The Minister of Finance Euclid Tsakalotos estimated that the Greek economy will return to growth by the second half of 2016, provided that the first program review at the end of November is positive, the bank recapitalization begins and the way is paved for debt relief.
Tsakalotos, in an interview to the Financial Times, stated that if the outcome of the program review in November is positive, then the government will aim to initiate talks on debt relief before the Christmas holidays.
It is also important to complete the bank recapitalization by the end of the year otherwise, under new EU legislation, accounts over 100,000 euros may face a haircut.
Later on the Finance Minister stressed that it is important for the government to make a strong start with reforms in October, in order to unblock a 3-billion-euro tranche from the August agreement.
Tsakalotos argued that as opposed to previous administrations – including the one elected in the January 2015 elections – will address tax evasion of rich oligarchs in Greece.
Although the Greek Finance Minister concedes that there will be resistance to many of the reforms form certain interest groups – the Financial Times notes that farmers will oppose the abolition of tax cuts and subsidies, while DEI unionists are openly hostile towards the creditor demands for further deregulation – Tsakalotos was nonetheless optimistic.