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21 Aug 2015
Fitch says early Greek election shows risks to bailout remain high
FXStreet (Córdoba) - The snap Greek general election highlights the risk that uncertainty in domestic politics and relations official creditors pose to the success of the country's third bailout programme, Fitch Ratings says.
“A September election would occur before the first programme review in October and may well hamper and delay the technical work and political decisions necessary for its completion. Relations with creditors appear to have improved in the run-up to the bailout agreement on 14 August”, Fitch said in a statement. “But the likely pause in legislating for reforms during the election campaign coming so soon after the agreement was concluded may rekindle or reinforce some creditors' concerns about Greece's ability to meet the programme's requirements”.
“A September election would occur before the first programme review in October and may well hamper and delay the technical work and political decisions necessary for its completion. Relations with creditors appear to have improved in the run-up to the bailout agreement on 14 August”, Fitch said in a statement. “But the likely pause in legislating for reforms during the election campaign coming so soon after the agreement was concluded may rekindle or reinforce some creditors' concerns about Greece's ability to meet the programme's requirements”.