allow the rapid, effective and transparent settlement of arrears owed to private creditors and the public sector, 3. enhancing infrastructures and capacities in the in the judicial system and 4. addressing long - standing issues regarding the tax treatment of loan impairment charges, both for borrowers and lenders. the bank of greece will adhere to its commitments, in particular regarding the modification of the code of conduct and the implementation of a framework for target - setting and monitoring the npl management strategies of all greek banks. on their part, banks need to pursue a more active policy for npl management, by promoting long - term solutions and multi - creditor workouts, as well as focusing on the restructuring of viable businesses. these lines of action, coupled with the economy ’ s path out of the recession and back to growth, should bring about a stabilisation and, subsequently, a decline in the npl ratio. the outlook for 2016 the course of economic activity in 2016 crucially hinges on the successful completion of the first review of the programme and the implementation of the programme reforms. bis central bankers ’ speeches so far, important progress has been made towards completing the first review. specifically, a fiscal package of 3 % of gdp until 2018 has been agreed upon, which will be instrumental to achieving a primary surplus of 3. 5 % of gdp in 2018. two thirds of the programme measures have already been passed by parliament, including the necessary social security reform and the income tax reform. the remaining measures, which include changes in indirect taxation and reform of the public sector wage grid, are expected to be enacted in the next few weeks. the eurogroup of 9 may took stock of the progress with the first review and the eurogroup of 24 may is expected to make the final decisions on the review, the disbursement of the tranches and the methods of easing the burden of public debt. consequently, most of the distance to the completion of the review has been covered – as acknowledged by the european institutions. the establishment of a reliable contingency mechanism, which will be triggered in case of deviations, will increase the confidence of our partners and ensure the attainment of fiscal targets. this is expected to have a favourable impact on international markets ’ assessment of the prospects of the greek economy and put in motion a virtuous circle signalling a definitive exit from the crisis. the rate of change in real gdp is expected, at least in the first half of 2016, to remain in negative territory,

ceiling in the assessment of public debt sustainability, and • reduce debt - to - gdp ratio to below 100 % in 2030 and to 89 % in 2035 ( compared with 126 % without debt relief measures ). in other words, these actions to restructure public debt, coupled with ( a ) a more effective and better - targeted policy for privatisations and for the utilisation of public real estate, ( b ) a reform effort focusing on opening up those goods and services markets that have not been fully liberalised yet and ( c ) a more aggressive management of the problem of npls by both banks and the greek government, could directly lead to public debt sustainability, with the ensuing possibility of lowering significantly the ultimate fiscal target. this would be achieved, on the one hand, because these actions would reduce public debt servicing costs, thereby unlocking resources to stimulate the real economy, and, on the other, because privatisations would reduce the level of debt, while the speeding up of reforms and the effective tackling of npls would strengthen gdp growth. at the same time, initiatives to restore the sustainability of public debt within this year would lower the risk premium of the greek economy and reduce the cost of capital, enhancing the credibility and acceptance of the policies pursued, which would improve confidence, with multiple positive effects : new domestic and foreign investment, return of deposits to the banking system and reinvigoration of economic recovery. key conditions for a new, extrovert growth model in addition to lowering the ultimate fiscal target, for the reasons explained above, and restructuring the high public debt with a view to ensuring its long - term sustainability, what is needed today is the timely implementation of privatisations and reforms under the new programme, which are the cornerstone for the return to economic and financial normality and the shift to a new, extrovert and viable growth model. bis central bankers ’ speeches the implementation of reforms in the goods and services markets and the public sector will lead to higher investment and employment and is also expected to facilitate innovation and the introduction of new technologies through stronger competition. this will improve the quality of greek exports, while helping to broaden the export base and improve total factor productivity of the greek economy. in turn, this will make the reduction in the external deficit sustainable and increase potential output over the medium to long term. as already mentioned, together with the implementation of the necessary reforms, utilising the public real estate and pressing ahead with