EBRD: Major Greek progress in reforms; growth seen at 2.9%

Greece has made particularly impressive progress in its reform efforts, the president of the European Bank for Reconstruction and Development (EBRD), Odile Renaud-Basso, said in an interview with the Athens-Macedonian News Agency published on Tuesday.

She noted that the government had implemented a huge reform agenda that included many aspects of the digital transition in public administration and the management of public sector companies, such as Public Power Corporation.

“The reform process was very serious, very reliable and Greece’s ability to attract international investors has changed entirely. Particularly symbolic of this was the buyout of Viva Wallet by JP Morgan,” the EBRD president said.

Despite having been revised downward as a result of the current crisis, the EBRD forecasts Greece’s gross domestic product growth rates will come to 2.9% in 2022 and 3.5% in 2023.

Renaud-Basso also noted that, in her meetings with the government, it was made clear that the targets for a green transition and phasing out lignite are unchanged, both in terms of core targets and strategies and in terms of timing.

She also referred at length to Ukraine and the EBRD’s role there, as well as to the impact of the war on the global economy and Greece.

According to Renaud-Basso, the fuel prices shock in particular had led to a downward revision of the EBRD’s original forecasts for GDP growth rates in Greece, shaving off roughly 1%, though they remained in clearly positive territory.

She ruled out EBRD investments in power production using lignite, saying the bank will invest in renewables and company sustainability policies, and noting that Greece has huge potential in this area.