BoG expects a higher primary surplus

The Bank of Greece is expecting a higher-than-anticipated primary budget surplus for this year and insists on the need for a reduction to future targets, while a European Central Bank official refuted a Reuters report suggesting Frankfurt was in favor of a target reduction.

Bank of Greece Governor Yannis Stournaras on Tuesday met with the creditors' representatives and, according to central bank sources, presented BoG estimates for a primary surplus of 0.8 percent of gross domestic product this year, against a target for 0.5 percent, with recession matching the 0.3 percent target. For 2017 the central bank expects GDP to expand 2.5 percent, against a target for 2.7 percent.

The same sources said on Tuesday that Stournaras reiterated to the creditors the central bank's position for a reduction to the future primary surplus targets, adding that this also has the backing...