Moody’s positive on Greek debt relief package
“Although economic growth has returned and will likely accelerate further this year, Greece’s growth outlook is rather moderate at 2.0-2.5 percent per year at best, unless there is a large boost to investment,” the report said.
The report notes that Athens will have “very moderate” financing needs for the next decade, citing the extension of maturities on Greek bonds and a large cash buffer, which were the key elements of the eurozone debt relief deal.
According to the report, the enhanced surveillance of the economy by creditors ensures that future governments will not reverse reforms. It notes that there will be quarterly audits, unlike the bi-annual reviews for other countries that exited a bailout.
It also notes measures such as the return of profits on Greek bonds held by European Central banks, but underlines that the debt relief measures are contingent on the continued implementations of reforms.