Bank of Greece Governor on need for new gov’t

The urgent need for the formation of a new government was highlighted by Bank of Greece Governor Giorgos Provopoulos on Wednesday. Speaking to the Financial Times, Provopoulos noted that the new government and the major political parties have to commit to the full implementation of the agreement signed by European leaders on October 27.

In the past two years, said Provopoulos, the Greek banking system has shown resilience in withstanding the spillover effects resulting from the uncertainty created by the debt crisis, though more recently, political uncertainty has added to the stress of the economy and the banking system.

?Any delay in forming a new government threatens to damage further the country?s credibility,? said Provopoulos. ?To safeguard financial stability in this very challenging environment, it?s essential that a strong coalition government pursues the necessary policies that will ensure Greece?s future in the euro area.?