MOSCOW (Sputnik) — Greece has been carrying out economic reforms since August, when European finance ministers and the International Monetary Fund (IMF) approved an 86-billion-euro ($93 billion) bailout package aimed at rebuilding Greece's economy. The International Monetary Fund and Eurozone ministers secured the Greek government's agreement to reform labor markets, privatize state assets and recapitalize banks.
"Standard & Poor's Ratings Services raised its long-term foreign and local currency sovereign credit ratings on the Hellenic Republic (Greece) to 'B-' from 'CCC+… The upgrade reflects our assessment that the Greek government is broadly complying with the terms of its €86 billion financial support program financed by Eurozone member states via the European Stability Mechanism (ESM)," the release said.
With pension reforms still a point of disagreement, a compromise is expected by March, the S&P statement said. The Syriza government's plan to raise employer contributions and creditor demands to cut the pension deficit should be balanced, leading the first review of Greece's bailout program to conclusion, the statement added.
The Greek budget deficit reached 3.533 billion euros ($3.869 billion) by the end of 2015, according to Friday’s preliminary assessment by the Greek Finance Ministry. Greece’s budget deficit was 3.697 billion euros in 2014. In 2016, it is projected to drop to 2.573 billion euros.