BUSINESS

Bank recaps helped Athens’s market return

A restructuring of Greece’s banking system and the recapitalization of banks from the market have facilitated a return to bond markets for the Greek government, the country’s central bank chief told Bloomberg on Wednesday.

Greece is expected to make an imminent return to bond markets just two years after a massive debt restructuring.

“The successful restructuring of the banking system and the recapitalization of banks from the market following the latest stress test exercise have facilitated the way for the Greek government to tap the market,” Giorgos Provopoulos (photo) said.

Turning to European Central Bank monetary policy, the ECB board member added, “We are reflecting on the design of a quantitative-easing program in the euro area.”

The ECB governing council had “unanimously committed to using all instruments within its mandate, conventional and unconventional, to deal effectively with the risks of a too-prolonged period of low inflation,” he said.

[Reuters]

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