BoG governor Stournaras: Τhe urgent completion of the first review is imperative

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 Yannis Stournaras emphasized 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.