Monday December 22, 2014 Search
Weather | Athens
13o C
8o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
BoG: Economy may rebound sooner

 Provopoulos says timely implementation of program may help economy beat forecasts

By Giorgos Bourdaras

Bank of Greece Governor Giorgos Provopoulos expressed reserved optimism regarding the course of the country’s economy during a presentation on Wednesday of the central bank’s report on monetary policy to a parliamentary committee. However, he did warn that if there are any delays in the implementation of the program agreed between Athens and its creditors, the consequences could be particularly negative for the economy and the country.

“The loan agreement’s prior actions have been implemented, the procedures for the disbursement of the installment have started and the lightening of the country’s debt has been achieved. These developments are positive and are generating well-founded expectations that Greece’s economy could stage a rebound earlier than is currently foreseen,” Provopoulos told Parliament’s economic affairs committee.

“Nevertheless, if there is any lag or delays in the implementation of the program this time, the rebound will move further away and the consequences will be much heavier,” the BoG head warned.

Following a number of questions from deputies that focused on hopes of banks supplying the market with cash after their recapitalization with the money from the next bailout tranche, Provopoulos made an effort to contain expectations regarding liquidity: “Yes, there will be some assistance on the issue of cash flow,” he said, although he added that two more factors will combine to help in this direction: These “channels,” as he branded them, are deposits returning to banks and the banks returning to international markets that will capitalize on the general climate of confidence in the economy.

Those factors, said Provopoulos, will secure banks the necessary liquidity, but this “will only happen gradually, little by little. You cannot go straight from black to white.”

The BoG head insisted on the need for deposits to be returned to local lenders, saying that their “bleeding” before the back-to-back elections in May and June (which he said averaged at 4 to 5 billion euros per month) has stopped but has not been reversed.

“From September 2009 to October 2012, banks lost 83 billion euros in deposits,” he told deputies.

ekathimerini.com , Wednesday December 12, 2012 (23:03)  
Spanish bond gains push yield to record low as Greek debt rises
Low costs, yield hunt to propel long-term euro zone bond sales in 2015
Greek current account deficit shrinks in October
Energy shares and Greek rebound lift European equities
Bomb hoax at SYRIZA HQ in central Athens
The threat of a bomb being planted at SYRIZA’s headquarters in central Athens proved to be a hoax. The party’s offices on Koumoundourou Square were evacuated at lunchtime on Monday after a c...
DIMAR not poised to break apart, insists spokesman
Democratic Left’s parliamentary spokesman Nikos Tsoukalis has rejected a report claiming that his party may be on the point of breaking apart. “This report is so far from the truth that I do...
Inside News
SOCCER
Special day for Abidal, lucky one for PAOK
PAOK scraped through its Livadia challenge beating Levadiakos to remain on top of the Super League for Christmas, one point ahead of Olympiakos that enjoyed a great game at Kalloni and offer...
BASKETBALL
Explosive Barca unfazed by Panathinaikos, bomb scare
Panathinaikos lost 80-67 at home to Barcelona on Friday in a rather meaningless game at the end of the first group stage of the Euroleague, but the encounter will be remembered for the bomb ...
Inside Sports
INTERVIEW
Klaus Regling stresses debt sustainability through commitment to reforms
BRUSSELS – The man who is responsible for the loans to Greece as managing director of the European Stability Mechanism (ESM/EFSF), Klaus Regling, is the only high-ranking European official w...
INTERVIEW
‘Crisis of confidence will come back again and again,’ says Thomas Piketty
He’s treated like a rock star wherever he goes to lecture. His book “Capital in the 21st Century,” a study on income and wealth inequality from the 18th century to the present, recently tran...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Bomb hoax at SYRIZA HQ in central Athens
2. DIMAR not poised to break apart, insists spokesman
3. SYRIZA offices in Athens evacuated after bomb threat
4. Spanish bond gains push yield to record low as Greek debt rises
5. Low costs, yield hunt to propel long-term euro zone bond sales in 2015
6. Greek parliament vote in balance after Samaras election offer
more news
Today
This Week
1. Euro shaky on ECB and Greece, dollar keeps edge
2. Government accuses SYRIZA and Independent Greeks of 'clear alliance'
3. Prosecutor gathers depositions in Independent Greeks 'bribe' probe
4. Draghi starts squaring QE circle in month of persuasion for ECB
5. Greek parliament vote in balance after Samaras election offer
6. Parliament's ethics committee to look into independent MPs' comments
Today
This Week
1. Samaras summons bond vigilantes with euro exit talk
2. High stakes
3. Europe's drama in Greece needs final act to avoid tragedy
4. A friendly yet firm message from Pierre Moscovici
5. On the edge but not gutless
6. Ship with 200 migrants off Pylos towed to Italy after passengers refuse to stop in Greece
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.