A number of stressed countries have already begun to take initiatives to improve restructuring and insolvency proceedings. In Greece, for example, facilitating debt workouts for viable companies is being made simpler by two new out-of-court debt restructuring tools: one for larger enterprises that includes a multi-creditor coordination mechanism inspired by international standards; and one for SMEs that employs standardised templates.
The outlook for the domestic economy has also shifted, and the Bank has revised down its forecasts for both growth and inflation. Our forecasts continue to project a further gradual reduction in spare capacity in the economy, with the unemployment rate trending lower. That should see wages growth pick up, although only gradually, and inflation is also expected to increase gradually.