Credit-rating agency Moody’s upgraded Greek banks on Tuesday from negative to stable and stated that the country’s economy will start recovering and return to growth this year after six years of recession.
“The outlook for the Greek banking system has been changed to stable from negative, reflecting expectations of a return to growth of the domestic economy in 2014-15 after six years of contraction,” stated the agency, adding that Greek economic output (GDP) will increase by 0.3% in 2014 and 1. % in 2015
Moody’s reported that the structural reforms implemented by the Greek government are turning the country into a more competitive export-oriented economy.
After the Greek banking system’s upgrade and registering a primary surplus in 2013, the Greek government hopes that discussions with its foreign creditors over a possible debt relief will start on May.
The European statistical agency Eurostat last week reported that Greece recorded a 2013 primary budget surplus of 0.8% of GDP. Earlier this month, Greece returned to international bond markets after four years in the cold.
However, Greek bonds still carry junk status, unemployment remains at a record high, and the government debt amounts to 175% of GDP.
See all the latest news from Greece and the world at Greekreporter.com. Contact our newsroom to report an update or send your story, photos and videos. Follow GR on Google News and subscribe here to our daily email!
