Banks, elections key 2019 challenges for the economy

The state of the credit sector is probably the biggest challenge facing the Greek economy in 2019, with analysts stressing that finding a swift and credible solution for clearing bank portfolios of nonperforming loans is essential to an economic recovery. At the same time, economists and analysts say, general elections need to take place as early as possible so as to ease uncertainty for Greece over what they call a "lost" year due to the freezing of reforms in the run-up to the polls.

"The major theme in Greece remains the solvency of the banking system," Michael Hewson, chief market analyst for CMC Markets in London, tells Kathimerini. "Until politicians are able to coalesce around a single formula to recapitalize the banking system and sort out the NPLs, the economy will continue to struggle," he warns. 

"A big challenge for Greece in 2019 will be how to deal with...