Yannis Stournaras

The Greek central bank is set to trim its growth outlook for next year significantly in its upcoming December forecasts.

Bank of Greece Governor Yannis Stournaras told Politico that his institution now expects the Greek economy to expand 2.4% this year, and by 2.5% in each of the two subsequent years.

The governor of the Bank of Greece, Yannis Stournaras, called on the Finance Ministry leadership on Tuesday to re-examine all tax exemptions, stressing that "the country needs revenue."

Stournaras noted that the shadow economy in Greece exceeds 40 billion euro and that existing tax exemptions need to be evaluated as to whether they concern the truly vulnerable.

Greeks spend €40 billion more than they declare as income, Bank of Greece governor Yannis Stournaras told the 19th annual Tax Forum of the American-Hellenic Chamber of Commerce Tuesday.

Calling for a comprehensive action plan to tackle burgeoning tax evasion, Greek Central Bank Governor Yannis Stournaras on Tuesday warned that the size of the shadow economy is estimated at nearly 21% of gross domestic product.

The Governing Council of the European Central Bank is meeting on Wednesday and Thursday at the Bank of Greece, for the first time since 2008.

Its president, Christine Lagarde (pictured), has had the opportunity to get a taste of Athens and the Greeks in a different climate than what prevailed during the difficult years of the debt crisis.

Bank of Greece Governor Yannis Stournaras has put the bar for next year's primary budget surplus - that is, excluding debt servicing - at 2.3% of the country's gross domestic product (GDP). This is the minimum he deems necessary for the debt, as a percentage of GDP, to keep falling and for the country to return for good to the path of fiscal rectitude.

Expectations of a de-escalation in inflation, especially food prices, which concern most people, are clearly diminishing, since production costs, but also profiteering, are set to add another round of price hikes.

Another quarter-point interest rate rise by the European Central Bank should be enough and further tightening might damage the economy, ECB Governing Council member Yannis Stournaras said in an interview with CGTN Europe on Wednesday.

The governor of the Bank of Greece, Yannis Stournaras, described the recovery of investment grade as a big challenge for the Greek government at the moment, stating however that he is confident that it will happen this year and will bring more direct foreign investments.

The Greek banking system is healthy and has credibility but needs to be alert as challenges to financial stability remain high, Bank of Greece Governor Yannis Stournaras said on Tuesday.