The Best of GRReporter
flag_bg flag_gr flag_gb

Stock exchange deals freed of capital controls

07 December 2015 / 21:12:25  GRReporter
2413 reads

The new President of the Hellenic Capital Market Commission, Charalampos Gotsis, announced that the government is releasing stock exchange transactions from capital controls. In a statement before reporters, Gotsis said that Finance Minister Efklidis Tsakalotos has already signed the decision. According to Gotsis, it might be published in the State Gazette and even come into effect today.

After dropping the controls, Greek investors will be able to deal in stocks while using the so-called "old money" after having only been able to operate with "new money" over the last six months.

In addition, Gotsis argued that in the second half of 2016, capital controls will be completely abandoned in all areas of the Greek economy. He stressed that the Capital Market Commission, in cooperation with the Athens Stock Exchange, will provide incentives for the listing of new companies on the stock market in an attempt to bolster the real economy. Gotsis further said that creating a corporate bonds market will be among the priorities of the Capital Market Commission's new management.

Here are the other HCMC objectives :

-       To carry out its advisory role as laid down in EU legislation and the relevant European rules,

-       To usher in a new wave of corporate listings on the Athens Stock Exchange allowing businesses to use low-cost development capital

-       To organise a competitive corporate bond market preventing capital from fleeing Greece

-       To strengthen joint investments businesses and activate alternative ways of investing in the framework of the capital market union, which will aim to mobilize stagnant capital following the European practice

-       To strengthen the legal framework necessary to achieve the above aims.

At the end of his statement, HCMC's President indicated that the ban on short selling of bank equity would be extended at least until 20 December.

According to commentators, the decision will allow the entry of funds from various sources into stock deals on the Athens Stock Exchange, and this in turn will increase the volume of operations, which has shrunk severely in recent months. Analysts argue that with a stock index at around 600 basis points and stock prices this low, investment opportunities are really impressive.

Tags: Economy markets Athens Stock Exchange removal of capital controls on stock exchange transactions
GRReporter’s content is brought to you for free 7 days a week by a team of highly professional journalists, translators, photographers, operators, software developers, designers. If you like and follow our work, consider whether you could support us financially with an amount at your choice.
You can support us only once as well.
blog comments powered by Disqus