The Moody’s credit ratings agency has expressed doubts over whether implementation of terms linked to the 3rd Greek bailout plan is possible, as expressed in a report.

The agency evaluates the fact that Greek parliament passed the Memorandum of Understanding (MoU) and the Eurogroup approved the rescue plan as ‘Credit Positive’, pointing out that short-term pressure on liquidity in the Greek banking system is alleviated, as Greece has to pay a 3.4 bln euro maturing bond to the ECB on Aug. 20.

The report, however, warns that due to dubious political demands emanating from the 3rd bailout plan, the risk of a failure of implementation is high.

Moody’s adds that the harsh stance of some EU member states, accompanied by the possible role the IMF will play in the new deal, reduces the certainty of a enduring political agreement for the program. It goes on to say that even if political agreement is reached, any divergence on the part of Greece in implementing the harsher conditions will raise doubts even more about the continuation of the support plan.

“In our view the success of the 3rd rescue plan to Greece is by no means guaranteed”, the report states.