Last Friday, the 24th of January 2020, Fitch Ratings agency raised Greece’s credit rating by one notch to BB with a positive outlook, implying that a further upgrade could come in the future.
Fitch points out that the sustainability of the Greek debt keeps improving, supported by the stable political framework, the sustainable GDP growth and the overall fiscal over-performance in relation to the primary objectives.
The ratings group maintains positive prospects for the Greek economy and appears confident that eventually Greece will come to an agreement with the institutions regarding the objectives of surpluses.
In the next few days, Fitch’s executives are expected to visit Greece in order to be further informed about the prospects of the Greek economy and the bank institutes.
Greece’s Minister of Finance Mr Christos Staikouras has commented on this recent development: "Fitch has upgraded the country's credit rating. It also upgraded Greece's outlook from "stable" to "positive". This development puts the country's debt closer to the investment grade. This upgrade reflects the improvement of prospects, the strengthening of stability and the boosting of confidence in Greece, following the parliamentary elections in July".
He also noted: "The Greek government has made rapid progress in reducing the tax rates of households and businesses, has moved to strengthen the stability of the banking system, has promoted the privatisation programme, it follows a prudent, pro-growth fiscal policy and improves the sustainability of public debt. This upgrade is particularly positive for the economy and the country. But we're not complacent. We continue, with stable and rapid steps towards the reconstruction of the economy and its sustainable development, in terms of social justice. The country is moving forward, with confidence, certainty and security!”
Here in Varnavas Law Firm, we welcome this upgrade and we strongly believe that Greece’s economy is rebounding and this will also affect the real estate market and the direct foreign investments both from individuals (golden visa investors etc.) as well as from institutional investors.