Τhe negative impact of rising interest rates on Greek enterprises and households will be partially offset when Greece obtains the investment grade, Bank of Greece governor Yannis Stournaras said on Thursday.
In an interview with Econostream, the Greek central banker said regaining the investment grade was a great challenge for the country and predicted that this will happen within 2023.
Stournaras said that such a move by credit rating agencies was already reflected on Greek bond yields but has not yet been discounted on Foreign Direct Investments flows. He noted that only 10% of capital – such as private investment capital, for example – can invest in a country without the investment grade, adding that as a result a very big opportunity for foreign direct investments was created after the country obtains the investment grade.
He said that the Greek economy was entering a phase of higher growth rates compared with the European average, and underlined that the public debt/GDP ratio was falling fast. Stournaras added that the new government is poised to promote a series of reforms necessary for the economy.