Credit rating agency Moody's upgraded the Greek banking system yesterday (29.4) from negative to stable and said the country's economy would return to growth this year after a six-year recession.

"The rating agency considers that - despite continued weak domestic demand in the wake of wage cuts and a still elevated unemployment rate - the operating environment for Greek banks will gradually improve, signaling the re-emergence of more normalised financial metrics over the 12-18 month outlook horizon."

EU data agency Eurostat last week confirmed that Athens had achieved a 2013 primary budget surplus - the balance before interest and stripping out bank support and other payments - equal to 0.8% of GDP. Earlier this month, Greece successfully returned to international bond markets for the first time in four years.

Eurobank successfully completed international and public offering procedures of a share capital increase plan and said that trading of its new shares will begin on May 9, the Hellenic Financial Stability Fund (HFSF) announced on April 29. Investor response to Eurobank’s share capital increase has exceeded expectations as it was three times oversubscribed. Offers exceeded €8 billion against the €2.86 billion that the bank was aiming for.

The price of the new shares was shaped at 0.31 euros per share. Anastasia Sakellariou, CEO of the Hellenic Financial Stability Fund, stated: “Eurobank’s completion of their share capital increase represents a key milestone for the bank, the HFSF and the entire Greek banking sector, as it marks the return of Eurobank to the private sector…”