Calamos Supports Greece
GreekReporter.comBusinessProvopoulos Says Confidence In Greece Back

Provopoulos Says Confidence In Greece Back

Bank of Greece chief George Provopoulos
Bank of Greece chief George Provopoulos is optimistic

Even as he sounded optimistic about a rebound for Greece’s economy and growing confidence from investors who had been badly burned in a write-down of debt, Bank of Greece Governor George Provopoulos said that recovery will be slow and painful but that the country is coming out of a crushing economic crisis.
He said the indicators are getting better, especially a sharp decrease in the yield spread between Greek and German 10-year government bonds, making borrowing costs less for Greece and as Prime Minister Antonis Samaras dreams of a return to markets once Greece weans itself off rescue loans from international lenders.
He said fears that Greece would be forced out of the Eurozone have abated but that the recession, now in its sixth year and with austerity measures creating a record 27 percent unemployment, will get worse until 2014.
The bank’s fiscal policy report noted that, “The Greek banking system has weathered the storm and proved resilient to the severe crisis; it is currently undergoing a process of restructuring on new, healthy foundations. This is the first crucial step towards restoring normal financing conditions in the real economy.”
It added that the stability of the banking system was shielded from the tangible risk of a spillover from the Cyprus crisis and anxiety was short-lived with an outflow of deposits reversing itself last year.
The Bank of Greece expects consumer price deflation at an average rate of 0.3 percent this year, more than a previous forecast of 0.1 percent deflation. The core inflation rate, which excludes energy and food, is seen at -1.1 percent this year.
Urging the government to stay the course of reforms and meet fiscal targets agreed with international lenders, the central bank said achieving budget targets would bolster confidence and eliminate the need for more austerity measures.
“The climate is more favourable today for the speedier pursuit of policies aimed at translating the improvement in expectations into real economic activity,” the bank’s report added.

See all the latest news from Greece and the world at Greekreporter.com. Contact our newsroom to report an update or send your story, photos and videos. Follow GR on Google News and subscribe here to our daily email!



Related Posts