Greece’s recovery is not sustainable without new loans, Bank of Greece (BoG) governor Yannis Stournaras said on Thursday.

Speaking at a BoG’s event, Stournaras underlined that so far Greece’s recovery has not relied on bank lending, which was practically non-existent. However, he warned that this cannot continue anymore in Greece and in Europe, adding that the economy should register positive rates of credit expansion so that recovery will be sustainable.
Stournaras said that the European Central Bank’s (ECB) measures have boosted investor confidence.

European Stability Mechanism (ESM) head Klaus Regling, who was the keynote speaker at the event, said that the Greek debt is sustainable; however, he called on the country to continue the structural reforms in order to further improve the competitiveness.