Greece Delivers 146% 5-Year Stock Return as Sovereign Debt Regains Investment Grade
Updated
Updated · Euronews · May 19
Greece Delivers 146% 5-Year Stock Return as Sovereign Debt Regains Investment Grade
1 articles · Updated · Euronews · May 19
Athens equities returned about 146% over five years, beating the Nasdaq 100's 116% and marking a dramatic reversal from Greece's crisis-era market collapse.
€57 billion of bad loans were offloaded through the Hercules scheme, helping the four biggest banks cut legacy risks and generate nearly €5 billion in combined 2025 net profit.
Fiscal repair reinforced the rally: Greece posted primary surpluses near 5% of GDP in 2024 and 2025, while public debt fell to roughly 145% of GDP in 2025 from a peak near 210% in 2020.
Moody's upgraded Greece to Baa3 in March 2025, leaving all major agencies rating the sovereign investment grade for the first time in more than a decade.
Euronext's 2025 acquisition of the Athens exchange and MSCI's review for developed-market status could widen foreign inflows, though tourism dependence, Middle East risks and the August 2026 end of EU recovery funds remain headwinds.
With EU recovery funds ending in August, can Greece's reformed economy finally solve its massive private debt crisis alone?
Greece's market is booming, but with record-low productivity and public trust, is its economic miracle built on sand?
Greece’s Investment Grade Comeback: From Debt Crisis to Developed Market Status and Soaring Equities (2021–2027)
Overview
Greece has achieved a remarkable economic turnaround, transforming from the brink of default after the 2009 debt crisis to regaining investment grade status and seeing its banks return to profitability. This recovery was driven by significant fiscal repair, comprehensive banking sector restructuring, and crucial institutional reforms. As a result, Greek equities have soared, with the stock market showing strong, broad-based growth. The country’s progress is further highlighted by Moody’s upgrade of its sovereign rating and the upcoming reclassification of Greece as a developed market, reflecting renewed investor confidence and a more stable financial environment.