Greek Government Debt Upgraded to Investment Grade, Closing Door on Painful Era

FILE - Greek Prime Minister Kyriakos Mitsotakis speaks in parliament ahead of the submission of a no-confidence motion by opposition parties over the government's handling of Greece's worst rail disaster two year ago, in Athens, Wednesday, March 5, 2025. (AP Photo/Thanassis Stavrakis, File)
FILE - Greek Prime Minister Kyriakos Mitsotakis speaks in parliament ahead of the submission of a no-confidence motion by opposition parties over the government's handling of Greece's worst rail disaster two year ago, in Athens, Wednesday, March 5, 2025. (AP Photo/Thanassis Stavrakis, File)
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Greek Government Debt Upgraded to Investment Grade, Closing Door on Painful Era

FILE - Greek Prime Minister Kyriakos Mitsotakis speaks in parliament ahead of the submission of a no-confidence motion by opposition parties over the government's handling of Greece's worst rail disaster two year ago, in Athens, Wednesday, March 5, 2025. (AP Photo/Thanassis Stavrakis, File)
FILE - Greek Prime Minister Kyriakos Mitsotakis speaks in parliament ahead of the submission of a no-confidence motion by opposition parties over the government's handling of Greece's worst rail disaster two year ago, in Athens, Wednesday, March 5, 2025. (AP Photo/Thanassis Stavrakis, File)

Greece’s center-right government on Saturday welcomed a credit rating upgrade by Moody’s, the last major ratings agency to lift junk status on government bonds that began 15 years ago during a severe debt crisis.
“(This) upgrade marks the closing of a great cycle for the Greek economy and certifies the country’s return to European normality,” Finance Minister Kostis Hatzidakis said, describing the action as “a success not only of the government, but of all Greeks.”
Moody’s announced the upgrade to Baa3 from Ba1 late Friday. It cited public finances that “have improved more quickly than we had expected” as a key factor in its decision, The Associated Press reported.
The agency highlighted the government’s policy stance, institutional improvements and stable political environment, saying it expects Greece to “continue to run substantial primary surpluses which will steadily decrease its high debt burden."
Although ratings agencies began returning Greece to investment grade in late 2023, the good news was met with relief by a government that has been hammered for weeks by strikes and protests over its handing of a deadly rail disaster two years ago.
Hatzidakis made the remarks hours before handing over the portfolio to Cabinet colleague Kyriakos Pierrakakis at a swearing-in ceremony later Saturday, a day after the government announced a reshuffle.
“Moody’s upgrade of Greece to Baa3 marks the final step in restoring our investment grade by all major rating agencies, highlighting Greece’s significant progress,” Prime Minister Kyriakos Mitsotakis said in an online post Saturday.
“We remain fully committed to reforms that attract investment, create jobs, and drive sustainable growth,” he said.
Greece spiraled into crisis in 2010 and received three international bailouts to avoid bankruptcy and repair its public finances through successive and grueling austerity programs imposed by European Union lenders and the International Monetary Fund.
National debt as a percentage of gross domestic product peaked in 2020, rising above 200%, but has been steadily falling since and is expected to drop below 150% this year, according to Greek central bank projections.
Moody’s praised the government’s ongoing debt reduction efforts.
“Over a number of years, the Greek public finances have outperformed our baseline expectations, which increases our confidence that Greek debt will remain on a firm downward path,” it said.
“These improvements are due to both ongoing expenditure restraint and tax revenues that are rising quickly in light of ongoing institutional improvements in tax compliance and collection.”



Riyadh Real Estate Awaits Impact of Measures to Curb Price Surge

Residential and commercial properties in the Saudi capital Riyadh (Reuters)
Residential and commercial properties in the Saudi capital Riyadh (Reuters)
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Riyadh Real Estate Awaits Impact of Measures to Curb Price Surge

Residential and commercial properties in the Saudi capital Riyadh (Reuters)
Residential and commercial properties in the Saudi capital Riyadh (Reuters)

The Saudi real estate market is currently in a state of cautious anticipation, driven by unprecedented decisions and measures announced by Crown Prince Mohammed bin Salman.

These steps aim to increase the supply of properties and restore balance in the market to address the rising costs of land and rental prices.

Data from the market shows a stagnation in property purchases by citizens, as they await the impact of these measures, hoping they will bring stability to property prices in Riyadh and lower costs.

In March, the Crown Prince directed the implementation of a series of regulatory measures, including lifting restrictions on the development of over 81 square kilometers of land north of Riyadh.

This move is expected to deliver tens of thousands of affordable residential plots annually to citizens, following a significant rise in property prices in Riyadh.

According to Saudi Minister of Municipal and Rural Affairs and Housing Majid Al-Hogail, these measures will add between 10,000 and 40,000 plots of land annually in the northern region of Riyadh, ensuring a better balance between supply and demand in the market.

The Crown Prince has already donated 1 billion riyals to the National Developmental Housing Foundation (Sakan), represented by Jood Eskan, to support home ownership for eligible families across Saudi Arabia.

The housing projects funded by this donation are to be completed within 12 months and executed by national companies.

The Crown Prince also ordered monthly progress reports to ensure that all residential units are delivered within one year.

Real estate market experts told Asharq Al-Awsat that current market data reveals a stagnation in property purchases by citizens, as they await the impact of recent policy changes and their potential to restore balance to the market.

Many real estate companies and agencies have observed a decline in sales activity, with property marketers facing difficulties in encouraging buyers who prefer to delay decisions until the effects of Crown Prince Mohammed bin Salman’s directives take shape.

Real estate expert and marketer Abdullah Al-Mousa told Asharq Al-Awsat that the current stagnation in property prices in Riyadh is a direct result of the Crown Prince’s initiatives to increase property supply, which aim to restore price equilibrium following the recent surge in real estate costs.

He views the decline as a positive step toward balancing supply and demand, contributing to a more sustainable and fair market for all stakeholders.

Al-Mousa anticipates that this stagnation will persist until all government directives are fully implemented in the coming months.

He noted that, with plans to increase the property supply, the market could experience gradual recovery in the long term, especially given Riyadh’s continued population and economic growth.

The expert highlighted that several factors may sustain the current stagnation, including high interest rates, which reduce citizens’ purchasing power, the oversupply of properties relative to demand, and global economic fluctuations that could affect investments.

However, he emphasized that Riyadh’s ongoing population growth, improving national economy, rising per capita income, large-scale infrastructure projects like the Riyadh Metro, and continued government support for housing programs are expected to drive the recovery of the real estate market.

Al-Mousa also predicted further improvement in the sector as policies are implemented and market conditions are monitored.