STORY: Strong gov't in Greece to benefit national economy
DATELINE: July 8, 2023
LENGTH: 00:02:12
LOCATION: Athens
CATEGORY: POLITICS

SHOTLIST:
1. various of the new Cabinet of the Greek Government
2. file shots of the elections in Greece on June 25
3. various of the Greek Exchange
4. various of Bank of Greece Governor Yannis Stournaras
5. various of the first cabinet meeting of the new greek government
6. various of the printing of the new 50 euros Banknote
7. SOUNDBITE 1 (Greek): DIMITRIS KENOURGIOS, Professor of Finance at the University of Athens
8. various of the printing of the new 50 euros Banknote
9. SOUNDBITE 2 (Greek): DIMITRIS KENOURGIOS, Professor of Finance at the University of Athens
10. various of the printing of the new 50 euros Banknote

STORYLINE:

The formation of a government in Greece with a comfortable majority in parliament will strengthen the country's economic stability, help the implementation of reforms and see Greece's sovereign bonds return to investment grade very soon, benefitting the national economy further, analysts told Xinhua.
   
The center-right government of Prime Minister Kyriakos Mitsotakis has returned to power after the June 25 general election for four more years. It has a majority of eight deputies in parliament, the same as four years earlier when it first got elected.
   
The market's immediate reaction was positive -- the main index of the Greek stock market closed on Monday at its highest point since June 2014. Bank of Greece Governor Yannis Stournaras also said a Greek credit rating upgrade back to investment level after almost 13 years was possible.
   
SOUNDBITE 1 (Greek): DIMITRIS KENOURGIOS, Professor of Finance at the University of Athens
"The post-election landscape in Greece and the emergence of a strong government contribute in forming a favorable environment that will lead to the rapid achievement of investment grade by year-end."

Analysts stressed that the emergence of Greek bonds from the so-called "junk status" they have been in since 2010 will be crucial for the country's economy.
   
SOUNDBITE 2 (Greek): DIMITRIS KENOURGIOS, Professor of Finance at the University of Athens
"(Such a development) would have favorable multiplying effects on all sectors of the Greek economy, through the reduction of the cost of borrowing of the state and therefore of the Greek enterprises, and through the increase in funding of the real economy by a Greek credit system that will be financially robust."

Nikolina Kosteletou, associate professor in the Department of Economics at the University of Athens, added that investment grade would not only allow healthy funds and other institutional investors from abroad to invest in Greek bonds, but it would also open the way to a series of other financing tools, such as social bonds, with multiple benefits for the economy and society.

Xinhua News Agency correspondents reporting from Athens.
(XHTV)