BoG governor Stournaras: Delaying the review calls into question the targets for 2017

The delay in the completion of Greece’s second program review calls into question all the targets set for 2017 on growth, fiscal and financial issues, Bank of Greece governor Yannis Stournaras said on Monday speaking at a conference organized by the Parliament’s Budget Office.

He said that by achieving a primary surplus of 2 percent in the 2016 budget, the country has covered 90 percent of the distance required until 2018.

Commenting on the prospects for growth, the central banker stressed the importance of foreign direct investments noting they were at 24 percent of the GDP before the economic crisis while today they are hovering around 11 percent.

To achieve the new growth model by highlighting sectors as drivers of economic growth and attracting foreign direct investment it is essential to create an appropriate business framework, he said, adding that significant steps have been taken in this direction.

“The reforms implemented during the crisis are expected to enhance the growth potential of the Greek economy in the medium to long-term. So as the economy returns to growth, employment growth and productivity will be higher than if no reforms had been implemented,” he said.