Stournaras calls for urgent completion of first review of economic programme
ΣΧΕΤΙΚΑ ΑΡΘΡΑ
A successful completion of the first review of the Greek economic adjustment programme was of crucial importance as it would signal the beginning of talks with Greece’s partners on action to further restructure the country’s public debt, while at the same time it will be the key to restoring confidence and the return of deposits to the banking system, Bank of Greece governor Yiannis Stournaras said on Monday.
Addressing an American-Hellenic Chamber of Commerce conference, the Greek central banker warned that the urgent completion of the first review was imperative, as risks have risen in the global economy. In the framework of increased risks and uncertainties for the course of the global economy, a potential failure to complete the first review would be destabilising as it would lead to a retreat of confidence, deteriorating financial conditions and a bigger recession. Stournaras said that the Greek economy has the ability and prospect to return to positive growth rates this year, despite rising international risks and uncertainties and despite a carry-over from a negative effect of 2015. He stressed, however, that this would depend on implementing commitments undertaken by the Greek government in the framework of the new programme and a completion of the first review.
He underlined the experience of the second half of 2014 (when a fifth review failed to be completed) and the “endless” negotiations of the first half of 2015 which led to a resurgence of the Greek crisis and urged the Greek government and all pro-European political parties and the country’s creditors to “learn from past mistakes”. “Experience shows that each time we fail to complete a programme review, a climate of confidence is burdened and the next review becomes more difficult, leading us to a vicious cycle” Stournaras said.