Given the scale of the issues facing us, we need to reconsider traditional measures of evaluating the trade-offs of additional debt. Expenditure on clearly-stated and measurable goals that emphasise quality over quantity are more likely to reap the benefits and minimise the costs of additional government debt. While low interest rates ease repayment burdens, this may not last.
In the light of these developments, the Bank of Greece has instituted - and continues to institute - changes that improve the quality of its financial stability analysis, so that timely and accurate assessment of risks be made and, where necessary, appropriate policy responses can be formulated.