He underlined that Greece must surpass its fiscal targets, reduce the size of the public sector, boost competitiveness and combat tax evasion. He reiterated that talk over a debt restructuring was harming the country and stressed that Greece can repay its debt without any restructuring if it adheres to its consolidation programme.
Provopoulos said Greek banks enjoyed strong capital adequacy rates, stronger than the Eurozone’s average, but they were hit by a fiscal crisis. The central banker urged commercial banks to strengthen their balance sheets and noted that mergers and strategic alliances will come soon. Commenting on speculation that Greece could exit the euro, Provopoulos said: “I find it completely ridiculous”.