ECONOMY

BoG chief urges banks to adapt

Bank of Greece Governor Giorgos Provopoulos told Sunday?s Kathimerini in an exclusive interview that recession continues in Greece at a rate that is higher than forecast.

He argued that the recession would have been smaller had reforms been promoted at a more rapid rate and the fiscal deficit contained in more drastically.

?There are no magical solutions,? he stressed, calling on the domestic bank managers to adjust immediately to the tough reality.

He went on to greet the planned merger of Alpha Bank with Eurobank EFG and to argue that the monitoring of the local lenders? loan portfolios by BlackRock Solutions has been demonized by those who choose not to adjust to reality.

Provopoulos also branded as ?exaggerated? recent comments regarding fears of nationalization of banks, stating his belief that their managers will find the optimum solutions within the market.

He further rejects concerns expressed by the activation of the emergency liquidity assistance (ELA) procedure, stressing that the Bank of Greece is ready to supply more liquidity if required.