By Alexia Sotiriou

 

 

Economy and Finance Minister Kostis Hatzidakis announced the launch of a National Investment Fund and the modernization of the legislation governing the operation of public enterprises operating under the ‘umbrella’ of the Superfund.

 

Addressing the 1st Growthfund Summit, the minister said that the Superfund changes, acquiring a strong developmental dimension.

 

According to the minister, these two changes were achieved during the negotiations with the ESM for the transfer of the Athens Water Supply and Sewerage Company (EYDAP) and the Thessaloniki Water and Sewage Company (EYATH) from the Superfund to the State – the relevant legislation has already been passed.

 

The National Investment Fund will operate within the framework of the Superfund and will be an investment tool, similar to those operating in most EU countries, that will stimulate development initiatives, especially in cutting-edge industries, new technologies and “green” investments.

 

The first funds of the National Investment Fund will come from the State based on the following procedure: EYDAP and EYATH will be valued by an independent evaluator and then funds corresponding to 50% of their value will be channeled to the National Investment Fund, while the remaining 50% will be allocated to the reduction of the public debt. The minister underlined that the National Investment Fund will have modern management and will operate based on the best European practices. “We are utilizing the operation of the Superfund and turning it in an increasingly developmental direction for the Greek economy,” he noted.

 

 

The Greek government is now aiming at acquiring the investment grade from the last rating agency, after the recent upgrade by Fitch, so that the potential purchasing power for Greek bonds can increase even by Euro 18-20 billion per year.

 

Greece has also raised its expectations over the rating of its bonds. The “BBB-” that the country has received from all rating agencies except Moody’s is the lowest investment grade. Therefore, three more upgrades are required, so that it changes level.

 

In the short term, the recovery of the investment grade by Moody’s (it has ranked Greece as “Ba1” after the double upgrade weeks ago) is a goal that is estimated to be achieved within 2024 even in two installments (first upgrading the outlook and then returning to investment grade, which for Moody’s is “Baa3”).

 

 

The next assessment from this particular rating agency is scheduled for March 2024. Why is the upgrade from the last rating agency also important? As it has its own clientele, the potential clientele for Greek bonds also increases. In fact, Moody’s is the largest rating agency in the world, which is why the potential demand can now even reach Euro 18-20 billion.

 

 

The first important date is December 15. The early repayment of the installments of the bilateral loans, totaling Euro 5.3 billion, is scheduled to take place on that day.

 

The second important date is December 23 or 24. Having closed 2023 with the recovery of the investment grade by the large majority of rating agencies, the Public Debt Management Agency (PDMA) will present the lending program for the following year.