Luis de Guindos: Interview with ERT TV (Hellenic Broadcasting Corporation)

INTERVIEW

Interview with ERT TV (Hellenic Broadcasting Corporation)

Interview with Luis de Guindos, Vice-President of the ECB, conducted by Rallou Alexopoulou on 3 February 2020 and broadcast (in part) on 3 February 2020

• However, Fitch upgraded Greeces credit rating to BB on 24 January and the outlook is positive.
• Do you think Greece could catch up and benefit from the APP if it becomes eligible in the course of this year or the next?
• The evolution of the Greek economy is positive and I think this is what has been reflected in the upgrades by the rating agencies.
• So, once Greek bonds reach investment grade, which I hope will be sooner rather than later, they will certainly be part of the APP.
• The Greek government has already launched the Hercules plan in an effort to reduce the stock of NPLs, and more actions are planned.
• When you look at the progress of the Greek economy, you realise that it is performing quite well.
• I think this is because it has a more competitive economy and its fiscal situation is much better than it was two or three years ago.
• I think the only problematic aspect of the Greek economy is the NPL ratio, which is very high as you know it is above 40%.
• This makes it difficult for banks to provide credit to the economy, to lend to households and non-financial corporations.
• So, we at the ECB are convinced that it is crucial that Greece further reduces its NPL ratio.
• I hope that Greek banks will find the means and the instruments necessary in order to continue disposing of the NPLs.
• We have quite a lot to learn so it would be a little imprudent for me to speculate on developments.