NEW YORK (TheStreet) -- Shares of the National Bank of Greece (NBG) are down by 3.76% to $1.28 in mid-morning trading on Tuesday, after the European Commission cut its spring forecast for Greece's economic growth, saying it is only expecting the country's economy to increase by 0.5%, compared to its previous 2.5% estimate from February.
The EU believes the impasse over Greece's financial crisis is choking the economy, Bloomberg reports.
"The conditions to support growth are in place but uncertainty and tighter financing conditions are holding back the recovery and weighing on public finances," the commission said, Bloomberg added.
The Greek economy grew for the first time since 2007 last year but the country's attempts to continue that momentum has been "hurt by uncertainty since the announcement of snap elections in December," the commission added.
Separately, TheStreet Ratings team rates NATIONAL BANK OF GREECE as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate NATIONAL BANK OF GREECE (NBG) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself."