After a month of financial panic in Greece, the Athens stock exchange is getting ready to reopen as they wait for the Ministry of Finance to decide on whether to continue the relaxation of capital controls.
The Financial Times reported that Greek banks were partially reopened after withdrawals became overwhelming and despite the European Central Bank refusing to increase emergency funding. At the moment, customers are restricted to withdrawing €420 a week but Greece is still in bailout deal talks.
Overseas payments and trading remain halted on the Athens stock exchange, alongside clearing services and Greek securities cash settlements. Alexandra Grispou, a spokesperson for the exchange, said that there has been no indication of when the market will fully be open for European banks, according to the FT.
Before the Greek government imposed capital controls on Monday 26 June, the country announced a plan to have a public vote in order to decide upon Europe’s previous bailout plan. However, deposits dried up as citizens withdrew their savings after European leaders decided not to give emergency lending to Greek banks.
This meant that stocks fell and the cost to borrow increased, in turn, increasing the risk to investors. Greece has been selling ultra-short-term debt throughout the crisis and in spite of these capital controls, managed to sell over €800 million of 13-week debt.
A total of US$4.88 trillion of debt has been sold so far this year reports Dealogic, close to the level of 2007 when US$4.91 trillion of bonds were issued over the same period.
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