The Bank of Greece’s monetary report on Thursday pointed to positive expectations for the Greek economy and the country’s fiscal front, after eight years of “painful” adjustment.
The report is officially called the “Bank of Greece Interim Report on Monetary Policy 2017”.
At the same time the central bank, which is headed up by influential BoG Gov. Yannis Stournaras, said the prospect and conditions for any “precautionary support programme” must be made clear. The BoG report was directly referring to the period after August 2018 when the current – and third successive bailout by institutional creditors – officially ends.
While the leftist-rightist coalition government has played up the prospect of an “end of the memorandum era”, continued supervision by creditors of Greek state finances, the country’s cavernous public sector and overall economic policy will continue, albeit without a dedicated a low interest credit line, extending into the tens of billions of euros, that was available over the past eight years.
To finance its borrowing needs the Greek state will have to, even with some type of support mechanism in place, venture into sovereign capital markets.
A full statement, in English, can be found here:
http://www.bankofgreece.gr/Pages/en/Bank/News/PressReleases/DispItem.aspx?Item_ID=5919&List_ID=1af869f3-57fb-4de6-b9ae-bdfd83c66c95&Filter_by=DT
