The Greek economy remained in recession last year, but contracted by a much smaller margin than originally feared in the wake of capital controls that were introduced last July. Bank of Greece Governor Yannis Stournaras said Greece’s Gross Domestic Product contracted by an estimated 0.2 per cent in 2015, though the central bank chief said that he sees scope for an economic rebound in the second half of this year if there is a swift conclusion of the country’s first bailout review and reforms that have been agreed to are  implemented. Business File reports.

Read more: Economic recovery hinges on swift bailout review and implementation of reforms

Concerns about deadlock in the negotiations between the Greek government and the official creditors despite an improvement in their relations since last September have helped reverse a good deal of the months-long rally in bonds. Moreover, the demanding conditionality of the programme has made market participants factor in the possibility of higher political uncertainty, contributing to the slump. The completion of the review would add to the good track record of implementation and be the catalyst for unfolding events that could lead to Greece’s return to the markets later this year. Business File reports.

Read more: Greek bonds eye the review for direction

Greek banks successfully completed their latest round of recapitalisation, resulting in an increase of private ownership across the sector. The high capitalisation should help mitigate loan quality risk and combined with the cleaning up of their balance sheet pave the way for a gradual recovery of profitability in 2016-2017. However, a lot depends on the macroeconomic and political situation. The banks’ ability to lower deposit and operational costs as well as cope with the large stock of non-performing loans will be the main drivers. Business File reports.

Read more: Greek banks aim for a gradual return to profitability in 2016

Theodore Fessas, the founder and the Chairman of Quest Holdings, is the Chairman of the Board of Directors of the Hellenic Federation of Enterprises (SEV). In an exclusive interview with Business File he tells Economia publisher Alexandra C. Vovolini and Business File managing editor Antonis D. Papagiannidis his views on pension and social security reform, how to attract foreign investments, as well as prospects for the Greek economy.

Read more: Getting down to business

The sacking at the government’s request of the chief executive of Greece’s biggest bank, in which a US hedge fund is the second-largest investor, took markets by surprise. Yet the move underscored a daunting obstacle for international companies entering the Greek market: the Athens government’s track record of interfering in corporate affairs whether or not the state is a shareholder. Issues of governance loom larger than ever as the SYRIZA-led administration pushes ahead with privatisation sales agreed as part of Greece’s 86 billion euro third bailout, while unions and even some cabinet members raise obstacles to deals that are already underway. Kerin Hope reports.

Read more: State meddling remains obstacle to international investments