Finance Minister Euclid Tsakalotos told the Financial Times that he is optimistic Greece’s economy will return to growth in 2016.
“I don’t see any reason why we can’t return to growth,” Tsakalotos said, adding that the newly elected Greek government is determined to implement the reforms required by the country’s bailout agreement.
Tsakalotos said he expects the country’s creditors to conduct a review of planned economic reforms by the end of November, and if the results are satisfactory, the two sides can begin discussions on debt relief to recapitalize its banks before Christmas.
At the moment it is estimated that at least 20 billion euros are needed to recapitalize Greek banks that are suffering from massive deposit outflows during the first six months of 2015. The exact amount will depend on the results of stress tests and asset-quality reviews. The funds for bank recapitalization will be part of the 86-billion-euro financial aid Greece will receive in the three-year bailout program.
“It will be a central aspect of our policies, which will determine the success of the government, because it’s the only way the Greek people will accept difficult measures that show we’re all in the same boat,” Tsakalotos told the Financial Times.
Speaking of the unpopularity of the majority of reforms and the reluctance many left-wing cabinet members show, Tsakalotos said: “I’m one of the government’s most left-wing ministers, politically speaking. However, I want to do things like the recapitalization of the banks. I can do things that aren’t particularly left-wing.”
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