The principle executive officer of Greece’s greatest loan provider expects that the crisis liquidity assistance distributed by the European Central Lender (ECB) will end in 2018.
“We have increased our deposits significantly. We are above the year-end of 2016. We reduced the crisis liquidity assistance that the banks are obtaining from the ECB as well, and we are looking to take it down to zero by the end of 2018,” Christos Megalou, CEO of Piraeus Lender, the country’s greatest bank by assets, said about the lender’s efficiency this year.
Piraeus is one of the Greek credit establishments considered solvent but facing “temporary” liquidity concerns because of several years of economic crisis in the region. Thus it benefits from the so-referred to as ELA (crisis liquidity assistance), which is certainly credit from the central bank to be utilized in exceptional circumstances.
Megalou said Wednesday that 2018 should be a “good year for the Greek economy.”
“I do expect 2 percent GDP (gross domestic product) expansion, I do expect the liquidity to increase and emergency liquidity assist with reduce significantly and this is a positive effect likewise on the profitability of the banks,” Megalou said within an interview in Athens.
The Greek economy has already established three consecutive quarters of growth this year and according to government data out earlier this week, Greece’s economy expanded 1.3 percent on a yearly basis during the third quarter.