So far, credit developments remain subdued, with credit from monetary financial institutions to the domestic non-financial sector continuing its downward trend that started in early 2011. The success of the adjustment programme, however, ultimately rests on its capacity to reestablish conditions for a path of economic growth that is sustained and sustainable over time.
The success of the out-of-court workouts will provide an input to support the recovery by contributing to restore the viability of non-financial corporations. Bear in mind that the indebtedness of Greek non-financial corporations, when measured by debt-to-GDP ratio, rose from about 52% to approximately 64% between end-2008 and end-2015. Non-residential investment by the private sector declined by about 50% in the same period.