Addressing a FT conference in Athens, the Greek banker noted that this situation was not offering a way out. Instead, further, more difficult decisions, interventions with redesigning of the course, intensifying adjustment efforts, were needed, Nanopoulos said, adding that implementing a Mid-Term adjustment program without any delays or deviation was a necessary precondition for the country to exit the crisis.
The measures will be painful, but inactivity or denial were not a solution. Nanopoulos underlined that for such a painful plan to succeed it was necessary to achieve the widest possible political and social consensus.
Commenting on the domestic banking system, Nanopoulos said a trend towards strategic partnerships and greater consolidation was a logical development, when conditions would allow it. “They are very complex initiatives, that need attention and very good planning and cooperation to offer a positive result for the economy,” he said.
Panagiotis Thomopoulos, president of the Financial Stability Fund, addressing the conference said that Greek banks resisted the crisis despite pressures and predicted that a trend of capital outflow could be reversed as the Greek economy gradually restored market confidence.
Alexandros Tourkolias, deputy chief executive officer in National Bank, said interventions by the European Central Bank to support the domestic banking system were not a sustainable solution in the long-term and said banks needed to gradually lower their dependence from ECB’s funding operations. Tourkolias predicted that the country’s banking chart will change in near term.
Alexandros Manos, Piraeus Bank’s chief executive, said a rise in taxation was limiting room for manoeuvring in efforts to exploit the state’s real estate property and urged for a consensus on a minimum taxation of wealth and for a stable tax regulatory framework.