25.2.13
The Governor of the Bank of Greece Giorgos Provopoulos estimates there will be further recession for 2013, however should the reform program and growth policies be implemented the Greek economy will turn around in 2014. Mr. Provopoulos’ estimations are included in the “Governor’s Report for 2012” which will be publicized at the annual general shareholder assembly of the domestic monetary authority.
The Governor is expected to stress that despite a significant improvement of finances and primary surpluses, the fall in financial activity and the high unemployment rates should be of concern. Mr. Provopoulos expects 2013 to be a hard year due to the GDP falling for a sixth consecutive year.
He does however feel that the government has the opportunity to around the economy as early as 2014, provided the right tools are used. The Governor believes it is time to plan infrastructure projects, take advantage of the NSRF funding opportunities to revitalize the market and expedite privatizations to further free the markets.
The restructuring, recapitalization and mergers in 2012 have helped the banking sector “turn a page” and Mr. Provopoulos will likely stress that the supporting cash flow is paramount for the smooth operation of banks. Despite the hard work though, there is still a lot of work required for the financial system to be able to support the market.
The Governor will emphasize the need to update the tax system in order to support and attract investments, as well as creating a sense of tax justice in society. According to Mr. Provopoulos, the execution of the budget over the next years is necessary to expand the tax base and combat tax evasion, since the tax-paying ability of employees and pensioners is waning.
