Stock, bond markets surge after deal
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.