Fitch says agreement was a positive event

Fitch Ratings said on Thursday that the preliminary agreement between Greece and its international creditors is a positive step toward unlocking funds to enable the country to meet its July debt maturities.

It noted in a statement that “popular and political opposition in Greece to elements of the program remains high, which creates substantial implementation risk. But we think government MPs are more likely to approve the reforms than reject them.”

However, “it is not clear how close the [International Monetary Fund] and some European creditors are to agreeing on the timing and nature of potential debt relief that could enable the IMF to join the third bailout program as a lender. And there is now a very tight timetable for securing such agreement and completing the processes that would underpin IMF participation before July.”