Alexander Exarchou warned the Greek economy that loss of fiscal stability, investment and credibility could bring back 2010 conditions.
The chairman and CEO of AKTOR Group, Alexander Exarchou, speaking at the conference “Greece 2030” and in a discussion with the journalist Nikos Hadjinikolaou, warned that a possible reversal of the positive course of the Greek economy could lead the country to conditions similar to those of 2010.
Debt refinancing and the need for stability
Mr. Exarchou stressed that from 2032, with the end of the grace period of public debt, Greece will need to refinance a significant part of its borrowing. He noted that for this to happen on favourable terms, creditors and markets will need to maintain their confidence in the performance of the Greek economy.
According to him, a potential return to deficits, an increase in unemployment and a loss of the fiscal gains of recent years could create conditions similar to those that led the country into the debt crisis.
At the same time, he stressed that the basic structures of the Greek economy have not changed drastically compared to the past, despite the significant progress achieved through years of efforts and sacrifices.
Foreign capital and investment interest
The AKTOR chief pointed out that Greece is now attracting significant foreign capital, which is evidenced by recent market moves, such as the issuance and share capital increase of Credia Bank.
As he said, the early repayment of part of the public debt has boosted the country’s image abroad, sending a message of reliability and economic recovery. He added that the continuation of fiscal discipline, high growth rates and predictability policies are essential to maintain investment interest.
Exarchou also noted that concern could only arise in the event of a challenge to the stable government, expressing hope that the country would avoid such developments.
Inflation, energy and the Eurobond
Referring to the European outlook, Mr. Exarchou estimated that the next winter will be difficult for Europe, due to the rise in inflation and the pressures in the energy market.
As he explained, the ban on imports of Russian gas, combined with damage to energy infrastructure in Katar, could limit gas availability and add to inflationary pressures.
He also argued that the European Union should step up its interventions, ensure greater energy diversification and consider issuing a eurobill, along the lines of the Recovery Fund, in order to address the economic challenges emerging in view of possible increases in interest rates by the European Central Bank.
