Steffen Dyck, its Senior Vice President, characterizes Greece’s credit rating as positive Moody’s her electoral victory of New Democracyas he explains, another four years of Kyriakos Mitsotakis ensures continuity in the economy and fiscal policy.

As reported earlier by, and S&P Global Ratings considers that the result of yesterday’s election eliminates the risk of a political impasse and enables the new government to continue its growth-friendly reforms.

Maintaining a focus on improving the business environment and the consolidation of the banking sectorcombined with the implementation of the milestones and reforms of the National Recovery Plan, will support economic growth, notes Moody’s Dyck.

Along with the commitment to fiscal adjustment and growing primary surpluses, maintaining current fiscal and economic policies improves the prospects for a significant reduction in Greece’s debt, Moody’s emphasizes.

In fact, with the prospect of sustainably higher growth rates in the coming years, the rating agency estimates that Greece will have one of the largest debt reductions in the worldwith the ratio falling below 150% of GDP by 2025, from 171.3% at the end of 2022.

Even if the debt is expected to remain very high in the coming decades, it has nevertheless become significantly more sustainable, helped by the favorable repayment terms of the Eurozone bailout loans and the extensive debt relief provided by European creditors from 2017 onwards. .

Thus, Moody’s emphasizes that interest payments as a percentage of government revenue -the indicator he prefers to see if the debt can be repaid- are low and will remain so for a long time, even if the fiscal effects of the pandemic and the return to normal lending through the bond market are taken into account.