Morgan Stanley predicts that Greek bond spreads will fall, if a deal is reached between the country and its creditors, in a report released. The financial company estimates that a possible deal and a completion of the review on the Greek program would lead to a huge surge in the value of Greek bank shares of up to 90%, while it believes the elusive deal will eventually be wrapped up. Morgan Stanley upgraded Geek bank shares to ‘overweight’, pointing out that their current reviews did not reflect the falling spreads that would occur after a deal between Greece and its lenders was struck. The completion of the review of the Greek program will pave the way for Greek bonds to be eligible for purchase by the European Central Bank (ECB), and the lifting of all the capital controls on Greek banks, which would eventually lead to a recovery of the Greek economy, says Morgan Stanley’s report.