Debt restructure predictions, recommendations are obstacles to exodus from recession

The “unrealistic predictions and recommendations for restructure of the Greek debt” are obstacles to the Greek economy’s exit from recession,” Alpha Bank president Yiannis Kostopoulos warned on Tuesday, addressing a general assembly of the Athens-listed bank’s shareholders. “Those approaches sideline the structural changes that have already been materialised and the progress that has been marked in the effort to reduce the deficits and debt. They only thing achieved with that tactic is to shake confidence in the economy and raise obstacles to its recovery,” Kostopoulos added.

On the Greek economy more generally, Kostopoulos said that regaining Greece’s credibility on the markets requires a further drastic reduction of the fiscal deficits and streamlining of the economy, with competitiveness, privatisations and exploitation of the state assets as the tools.

He further said that the banks’ ability to continue financing the economy to a satisfactory degree now depends on restoring the climate of confidence, in conjunction with the progress marked in fiscal consolidation.

Alpha Bank managing director Dimitris Mantzounis said that regaining the confidence of the markets is a slow and painful process but can be achieved provided the financial planning is strictly adhered to, and also the required structural reforms which, he added, aim at putting the economy back on track of self-sufficient growth.