Greece, On Track

Greece Unemployment Rate For January 2013

source: elstat

SP upgrades Greece to B- from SD; outlook stable

• Greece has completed a distressed debt buyback.

• Following completion of the transaction, we are raising our long- and short-term sovereign credit ratings on Greece to ‘B-/B’ from ‘SD’ (selective default).

• The upgrade reflects our view of the strong determination of European Economic and Monetary Union (eurozone) member states to preserve Greek membership in the eurozone.

• The outlook on the long-term rating is stable, balancing our view of the government’s commitment to a fiscal and structural adjustment against the economic and political challenges of doing so.

greece downgraded to ‘SD’

S&P: Greece Ratings Lowered To ‘SD’ (Selective Default)

• We are lowering our sovereign credit ratings on Greece to ‘SD’.
• This follows the Greek government’s Dec. 3, 2012, invitation to private sector bondholders to participate in a series of debt buyback auctions, which under our criteria we view as a selective default.
• When the buyback is consummated (which we understand is scheduled to occur on or about Dec. 17, 2012), we will likely consider the selective default to be cured and raise the sovereign credit rating on Greece to the ‘CCC’ category.

corruption index 2012

(click to enlarge)

source: trasparency.org

Transparency International has consistently warned Europe to address corruption risks in the public sector to tackle the financial crisis, calling for strengthened efforts to corruption-proof public institutions.

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Denmark, Finland and New Zealand held on to their top slots in the ranking, while Afghanistan,North Korea and Somalia remained at the bottom.

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Greece is ranked the most corrupt country in the 27-nation European Union.

source: bloomberg

eurogroup statement on greece

27 November 2012

Eurogroup statement on Greece

The Eurogroup recalls that a full staff-level agreement has been reached between Greece and the Troika on updated programme conditionality and that, according to the Troika, Greece has implemented all agreed prior actions.

The Eurogroup in particular welcomes the updated assessment of the Troika that Greece has implemented in a satisfactory manner a wide ranging set of reforms, as well as the budget for 2013 and an ambitious medium term fiscal strategy 2013-16. The Eurogroup noted with satisfaction that the updated programme conditionality includes the adoption by Greece of new instruments to enhance the implementation of the programme, notably by means of correction mechanisms to safeguard the achievement of both fiscal and privatisation targets, and by stronger budgeting and monitoring rules. Greece has also significantly strengthened the segregated account for debt servicing.