debt, weak banking sector, uncertainties regarding effective implementation of reforms, the rating agency noted, but it believes the government will manage to attain substantial primary surpluses this year and next, given measures implemented under external support program.