Greece seems to have successfully resisted pressures from an international credit crisis, with economic growth at 3.5 percent in the first half of 2008, Greek Economy and Finance Minister George Alogoskoufis said on Tuesday.
"But there is no room for complacency, instead we must move on with reforms and structural changes," Alogoskoufis told a conference on Banking on Greece.
The Greek minister acknowledged that the Greek banking system would be affected by the international credit crisis, but reassured that the Greek banking system is and will remain safe.
Commenting on the crisis, Alogoskoufis said that despite liquidity injections by central banks, negative impressions have intensified in the last few months regarding higher interest rates, higher bond prices, higher yield margins and the closure of markets.
He stressed that new pressures in interbank money markets further pushed interest rates higher, burdening households.
Alogoskoufis said the crisis coincided with higher international inflation trends. The impact on the EU economy came earlier than expected, he added, and was stronger, resulting in additional pressures on both state and household debt.
Source:Xinhua
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