Former BoG Governor Points to 4th Bailout Risk


    Former Bank of Greece governor George Provopoulos does not rule out a 4th bailout deal for Greece in the future. He said that the conditions for viable development were not present in Greece.

    “I consider it politically challenging, not to say impossible, for more money to be given to Greece, following three bailout memorandums that absorbed an unprecedented amount of funds with just mediocre results, at least according to European governments,” he said. “I foresee public debt being put in order after 2017, in combination with the utilization of specific goals in a long-term plan.”

    He said that the long-term plan could be considered a fourth memorandum. It would include commitments that Greece would be forced to put into effect and would be offered with terms of conditionality and more painful reforms.

    Asked about the Greek economy, he said that though Greece had kept its pledges made to EU partners, the economy was facing a crisis of long duration. Despite the fact that many years have passed since the signing of the first memorandum, there is still uncertainty regarding the future. For development, the mere legislation of bailout measures is not enough, according to the former governor. Provopoulos believes that more daring resolutions are needed.