Fitch: Budget balance to convince market

The European Central Bank may be one of the strongest allies of Greece in this crisis, but the anticipated conclusion of the PEPP program is not expected to put Greek bonds at risk, as until then the sustainability of the country's public finances will have improved further, Fitch Ratings analysts told Kathimerini.

"It's true that we expect government debt to GDP in Greece to have reached above 210% in 2020 - which is around three-and-a-half times our estimate for the BB median, following the severe shock to the economy and the public finances from the Covid-19 pandemic. And we know government debt will be high for a long time. We would be worried if the public debt ratio were not to fall back from this peak - and we highlight this as a factor that could lead to negative rating action," says Alex Muscatelli, Sovereign Group Director at Fitch.

"At the same time we...