The head of the ESM and EFSF Klaus Regling met with the Governor of the Bank of Greece Yannis Stournaras and reminded him that the Greece’s European partners will keep their promise of debt relief on condition that agree reforms are implemented and primary surplus goals have been achieved.
Mr. Stournaras argued that the policies observed have yielded results, citing Greece’s return to the markets and the recovery of the banking sector. The Governor added that the recovery in the Eurozone and individual countries is currently «creditless«.
As the Eurozone economy and banking system is centralized, bank loans are particularly important for SMEs, which also represent a significant portion of employers. As such, Mr. Stournaras does not believe that the recovery will continue so long as loans remain limited.
