Greek banks' outlook upgraded to positive, by Moody's

Moody's rating agency has upgraded the outlook for Greek banks, reforming it to stable, from the previously "negative".

The upgrade of the outlook of the banking sector in Greece reflects estimates that Greece will return to positive growth in 2014, after six years of recession. It estimates that growth will range at 0.3% at 2014 and 1.5% at 2015.

The ratings agency welcomes the completion of the recapitalization of Greek banks, the return to debt markets and the reduction of financial pressures. According to the agency, the gradual recovery of the Greek economy will lead to an improvement in the pre-provision profitability of the industry in 2015.

Moody's expects to improve the operating environment of the sector and expects a gradual slowdown of the growth of non-performing loans. Even though the domestic demand will remain under pressure, due to wage cuts and increased unemployment (27.3% until the end of 2013), the outlook of the sector will be positive, according to the rating agency's analysts.