Marko Mrsnik, Senior Managing Director, S&P Global Ratings, expressed his view that there is one in three chances for a possible upgrade of Greece in the next 12-18 months, speaking at the Delphi Economic Forum, which is under the auspices of the President of the Republic, Mrs. Katerina Sakellaropoulou.
“If GDP growth is greater than expected and there is a simultaneous reduction in red loans, this upgrade becomes more likely. “Of course there is a two-tier gap and so I can not speculate on the time of possible upgrade,” said Mr. Mrsnik.
It all depends on whether the effort for economic reforms continues unabated, whether the debt-to-GDP ratio is reduced, and whether a more favorable debt profile is achieved. If foreign and government debt is reduced, new conditions are created.
According to Mrsniknik, we should focus on further promoting structural change. The benefits that Greece will receive from the money that will be given for recovery will be great, as it will receive a large percentage of its GDP in financing.
Mr Mrsnik said S&P had carried out a simulation that predicted GDP growth of between 8-18% over the next six years. The rating agency believes that the prospects for positive results from the money that Greece will receive can be multiplied if the structural changes proceed faster.
The pandemic crisis has, of course, exacerbated all the other problems, so it is crucial that the recovery takes place as soon as possible, which in turn requires a rapid absorption of the funds provided.
Mr. Mrsnik estimates that Greece, now having the highest rate of absorption of European funds from all other countries, also favors the absorption of these recovery funds. He believes that another factor that advocates this is the rapid improvement in the digitization of the state mechanism.
Latest News
EP Passes New Rules Tackling Industrial and Livestock Pollution
The new rules aim to reduce harmful emissions from industrial installations and pig and poultry farms, and to improve transparency over the licensing, operation and control of such installations
Axel Voss: The AI Act is an important step forward with many question marks
Axel Voss, the main EPP negotiator on the AI Act sees it is an important step but with many question marks on the practical application
Greek PM Announces ‘Supreme Cooperation Council’ with Egypt
The leaders agreed on the establishment of the Supreme Cooperation Council as part of strengthening the countries' strategic relations
Moody’s Maintains Greece a Notch Below Investment Grade, at Ba1
S&P, Fitch Ratings, DBRS Morningstar and Scope Ratings have already restored country to investment 'territory' since 2023
Greek Ag Minister on Reduction of Production Costs
Minister Lefteris Avgenakis responded to a tabled Parliament question by a main opposition SYRIZA MP
Bank of Greece: Economic Growth of 2.3% in 2024 and 2.5% in 2025
Investments and private consumption are expected to be the key drivers of economic activity in the coming years
ELSTAT: Construction Production Index Records 11.6% Annual Increase
However, this growth rate is notably lower compared to the significant surge of 31.1% witnessed during the corresponding period of 2022 over 2021.
Feb. State Budget 9.1% Tax Revenue Surplus
The primary surplus on a modified cash basis amounted to 3.401 billion euros, compared to a target primary surplus of 1.981 billion euros
Fraport Greece: 13.5% Rise in Passenger Traffic
According to official data from Fraport Greece, in February 636,866 passengers were handled compared to 558,903 last year, with all airports showing positive growth
PPC FiberGrid: FO Connections to Reach 1.7M Homes by 2025
PPC FiberGrid selected areas based on factors, such as population coverage and the lack of Fiber to the home (FTTH) infrastructure