According to Yannis Stournaras, fiscal prudence and economic growth have strengthened Greece’s credibility in the markets, but further upgrades to its credit rating require sustained improvement in institutional quality. This was the central message delivered by the Governor of the Bank of Greece at the annual meeting of rating agency Scope, held on Thursday in Athens, where he also suggested that Greece could reach an A rating before 2030 — provided that progress in public administration continues and institutional functioning is further strengthened.
On the justice sector, Stournaras noted that the reform of the judicial map has already reduced the average time for a first-instance court ruling to approximately one year, down from more than two years previously. Faster delivery of justice improves legal certainty and boosts investor confidence, he emphasized.
He also commented on Greece’s higher growth rate compared to the eurozone, despite external turbulence and heightened uncertainty. He noted that real GDP grew by 1.9% year-on-year in the second quarter of 2026, compared to 1.2% for the eurozone as a whole. According to Stournaras, Greece’s performance reflects fiscal consolidation, the recovery of the banking system, an improved business environment, and the reforms carried out in recent years. The return to investment grade in 2023 has already had tangible effects on borrowing costs.
Yannis Stournaras: The pivotal role in credit upgrades
Stournaras recalled that a Bank of Greece study had projected a reduction of approximately 70 basis points in the spread between Greek and German bond yields. Since then, the spread has narrowed by around 60 basis points. The market is now pricing Greece closer to A-rated countries than to those in the BBB category — though this does not prejudge future decisions by rating agencies. He added that sustainable fiscal surpluses, a declining public debt trajectory, and reduced political risk have all played a decisive role in the upgrades.
Projections from the Bank of Greece indicate that the favorable debt dynamics can be maintained over the medium term, as debt servicing costs are expected to remain below nominal GDP growth. The Governor also addressed the broader European role of credit rating agencies. As the European Union pursues deeper capital markets and greater market-based financing, independent ratings can help reduce information asymmetries and facilitate cross-border capital allocation. He further argued that Europe has an opportunity to strengthen its international standing through joint issuances of safe bonds. Scope is the first European credit rating agency to be accepted by the Eurosystem under the ECAF framework.
