FinMin: Greece on road to recovery, first indications in second half of year

Greece must maintain the trust of its partners, which it earned with great difficulty, Finance Minister Yannis Stournaras said on private television on Sunday, warning that otherwise all the sacrifices made so far would be put into question.

Stournaras, speaking on private MEGA television station, left no room for fiscal relaxation, and opined that if the government remains devoted to the adjustment programme of the Greek economy, the first signs of recovery will begin to appear in the second half of the current year.

"2013 will be a rough year, as we have 9.2 billion euro in measures to implement. But we are on the right track. Greece has earned the confidence of its partners with great difficulty. We cannot turn back. 2013 will be the year of consolidation of confidence and our credibility. We will see the first indications of recovery in the second half of 2013," Stournaras said. He also noted that the first positive messages from the execution of the budget appeared in the last months of 2012, which enables the government's economic staff to harbor the optimistic forecast that the country's primary deficit will end the year below the targeted 1.5 percent deficit to GDP ratio target, at 1.2-1.3 percent of GDP.

Stournaras was also optimistic on the execution of this year's budget, noting that provided all the targets are surpassed, there will be a possibility for reasonable benefits in 2014. "If we do better on the 2013 targets -- which is very likely -- we will be able, in 2014, to channel 70 percent of the excess to social benefits, but targeted benefits to those who have genuine need".

SOURCE: ATHENS NEWS AGENCY