Bank of Greece Chief: Crisis Not Over Yet, Despite Reaching Some Fiscal Targets



stournThe economic crisis is not over yet, despite the fact that some of the fiscal targets are met, said Bank of Greece Governor Yiannis Stournaras on Tuesday.

Stournaras met with creditors‘ representatives to discuss non performing loans, the state of the Greek banking system and the economy overall. According to sources close to him, he noted that in order for Greece to recover from the economic crisis, privatizations, reforms and investments are needed.

The Bank of Greece governor said that the economy will shrink by 0.3 percent in 2016, in line with the bailout program. Also, Greece will show a primary surplus of 0.8 percent of GDP, higher than the 0.5 percent targeted.

Stournaras reiterated the Greek position that lower primary surplus targets are needed after 2018. He said that the European Central Bank supports this position too.

Regarding investments, the BoG chief said they are important to kickstart the economy, provided that issues such as land permits are resolved.

Stournaras also noted that the net return of deposits to Greek banks since May 25, when the first bailout program review was completed, amount to 4.6 billion euros.