ECONOMY

BofA bullish on local credit system, economy and bonds

bofa-bullish-on-local-credit-system-economy-and-bonds

Bank of America appears optimistic on the outlook of local lenders, the Greek economy and sovereign bonds, as it notes in a report that Greece has turned a page: It has managed to improve its risk profile, it has recovered the confidence of the markets and facilitated the streamlining of Greek banks’ financial reports, while the Next Generation EU fund is set to boost gross domestic product and investments.

BofA notes that banks are completing the sizable program of nonperforming exposure sales and are expected to play a key role in the Greek recovery program by identifying and co-financing investment projects.

The report adds that Greek bonds remain attractive in the short term thanks to the support from the European Central Bank, without worrying about the impact from the end of the PEPP bond-buying program next March.

The main risk would be an end to the ECB waiver.