A team of Moody’s analysts are in Greece this week for talks with representatives of Greece's four systemic banks, with the focus on efforts by the latter to reduce "bad debt" - NPLs and NPEs - burdening their balance sheets, as well as prospects to increase lending to the domestic economy.
By E. Sakellari & G. Sakkas
A team of Moody’s analysts are in Greece this week for talks with representatives of Greece's four systemic banks, with the focus on efforts by the latter to reduce "bad debt" - NPLs and NPEs - burdening their balance sheets, as well as prospects to increase lending to the domestic economy.
According to reports, at least, representatives of the international credit rating agency appear "satisfied" with the contacts so far, in terms of prospects for dealing with "bad debt" and boosting liquidity to the investment-starved Greek economy and assuming that no "unforeseen" glitch affects the economic recovery.
Moody's next review of the Greek economy and the country's four systemic banks is set for March 2019.
According to initial estimates, Eurobank has presented the most "aggressive" plan to reduce "bad debt" off its balance sheets, while Alpha Bank appears to lead the pack in terms of projected higher lending rates.
One noteworthy detail is the fact that Moody's officials will not meet with the Bank of Greece's (BoG) officials during this visit, although the ratings firm considers the central bank's recent proposal for reducing NPEs as positive, pending its official evaluation by European creditors and Eurozone institutions.
In a related development, a Citigroup report notes that along with the expected improvement in Greece's fiscal results, foreign investors viewed the Greek economy with a greater degree of credibility.