DBRS Morningstar said it expects the Hellenic Financial Stability Fund divestment process from the Greek systemic banks “to proceed largely smoothly.”

It cited the the sizeable improvements in banks' credit fundamentals as well as the resilience of Greece's economy, and the regained investor appetite for the country.

“The increased confidence in the Greek economy, together with the improved business environment and the stable political environment will be important during a period in which Greece needs to fulfil the targets and milestones of its Recovery and Resilience Plan (RRP) and attract much-needed foreign investments,” noted Spyridoula Tzima, Vice President, Global Sovereign at DBRS Morningstar.

The rating agency said that Greece's business environment has improved and this has been attracting higher flows of investment lately. 

“Greek banks have benefitted from the recovery in the domestic economy and are in a stronger position following significant restructuring.” 

The bank rescue fund has played a key role in supporting the recovery of the Greek banking sector in the years following the global financial crisis and Greek sovereign debt crisis.

The HFSF is still one of the main shareholders of the large Greek banks, however, it aims to dispose of all its shares in the Greek systemic banks before 31 December 2025.