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BoG’s Stournaras warns of “irreparable damage” in Greek economy due to [political] “crisis”

Governor of Bank of Greece and former Finance Minister Yiannis Stournaras joined the crowd of those spreading fear over snap elections and the possibility of a SYRIZA government. Gone are apparently Samaras’ success stories, growth, debt sustanability and all the other nice things the Greek coalition government had been feeding us with during the last months.  Now “market liquidity rapidly decreases” and the damage for the Greek economy will be “irreparable” – So said Yiannis Stournaras speaking at an event in Athens on Monday, clearly intervening in the political developments in Greece, while as a governor of BoG has no right to do so. But there are just 48 hours left for the first round of voting for the Presiential election and the country’s govrernment needs all help it can get by political and non-political influencers.


“Liguidity in the market rapidly decreases … the risk to stemm the growth path that has just started and the risk of an irreparable damage of the Greek economy is big.”

Enjoy the short version of Stournaras’ statement as reported by Reuters

Greece’s economy faces the risk of “irreparable” damage as the political crisis of recent days takes increasingly serious proportions, the country’s central bank chief said in prepared speech remarks on Monday.

“The crisis in recent days is now taking serious dimensions, that liquidity in the market is decreasing at a fast pace … and the risk of irreparable damage for the Greek economy is now great,” said Yannis Stournaras, the former finance minister who is now the head of the Greek central bank.

His comments come ahead of of a presidential vote that starts on Wednesday and risks triggering snap elections if the government nominee loses. Polls show the radical leftist Syriza party that wants to tear up Greece’s EU/IMF bailout would win if elections were held now.”

… and if you can stomach, here is the long version of Stournaras’ warning here in Greek.

Stournaras’ warning is very strong and sources of Bank of Greece rushed to explain to the press that Stournaras’ did not refer to bank assets but “to the general levels of luquidity as they are formed by the increasing spreads of Greek bonds.”

A war of words broke out between Nea Dimokratia-PASOK government and main opposition SYRIZA in recent days short before the Presidential election.

The colaition government in general with PM Samaras’ ND in particular claim that an economic catastrophy will take place if snap elections take place and SYRIZA wins. Left-wing SYRIZA accuses the government of a fearmongering campaign.

PS I wouldn’t be surprised if the Athens Stock Exchange takes another low flight tomorrow, after Stournaras warnings.  Wise Greeks have a saying “We put our hands in your eyes and took them out.”


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One comment

  1. Of course he is spreading fear as he himself is fearful of his position if SYRIZA win.