Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
Greece Finance minister/FILE

World

Europe will get its money back says Bank of Greece

Greece Finance minister/FILE

Greece Finance minister/FILE

BERLIN, Jan 31 – Greece will pay back the billions of euros of European aid it has received to fight its debt crisis, the head of the country’s central bank told Germany’s Sueddeutsche Zeitung.

“I understand the concern of European taxpayers,” Governor of the Bank of Greece George Provopoulos, said in Thursday’s edition of the daily newspaper.

“But I can tell you one thing: this time, the government will get results. The country is transforming itself. The Europeans will get their money back.”

“The Greeks, including the politicians, have understood one thing: this time around it’s the last chance for Greece,” he added.

Provopoulos acknowledged that the application of structural reforms required by the country’s international creditors had in the past not been adequate.

“That was a big mistake,” he said.

He also conceded that if “tax evasion is a problem in every country, it is particularly prevalent in Greece”.

But he insisted that confidence was returning to the country, for while 87 billion euros ($118 bn) had been withdrawn from Greek bank accounts since 2010, 15 billion euros had been put back in over the past seven months.

The EU and IMF have committed a total of 240 billion euros ($320 bn) in rescue loans to Greece since 2010. In return they insisted on a tough austerity programme to get the country’s finance in order.

So far, however, Greece has failed to deliver, particularly when it has come to cutting the public deficit.

Advertisement. Scroll to continue reading.

The coalition government led by Prime Minister Antonis Samaras announced last week that Greece had narrowed its public deficit to 8.1 percent in 2012, marking a rare improvement over targets pledged to its EU-IMF creditors.

The hardship caused by the swingeing public sector cuts has caused a wave of sometimes violent protests and strikes.

The harsh economic climate has also seen the rise of the far-right in the country with the neo-Nazi Golden Dawn winning 18 seats in the 300-seat parliament in last year’s elections.

International human rights groups have warned of a surge in xenophobic attacks on migrants in Greece.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...