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Finance Minister Hardouvelis Voices Concerns Over ECB Stress Tests

During a July 8th ECOFIN council session, Greek Finance Minister Gikas Hardouvelis voiced his concern, regarding scheduled ECB stress assessments on Hellenic banks.

The recently appointed Finance Minister stated: "The Greek economy and its banking system have been under constant stress for the past four years to an unprecedented degree, and the European Central Bank intends to increase the pressure even further. If it insists, the risk is that it could bury the economy just when it appears to be stabilizing," as reported by Kathimerini.

Hardouvelis believes the tests may threaten the nation's economic recovery and stability, rather than the remaining assets regarding the recapitalization of the credit sector. He views that two components of the tests could be harmful, including Greek bond value decreases and not taking restructuring plans under consideration.

The Finance Minister referenced the National Bank of Greece's previous stress stress, which resulted in banks rising their capital by 8 billion euros, while an ECB test that produced a different outcome would negatively effect the structure's validity.