Moody’s: Agreement on EU recovery fund credit positive for Greece

The agreement made by EU leaders regarding the Recovery Fund is credit positive for Greece and other countries in central, eastern and southern Europe that will be its main beneficiaries, Moody’s said in a report on Monday.

The consensus that was reached, which managed to overcome objections from Poland and Hungary to a mechanism linking disbursements to respect for the rule of law, will allow the EU’s seven-year budget and the NGEU recovery fund from coronavirus to be implemented in 2021, Moody’s noted.

The credit rating agency said those benefiting the most will be Bulgaria, which will receive sums corresponding to 22 pct of its GDP in 2018, Croatia (17 pct), Romania (12 pct) and Greece (11 pct).