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A new collapse of the Athens stock exchange with the banks mainly affected

05 February 2010 / 18:02:22  GRReporter
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The index of the Athens stock exchange “dived” by 4,45 percent in Friday and ended the day at 1 865,17 points as in the last day of the week continued the pressure for liquidity of the bank shares, caused by the public insecurity in the way of the Greek economy as well as the possibilities for Portugal and Spain to follow the destiny of Greece. As it could be expected the most affected were the Greek banks whose index dropped by 5,23 percent. More specifically, the shares of Alpha Bank dropped the most by 7,79 percent, followed by the shares of Eurobank – 6,25, and at the third place in terms of losses is the Bank of Cyprus with 5% and the National bank of Greece with 4,51%

As a whole the shares of the large corporations dropped in price by 4,45 percent, the shares of the middle size companies – by 3,55%. The rest of the European stock exchanges also ended the day downgraded.

Meanwhile it became clear that the agency Moody’s will discontinue assessing the prices of the bonds, issued by Greek bans due to the deteriorated macroeconomic environment in the country. According to the credit rating agency, for the private banks in Greece it would be hard to maintain their rating AAA, when the rating of the country was decreased from A1 to A2. The agency announced that they will reevaluate their criteria for the issuing of credit ratings to the bank shares, and until then they will not give a rating of AAA to no Greek bank. Analyzers believe that in this way Moody’s is practically depriving the Greek banks from the possibility to maintain their liquidity by issuing bonds and shares, however they note that in the near future the Greek banks will have no problems with their liquidity.  

Some days ago the Fitch agency also threatened to decrease the credit rating of the Greek banks due to the suggested by the government law for canceling the unpaid credits. According to the competent agency this law encourages a culture of waste and not observing the bank debts.

Tags: collapse stock exchange banks credit rating economy
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