Greek minister: Greek banks to pass stress tests, Greek economy to overcome the crisis

ATHENS, July 19 (Xinhua) -- Greek Finance Minister George Papaconstantinou expressed confidence on Monday that Greek banks will pass without problems the strict tests conducted by European experts and Greek economy will eventually overcome a severe economic crisis that sent shockwaves across the eurozone this year.

"After many months of insecurity the climate changes. We can see light at the end of the tunnel for Greek economy. We are certain that Greek banks will pass with no big harm the stress tests under way," said Papaconstantinou, addressing an event organized by Eurobank EFG, one of the biggest banks of the country.

On July 23 are expected to be announced the results of the stress tests made on 91 European banks, among them six Greek.

"In any case a Greek bank needs support, we have now available the Financial Stability Fund," added Papaconstantinou, during his speech on the Greek Stability and Development Program, recent developments and the future targets of the Greek government.

The Greek finance minister expressed optimism on the results of the implementation on the program which includes harsh austerity measures and major structural reforms.

"Even skeptical foreign analysts who talked of an imminent restructure of the Greek debt or even a bankruptcy this spring, today acknowledge the efforts made by Greece to put its finances back on the right track," he noted.

After the outbreak of an acute debt crisis in late 2009, under pressure from international markets, Greece came to the brink of default this spring. In May the European Union and the International Monetary Fund (IMF) activated a financial support mechanism to aid Greece overcome the crisis over a three-year period, in exchange for reforms that will stabilize Greek economy and will spare more trouble for eurozone.

Greek officials express optimism lately on the progress of fiscal discipline efforts and reforms that will be reviewed by a group of EU-IMF auditors due in Athens this in the following days.

Papaconstantinou also appeared confident during a visit to Greek President Karolos Papoulias earlier on Monday to inform him on the latest developments.

"Difficulties remain, but we are back on the right path and Greek citizens, as well as the international community can see that," he said.

"Greek people expect a lot. We hope that we will overcome the crisis. I wish you all the best," said Papoulias.

"We examine very carefully and in transparent way all proposals in the benefit of public interest, the Greek banking system and national economy," stressed Papaconstantinou during his speech at the Eurobank event, commenting on the proposal he received last week on the sale of two state-run banks to another Greek bank.

Greek media report that similar plans on possible mergers of Greek banks are under discussion.

Regarding the government's plan until year end, Papaconstantinou stressed that the focus is on the tax system reforms and development.

The need for more attention to development was also stressed during the speeches of Eurobank executive managers, such as Nikolaos Nanopoulos who talked of unprecedented changes in Greece, expressing optimism for the future.

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