The governor of the Bank of Greece Yannis Stournaras estimated that there was a greater chance of an agreement between Greece and its European creditors after the Prime Minister’s recent visit to Berlin.

Mr. Stournaras, who spoke at an event held at the London of School of Economics, further explained that PM Alexis Tsipras’ body language after his meeting with German Chancellor Angela Merkel suggested that the relations between both sides have improved. He further explained that he was more confident than he was “a month ago”.

He further argued that Greece’s main challenge is to provide a convincing list of reforms, as promised to its Eurozone partners, in exchange for a new funding agreement. Mr. Stournaras dismissed the possibility of a “Grexit” by stressing that competitiveness has been restored and that a Greek departure from the euro would not be beneficial.

Finally, the Greek central banker listed the improvements in the country’s financial situation that have taken place in the last year and opined that should a new agreement be reached, then growth would continue to improve in 2016.