Moody’s optimistic about 2.8bln sub-tranche to Greece

Voting of omnibus bill a sign Greece is committed to reforms, says the agency

Moody’s ratings agency released a report expressing optimism that Greece would receive the 2.8 billion Euro sub-tranche and would see a growth rate of 1.8% in 2017. The agency underlines that the country faces no immediate liquidity pressures, noting there are only a few ‘light’ debt payments due until the start of 2017. Moody’s believes Greece will finally receive the 2.8 billion Euro sub-tranche after the completion of the October 10 Eurogroup, while it predicts negotiations on the second review will soon follow. The report underlines that 5.5 billion Euros from the immediate sub-tranche will be used to cover overdue debts to the markets, adding that the voting by the Greek parliament of the omnibus bill, which it characterised ‘credit positive’, demonstrated the Greek government’s commitment to economic reforms, a move that reinforces the market’s trust in the economy. Part of the sub-tranche will be used to cover state arrears towards the private sector, thus partially boosting domestic economic recovery leading into 2017.