FXStreet (Córdoba) – Greece’s decision to bundle four payments due to the IMF this month highlights the extreme pressure on government funding, Fitch Ratings said on Friday.
However, according to the rating agency, the decision does not have direct implications for Greece’s ‘CCC’ sovereign rating.
On Thursday, Greece requested to bundle up four June payments to repay €1.5 billion at the end of the month. The first of the bundled payments, worth over €300m, is due today.
“Delaying repayment to the IMF is not in and of itself a ratings default. Nevertheless, bundling this month’s repayments illustrates the pressure that a lack of market or official funding and tight liquidity conditions for Greek banks are putting on Greece’s sovereign liquidity”, Fitch said. “Our ‘CCC’ sovereign rating, affirmed last month, indicates that default on privately held bonds is a real possibility”.
(Market News Provided by FXstreet)