Citi paints a decidedly positive picture this week of the Greek economy – a few years after forecasting that the country would crash out of the Eurozone – with a report by the investment bank citing a significant reduction in political risks, a less restrictive fiscal policy and improved prospects.
Citi also refers to an increase in the recovering Greek economy’s credibility, hours before S&P released a ratings review on Friday.
According to the investment bank, which sold-off its retail banking operations in Greece during the crisis, higher consumption in combination with the abolition of capital controls are expected to domestic demand. Additionally, an approved mechanism to curb NPLs, via state financing, is expected to boost liquidity, which remains “tight”.
