Stournaras: “The bailout review must conclude by the end of 2016”

The Governor of the Bank of Greece Yannis Stournaras underlined that Greece can achieve a 2% primary budget surplus percent next year, warning that the main risk for the economy would be a failure to conclude a crucial bailout review.

From the stand of the American-Hellenic Chamber of Commerce’s annual conference on the Greek economy Mr. Stournaras noted that “despite the positive projections […] serious risks remain”. “The main risk would be the eventuality of failing to reach agreement on the second bailout review and any delays in implementing the program or backtracking” he further explained.

According to the central banker, lowering the country’s primary surplus targets after 2018 to 2% of economic output, from 3.5%, would help boost growth. Mr. Stournaras also urged the Greek government to stick to reforms and privatizations prescribed in its third international bailout.

During his speech the central banker proposed a six-point “road map” so that Greece may overcome the financial crisis. He also recognized that there were significant differences between the IMF and the rest of Greece’s creditors, adding that the reduction of primary surpluses and debt relief measures – such as extending bond maturities by 20 years – will result in a sustainable debt.

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