Monday, August 3, 2015

Greece: Athens Stock Exchange reopens and immediately fall by almost 20% – The World

Le Monde | • Updated | By

The stock index of the Athens Stock Exchange, reopening on August 3rd.

The Athens Stock Exchange reopened Monday, August 3rd at 10:42 (9:42 French time) after five long weeks of closure. And the main index, the Athex, immediately lost more than 22% before stabilizing around 18%. The banks, which account for about 20% of the Greek stock index, have particularly suffered: they plunged an average of the opening, nearly 30%

According to the Greek daily Avgi, close. Government of Alexis Tsipras, Athens research about 10 billion euros this month to recapitalize financial institutions Hellenic, weakened by capital flight. According to the Association of Greek banks, nearly 40 billion euros have been withdrawn by the applicants since December 2014 Exchange trades have resumed normally for foreign investors, but they are more framed for local investors.

They can not finance the purchase of securities by withdrawing money from their bank accounts in Greece, because capital controls, introduced June 29, is still in force in the country. They may, however, use offshore accounts or make cash transactions.

The reopening of the Athens Stock Exchange operates on multiple uncertainties funds. The European Commission provides for the return to recession this year, while 2014 was marked by a slight recovery. Moreover, the continuous rumors of early elections-related divisions waving the parliamentary majority, the radical left Syriza party on, make them particularly cautious investors

Read our explanations. Greece : what is capital controls?



At the entrance to the Athens Stock Exchange, June 15

” And then we would again save the richest “

Most importantly, negotiations with creditors Athens (International Monetary Fund, Central Bank and European Commission) on a third aid package of over 80 billion euros for the next three years are still not finalized.

Both the Greek government and the quartet representatives of creditors (IMF / ECB, MES, European Commission), present in Athens for a few days, say the discussions forward “rather well” . But many disagreements have already appeared around the reform of the early retirement plan or on certain tax measures. Creditors including requiring solidarity tax be reduced from 8% to 6% maximum for incomes over 500,000 euros. Because according to them, the current rate would encourage tax evasion.

The Greek Government considers that it is it to choose how to share the effort of tax. “Our goal has always been and remains within the framework imposed on us, to be able to relieve the most vulnerable. And then we would again save the richest “, was indignant Friday Syriza a source.

The thorny issue of creating a new fund for privatization before harvest close 50 billion euros of Greek assets in the next 30 years should also be discussed in the coming days. In short, there are still many points to be clarified. Not sure, in this context, that the extremely tight timetable that Athens still hopes to be able to follow sustainable.



Greeks read the headlines of the press in Athens, 31 July.

” So we fulfilled our part of the bargain “

On July 13 early morning Alexis Tsipras agreed upon a special summit of heads of state of the euro zone a framework agreement which now serves as a roadmap for negotiations. The Greek government hopes to conclude by August 11 to an overall agreement on the basis of what was then raised to get in the wake validation in Eurogroup (meeting of 19 finance ministers of the Eurozone).

This text will then be validated by several European parliaments, including Greek, before August 18, and allow to release a first tranche of loans before August 20, when Athens must repay nearly 3, € 2 billion to the ECB. Money she does not have to date.

But European creditors and the IMF seem to land on the new table including requirements that would require to be adopted very quickly further steps prior to signature of the overall agreement.

In order to start this round, the prime minister, Alexis Tsipras, has however already vote on 15 and 22 July, tough measures in the Greek Parliament. He does not want to go further at this stage. “We were committed there when we accepted the agreement of July 13, says one government. So we have fulfilled our part of the bargain. And now they want to impose new prerequisites? “

The Deputy Prime Minister of Spain Yannis Dragasakis held Sunday, August 2 that a” change of negotiating procedures as they have been agreed at the summit on 13 July could open Pandora’s box “.

The Greek government could seek from its international creditors payment in mid-August with a first tranche of 24 billion euros to meet its immediate financial needs or 3.2 billion euros to the ECB, EUR 10 billion for the recapitalization of banks and 1.2 billion for the IMF in September.

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