BoG Gov. Stournaras on Challenges of Greek Economy

Addressing a group of high-profile business and banking executives at the “Risk Management & Compliance Conference,” held at the Megaron Athens Concert Hall (Banquet Hall) on Monday, the governor of the Bank of Greece (BoG), Yannis Stournaras, underscored the impressive strides the Greek economy had made, amid a volatile and uncertain global climate.

Stournaras, one of the keynote speakers at the event, attributed the resilience the Greek economy had exhibited to a notable fiscal adjustment, the structural reform of public debt, as well as extensive reforms and the restructuring of the banking sector.

Among other things, the governor of Greece’s central bank pointed to the upgrade of the country’s credit rating to investment grade in 2023, a development that reinforced positive expectations.

“It reflects the international investment community’s confidence in the potential of the Greek economy and allows for an expansion of the investment base and a reduction in the financing costs for both the public and private sectors,” Stournaras noted in his address.

“The Greek economy, despite ongoing challenges and increased uncertainty, is recording GDP growth rates higher than the Eurozone average. Private consumption, investments, and exports are expected to be the main drivers of growth this year. At the same time, inflationary pressures are easing, and conditions in the labor market remain favorable,” the BoG CEO said.

The head of the Bank of Greece appeared optimistic about the outlook for the Greek economy in the coming years, citing support from the utilization of available European funds, the favorable characteristics of public debt, and ongoing reforms.

In his speech, Stournaras also touched upon the serious issues of the challenges the banking sector faces, mentioning initiatives and actions implemented about anti-money laundering (AML), via the adoption on the European-wide level of the AML Package aimed at a fundamental overhaul of the EU’s regulatory and oversight framework.

Source: tovima.com