BoG head wants productivity

Bank of Greece caput Yannis Stournaras stressed connected Monday the value of a prudent policy, successful the discourse of which wages are accrued based connected productivity growth, warning that different “we will spell bankrupt again.”

“To beryllium capable to springiness raises, there indispensable beryllium a reflection of productivity,” helium said. However, helium pointed retired connected Skai Radio that productivity is successful turn a relation of investments and reforms.

“That is, we want to summation the superior per employee, the fig of computers per employee, the capableness of artificial quality per employee,” helium added indicatively. “We are doing it slowly. We are converging astatine a complaint of 1.5% per year, inching toward the eurozone average.”

Slowly, said the cardinal banker, Greece is besides converging successful terms of GDP successful purchasing powerfulness parity, from 60% of the European mean successful 2017-2018 to 70% now.

Stournaras argued Greece is emerging from the situation with reasonably accelerated steps, that it has forgotten the atrocious fiscal past, that the system is growing, but Greeks indispensable spot much accent connected reforms. The state still has an infrastructure problem, galore services are lagging behind, with justness being a typical example.

He stressed that reducing the indebtedness by 10 points per year is the astir important success and that there will beryllium nary occupation servicing it aft 2030 due to the fact that the involvement has been distributed implicit time. Nevertheless, helium noted that had the premier curate handed retired checks, alternatively of proceeding with aboriginal repayment of the debt, “we would beryllium backmost where we were successful 2010.” 

He besides argued that the 1.7 cardinal euros successful measures the PM announced this period are justified by the fiscal advancement made. Revenues travel mostly from the crackdown connected tax evasion, helium stressed, chiefly thanks to the interconnection of currency registers with POS.

In statements to Bloomberg, Stournaras advocated for an summation successful interbank agreements, whether it concerns placements by overseas investors successful Greek banks oregon agreements concluded by Greek banks successful the discourse of expanding their enactment abroad.