The pre-conditions for sustainable growth To address the challenges facing the Greek economy, speed up the recovery and strengthen investor confidence in Greece’s long-term economic prospects, the following ten policy actions should be considered: 1st Reducing the high stock of NPLs with the timely implementation of the two systemic solutions proposed by the Bank of Greece and the Ministry of Finance, which will supplement the banks’ own efforts.
Up to 30% of mortgagees face negative or near zero equity in their homes and long-term unemployment is stubbornly elevated, with intense political pressures on monetary policy to provide relief. This has led to further moves to inject liquidity in unorthodox ways, referred to by the financial markets as “QE2”.