“No market access (debt), the uncertain outlook on the payment deadlines in aid of official institutions and the conditions of tight liquidity in the domestic banking sector put extreme pressure on the Greek government finances, “Fitch judge.
” We expect that the government will survive the current pressure on cash without incurring arrears on bonds held by the private sector, but a failure is a real possibility, “said the agency.
The talks bogged down
Fitch had lowered to” CCC “the sovereign rating of Greece in March, citing the already time “high risks” facing the country’s financial situation. Since negotiations between Athens and its official creditors (EU, European Central Bank and International Monetary Fund) bogged down while the financial situation of radical left Syriza government worsens.
“The wrongs worn the confidence of investors, consumers and creditors have derailed the Greek economic recovery and it will take time to remedy even if the prospects for a positive finalization of the program improve in the days or weeks ” Fitch added.
Growth zero for
The rating agency expects zero economic growth or even negative this year and pressures on corporate liquidity due arrears payments to the state and the banks’ funding pressures.
However, Fitch considers probable the chances of compromise between Greece and its creditors, but asked them to Athens minimum legislation to disburse funds. “However, these reforms themselves have not yet been agreed and deadlines are getting shorter,” warned-the same source.
(With AFP)
No comments:
Post a Comment