The curtain falls tonight on the annual cycle of Greece’s ratings for 2022 with the S&P report. Amid the high yields on the 10-year Greek government bond, which have exceeded the psychological limit of 5%, the agency will give a “verdict” on the country’s prospects for the coming year, which for Greece will be an election year.
With the S&P report – and depending on the assessment and the conditions in the bond yields – the Public Debt Management Agency (P.D.M.A.) is working on bond reissue in the next two months. The information states that Greece wants to present itself and send a message to the markets that it is able to borrow, despite there being no need for financing, and despite the difficult international conditions.
New borrowing
The financial staff and the PDMA also plan new borrowing to the tune of 7-10 billion euros in 2023 and an early repayment of memoranda loans of 2.6 billion euros by the end of this year. According to Public Debt Management Agency and the Ministry of Finance’s plans, next year’s programming is to be limited, and borrowing will fluctuate at the levels of 2022, due to the increased yields in the markets. This means around 7-10 billion euros. Meanwhile the issue of a Greek “green” bond, which was postponed due to international circumstances, is back on the table.
Read also – How Moody’s sees the political risk affecting Greece’s credit profile
Thus, there may be no surprises in terms of credit rating upgrades, however, the markets and the Ministry of Finance are waiting for the messages from S&P. Positive messages may give the green light for a possible reissue in the near future. The focus is on the course of the debt, the banking sector and of course the agency’s augurs for upcoming upgrades, with the aim of reaching investment grade in 2023.
Read also – DBRS Morningstar raised Greece’s credit rating on Friday to ΒB (high)
No surprises
No surprises are expected from rating agencies in the near term, as market executives’ estimates point to Greece’s upgrades coming after the 2023 elections, factoring in the ongoing macroeconomic uncertainty in Europe. Moreover, S&P upgraded Greece very recently, only in April 2022, one step below investment grade, to BB+, from BB with a positive outlook. On October 14, Fitch maintained Greece’s rating two notches below investment grade (BB), with a positive outlook. Moody’s in September confirmed Greece’s Ba3 rating with a stable outlook and DBRS at “BB high”, with a stable outlook.
Latest News
EIB Appoints Greece’s Ioannis Tsakiris as New VP
Ioannis Tsakiris started the new role May 1 after spending 15 years at the European Investment Fund (EIF) and serving as Greece’s Deputy Minister for Development and Investments
Two Greek Beaches in Top 50 in the World
Both Greek beaches were on the list of the best beaches in Europe too
Eurostat: Greece 20th out of 26 European States in Hourly Average Wage
According to figures released by Eurostat, the Benelux Grand Duchy of Luxembourg, one of Europe’s hubs for finance, is in first place
Greek Property Renovation Surge amid Economic Constraints
This has led to a notable escalation in renovation costs, with average prices per square meter exceeding previous norms and reaching even 1,000 euros in premium locations
RRF: Additional €5.1bln Funds for Subsidies to Greece in 2025
By April 22, funds totaling 5.75 billion euros had been transferred for approved projects of the Recovery Fund to entities within and outside the general government and final recipients
OECD: Greek Economy Resilient with 2% Growth Forecast for 2024
However, the OECD highlights challenges including the need to enhance productivity and fiscal adjustment due to high debt levels.
Challenges and Delays in Greece’s Hydrocarbon Exploration
Sources disclose that the petroleum companies holding the concessions are seeking partners to jointly invest and share the costs of exploration and drilling.
Greek Beach Visitors Can Report Violations on New ‘MyCoast’ App
Greek authorities hope the newly-launched, free ‘MyCoast’ app will help clamp down on public beach violations
BoG Figures Confirm Banner Year for Greek Tourism in 2023
20.6 billion euros in related revenues topped the previous year’s figure by 16.5%
Piraeus Bank to Propose First Dividend in 16 Years
Piraeus Bank has forecast profits of roughly 900 million euros this year, rising to one billion euros next year