KBRA Releases Macro-Market Research: EU Cohesion Funding: Update on the Cuts

Kroll Bond Rating Agency (KBRA) releases a macro-market commentary: “EU
Cohesion Funding: Update on the Cuts.” KBRA’s view on European
sovereigns considers both prospective and actual financial support from
the European Union (EU). As such, the European Commission’s cohesion
funding proposal for the 2021-2027 cycle that cuts financing by -17% is
a notable development.

The new proposed cycle rebalances the transfer of funds towards
countries whose per capita income growth has exhibited greatest
weakness, including crisis economies. According to the proposal, only
Greece, Cyprus, Belgium, and Bulgaria will receive larger nominal
allocations. The scale of cuts reaches as high as -70.7%; although the
largest cuts are for wealthier countries whose allocations are small
relative to the sizes of their economies, and hence not highly
impactful. The average reduction for the funding cycle is -22% and the
proposed cuts for Poland of -15.5% result in an increase in that
country’s share of funding, albeit out of a smaller pool.

To access the full report, click here.


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About KBRA and KBRA Europe

Kroll Bond Rating Agency, Inc. is a full service credit rating agency
registered with the U.S. Securities and Exchange Commission as an NRSRO.
In addition, Kroll Bond Rating Agency, Inc. is recognized by the
National Association of Insurance Commissioners as a Credit Rating
Provider and a certified Credit Rating Agency (CRA) by the European
Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe
Limited is registered with ESMA as a CRA.

View source version on businesswire.com: https://www.businesswire.com/news/home/20180710005827/en/

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