Greek Finance Minister George Papaconstantinou on Monday appeared confident that Greek banks will be able to pass upcoming stress tests successfully and said that the government was carefully examining a proposal by Piraeus Bank to acquire ATEbank and Hellenic Postbank for 701 million euros.
“The government is examining every proposal very carefully -based on the public interest and viability of Greek banks, of the banking system and of the Greek economy in general- with open procedures for all,” he said while addressing an event on “the Greek economy and the Stability Program”.
The Greek minister stressed also, that despite the fact that the Greek banking system exited the crisis relatively unscathed, it was currently in a difficult turning point. While certain that stress tests will be passed, he urged Greek banks -traditionally one of the most important engines of growth- to implement changes and restructuring plans.
Commenting on the prospects of the Greek economy, Papaconstantinou said he was optimistic it would win the budget bet, as budget revenues will be boosted by new VAT hikes and special fuel consumption taxes along with additional cuts in public wages, pensions and subsidies. He also announced the government’s next round of interventions, by reining in overspending in the health sector and similar problems in municipal authorities, public sector enterprises and pension funds. He said a reform of the pension system was “deeply fair”, while he welcomed the signing of a national collective labour agreement.
Papaconstantinou sounded certain that despite sacrifices and problems, citizens were supporting the government, as they have acknowledged the necessity of the measures. The government’s big challenge is to persuade citizens there was light at the end of the tunnel and that all burdens would be equally distributed. He reiterated that the government did not fear any political cost for its policies and it would not back down under any pressure. Papaconstantinou said economic growth will return when confidence was re-established and private initiative begins working. He called on Greek shipowners to return capital in the country.
(source: ana-mpa)
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