A Greek government decision to fully remove capital controls in the country from September 1, announced by Prime Minister Kyriakos Mitsotakis on August 26, is credit positive for Greek banks, Moody’s said in a report on Thursday, according to ANA.
“We expect the removal of capital controls to strengthen confidence among depositors and help banks improve their financial profile and revenue, a credit positive prospect,” Moody’s said in the report, adding that the full removal of capital controls meant that households and enterprises in Greece will not face any limitations in transferring money abroad any more. “This will probably encourage households and enterprises to bring back to domestic banks money they keep outside the banking system and will probably reduce funding cost for Greek banks with easier access to international capital markets,” the credit rating agency noted.
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