NEW YORK (TheStreet) --Shares of the National Bank of Greece (NBG) are higher by 7.60% to $1.35 in late morning trading on Wednesday, following reports suggesting the debt riddled country has started drafting an agreement with its creditors.
Greece, which is expected to run out of money next month, and its creditors are said to have begun drafting a technical-level agreement, Reuters reports.
"At the Brussels Group (of credit negotiators) today procedures to draw up a staff-level agreement are beginning," a government aid told Reuters, adding that the deal would not cut wages and pensions and includes reform of value added taxes and a lower target for a primary surplus in the first year.
Athens has been holding negotiations with Eurozone and IMF officials in Brussels for several weeks with no deal reached as creditors have been unsatisfied with the promises regarding economic reforms Greece has been making, The Wall Street Journal reports.
Greece has a 300 million euro payment due to the International Monetary Fund on June 5, with additional payments due later in the month.
Earlier in the week, the Greek government said it would try and make the payment, despite statements made openly by members of Prime Minister Alexis Tsipras's government saying Greece doesn't have the money, Reuters reported.
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 a few notable weaknesses, 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."