GREECE
Macro Political
• Fitch credit rating review of the Greek economy is scheduled to be released today. The Agency currently holds Greece at BBB-, outlook stable.
• Preliminary data released by the MoF showed that the State Budget balance on a modified cash basis for January – April 2025 presented a surplus of EUR 1,866mn, against a target of a deficit of EUR 1,357mn and a deficit of EUR 250mn for the same period of 2024. The State Budget Primary Balance amounted to a surplus of EUR 5,165mn, against the primary surplus target of EUR 1,973mn and a primary surplus of EUR 3,282mn in the same period of last year. It is noted that an amount of EUR 2,053mn which refers to the time differentiation of payments from ordinary budget and an amount of EUR 736mn which refers to the time differentiation of PIB payments, do not affect the outcome in fiscal terms. For January – April2025, State Budget net revenues amounted to EUR 23,074mn, showing an increase of EUR 244mn or 1% against the target. State Budget expenditures amounted to EUR 21,208mn, EUR 2,972mn lower than the target.
Markets:
• Scope ratings assigned a first-time issuer rating of BBB with stable outlook to Alpha Bank. According to the credit rating agency, the rating is anchored by the consistent business model centred around commercial banking in Greece, and benefits from improving asset quality and solid capital metrics.
Scope assigns first-time issuer rating of BBB/Stable to Alpha Bank | Scope Ratings | European Rating Agency
• In their Financial Stability Report, the BoG said that the improvement of Greek banking institutions is undeniably significant, with the CET1 ratio on a consolidated basis rising to 15.9% in December 2024 and the TCR to 19.7%. Asset quality has also markedly improved, with the average NPLs ratio of total loans declining to 3.8%. However, risks to financial stability remain primarily exogenous, driven by heightened geopolitical tensions and escalating trade protectionism. Therefore, there is no room for complacency.
https://www.bankofgreece.gr/en/news-and-media/press-office/news-list/news?announcement=f5498580-7298-4d3b-94e2-aa41b918cb54
