Greece prepares to reopen Athens stock market

ATHENS, Greece - The Athens stock exchange, which has been closed for nearly a month due to Greece's debt crisis, is expected to reopen in a few days after receiving approval from the European Central Bank, a stock market source told AFP Tuesday.

"The ECB gave its green light to reopen the stock market in Greece, (and) we are waiting for a ministerial decision which will specify the conditions of the reopening," the source said.

A spokesman for the Greek finance ministry said that a decision would be published later Tuesday but did not indicate when the Athens stock exchange would resume trading.

The stock market in the Greek capital closed on Friday June 26, a few hours before Prime Minister Alexis Tsipras announced a referendum on the bailout conditions demanded by Greece's international creditors.

Greeks rushed to their banks' cash machines over that weekend prompting the government to impose capital controls from Monday June 29, followed by the closing of the banks and the stock exchange.

The aim was to protect the banking sector which has seen huge withdrawals over the past six months by people nervous about Greece's economic and financial future.

The banks reopened after three weeks on July 20, but withdrawals and money transfers abroad remain under tight controls. Greeks can only withdraw up to 420 euros ($464) a week.

For businesses the capital controls were slightly eased last week but economic activity especially imports continues to encounter numerous obstacles.

source: www.abs-cbnnews.com

Greek banks reopen as Tsipras eyes return to normal

ATHENS - Greeks queued outside banks on Monday as they reopened three weeks after closing to stop the system collapsing under a flood of withdrawals, the first cautious sign of a return to normal after a deal to start talks on a new package of bailout reforms.

However capital controls will remain and payments and wire transfers abroad will still not be possible - a situation which German Chancellor Angela Merkel said on Sunday was "not a normal life" and warranted swift negotiations on a new bailout.

The stock market will also remain closed until further notice.

Queues formed outside bank branches in central Athens as people waited to take care of business frozen during the three week-long bank holiday.

Limits on cash withdrawals have been made slightly more flexible, with a weekly limit of 420 euros in place of the daily 60 euro limit previously.

"Capital controls and restrictions on withdrawals will remain in place but we are entering a new stage which we all hope will be one of normality," said Louka Katseli, head of the Greek bank association.

Greeks will be able to deposit cheques but not cash, pay bills as well as have access to safety deposit boxes and withdraw money without an ATM card.

Bankers said there may be minor disruptions after the three-week interruption to services but they expected services to resume largely as normal.

"I don't expect major problems, our network and the network of our competitors are ready to serve our clients," said a senior official at Piraeus Bank, one of the big four lenders. "There might be lines because many people will want to withdraw money from their deposit boxes," the official said.

The bank closures were the most visible sign of the crisis that took Greece to the brink of falling out of the euro earlier this month. But Tsipras is eyeing a fresh start and swift talks on the bailout that will keep Greece afloat.

The tough terms of the bailout will see tax hikes, pension cuts, strict curbs on public spending, an overhaul of collective bargaining rules and a transfer of 50 billion euros of state assets into a special privatization fund.

In exchange, Greece is hoping to receive loans of up to 86 billion euros.

The decision to reopen banks was the first action by Greece's new cabinet after the 40-year-old leftist prime minister sacked rebels who had opposed the deal he struck with EU leaders last week.

Increases in value added tax agreed under the bailout terms have also taken effect with VAT on food and public transport jumping to 23 percent from 13 percent.

Acceptance of the bailout terms that meant the banks could reopen marked a turnaround for Tsipras after months of difficult talks and a referendum that rejected a less stringent deal proposed by the lenders.

He sacked party rebels in a government reshuffle on Friday and is seeking a swift start to talks on the bailout accord with European partners and the IMF before elections which Interior Minister Nikos Voutsis said were likely in September or October.

source: www.abs-cbnnews.com