The new round of upgrades brings cheaper money for the economy and banks

The new round of Greek economy’s upgrades is setting off a domino of positive developments for the economy and banks. Moody’s took the decisive step and gave Greece investment grade, the last of the credit rating agencies upgrading the economy.
This is a move with a significant impact, government economic staff members noted as it is about to launch a series of new upgrades in the coming months that will lead to a further reduction in the cost of borrowing across the economy.
Significant benefits are expected to arise for the cost of borrowing for the Greek government, banks and businesses. After upgrading Greece’s credit rating, Moody’s upgraded the creditworthiness of Greek banks, highlighting their positive growth prospects and their strong performance in capital adequacy and profitability.
In fact, the new data that wants the ECB to consider limiting its policy of lower interest rates, due to concerns about inflation, if confirmed, will constitute an additional factor in strengthening the Greek banks’ profitability.

The positive prospects for new upgrades are reinforced by the fact that the final data from Eurostat and ELSTAT on the primary surplus and the growth rates of the Greek economy in 2024 are expected to be published in April. This data will certify the outperformance of the Greek economy last year. An outperformance that is also reflected in the data on the primary surplus in the first two months of this year, which amounted to 2.7 billion euros, recording a significant excess over the target of this year’s budget. The official data for April are expected to send another positive message to the markets and rating agencies. However, they will also constitute the critical data on the basis of which the scope of the fiscal space that will be used for the new tax cuts announced by the government will be finalized.

source: amna.gr