In Athens, Greece, the center-right government celebrated a recent credit rating upgrade by Moody’s, lifting the last of the country’s major ratings out of junk status after a lengthy 15-year struggle tied to a severe debt crisis.
The upgrade to Baa3 from Ba1 symbolizes a “great cycle” conclusion for Greece’s economy, indicating a return to standard European economic conditions, according to Finance Minister Kostis Hatzidakis. He declared it as a significant achievement for both the government and Greek citizens.
Moody’s acknowledged the rapid improvement in Greece’s public finances as a primary reason for the upgrade, with expectations of ongoing substantial primary surpluses to continue reducing the nation’s significant debt.
Despite ratings agencies gradually restoring Greece’s investment grade throughout late 2023, the government’s relief was palpable amid recent challenges stemming from protests and strikes related to its handling of a tragic rail accident two years prior.
Ahead of a scheduled Cabinet reshuffle, Hatzidakis praised the upgrade success, urging continued economic improvements. Prime Minister Kyriakos Mitsotakis also celebrated the news, reiterating Greece’s dedication to reforms aimed at attracting investments, creating jobs, and fostering sustainable growth.
Following a catastrophic crisis that began in 2010, Greece was rescued by three international bailouts aimed at preventing bankruptcy and stabilizing public finances through EU and IMF-enforced austerity measures.
The nation’s debt-to-GDP ratio reached its zenith in 2020, surpassing 200%, but has been declining steadily with expectations of reaching below 150% this year, per projections from Greece’s central bank.
Moody’s lauded Greece’s persistent efforts in debt reduction, noting fiscal performance surpassing baseline forecasts and growing tax revenues propelled by improved compliance and collection measures. The agency’s commentary underscored confidence in Greece’s path towards sustained economic stability.
These developments bolster Greece’s financial standing and provide a promising outlook for future economic planning and resilience in the broader European landscape.