Stournaras warns against review de­lay

Kathimerini English - - Focus -

Bank of Greece Gov­er­nor Yannis Stournaras warned yes­ter­day that any de­lay in the com­ple­tion of the third bailout review would pose a se­ri­ous risk to the lo­cal econ­omy.

Ad­dress­ing an event or­ga­nized by Credit Suisse, the cen­tral banker said that any de­lay “must be averted as it would gen­er­ate a new cy­cle of un­cer­tainty that would lead to the sus­pen­sion of in­vest­ment plans, de­lay the re­pay­ment of the state’s ex­pired debts and make the re­turn to nor­mal credit con­di­tions more dif­fi­cult. In that case, the eco­nomic re­cov­ery and the re­turn to in­ter­na­tional credit mar­kets will have proved short-lived.”

Stournaras also re­ferred to a se­ries of ex­ter­nal risks as­so­ci­ated with the rise in the euro’s ex­change rate, the pos­si­bil­ity of a slow­down in eu­ro­zone growth and geopo­lit­i­cal dan­gers.

The cen­tral bank chief added that there is strong po­lit­i­cal con­sen­sus in the eu­ro­zone that Greece should stay in the bloc, and that if the bailout pro­gram is im­ple­mented smoothly and on sched­ule, growth in 2017 will amount to 1.7 per­cent, speed­ing up to 2.4 per­cent and 2.7 per­cent in 2018 and 2019 re­spec­tively.

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