Greece will experience limited impact from any increase in interest rates

Any impact on Greece's finances from an increase in the country's borrowing cost will be limited, S&P said in a report on Tuesday.

In a report on "which countries are better and worse positioned to deal with an increase in interest rates", the credit rating agency said that Greece will be able to absorb the primary impact from an interest rate increase up to three percentage points.

More specifically, Greece's capital spending will be raised to 2.8% of GDP in 2023 from 2.5%, which is the base scenario if interest rates were raised by one percentage point and to 3.1% if interest rates were raised by three percentage points.

Japan, the US and Portugal would see their capital spending to rise by more than one percentage point in 2023 under the base scenario, while Italy and Japan would pay more than 3.7% of GDP due to their high debt levels.

READ MORE: German media RND reports on forecasts of a rapid recovery for the Greek economy.