“Greece and its official creditors will seek a “hybrid clean” exit that will not include a precautionary credit line, but policies with significant commitments,” Fitch Ratings said in a report titled “Western Europe Sovereign Credit Review – 2Q 2018”, in which the credit rating agency assesses Greece’s exit from the support programme.
“Greece will be at the forefront in the coming months, as the support programme ends in August. We think that both Greece and its official creditors will seek a “hybrid clean” exit, which will not include a precautionary credit line but policies with significant commitments. Probably, the implementation of a mechanism will be agreed that will link growth rates with debt relief measures during the post-programme period. In our view, this will become a significant development as it enhances confidence that the general government’s debt will remain on a sustainable course in the case that conditions are negative for growth,” Fitch said in the report.
