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BoG Gov. Stournaras: Greece needs ‘investment shock’; 50% hike in investments by private sector over next few years

Private sector investments in Greece must increase by roughly 50 percent over the next few years in order to achieve an “investment shock”, Bank of Greece (BoG) Gov. Yannis Stournaras said on Thursday, speaking at the NPL Summit 2018.

Moreover, the influential Greek central banker said the emphasis should be on more productive and outward-looking business investments.  

Referring to the ominous specter hanging over Greece thrice-recapitalized banking sector, namely, “bad debt” burdening balance sheets, Stournaras reiterated that a more effective management of NPLs and NPEs remains the most significant challenged by the country’s banks.

Reducing “bad debt”, he added, will generate more favorable terms for borrowers and allow credit institutions to release more capital into a cash-starved Greek private sector.