Third review to stretch into next year, DBRS says

Ratings agency DBRS said in a statement on Wednesday it expects that the current review of Greece’s third bailout program will not be completed within the year, but early in 2018.

In a newsletter charting the course of the Greek labor market – where it notes that after 2013, Greece’s labor flexibility reforms deliver an average 100,000 new jobs per year – DBRS stressed the importance that the third review is completed in time.

“The pace of future growth will likely depend on the fast completion of the third review of the third program, which may further restore confidence, lead to a further relaxation of capital controls and clear government arrears. DBRS expects completion of the review early next year,” the statement said.

The Toronto-based agency said a swift completion of the review is crucial for talks to begin on the lightening of the Greek national debt and on the type of support Greece will receive following the completion of the program next August.

Last Friday DBRS switched Greece’s credit outlook from stable to positive, while retaining the country’s long-term credit rating at ‘CCC.’