Yannis Stournaras nominated to be next Bank of Greece Governor

Yannis Stournaras nominated to be next Bank of Greece Governor

 

By Lefteris Yallouros – Athens

Within days of being replaced by Gikas Chardouvelis as Finance minister following a sweeping cabinet reshuffle, Yannis Stournaras was nominated to be the next Governor of the Bank of Greece by the bank’s General Council.

Outgoing Governor Giorgos Provopoulos said Stournaras was “the best choice” for the role. “He is not just a theorist; he knows about banking issues better than anyone else,” said Provopoulos.

Greek Prime Minister Antonis Samaras and deputy PM PM Evangelos Venizelos had the warmest of words to say for Provopoulos as both thanked and praised him for a successful time in charge of the Central Bank during most testing times for the country and its economy.

Outgoing Governor Giorgos Provopoulos said Stournaras was “the best choice” for the role. “He is not just a theorist; he knows about banking issues better than anyone else,” said Provopoulos.

PM Evangelos Venizelos had the warmest of words to say for Provopoulos as both thanked and praised him for a successful time in charge of the Central Bank during most testing times for the country and its economy.

Provopoulos himself took the opportunity to urge the Greek government on Wednesday to do the utmost in order to secure the country’s return to growth while calling for “the biggest possible consensus” amongst political parties and social forces.

The decision to replace Provopoulos with Stournaras came under fire by main opposition SYRIZA. Having strongly opposed the policies implemented by Yannis Stournaras as Finance minister, the left-wing party had warned against his appointment as BoG Governor and demanded the PM consulted the party before choosing Provopoulos’s successor.

After Antonis Samaras ignored SYRIZA’s demand, Alexis Tsipras went as far as warning European Central Bank Chief Mario Draghi that his party will not feel obligated to keep Stournaras on as Governor should it come to power.

Meanwhile, incoming Governor Yannis Stournaras visited German Finance minister Wolfgang Schauble in Berlin who told reporters he did not foresee any changes in Greece economic policy following the cabinet reshuffle and that the country was in line with requirements for receiving the next tranches of its rescue loan.

In turn, Yannis Stournaras said Greece still has a funding gap but appeared optimistic it will be covered without a new bailout loan.