Papaconstantinou: Greek Economy May Contract Less Than 4% In 2010
The contraction of Greece΄s economy in 2010 may be less than 4.0 percent while the banks that want to participate in the government guarantees scheme must ensure adequate credit expansion, the country΄s finance minister said on Wednesday.
"The economy is in recession but one that is more shallow than what was initially expected. The year should close with a performance that is better than the 4.0 percent contraction forecast," Finance Minister George Papaconstantinou said while addressing the parliament, Reuters reports.
"There never was and never will be an issue of restructuring public debt," he added and noted that the government will extend guarantees on bank bond issues so as to keep credit flowing to the real economy and help it recover gradually.
"This liquidity will be provided on one condition: that each bank submits a specific credit expansion plan. This money must and will go (to finance) the real economy, to firms and households," he said. "This is the government΄s aim."
He said the government continues to want a strong pillar of state-controlled banks in the country΄s banking system.
(Capital.gr)
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Grecia, economia farà meglio del previsto -4% in 2010 - ministro
mercoledì 25 agosto 2010 12:15
ATENE 25 agosto (Reuters) - L'economia della Grecia si contrarrà meno del previsto 4,0% quest'anno e le garanzie del governo alle banche sono finalizzate ad assicurare un'adeguata espansione del credito, lo ha detto il ministro delle Finanze greco George Papaconstantinou.
"L'economia è in recessione ma una recessione più superficiale di quanto inizialmente atteso. L'anno dovrebbe chiudersi con una perfomnace migliore della prevista contrazione del 4,0%" ha detto Papaconstantinou ai deputati in Parlamento.