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The Athens Stock Exchange - Chronicle of a Death Foretold

14 September 2011 / 17:09:02  GRReporter
5855 reads

In June 2010, Moody's "rewards" Greece by evaluating it junk, because the investors lose all confidence in the credit profitability of the country. The level of transactions on the Greek stock exchange fall as a consequence of international investors’ perceptions. Nothing is able to cheer up the financial market in Athens, nor even the generally positive results of the stress tests of European banks. The Greek financial institutions pass it, except for the state ATEbank, which resorts to capital raising immediately after the announcement of the results.

From September 2010 to September 2011, the capitalization of the Athens Stock Exchange tumble € 22 billion from € 55.9 billion and now is close to € 33.1 billion. Promises for structural changes and privatization at the beginning of the year cheer up the investors. The Greek state rich in property unused and in one of the most beautiful corners of the old continent is reluctant to accept the proposal of the supervisory Troika of the International Monetary Fund, the European Central Bank and the European Commission. The government agrees to implement medium-term privatization to raise funds and pay part of its obligations under the huge foreign debt. It is expected to raise about € 50 billion for five years and the Athens Stock Exchange will play a crucial role in the procedure. None of the dream comes true.

The privatization program is adopted in the middle of the year with a narrow period, which remained only on paper. Not a public entity is "thrown" to the stock exchange to find its new shareholders and the ship of the Greek economy with the Athens Stock Exchange continues to sink properly.

 

Tags: EconomyMarketsAthens Stock ExchangeDeclineCrisisFinancial collapse
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