Federation of Hellenic Enterprises expects gradual loosening of liquidity conditions in the country

A Eurogroup agreement on a 7.0 billion euros bridge loan to Greece is expected to raise the ceiling of ELA in the coming days leading to a gradual loosening of liquidity conditions in the country, the Federation of Hellenic Enterprises (SEB) said on Thursday.

In a weekly economic bulletin, the Federation noted that "although a gradual loosening of liquidity conditions was expected in the next few days, in line with the implementation of prior actions by the government, Greek enterprises are already facing acute problems with production and distribution of products". The Federation called for a return to normality the soonest possible and underlined that on a political level, both in Greece and abroad, the climate was tense and that delicate handling was necessary to avoid any accidents now that a minimum consensus has been reached on a European level towards the country's course. "As bad as an agreement may be, nothing compares with the alternative of putting the country outside the European family. We no longer have any other choice, while there is not going to be a fourth chance if we lose the opportunity we have today," the Federation said.

It noted, however, the the outlook was good to rebuild the country, by promoting structural changes, combat tax evasion and corruption and to create the necessary reserves to reduce taxes and restore pensions again.

"If the government takes advantage of a wide parliamentary support and safeguards a rapid and efficient implementation of measures and a fair distribution of additional burden, the Greek economy could soon return to international markets," the bulletin said.

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