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Bank of Greece calls for clarification on post-bailout support program

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Bank of Greece calls for clarification on post-bailout support program

Bank of Greece SA has called for clarification on whether the country will continue to receive international economic support after the August 2018 completion date of its €86 billion bailout program.

"To consolidate confidence over the medium term, it is equally important to ... clarify the form that post-program support to the Greek economy will take," the bank said.

"Greece will be under surveillance at least until it repays 75% of the official loans received from euro area countries, the European Financial Stability Facility and the European Stability Mechanism," it noted, adding that a "precautionary support framework" would lower borrowing costs for the country by guaranteeing government's access to financing after the end of the bailout.

Clarification of a support framework would also permit Greek bonds to continue to be accepted as eligible collateral in the ECB's monetary policy operations and to be included in its quantitative easing program, the central bank said.

The bank estimated that economic activity would pick up in the medium term, with GDP expansion of 1.6%, 2.4% and 2.5% projected in 2017, 2018 and 2019, respectively.