Gov’t Vice President Dragasakis Sees Possible Recovery as of Second Half of 2016

Yiannis Dragasakis“The risk of a Grexit still exists,” Government Vice President Yiannis Dragasakis said on Sunday in an interview with Realnews, adding that it will decrease after the voting of the agreement and its completion that will render the public debt sustainable.

Dragasakis said the Greek government has a plan to lift the capital controls and stated that “restrictions will continue to loosen day after day.”

“The complete lifting of restrictions on banks coincides largely with restoring confidence in the credit system and the economic outlook in general.”

He stressed that “deposits under 100,000 euros are protected and if the protection is removed, then there will be an irreparable crisis of confidence for banks not only in Greece but also in Europe. A possible haircut on deposits would be a punishment for individuals and businesses that kept their money in the country, compared with those who have transferred their money abroad.”

He added that the consolidation of Greek banks’ subsidiaries abroad is on the table. This issue needs to be pushed forward and some steps have already been made towards this direction.

The Government Vice President estimated that recession, without any measures, may reach 4-5 percent, depending on international developments and will culminate in the next 6 to 8 months. Recovery could begin as of the second half of 2016, he estimated.

(source: ana-mpa)


  1. There has already been a global “crisis of confidence” when Cyprus was bailed in. Since then, at the G20 meeting in Australia last November, all countries present signed a BiS document making bail ins the instrument of choice in the case of bank failure / resolution. The impossible became the normal. Stop dissembling, Mr. Dragasakis.