Stress test results for Greek banks better than expected

It is possible Greek economy to return to growth in the second half of 2016, central bank official said

Stress test results for Greek banks are better than expected, a top official at the Bank of Greece said to Reuters.

The recapitalization process of Greek banks will have to be completed within the first 10 days of November, the official said. He also added that the results of restructuring plans submitted by Greek banks would be taken into account in estimating the final capital needs of each bank.

Earlier, Bank of Greece governor Yannis Stournaras had underlined the need to complete a recapitalization process by the end of the year.

Under this condition, and if the government proceeds to the implementation of structural reforms and the privatization program, capital controls could be lifted by the end of the first half of 2016.

He commented that it is possible Greek economy to return to growth in the second half of 2016.

Regarding the non-performing loans, the central bank official underlined that a new law should take into account households’ income criteria.