Debt

A new round of ratings assessments for Greece's debt will begin in September. DBRS will start on September 6, followed, a week later, by Moody's, the only one of the credit rating agencies that has not bestowed an "investment grade" rating on Greece.

The "favorable arrangements" announced by governments always concern those who have not been consistent with their obligations toward the state and need a second chance. The state is doing well to grant it to them.

Debtors to the state should have a reason to worry. Tax authorities are not only ready to pounce regarding existing debt, by freezing bank accounts and garnishing wages, but will also move against people with the potential not to pay their direct or indirect taxes.

Consumer credit had been expanding at a 30% clip during the first half of the year, boosted by strong consumer demand and car sales, up 6.5% during the first six months of 2024.

Bank data show that disbursements of consumer loans nearly reached €650 million during the first half compared to €500 million during the same period in 2023.

Analysis of the €123 Billion Debt

According to lists released by the Independent Authority for Public Revenue (AADE) a few days ago, the debts of individuals and legal entities to the State and EFKA amount to €123 billion. These are debts from so-called major debtors, those who owe over €150,000 and whose payments are delayed by more than a year.

The upward pace of the out-of-court settlement mechanism continued, leading to a new record of 1,952 settlements for July, corresponding to €518 million in debts, according to a statement from the Ministry of National Economy and Finance.

German rating agency Scope Ratings affirmed on Friday Greece's BBB- rating, while upgrading the Greek economy's outlook to positive.

Greece retains the capacity to service its debt, the European Commission has said in its fourth post-program surveillance report released on Wednesday.

Fitch Ratings as upgraded Cyprus' long-term foreign currency issuer default rating from BBB to BBB+ with a positive outlook.

By 25 basis points, as expected, the interest rate cut - The downward cycle for borrowing costs begins - ECB announcement in detail