Underlying this new downturn were political instability from the end of 2014 onwards, the protracted negotiations with our creditors in the first half of 2015, the bank holiday and the imposition of capital controls, as well as the new fiscal adjustment measures under the new Financial Assistance Facility Agreement, considered necessary to achieve the revised fiscal targets.
The strengths of the Greek economy and of the domestic banking system were tested. However, the economy showed remarkable resilience, and the negative impact was more moderate than initially expected. This resilience is associated with the implementation of the adjustment programmes since 2010, which – in spite of several delays and missteps – have succeeded in sharply reducing the major macroeconomic and fiscal imbalances.