A delay in concluding a second review of the Greek support programe threatens to put at risk the restructuring programes of Greek banks, Moody’s Credit Rating said in its Credit Outlook weekly report released on Monday.
Moody’s said that a continuing delay in concluding a second review was credit negative for Greek banks since it put at risk their restructuring programes, including their basic axis to reduce NPEs by around 40 pct by the end of 2019. It added that a timely implementation of Greek support programe was of crucial importance for economic growth in the period 2017-2019 and to gradually restore depositors’ and investors’ confidence in the country and its banking system.
The credit rating agency noted that a delay in concluding a second review was focusing on Greece’s disagreement to legislate new fiscal measures for the period after August 2018, when a third economic adjustment programe ends. This raised the danger of abandoning banks’ strategic planning, as the crisis-hit economy was possible to be negatively affected by a possible freeze in new investments and a credit crunch in the market, Moody’s said.| | | Next → |