Investors Begin To Turn Toward Greece

After weeks of worry about whether or not Greece would be forced to exit the eurozone due to a conflict between the nation’s creditors and its new government, Greek officials have submitted a reform plan that closely mirrors its bailout terms, suggesting that the battle over funding is coming to a close. On Tuesday, reports that the European Commission was satisfied with the first proposal of reform plans gave investors reason to believe Greece would stay afloat for another four months with another installment of EU funding at the end of the month.

Stability On The Horizon

The uncertainty and instability Greece brought to the eurozone in recent weeks drew attention to the region’s markets and raised a question as to whether or not now is the time to buy in Europe. While most were reluctant to gamble on Greece when the country looked unlikely to reach an agreement with the troika, investors are starting to turn their attention toward Greek assets in hopes of finding a few good deals.

Greek Banks Breathe A Sigh Of Relief

Greece’s financial sector was hardest hit by uncertainty regarding EU funding as banks would struggle to maintain liquidity without another injection of cash. Shares of banks based in Greece like Alpha Bank, Piraeus Bank and National Bank of Greece NBG took a beating over the past month, making them a cheap entry point for investors betting on a recovery.

Europe Still A Risky Bet

While investors are starting to come around toward investment in the eurozone, many are still wary as Greece isn’t the region’s only problem. Stagnant growth and stubbornly low unemployment figures are still a worry for eurozone policymakers and the region’s stimulus efforts have been, for the most part, ineffective.