BoG chief: Economy not out of the woods yet

BoG chief: Economy not out of the woods yet

The Greek economy has yet to stage a full recovery from its recent crisis, Bank of Greece Governor Yannis Stournaras told a conference organized in Berlin by The Economist and the German-Greek Chamber of Industry and Commerce on Monday.

The central banker explained that the economy may have improved but the picture in a series of indexes is mixed. He cited the yields on Greek state bonds, which remain vulnerable and rose recently due to international developments, and worries about a possible reversal of the measures voted by the government.

He also noted that credit expansion remains in negative territory after the end of the bailout program. Therefore, “Greek corporations and households continue to face high borrowing costs.”

Stournaras further referred to the risks that the economy is facing, citing court decisions on pensions, backtracking on commitments and delays in the completion of reforms and privatizations.

He said the main challenge for the Greek economy in the near future is the sustainable return to the money markets: “Despite the application of three programs in eight years, Greece has not managed to return to the international markets on sustainable terms,” he underscored.

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