...Ratings on Restricted Default: The Greek authorities imposed capital controls in June 2015 due to the large deposit outflows experienced by the banks in 1H15. The controls are still in place and include mainly restrictions on the withdrawal of customer deposits. As a result, Fitch Ratings considers that the banks are defaulting in a material part of their senior obligations and rates their Issuer Default Ratings (IDRs) at `Restricted Default'. Their Viability Ratings remain at `f' as the financial system has not regained the confidence of customers and investors. Liquidity Remains Constrained: The capital controls protect the banking system's liquidity from further deposit outflows but it has also discouraged customers from returning their funds to the banks. Greek banks have been unable to address the large funding imbalances that constrain their liquidity position because of this. Positive Recapitalisation and Reforms: There has been substantial progress towards restoring financial stability...
