This is very good news for Greek banks.
Until recently, Greek banks could not take loans from the European Central Bank or had to take them at a high interest rate because their financial future was not so bright.
However, things seem to have changed and now Greek banks are taking loans from the ECB at a very low interest rate. In fact, according to the report of Moody's, Greek banks have made use of the largest amounts in relation to their financial size.
The ECB announced last week that the TLTTO program would continue for one more year and end on June 2022 instead of 2021.
Moody's has also pointed out that this is positive action for the long term financial security of banks in Greece and the whole of Europe as they will be able to borrow at an interest rate of -1%!
This cheap lending will positively affect the profitability of banks!
It seems that the ECB wants to save the banking system of eurozone at any price. Would be good to see some of that money thrown back into the market but that’s not the case in Greece up until now.
Source,
https://www.mikrometoxos.gr/moody-s-oi-ellinikes-trapezes-echoyn-parei-analogika-ta/