Bloomberg, FT on Wednesday’s sinking of banking index at ASE
A mini-crash of the banking index at the Athens Stock Exchange (ASE) on Wednesday more-or-less expressed international investors’ concerns over the four Greek systemic banks’ recent lackluster results, as well as their “tightrope act” of aggressively reducing “bad debt”, avoiding new provisions and possibly seeking new capital from the market to accomplish the previous two feats.
Sluggish rates of new lending have also been cited, as the day’s losses, including to a lesser degree non-systemic Attica Bank, generated international press attention.
The benchmark FTSE Athex index fell by nearly 9 percent at the end of Wednesday’s trading, after losses of as much as 18 percent during the day.
According to a Bloomberg dispatch from Athens, which quoted two sources “with knowledge of the matter” Piraeus Bank must raise about 500 million euros by selling tier 2 bonds under a plan agreed with the ECB’s Single Supervisory Mechanism, and all amid current market turbulence caused by Italian bond jitters.
Bloomberg also reminded that Greek bank shares have seen roughly 97 percent of their capitalization evaporate since 2015, when the mostly radical leftist SYRIZA party and Alexis Tsipras came to power.
In its dispatch, FT said “… some of Greece’s biggest banks suffered steep share price falls on Wednesday as investors worried they may not have enough capital to meet fresh targets on reducing their large portfolios of bad debts.”
FT referred to an announcement by Piraeus Bank, Greece’s largest lender based on assets, that “its plan to boost capital by issuing €500m of subordinated bonds was still on track.”
You may be interested
U.S. Ambassador to Greece Pyatt: The path to the acquisition of the F-35 is a multi-year processPanos - Dec 01, 2020
U.S. Ambassador to Greece Geoffrey R. Pyatt said in a message that the US defence relationship with Greece is at…
Greece confirms 1,044 new coronavirus cases on Monday, 85 fatalities; 600 in ICUsPanos - Dec 01, 2020
Greece confirmed 1,044 new coronavirus cases on Monday, of which 9 were identified at the country's entry points, said the…
Turkish survey vessel Oruc Reis returns to its port, as Greece calls on EU to impose sanctions on Turkeymakis - Nov 30, 2020
After 49 days of seismic surveys in a large sea area that included the Greek continental shelf, Turkish research ship…