Snap elections in Greece may delay the next disbursement of aid from European creditors, analysts with Standard & Poor’s warned on Friday.
The New York-based rating agency, which affirmed its “CCC+” rating and “stable” outlook, said that elections due in less than two weeks could setback the release of the next tranche of aid under its European bailout package.
Analysts with Standard & Poor’s said that the implementation of reforms passed before Prime Minister Alexis Tsipras called for early elections would not begin until a new Greek government had formed.
Greece swallowed a number of austerity measures to win the bailout programme. In August, the European Stability Mechanism (ESM), the EU’s rescue fund, disbursed €13bn to Athens from its new €86bn bailout package, which will cover its financial needs through October.
Analysts with S&P added: Although the Greek economy remains fragile and the September 20 election outcome uncertain, we think the risk of Greece leaving the eurozone has receded to less than a one-in-three likelihood.
The rating agency expects the Greek economy will contract 3 per cent this year, ranking it among the worst-performing of the 130 sovereigns that S&P rates.
The Financial Times