Stock, bond mar­kets surge af­ter deal

Kathimerini English - - Front Page -

Greek fi­nan­cial mar­kets surged yesterday af­ter Athens agreed a multi-bil­lioneuro bailout deal with in­ter­na­tional lenders that could po­ten­tially save the in­debted coun­try from fi­nan­cial ruin. Athens’s bench­mark stock in­dex closed up 2.1 per­cent, while the coun­try’s bank­ing in­dex also climbed 3 per­cent, although they re­main down 15 per­cent and nearly 70 per­cent re­spec­tively since the start of 2015. Athens was the only ma­jor Euro­pean stock mar­ket to rise on the day, with all oth­ers reel­ing from China’s sur­prise de­val­u­a­tion of the yuan. Greece’s two-year bor­row­ing costs also dropped 4.78 per­cent­age points to a five-month low of 14.67 per­cent. “If Greece fol­lows through with their pro­posed re­forms and lenders are more re­al­is­tic about the tim­ing of re­pay­ments, then this could set the foun­da­tion for a strong re­cov­ery in the medium term,” said Ali Mire­madi, fund man­ager at Taube Hod­son Stonex Part­ners. “While in­sti­tu­tional in­vestors may be a lit­tle shy of in­vest­ing in Greece in the very near fu­ture, the world is full of cap­i­tal seek­ing out dis­tressed op­por­tu­ni­ties and the pro­posed Greek pri­va­ti­za­tion pro­gram may well pro­vide an ap­pro­pri­ate way to in­cen­tivize cap­i­tal to re-en­ter the coun­try,” he added. The yield on Greece’s two-year bonds, which moves in­versely to prices, re­mains above those of longer-dated bonds – a sign that in­vestors still fear the coun­try may not es­cape fu­ture de­fault.

The Gen­eral Sec­re­tar­iat for Public Rev­enue yesterday launched a new mo­bile ap­pli­ca­tion that will al­low cus­tomers to check if the re­ceipts they re­ceive are from a le­gal cash register. ‘Cit­i­zens’ help is vi­tal be­cause it strength­ens the work tax in­spec­tors do un­der dif­fi­cult con­di­tions,’ said gen­eral sec­re­tary Ka­te­rina Sav­vaidou.

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