Central banker reiterates call for swift completion of program review

Greece’s central banker called again for the swift completion of the third program review in order for debt relief talks to begin, during a book presentation in Athens on Monday.

Yannis Stournaras said debt relief talks will then lead to the inclusion of Greek bonds in the quantitative easing program of the European Central Bank and, more importantly, to a smooth return to the markets after the end of the program.

“The improvement in confidence and the resulting rise in economic activity will speed up the return of [bank] deposits and will result in further relaxation and ultimately the complete abolition of restrictions on capital movement,” he said.

Stournaras reminded that the Bank of Greece has already made specific proposals for a mild debt restructuring, such as, for example, the shift in the average maturity of the EFSF loan interest payments by at least eight and a half years. This proposal is crucial for Greece, while it only involves a minimal cost for its partners, he said.