Stournaras: The sacrifices of the people are about to end

Commenting on the results of yesterday's Eurogroup, Finance minister Y. Stournaras said from Brussels that the sacrifices of the Greek people will not go to waste.

Speaking before the Finance and Employment Committee of the European Parliament, he said the final decision on the disbursement of the tranche is expected at the next meeting of Eurozone finance ministers on November 20.

"The restoration of our credibility and the removal of the fear of the drachma will come from the payment of the next tranche," he said and described the Eurogroup meeting yesterday as constructive.

Continuing, he said that he had called for a strong political message on Greece’s efforts and a specific timetable for the next disbursement. "The statement satisfied both of my requirements," he added.

Asked about what will happen if the disbursement of the next tranche is not approved, Stournaras said there will be default and insolvency, which would have an impact beyond Greece. Even though, as he added, Greece has fulfilled all its obligations, the risk of an accident is extremely high and "we must be careful."

Regarding the sustainability of the Greek debt, he said the most important aspect is the GDP increase. "Even half a point of GDP growth can make a big difference. If the Greek GDP is 0.5% higher than the Troika estimates, in 2020 the difference in the ratio of debt to GDP may be up to 15 percentage points," the minister stressed.

Referring to the extension issue and the terms of the contract, he said "I wish that our creditors were more generous and had given us more time. However, the terms are good and we are negotiating for even better ones. In return we are put on a tight schedule."

Asked about whether the money will be deposited in the Bank of Greece or the ECB, Stournaras answered it will be deposited in the Bank of Greece. He added that now the monitoring of expenditures and revenues of the Greek state will be per month and that any deviation from the initial estimates will bring new measures.

Labour Minister Y. Vroutsis said that we need solidarity, especially towards southern Europe, and that "we expect practical solidarity by the Europeans. The whole of the Greek people expect it."