Greek Finance Minister Says the Worst of Crisis is Over
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Greece’s finance minister believes that the worst is over for his country and is confident that 2013 will be the last year of the recession. Greece has been in steep economic decline, shrinking over 20 percent since the start of the global financial crisis and had on many occasions been on the verge of a ‘Grexit’ and default.
Despite soaring unemployment and poverty rates, Greek finance minister Yannis Stournaras thinks the bad times are coming to an end and is confident that the economy will start to grow next year.
Greece’s finance minister believes that the worst is over for his country and is confident that 2013 will be the last year of the recession. Greece has been in steep economic decline, shrinking over 20 percent since the start of the global financial crisis and had on many occasions been on the verge of a ‘Grexit’ and default.
Despite soaring unemployment and poverty rates, Greek finance minister Yannis Stournaras thinks the bad times are coming to an end and is confident that the economy will start to grow next year.
After six consecutive years contraction, Stournaras told the BBC in Athens that he is “100 percent certain this will be the last year of Greece’s recession.” He said:
[quote] We have managed to turn the economy around. From the markets, there’s much more optimism. Deposits are coming back to banks, the government is paying its arrears to the private sector and there is a change in how Europe sees us. So all the leading indicators are positive. We are two-thirds of the way towards our target. So people can have hope. [/quote]
However, he was critical of the EU and IMF’s austerity programme forced upon Greece.
“Greece was forced to cut too far, too fast”, he explained. “In hindsight, we should have placed more emphasis on structural reform and privatisations at the start. But we can’t go back. There’s no point crying over spilt milk. The eurozone was not prepared for the crisis.”
The EU and IMF have committed 240 billion euros ($320 billion) in rescue loans to Greece since 2010 in exchange for steep budget cuts and painful fiscal reforms. However, Stournaras conceded that Greece would have left the eurozone if not for the international bailout.
Related News: German Officials to Visit Greece for Austerity Advice
Related News: IMF Chief Economist Admits To Austerity Mistake
Related Story: Greece’s Fallacious Four – The Main Culprits of the Greek Tragedy: Mohamed El-Erian
On Tuesday, Greek central bank governor George Provopoulos told the Financial Times that a vast majority in Athens believe a Grexit – Greek exit from the eurozone – is “not any longer on the table, which means improved confidence.”
Investors’ increasing conviction that Greece will stay in the eurozone, as well as a generous bond buyback funded by the eurozone has seen government bond yields fall below 10 percent for the first time since October 2010.
At the same time, the Athens stock market has also enjoyed a positive start to the year, rallying almost 11 percent and up 111 percent since June.
“The Greeks, including the politicians, have understood one thing: this time around it’s the last chance for Greece,” he added.
Provopoulos also assured its international lenders that Greece will pay back its debt. The central banker said:
[quote] I understand the concern of European taxpayers. But I can tell you one thing: the government will get results. The country is transforming itself. The Europeans will get their money back. [/quote]
Related News: Greece to Seek ‘Millions’ From Germany as World War II Reparations
Related Story: Is Greece Still Headed Down A Dangerous Dead-End Path? : Mohamed El-Erian
