The Greek government put on hold the central banker, Mr. Yannis Stournaras, who in his annual report on the economy submitted to the President of the Parliament, suggests indirectly, yet clearly, that the country should be inducted into a “precautionary support framework”; while Alexis Tsipras himself and his government have clearly stated that Greece will pursue a “clean exit” from the memorandum by borrowing directly from the markets. For this reason, the government is slowly building a “buffer pillow” that will allow the return to the markets, offering some protection and substantial cash reserves.
However, the report of the Bank of Greece states that “there should be clarity as to whether and under what conditions, a possible precautionary support framework could be implemented. The existence of such a framework is estimated to be able to support the Greek economy by drastically reducing borrowing costs, as it will provide secure access to funding to the Greek Public Sector after the end of the Greek program in August 2018”.
The reaction of the Prime Minister’s office to the intervention made by Yannis Stournaras, who served as Finance Minister under the Samaras government, was fierce. Government circles noted that “because a failed a Finance Minister and a failed government at the time had considered as the optimal version not the return to the markets with favourable interest rates, but the support framework, this does not mean that a successful government cannot do much better. All evidence, already, suggest the contrary”.
When the government refers to evidence, it does not only keep in mind the current economic indicators but also the downward trend in bond prices that have reached a historical low for the ten-year period from 2006.
The government did not hide its annoyance at the suggestions of the Governor of the Bank of Greece on the eve of a new return to the markets, which by all available information is planned to take place in the first month of 2018.
Alexis Tsipras has repeatedly talked about for the attempt of a “clean exit” from the memorandum and return the global markets, which will ensure to the imposition of relatively relaxed oversight system of the Greek economy regulated via EU control mechanisms.