Greek Financial Stocks Drop After Negotiations Deadlock

Shares in some of Greece’s biggest banks have fallen sharply on the Athens Stock Exchange, following a fresh blow to the country’s debt negotiations.

Stocks in the National Bank of Greece and Piraeus fell approximately 9%, while Alpha bank fell by almost 10%.

Officials from the International Monetary Fund (IMF) pulled out of talks with Greek politicians in Brussels yesterday, citing “major differences”.

Greece is seeking to avoid defaulting on a €1.5bn debt repayment to the IMF.

The payment is due by the end of the month.

Shares on the Athens Stock Exchange had soared on Thursday amid renewed optimism about Greece’s talks with its creditors.

The index climbed more than 14% – the best performance in several weeks.

But the IMF’s withdrawal has dampened investors’ moods.

On Friday, Jeroen Dijsselbloem, president of the Eurogroup of finance ministers, said a deal without the IMF was “unimaginable”.

via BBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza