Since then, we have established a solid track record for hitting our inflation targets and for being transparent on how we conduct monetary policy. In 2016, we established the interest rate corridor (IRC) system to enhance monetary policy transmission and reinforce the development of the domestic financial market.
Indeed, when embarking on the reforms, Greece faced two major challenges: (i) its economy was already in recession, whereas difficult reforms should be best undertaken during upswings [especially if they have adverse short-term effects]; and (ii) the timeframe envisaged for the implementation of significant reforms was very tight.