The European Central Bank is expected to give the green light to the request of Greek banks to distribute a dividend again after 16 years, four bankers told Reuters, as another sign of recovery in the sector.

The Greek banking sector is returning to normality after the recapitalizations that led to their nationalization last decade, when the country was rocked by the financial crisis that broke out in late 2009, Reuters notes.

In recent years, banks have reduced their NPL ratio below 6%, from 45% in 2016, while reducing the state’s participation in their equity funds. At the same time, they “returned” to profitability and intend to distribute a dividend of up to 30% of the profits recorded in 2023.

Their business plans, which include the request for a dividend distribution, were submitted to the ECB earlier this year.

Senior bankers told Reuters the ECB was expected to respond positively in the coming days.

“We don’t foresee any obstacles regarding dividend distribution, we expect the green light from the ECB in the coming days,” one of the bankers told Reuters on condition of anonymity.

A representative of the ECB, however, refused to comment, the agency notes.

Greece’s big four banking institutions, Eurobank, National Bank, Piraeus Bank and Alpha Bank, reported a combined profit of €3.5bn for 2023, supported by high interest rates and strong economic growth.

“For this year again we expect strong net earnings, especially if interest rate cuts from the ECB are less than initially expected,” another banker told Reuters, who also said the ECB was expected to approve the dividend distribution soon.

Two more bankers added that Greece’s strong economic recovery and high interest rates contributed to boosting profits.