ECONOMY

Moody’s calls EU resources a credit positive for Greece

moody-s-calls-eu-resources-a-credit-positive-for-greece

The agreement made by European Union leaders regarding the Next Generation EU fund is a credit positive for Greece and other countries in Central, Eastern and Southern Europe that will be its main beneficiaries, Moody’s said in a report on Monday.

The consensus that was reached, which managed to overcome objections from Poland and Hungary to a mechanism linking disbursements to respect for the rule of law, will allow the EU’s seven-year budget and the Next Generation EU recovery fund – aimed at helping the bloc to recover from the effects of the coronavirus – to be implemented in 2021, Moody’s noted.

The credit rating agency said those benefiting the most will be Bulgaria, which will receive sums corresponding to 22% of its GDP in 2018, Croatia (17%), Romania (12%) and Greece (11%).