Staikouras – “Greece from borrower becomes creditor”

“Greece, with the ratification of this agreement, declares its readiness to pay in the future, in case it is deemed necessary, resources, which in total will not exceed the amount provided in the agreement, in order to face any crisis of the economic system” The Minister of Finance, Christos Staikouras, commented, speaking to the Standing Committee on Economic Affairs of the Parliament, where the Draft Law on the ratification of the decision on the New Arrangements to Borrow (NAB), of the International Monetary Fund, is being discussed.

Mr. Staikouras stressed that with the new provisions, “it is stipulated that the granting of loans by the Bank of Greece to the Greek State is allowed, for the provision of resources to the Fund”.

He even added that because of this provision, our country had to seek the opinion of the European Central Bank, which gave a positive opinion on this legislation, judging that it does not count as monetary financing.

“Italy and Austria followed a similar process when joining the New Debt Settlements (NAB),” he said.

“With the enactment of this Draft Law, another step is taken to further boost credibility, strengthen prestige and strengthen the confidence of partners, institutions, markets and investors in the Greek economy. And all this thanks to the correct and rational economic policies implemented by the Government of the New Democracy, from the first moment it took over the government of the country “, underlined, among other things, the Minister of Finance and stressed:

“At the same time, the presence of our country in an international economic organization, such as the International Monetary Fund, is strengthening. From now on, Greece, on the part of the borrower, passes to the side of the creditor, substantially and actively supporting the International Monetary Fund, in order for it to fulfill – effectively – its operating purpose “.

To achieve this, the Ministry of Finance has already taken specific initiatives and is launching targeted interventions.

In particular, according to Mr. Staikouras:

1st We have proceeded to two early repayments of our country’s existing loans from the International Monetary Fund, discounting about 75% of them. In addition, we are launching the completion of the repayment of the loans.

2nd We are launching, for the first time, the early repayment of part of Greece’s first bilateral loans with European Union countries, the GLF.

3rd We participate, with the payment of resources, amounting to $11 million, in the Catastrophe Containment and Relief Trust, which operates within the International Monetary Fund.

4ον. We have – officially – expressed the intention, at the urging of the International Monetary Fund to members with a strong financial position, to proceed with the borrowing of part of the SDRs we received, after the new redistribution that was completed on 23 August.

The funds will be directed to Member States with less developed economies, either through an existing fund called the Poverty Reduction and Growth Trust (PRGT), or through a new fund being considered, the Resilience and Sustainability Trust, which could provide long-term loans for projects in specific sectors (eg climate change).