Bank of Greece Annual Report

(GREEK NEWS AGENDA)  Bank of Greece Governor Nicholas Garganas, in his annual report of the economy released yesterday, forecasts continuous growth of the economy at higher rates than the rest of the eurozone, albeit at a slower pace. The country’s 2008 GDP growth forecast is revised downwards at 3.5% from a previous estimate of 3.7% in February. The slow down, as well as the inflation rate expected to rise to 4% this year from 3.4% previously, are inevitable and are due primarily to higher oil prices. The report also attributes these trends to higher pay rises and the presence of cartels in many markets. The Governor said the Central Bank favours mergers and acquisitions in the banking sector and called on banks to improve the quality of their portfolios, and on households to make careful appraisal of their ability to repay loans before borrowing. Garganas also welcomed the recent reform of the social security system. 

Kathimerini daily: BoG Boss Sounds Inflation Alarm; Bank of Greece: Speech by governor Nicholas Garganas on Bank of Greece’s annual report (in Greek); Ministry of Economy and Finance: The Greek Economy at a Glance (February 2008) & National Reform Programme for Growth and Jobs 2005-2008-Implementation Report 2007 & The Greek Economy in Power Point 

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