ECB’s Stournaras: The investment tier will bring money to Greece

The central banker, Yiannis Stournaras, warned the political system to be careful with the finances ahead of the elections.

“I would tell the political system that we are doing well, but let’s be careful not to spoil it in the run-up to the elections,” he said characteristically, speaking to SKAI 100.3FM.

Regarding the investment grade, he said that its achievement in 2023 must become a national goal, for which there must be an alignment of the parties. The Governor of the Bank noted that the investment grade will bring money to Greece in a difficult period.

ECB’s Stournaras: Investment tier is non-negotiable Greek national goal for 2023

“Greece performed better than the eurozone average, but caution is needed, as we recently came out of the intensive” he underlined and added that 2023 will be a difficult year not only for Greece.

He estimated that in 2023 Greece will have a positive growth rate, while the rest will have either 0% or negative, and how inflation will take shape next year at 5.8%.

Support measures

Referring to aid benefits, Mr. Stournaras underlined that because inflation has soared, the vulnerable must be supported: “At the ECB we have a motto that a support cost must be undertaken but it must serve the three T’s: it must be temporary, targeted and tailored, otherwise we will enter again in trouble”.

In particular, regarding the market pass, he said that as long as the horizontal 10% is financed by excess profits taxation, by sky-high profits, “we are neutral on this measure”.

Regarding the fight against tax evasion, the central banker said that we are doing well, but we can do better.

For the banks

“The commissions of the banks in their total income are very small compared to what is done in the eurozone. Clearly they have to do the best they can, where they can in terms of commissions” he underlined and added that the competition is working, as the banks, especially the smaller ones, are raising deposit rates.

Red loans

Regarding the basic interest rate, he estimated that by March it will go to 3%, while he emphasized that there is no provision for a dramatic increase in bad loans.

As for vulnerable borrowers, he pointed out that banks now have better systems and monitor loans better so that they don’t red tape these loans.

Mr. Stournaras, referring to loans in Swiss franc, said that the banks are doing everything they can, but there cannot be a general forecast, because it will create a big problem, a general regulation cannot be done, because the banks have costs to do this.