Yannis Stournaras

Many eurozone banks underestimate credit losses they are likely to incur from the Covid-19 pandemic and supervisors will focus on asset quality this year, European Central Bank Governing Council member Yannis Stournaras said on Friday. 

Central banker Yannis Stournaras voiced his optimism that the economy will recover in 2021, stressing that this crisis is not as big as the previous one.

The Bank of Greece's baseline scenario has moved closer toward its adverse one, according to the intermediary monetary policy report its Governor Yannis Stournaras tabled in Parliament on Monday, providing for an economic contraction of 10% this year.

The new lockdown is expected to continue to hurt the country's economic activity in the fourth quarter, and any forecasts are exceptionally difficult, as the economy hinges too much on the course of the pandemic, Bank of Greece Governor Yannis Stournaras said on Tuesday.

Europe should ease state aid rules and protect bank deposits to shore up lenders struggling under the weight of the coronavirus pandemic, European Central Bank policymaker Yannis Stournaras said in an opinion piece on Friday. 

Bank of Greece Governor Yannis Stournaras reiterated on Tuesday that the country's public debt remains sustainable until at least 2030, despite its increase as a ratio to the gross domestic product.

Bank of Greece Governor Yannis Stournaras on Monday stressed the need to seek and activate instruments such as a bad bank, as the so-called Hercules Asset Protection Scheme (HAPS) is considered insufficient, while he also recommended taking recourse to the credit line of the European Stability Mechanism (ESM).

Greece's central banker said on Monday he will advise the government to make use of the cheap, long-term credit lines that will be made available by the Pandemic Crisis Support fund of the European Stability Mechanism (ESM).

Bank of Greece Governor Yannis Stournaras expects the country's economy to contract by 6% of gross domestic product this year as a result of the coronavirus crisis, but this could be followed by a rebound of 5.5% in 2021, he told a committee in Parliament on Monday.

A legal wrangle over the European Central Bank's bond-purchasing program will help focus minds on the need for closer European integration, Greek central bank chief Yannis Stournaras said on Tuesday.