EASE/ICAP - CEO Economic Sentiment Index increased during the 2nd quarter of 2017. Little or no possibility for debt relief in 2018, says the majority of the CEOs.
• Rise of Economic sentiment index was observed in the 2nd quarter of 2017, reflecting the positive climate that are expected after the completion of the evaluation process, under the prerequisite of implementation of the agreed reforms.
• The majority of CEOs believe that Greece has little or no possibility to achieve debt relief within 2018. At the same time, more than four out of ten CEOs believe that banks cannot treat the rising non performing loans, while 54% of CEOs believe that Greece will be able to borrow from financial markets within 2018.
The overall economic sentiment indicator (EASE / ICAP-CEO General Index) increased to 133 points in Q2 2017, as investigated by the quarterly survey conducted on a sample of 3,020 CEOs / General Managers of the largest Greek companies by the Association of Chief Executive Officers (EASE) in cooperation with ICAP Group. The survey was carried out between 20th of June 2017 and 3rd of July 2017.
The overall economic sentiment indicator (EASE / ICAP-CEO General Index) increased to 133 points in the 2nd quarter of 2017. The improvement of index and the return to upward trend in 2016 is due to the positive but moderate expectations of CEOs, that followed the end of extended period of negotiations with the lenders, and the completion of the evaluation process under the prerequisite of implementation of the reform program. The survey results by company size shows a significant rise in the index across all size classes. The current status index (EASE-CEO Current status index) showed a moderate rise and reached 121 points versus 116 in the previous quarter. The Expectation Index (EASE-CEO expectations index) improved significantly in 145 points compared to 132 points in the previous quarter.
Statement of EASE President & Chairman & CEO of ICAP Group Nikitas Konstantellos
"The economic sentiment index in the second quarter of 2017, returned to the upward trend, following the temporary downturn in the first quarter of 2017. The index rose to 133 points, compared with 124 in the previous quarter. The improvement of index reflects the expectations of CEOs after the completion of the evaluation process, but at the same time incorporates their thoughts on the increased commitments provided by the new reform framework agreed with the lenders. The new reform program should be implemented, in order to remain the Greek economy credible internationally, and at the same time to escape from stagnation, going into the development phase. The majority of CEOs believe that the debt relief in the next year has little possibility. Moreover the banks cannot manage the troubled loans, and may require a new recapitalization. One out of two CEOs is optimistic that within 2018 Greece will be able to fund its debt from financial markets. "