Greek banks show an ongoing  great improvement but the political deadlock in Greece raises concern over a potential backsliding of the situation overall.

The credit rating agency begins the analysis by describing the “haircut” of the ECB as “credit positive”.

Moody’s supports that  the decision made by the ECB on the 19th of November, reflects the improved market conditions for Greek assets, while it is credit positive because it provides  to banks an additional 7 billion euro “liquidity cushion” based  on the collateral already pledged by the ECB.

Based to the decision, from the 15th of December the ECB will reduce the “haircut” in Greek government bonds and  treasury bills guaranteed by the government by more than 50%.

It is worth noting that Moody’s made the above reference which is included in the credit outlook of the 1st of December, just two days following the non-disclosure of the planned analysis for the Greek economy.