The rating agency Moody΄s, often referred to as Moody΄s, in its latest credit outlook said that in conjunction with lower operation costs, it expects Greek banks to return to making profits
Moody’s underscored that even though the damages from granting loans continues to draw a large section of bank profits, the reduction of non-performing loans (NPLs) combined with lower operation expenses of Greek banks is “credit positive”.
During the second quarter of 2016 the accumulated non-performing bank loans decreased by about 375 million euros, therefore the credit rating agency said it expects Greek banks to return to making profits.
Provided that there will be political stability in Greece, Moody’s expects the NPLs to significantly drop over the next three to four years. This is due to the problems involved with foreclosures and the sale of NPLs.