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Greek banks dropped by 20-year record

05 May 2010 / 08:05:03  GRReporter
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Yesterday was a dramatic day for the Athens Stock Exchange, which lost 6.68 per cent of its index only for 10 hours. At the end of the trading day it formed at just over 1.7000,00 points. Huge losses noted Greek banks whose shares are devalued with over 10 percent in one day.
Panic in world markets continues, as Greece does not yet give a clear message that it will deal with the difficult financial situation but will rescheduling its foreign debt. The latter was strongly denied by the Greek finance ministry, but even that was not enough, because of widespread distrust and discontent with the way the Commission treats the Greek crisis.

According to Athens stock exchange analyst the worries about the consequences of greater than expected recession, the extraordinary tax on profitable businesses, which the Government announced and the rumors of rescheduling the external debt of Greece, are the reason for the collapse of the stock market and especially for the devaluation of Greek banks shares. The Euro reached its lowest point for the whole year and was exchanged for $1.3037. The announced financial aid package on Sunday not only did not calm the markets, but on the contrary, caused even more uncertainty among investors, who expect every moment Spain or Portugal to benefit and to request such assistance to them.

Spanish Prime Minister Jose Zapatero flatly denied any intention of his country to seek aid from the eurozone, but this did not save the shares of all banks in Europe, which fell vertically yesterday. The European Commission has remained certain that it must create a credit rating agency under its control, because those who work on the free market are not reliable.

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