Zimpapers Logo

Christos Staikouras

New York — Greece’s credit rating was maintained at six steps below investment grade by Standard & Poor’s, which said the country’s debt remains large even as its government’s fiscal performance improves.The country’s long-term local currency debt was kept at B-, with a stable outlook, S&P said in a statement.

“Steps the Greek government has taken to strengthen the institutional framework and improve policy effectiveness have enhanced external and fiscal performance,” the New York-based rating company said. “Greece’s external vulnerabilities persist given its high level of external debt, deflating economy, and limited monetary flexibility.”

The so-called troika of the European Commission, European Central Bank and International Monetary Fund this week concluded a six-month review mission to Greece, saying that the country is on track to meet fiscal targets. Alternate Finance Minister Christos Staikouras told reporters on March 18 that the government had achieved a 2013 budget surplus before interest payments of 2,9 billion euros ($4 billion), more than its prior forecast for a surplus of 812 million euros.

The country’s economy will grow this year for the first time in seven years, the Commission predicts. — Bloomberg.