“The Greece of crisis is now a thing of the past. Greece must be a leader in this new era,” said the Minister of National Economy and Finance, Kyriakos Pierrakakis, promoting the reappointment of Giannis Stournaras as Governor of the Bank of Greece, to the Committee on Public Enterprises, Banks, Public Utilities and Social Security Institutions.
Mr. Pierrakakis, during the hearing of Mr. Stournaras, noted: “It is with a special sense of responsibility that I recommend the renewal of Yannis Stournaras’ term of office as governor of the Bank of Greece. And this decision is not only about the person of Yannis Stournaras, it is about the institutional strength of the country and the reliability of the Greek economy at a time when uncertainty has become a permanent feature of international reality.”
The minister stressed that with “the renewal of Mr. Stournaras’ term of office, he becomes the first governor of the Bank of Greece with three consecutive terms“, historically surpassing the term of office of Xenophon Zolotas,whose terms were not consecutive. “Institutional continuity for us becomes particularly valuable at times when stability and reliability are strategic advantages for any country, let alone ours,” he added.
Talking about the experience of Mr. Stournaras, he noted that “at the most critical moments of the modern economic history of the country, he was present. His public career is linked to the major turning points of Greece’s economic course. With the European convergence and the preparation of the country for its participation in the hard core of Europe. With the difficult period of the debt crisis, when Greece fought to remain standing in the Eurozone. And with the restoration of the stability of the banking system and the credibility of the economy after a decade of deep doubt.”
According to the minister, Giannis Stournaras“has never been a volatile central banker. He spoke when he thought he should speak. He defended difficult positions even when it had political costs. This is the true content of institutional independence. Their credibility.”
Underlining that “Greece is at the front line of this great debate on the future of competitiveness, financing and the strategic autonomy of Europe,” Pierrakakis said that “together with Yannis Stournaras, we participate daily in these critical European battles, each in his or her capacity.” “This is where the deeper significance of today’s selection (for the reappointment of Mr Stournaras as governor of the BoE) lies. As Greece needs people with knowledge, experience and international prestige who can represent the country with seriousness and credibility in a constantly changing European and international environment.”
He also stressed that “the next decade will be judged not only by the growth of economies, but also by the credibility of each country’s choices and strength within Europe.” On the situation in the Middle East, he noted: “We hope that the ongoing peace efforts in the Middle East will pay off and lead to greater stability in the region. However, in recent years, we have become aware in the most difficult and characteristic way that we are living in a time of great upheaval.” “The war in Ukraine has overturned decades of security and energy data. The crisis in the Middle East underlined how fragile global stability remains. Inflation has returned violently to the global economic system. And Europe now has to finance its defence, the green transition, its technological autonomy and its competitiveness at the same time,” he said, adding: “In this environment, states are obviously assessed through their economic indicators. But they are also judged by the quality of their institutions, the seriousness of their choices and the people who represent them in European and international decision-making centres.”
Pierrakakis set the tone forwhere the economy and the banking system are today: “Greece has now recovered the investment grade. And this means a change in the country’s position on the global economic map. Today Greece is borrowing on terms that a few years ago would have been considered unthinkable rather than self-evident. The restoration of this credibility is now also reflected in the banking system. In 2019, credit expansion to the private sector was negative at around -0.4%. Today, financing to businesses is recording strong growth rates. Based on official data from the European Central Bank, over the period 2022-2025 Greece recorded an average annual rate of credit expansion to non-financial corporations of 10.9%, one of the highest in the euro area. At the same time, non-performing loans, which in 2016 exceeded 48% of banks’ total portfolios, have now been reduced to 3.3%, the lowest level in more than two decades. This is the difference between a banking system struggling to survive and a banking system that can once again support the productive economy.”
But he stressed that “there should be no distraction. The Greek economy needs even more credit expansion and morefinancing for innovation, investment and extroversion. Because what is at stake now is not only the stability of the banking system. It is its ability to support more dynamically the new productive model of the country and the growth we will need in the next decade.”
Pierrakakis said that “Greece is now being treated differently by the international markets, as reflected in international confidence in the banking system.” “The strategic partnership between UniCredit and Alpha Bank has been one of the most important votes of confidence in the Greek economy in recent years. At the same time, we see Greek banking groups gaining greater extroversion and a greater regional presence, something that would have seemed unthinkable a few years ago. But this is precisely why the demands of the next period are becoming even greater,” he noted and stressed: “Here lies a great challenge not only for our country, but also for Europe more broadly. We have huge savings, know-how and human resources in Europe. And yet, much of these resources are still financing investments outside Europe. That is why the Savings and Investment Union is perhaps the biggest strategic gamble for Europe and all its Member States. Greece is at the forefront of this great debate on the future of Europe’s competitiveness, financing and strategic autonomy.Together with Yannis Stournaras, we participate daily in these crucial European battles, each in our own capacity. And herein lies, let me say, the deeper significance of today’s choice. Greece needs people with knowledge, with experience and international prestige, who can represent the country with seriousness and credibility in a constantly changing European and international environment.”
The meeting continues.
