European Central Bank President Mario Draghi left open the possibility of Greece being included in the next QE program during his final speech to members of the European Parliament’s Committee on Economic Affairs on Monday.
“Greece has made significant progress in reforms in recent years and has recorded great growth. This is recognised, as the low interest rates show. If credibility is boosted and credit conditions are upgraded, Greece will be able to participate in the program of quantitative easing,” he said.
Responding to a question submitted by New Democracy (ND) MEP Giorgos Kyrtsos, the central banker said maintaining the right market conditions is crucial. At the same time, he noted that “there is a need to further enhance the credibility and confidence of the capital markets. So this is essential for shaping fiscal policy. The results have exceeded the goals more than once. So overall economic developments recognise that there is progress in the country.”
Mario Draghi made special mention of the red loans, describing their decline as vital. As he said, “a high amount of non-performing loans leads to a vulnerability of the banking system, which does not finance the private sector. However, we need to cut red loans without forgetting the social aspect. “