Stournaras: Clear post-program plan is needed

Central banker Yannis Stournaras returned to the issue of the post-program support framework for Greece during a speech on Thursday, but avoided the term “precautionary credit line,” which has generated strong reactions from the government.

Speaking of the country’s return to the markets on sustainable terms, the governor of the Bank of Greece said that for the uncertainty on the medium-term prospects of the economy to be lifted, Greece and its eurozone peers “will have to clarify both the form of the post-program monitoring and whether a post-program support arrangement will be available after the completion of the program in August.”

He added that such an arrangement “should reflect the need for the smooth funding of Greek banks and the Greek economy in case the country’s rating remains below investment grade.”

Stournaras also said the central bank expects 2 percent growth in both 2018 and 2019, below the government’s respective estimates for 2.3 percent and 2.5 percent.