Bank of Greece chief calls for lower primary surplus, bigger reform effort

With a tentative debate under way on relieving Greece's debt load, Bank of Greece (BoG) Governor Yannis Stournaras on Friday called for Greece's primary surplus target for 2018 to be lowered from 3.5 percent to 2 percent of gross domestic product, saying such a move could lighten Greek debt significantly.

In a speech before the Federation of Industries of Northern Greece, Stournaras said changing the budget target would help provide the Greek economy with a much-needed boost "without undermining the sustainability of the public debt."

His proposal for a 2 percent target in 2018 is one-and-half percentage points less than the target set by Greece's eurozone partners and just above the proposal of the International Monetary Fund, which has recommended a target of 1.5 percent or additional belt-tightening measures.

According to the BoG calculations, lowering the...