BoG: Greek debt sustainable till 2030 at least

Bank of Greece Governor Yannis Stournaras reiterated on Tuesday that the country’s public debt remains sustainable until at least 2030, despite its increase as a ratio to the gross domestic product.

The central banker conceded that due to the pandemic and the fiscal measures taken to contain its impact there will be a permanent increase in the financing requirements for its servicing.

Speaking at an event by the Economic Camber of Greece, Stournaras said the state’s cash reserves will need to remain high in the years to come, as they contribute in maintaining the low risk of the public debt’s refinancing, offering confidence to investors.

He added that in the medium-to-long-term horizon the main risks to the sustainability of the debt are mostly related to the market financing terms, the economic growth rates and the level of the collateral supplied for strengthening the liquidity of enterprises, in the context of the support measures for the economy during the ongoing pandemic.