Yiannis Stournaras warned that the biggest risk for the prospects of the Greek economy would be the loss of the credibility of the economic policy, which has been so difficult to recover,
Primary task of the next government according to the governor of the Bank of Greece Giannis Stournaras should be (a) the implementation of the reform program that will improve structural competitiveness and increase the total productivity of the economy and (b) the return to primary, structural budget surpluses of 2% of GDP, so that this year it is recovered , to maintain, and in the medium term to exceed, the investment level, which will have favorable multiplier effects in all sectors of the economy.
As he said speaking today at the Hellenic Institute of Internal Auditors “2nd Banking Forum: Internal Audit, Risk Management & Compliance: Three voices – Two lines – One mission!” despite the progress of the Greek economy in many areas and the rise in the ranking scale in recent years, the Greek economy still has chronic structural problems, as a result of which it is still ranked relatively low in the structural competitiveness indicators. Besides, as he said, the country’s GDP is still significantly below 2008 levels, the public debt remains the highest in the Eurozone, while the current account deficit is above 6% of GDP.
He warned that the biggest risk for the prospects of the Greek economy it would be the loss of credibility of the practiced economic policywhich has been so difficult to recover, and the return to practices of the past.
Referring to banking sector in Greece he argued that he has made significant progress in recent years progress steps and has been strengthened so that it is in a better position to deal with possible turbulence and shocks, such as those we have recently experienced. However, he said, while the outlook for the near future is positive, challenges remain, such as a further improvement in asset quality to the levels of the European average, amid pressures on the financial position of households and businesses due to inflation, rising interest rates but also the slowdown in economic activity.
At the same time, according to him, the challenges are the achievement of sustainable profitability and the further quantitative and qualitative strengthening of the banks’ capital adequacy, which falls short of the average of credit institutions under the direct supervision of the ECB.
Source: Skai
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