/ world today news/ The international rating agency “Standard and Poor’s” has warned that it may lower the current “B” rating of Greece from stable to negative due to the uncertain political situation.
“Some of the economic and budgetary policies announced by the newly elected government in Greece are inconsistent with the political framework agreed between the previous government and the country’s official creditors,” the agency said in a statement.
According to S&P, long-standing uncertainty about Greece’s membership in the eurozone, the country’s inability to consistently implement structural reforms, and the short life of governments weighed on confidence and investment, which fell from 24% of GDP in 2008 to 11% of GDP in 2014
The new government’s pledge to try to boost public investment and more closely link debt repayment terms to economic growth is constructive, S&P said. The will expressed by SYRIZA to fight corruption, strengthen the judiciary and increase tax collection may also benefit Athens in its negotiations with its creditors,” the agency said.
She continues to believe that the negotiators will reach a consensus on the terms of the renegotiation so that the country does not fall into bankruptcy. If, on the other hand, the negotiations fail, this could negatively affect the prospects for economic recovery of Greece and increase the risks to the financial stability of its banking system, the communiqué also states. /AFP
Washington / USA
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