With international loans pouring in and talk of Greece being forced out of the Eurozone – a so-called Grexit – ceased, the country’s slow rebound from a crushing economic crisis should earn it the moniker Grecovery, Bank of Greece Governor George Provopoulos told a seminar organized by the central bank with the participation of European Central Bank’s Vice-President Vitor Constancio.
According to AMNA, the Greek central banker noted that a recent progress in economic restructuring reflected, mainly, the determination of the government to implement an adjustment programme after making it clear that the country’s future was within the Eurozone.
He added that the benefits from an economic adjustment programme expanded beyond an improving credibility and economic competitiveness which is achieved through a reduction in macro-economic imbalances.
Provopoulos said that since June 2012 share prices have doubled, the yield spread have fallen by 25 percent, bank deposits were up by 12 percent and the dependence of Greek banks from Eurosystem’s funding operations has been reduced by almost 35 percent. He reiterated his forecast that the Greek economy will recover in 2014.
Constancio said that structural reforms were an one-way road even for countries with surpluses in payment balances. He said he supported a quick banking union and said that ECB was preparing to respond to its new duties.