Yannis Stournaras becomes the first governor of the Bank of Greece to secure three consecutive terms, as his tenure in the post until 2032 was approved by the House of Representatives’ DEKO Committee.
The renewal of his term was supported by New Democracy MPs, while PASOK – Movement for Change and the Communist Party of Greece were present. On the contrary, SYRIZA, Hellenic Solution, Nea Aristera, Plysi Eleftherias and Niki voted against.
National Economy and Finance Minister Kyriakos Pierrakakis described Stournaras as an “inconvenient central banker”, stressing that he defended difficult positions even at political cost.
For his part, the governor of the Bank of Greece stressed the importance of central bank independence, saying:
“Independence is a fundamental prerequisite for the effective functioning of the central bank”
Warning on inflation and energy
Yannis Stournaras also referred to international economic developments, noting that the Greek economy continues to grow faster than the eurozone, but geopolitical tensions are increasing risks.
On interest rates, the European Central Bank said:
“I hope no interest rate hikes will be needed. We need to protect both inflation and the real economy.”
Red-loan cuts and new banking pillar
The BoE governor also highlighted the improvement in the image of banks, noting that red loans have fallen from €100 billion in 2018 to €72 billion today.
He also referred to the creation of the so-called fifth banking pillar, which he said enhances competition in loans and deposits and can provide more support for small and medium-sized enterprises.
On the possibility of an extraordinary tax on banks, Stournaras appeared negative, stressing:
“Banks without profits and capital cannot finance the economy”
