Greek bonds will soon become eligible for the European Central Bank’s asset-purchase program, paving the way for an easing of capital controls, and the gradual recovery of investor confidence, said Greek Finance Minister Euclid Tsakalotos in an interview with Bloomberg.

“QE could follow as soon as July’s maturing debt is paid,” Mr. Tsakalotos said referring to a July 20 payment of notes held by the ECB. “I feel confident Greek debt will be eligible” by September, he added.

The ECB has signaled it will act when it’s confident the new aid program is on track. After the Governing Council met on June 2, President Mario Draghi said “it will require another policy meeting” but agreed that “there will be a decision leading to the reinstatement of the waiver.”

“Once you have QE, and depending on what your take is on the debt situation, you can take Grexit off the table,” Mr. Tsakalotos said adding: “Then you have a straight runway for investors.”

According to Tsakalotos, rising confidence, the payment of arrears and inclusion in the QE program will offset the latest austerity measures.

“Those factors should outbalance the recessionary drag,’” Mr. Tsakalotos said.

Source: Bloomberg