Greece must intensify efforts to manage its debt, adopting bold
reforms and privatisations to impress markets and put its economy back on a growth path, the head of Greece's second largest lender, Eurobank, said on Monday.Downgraded further into junk territory by Standard & Poor's last month, Greece has agreed with the European Union and the International Monetary Fund to substantially scale up its privatisation targets. Markets are awaiting the government's plan by mid-April.
"We need to positively surprise our partners, markets and Greek citizens with some shock reforms to strengthen their confidence," Eurobank's Chief Executive Nick Nanopoulos told a technology forum in Thessaloniki. Eurobank is Greece's second largest bank by market capitalisation.
Athens wants to divest stakes in railways, water utilities and real estate to raise 50 billion euros ($72 billion) within the next five years, starting with 15 billion euros in 2011-2013.
Rising doubts about Greece's ability to meet its fiscal targets and return to the markets for funding next year have turned the spotlight on the likelihood of a debt restructuring, despite official dismissal by EU and Greek policy makers.
"The implementation of a serious and credible package of measures and initiatives is very likely to help our partners in Europe to be more flexible and consent to actions that can have beneficial effects on controlling our debt," Nanopoulos said.
"Otherwise, who will trust a country with a double-digit deficit, with difficulties in meeting its commitments, a country whose citizens are funnelling their money abroad or in a safety deposit box?"
Nanopoulos called for a national effort to boost competitiveness and make Greece more friendly to entrepreneurs, saying the window of opportunity will not remain open for ever.
Greece last May secured 110 billion euros in emergency funding from the IMF and its euro zone partners to avoid default after market borrowing rates jumped to prohibitive levels.
The three-year plan ends aims to return the country to bond markets before 2013.
by George Georgiopoulos
source: Reuters
