The Greek government’s negotiations with lenders broke up after Prime Minister Alexis Tsipras announced a referendum on Friday evening.
S&P lowered on Monday Greece’s long-term rating by one notch to ‘CCC-‘ from ‘CCC’ with negative outlook. Greece’s rating by S&P is now the lowest among the rating agencies with Fitch’s rating at ‘CCC’ and Moody’s at ‘Caa2’, which is equivalent to ‘CCC’.
Greek Parliament has published (in Greek) the preliminary debt sustainability analysis (DSA) as well as another document with Greece’s financing needs and timetable of disbursements that accompanied the institutions proposal to Athens on June 25.
Greece’s economic sentiment (ESI) fell for the fourth straight month in June, when it was down by 0.7 points to 90.7 from 91.4 in May, according to the European Commission (EC).
As was expected, the referendum announced by the Greek Prime Minister Alexis Tsipras on Friday evening triggered a series of negative repercussions for the Greek banking system.
The Eurogroup rejected on Saturday the Greek government’s proposal for a one-month extension of the current bailout programme, which expires on June 30, Greek banks are facing a dramatic situation.
The Greek stock market ended the week with gains of 16 percent following a relief rally in the first two sessions amid increased optimism for an agreement between Greece and its lenders.
Greek bank credit contraction further decelerated to 2.1 percent in May from 2.4 percent in April, according to the Bank of Greece (BoG).
Greek private sector deposit outflows eased to 3.86 billion in May from 4.66 billion in Apr, according to the Bank of Greece (BoG).
Greece’s budget execution figures confirmed the 5-month primary surplus was at 1.51 million - more than double compared to last year’s 707 million, according to the Finance Ministry (MoF) final budget bulletin released on Thursday.