Greece has undoubtedly entered a period of growth which will continue, Deputy Minister to the Prime Minister Dimitris Liakos said on Tuesday, addressing a Piraeus Bank seminar on the management of social insurance funds’ reserves.
Liakos noted that progress was not reflected only in the recovery of economic indexes, but in the qualitative characteristics of the economy and so-called psychological indexes, such as consumer confidence, etc. Referring to the reform of the social insurance system, Liakos said the government managed – after decades of bad-management – to complete a pension reform in order to become sustainable, but noted that constant interventions and corrections were needed. He underlined the prime minister’s commitment to lower social insurance contributions for self-employed people.
Christos Megalou, Piraeus Bank’s CEO, said that the bank achieved the biggest reduction of non-performing exposures in the January-September 2018 period and has offered new loans worth 2.0 billion euros during this period. Megalou said the bank will disburse loans worth 3.0 billion euros this year and stressed that the country will return to positive credit growth rates in the coming quarters for the first time in a decade. He said that the future of social insurance in Greece lies in professional funds.
George Handjinicolaou, non-executive chairman of the board in Piraeus Bank, said that an increase in pension funds’ reserves would be crucial for the country as they would contribute to job creation and the long-term reduction of the national pension system’s total cost. He noted that difficult economic conditions prevailing in the country after a series of deep fiscal cutbacks have created the right conditions to enhance the second pylon of insurance, the institution of professional funds.