Tornos news | ESM congratulates Greece on achieving several important milestones in its reform program
Greece’s economy has recovered vigorously from the pandemic, driven by strong domestic demand and tourism, the European Stability Mechanism (ESM) said in its annual report for 2021 approved in Luxembourg on Thursday, ANA reports.
Greece’s economic activity increased by 8.3% in 2021, the ESM noted, “essentially recovering the production losses recorded in the previous year due to the impact of Covid-19”, while the households and businesses used accumulated savings to stimulate consumption and investment, and tourism surged. The government’s sizeable fiscal support package has supported incomes and employment throughout the year, he said.
Thanks to rapid growth, the debt-to-GDP ratio rose from 206.3% to 193.3% of GDP, while “Greece’s sovereign financing conditions remained favorable throughout the year”, notes the report, while banks more than halved their aggregate NPL ratio to 12.8. % by the end of 2021. “Yet the private debt overhang remains, underscoring the need for an effective enforcement framework,” the report warns.
Speaking of overall economic reforms, the ESM report states that “Greece has taken several important steps in its overall reform programme: the implementation of a new insolvency framework; further progress in privatization, notably of land at the old Athens airport; and the adoption of an ambitious strategic plan to strengthen governance of public enterprises and improve financial discipline.” He also noted some setbacks in reform efforts, citing for example the plan to reduce unpaid arrears to zero. related to pensions in 2021.
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