Greece has achieved a primary surplus of € 435 million, according to preliminary data published by the Finance Ministry for the execution of the general government budget of 2012. 

"General government figures confirm that the government has achieved its fiscal targets for 2012," Alternate Finance Minister Christos Staikouras said.

General Government primary balance data (i.e. not including interest payments) show a surplus of € 434 million for 2012, compared with a deficit of € 3.5 billion for the corresponding period of 2011. These positive developments concerning budget implementation indicate that efforts for fiscal consolidation, adjustment and discipline are paying off, creating the necessary conditions for the stabilization and gradual restart of the economy, the statement further notes.

The deficit reduction was achieved by a combination of larger than expected cuts in primary government expenditure and private and official sector debt relief, Fitch Ratings stresses in a report published today regarding the Greek surplus. Continued progress in reducing the fiscal deficit, coupled with comparable developments in the current account balance, indicates that the Greek economy is rebalancing, the report adds.