Greece Is Ready To Re-Enter The Financial Market
According to Bank of Greece’s monetary policy report, relief measures accepted by Greek official creditors to provide a steady debt load will be crucial in Greece’s return to the financial market. But, in the longer term, the debt sustainability will interfere with granting fiscal and reform steps and the promised debt relief by the eurozone creditors. They have already extended maturities and delayed interest payments on Greek debt worth EUR 96B.
The Central Bank noted: "The sustainable return of the Greek state to the international sovereign bond markets will be the ultimate and definitive proof that the economy has overcome the crisis," And: "Any other outcome would undermine growth prospects and give rise to serious problems." However, the officials cautioned: "Long-term sustainability, however, hinges crucially ... on the commitment of the Eurogroup to consider further debt relief measures in the event of an unexpectedly more adverse scenario".
The Bank of Greece once again hailed its preference of precautionary line of credit after the bailout program expires in August and didn’t change its 2018 growth projection of 2.0%. In 2019, the growth is expected to reach 2.3%.