Germany’s Central Bank, the Bundesbank, expressed an optimistic outlook on the Greek economy on Monday, Reuters reported.
The Eurogroup agreed to a three-year 86-billion-euro bailout deal on Friday. The German parliament will vote to approve the bailout program on Wednesday, with the result of the vote expected to be positive.
In its monthly reports and in the aftermath of Friday’s agreement, the Bundesbank said the Greek economy will “gradually improve” thanks to the bailout agreement, the tourism industry and structural funds provided from the European Union that will go toward investment.
Greece has been severely hampered by capital controls that have been in place since June 28. Greek banks are set to receive 10 billion euros very soon and another 15 billion euros following a stress test in the fall.
The Bundesbank believes that the recovery of the banking sector will also boost the country’s economy.
“Previous wage and fiscal adjustments should also make an impact,” Reuters wrote.