Econ minister: No need for precautionary support program after Greek bailout ends in Aug.

Friday, 29 December 2017 16:15

Economy Minister Dimitri Papadimitriou on Friday dismissed a most recent recommendation by the Bank of Greece (BoG) - which the government has directly attributed to influential central banker Yannis Stournaras - that the country should seek a “precautionary” support program after the current bailout ends in August 2018.

“We’ll exit the strict supervision (of the current memorandum) with a clean exit,” was the phrase used by the previously US-based Papadimitriou, in comments to a SYRIZA-party affiliated radio station in Athens.

“We don’t have the problem that Mr. Stournaras thinks we have … that we need a precautionary credit line,” he added.

Papadimitriou, a noted economics professor at a prestigious New York state university before delving into politics in his native Greece with radical leftist SYRIZA, cited what he called a successful recent bond swap involving PSI-era debt and a foray into international sovereign markets by the Tsipras government last July.

He also said the country’s upgrading by credit ratings firms shows confidence in the country by markets and investors.