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Athens Stock Exchange Plunges More than -6% as EU-South on Fire

Athens Stock Exchange experiences sever losses on Monday morning as development in Greece, Spain and Italy lead to decline of all European markets and the Euro. As of 02:21 pm, the General Index of ASE is at 588.59 units recording losses of -6.70%. The banking sector is at -8.90%. One hour earlier, at 01:32 pm,the General Index was at -7.21%.

It looks as if the markets are concerned about a possible negative report by the Troika,  a report evaluating the fiscal adjustments of the bailout program.  The representatives of IMF, EU and ECB are expected to arrive tomorrow, July 24th 2012 in Athens. 

Over the weekend several foreign analysts revived the discussion about the perspective of a disorderly default and a Greek euro exit, following Germans’ and Greeks’ statements and EU “sources”. All this came after the decision of European Central Bank on Friday to stop accepting Greek bonds as collateral and German Foreign Minister Guido Westerwelle rejecting renegotiation of the Greek bailout. A main target of Samaras’ coalition government.

On Sunday, German weekly DER SPIEGEL cited the notorious and as always anonymous “EU-source” claiming the IMF said it would halt its   rescue funds to Greece.

Also German newspaper Wirtschaftswoche published an interview with former Papandreou government Finance Minister (2009-2011) Giorgos Papaconstantinou was said among others, that “Samaras government may soon collapse amid conflict caused by his ND party’s domination of coalition.  “I do not want to paint a black picture, but I am not optimistic” about the life expectancy of this government.

At the same time, German Economy Minister Philipp Roesler appeared to have “grave doubts” about whether Greece would be able to fulfill its obligations towards its lenders. “If no fulfillment of obligations, no bailout tranches should be released,” Roesler told German state broadcaster ARD.

Bloomberg reacted immediately with a post “Greece Back at Center of Euro Crisis as Exit Talk Surfaces and Spain Yields Soar”

Also interesting to read ” investors being advised that Grexit “just as much a positive for the markets as for the € itself” by Seeking Alpha .

Meanwhile the European Commision said that decision on Greek disbursement unlikely before September, however confident disbursement will be made, #Greece should remain a member of the Euro.

With one voice, German media report that “Germany’s patience with Greece is over”.

How serious is the situation indeed? Last night KTG chatted with some co-Twitters:


Looks like @Bloomberg trying to scare up a little market action with talk of a Greek govt collapse via @lindayueh #Greece Monday markets


@teacherdude @Bloomberg @lindayueh Bloomberg? I understand ex finmin Papaconstantinou started this. #Cassandra still alive

@keeptalkingGR @Bloomberg @lindayueh It’s just crude market manipulation. Let them have their fun, and make their money.1 born every minute


@teacherdude @Bloomberg @lindayueh lol, yes, why not? Spiegel-story with EU’ source “IMF to cut rescue funds to GR” makes the perfect match.


@keeptalkingGR Τsk tsk tsk. I thought when we voted “pro-EU” a month ago we were “saved.” @teacherdude @Bloomberg @lindayueh

Is it really serious or do big market boys need just their regular fix? I wonder what’ they’ll when and if Greece go bankrupt. They will have no their usual play-mobile and will have to search for a new one.


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  1. What Greece really should do right now is call their bluff, because that’s what this is all about. Stop being the sacrificial lamb and stand up and say enough. the visit of the Troika represents a golden opportunity to turn the tables on these guys. Their whole empire will crumble, like a sand castle in an incoming wave.
    Already Spain is hovering at the brink of the abyss. Give it another day or 2, and Italy will be joining the tightrope dance Spain is doing right now. After the Spanish FinMin calling for a 56% tax on all short term money transactions in Spain over the weekend, I don’t think too many Spanish will be pissed with Greece if it gives that little nudge while their government is desperately trying to keep its balance looking over the edge. Lunacy has no end, until you put an end to it. It’s time, not just for Greece’s sake, but for most Europeans. Some will not be happy, but so be it. A lot of Europeans have not been happy for a long time, and do those who think they matter care?…

    • well said !
      enough is enough !


      • It would seem that Greece could very well be heading for yet another election. Again, a golden opportunity to say enough, this time to the political leeches who have been fleecing the Greeks for years.

        • Yeah, call yet another election! That will solve all problems. We all know the enormous changes that came out of the last two ones. Not to mention the ones before.

          Seriously, when elections don’t change anything, citizens should ask themselves why, and if maybe their own demands are responsible for that. In the situation now, it’s very obviously the insistence of the Greeks in staying in the Eurozone that prevents change. Tsipras should have been honest about the fact that Greece can’t keep the Euro (and thus accept the conditions that come with it) and have a big stimulus triggering a recovery at the same time. Maybe that would have persuaded more people to try something new instead of insisting on the same old policies somehow resulting in a more positive outcome. Only more realism among the voters (and consequentially more realistic proposals by the politicians who want to be elected) can bring a realistic chance for changes!

          • giaoýrti giaoyrtáki

            Tsipras is – like a growing number of people – understanding that the memorandi had only one aim: To force Greece back to Drachma ($) so that all the money that waits on foreign bank accounts will double when get “invested” to create a Wischiwaschi with Greek slaves and discount privatizations. Greeks who can afford to flee will not believe their eyes because if there are not enough Greek slaves working under 300 Euro to be “competitive” the bastards will simply legalize all illegals to exploit them for wet capitalist dreams: Yacht and Greek island for every European politician and manager and when they figure “Oh, no fish in the sea” they just throw all fishermen into jail.

            $: why not Dollar, Rubel or Lira?

          • Indeed, why not join the Rubelzone? Good luck.

  2. The one and only reason another election will be called very soon is because certain “parties” decided to influence and pressure the people of Greece to vote “correctly”. No more, no less. As I said before, the unprecedented, orchestrated interference in a sovereign election by Merkel & Schauble Inc was nothing short of an act of terrorism. The whole campaign was aimed at frightening the older people of this country into submittance, and it worked. Just. For a day or 2.
    Strangely enough, although the puppetmasters got their puppets in place, they still can’t keep the show on the road. I wonder what is wrong? Could it be the script after all???
    2 months ago a new script was called for and denied. Over the weekend, that new script was called for again. Meanwhile, although thoroughly denied as ever been possible, we now factually have not just Greece, Portugal, and Ireland in deeper trouble than ever before, Spain has joined the bailout club (still denying it, while at the same time looking for 300 billion to start with), Italy is knocking on the door, German, Dutch and Luxembourg banks all on “negative watch”, and you are asking why Greece would call another election?
    What you really should be asking is why aren’t all the others, including Germany, calling elections and get rid of this neo-leberal crowd that is running the show of the rails?

    • Please be realistic: Since both major contenders, Samaras and Tsipras, promised to keep Greece in the Eurozone (which isn’t in the interest of the creditor nations anymore), why should foreign governments have supported the party of the radical left, whose governing would only have resulted in more trouble at the negotiations? The only reason would have been that Tsipras’ uncomprising stance would have accelerated the Grexit. And afaics the public statements of Troika and Eurozone officials, which sounded rather toned down regarding Syriza (imho far from an all-stops-pulled attack), show that they secretly would have favored Tsipras as prime minister. But they couldn’t say this publicly, of course. Anyway, in the end, it was the Greek people who decided, so any blame about the outcome should go to them in the first place.

      • “Please be realistic” Why don’t you start with doing just that?
        Everybody in Greece, and their dog, knows that the current “government” is in power as a direct result of a frontal onslaught of media scare mongering and false information, most of which was repeated here at nauseum by your good self. And it worked. All the talk of the “Drachma Cartel” and other shit they came out with, if not the straight forward order to vote Samaras (like FTD, remember?). And, as always, you should inform yourself and understand the issue before commenting on it. Indeed, both Tsipras and Samaras promised to renegotiate. In the Samaras case, it really was only an after thought more than anything else. Secondly, what Samaras said he would TRY to do is renegotiate SOME of the TERMS of the MoU. He never did, and still hasn’t mentioned the flawed principles on which it is based.
        Tsipras on the other hand has always said, from day one, that he would renegotiate the BASIS of the MoU, and work out a new program based on repayments triggered by growth rather than austerity. Which is indeed the only reasonable and sustainable way of doing things. And strangely enough, after the EU thoroughly shafting SYRIZA through unacceptable but nevertheless succesful interference in the electorial affairs of a sovereign state, and getting the puppet government they insisted on getting, suddenly “Growth” becomes the buzz-word. But not for Greece. For Greece it’s “more austerity”. Who said something about double standards?
        And although “Growth” is now used by every EU politician whenever they can as “the way to go”, the flawed basis of the whole bailout system remains in place. Not just for Greece, but also Portugal, Ireland, Spain and soon enough Italy. And then one wonders why the hell things are going all wrong again in Spain… Latest news, the EU is trying to talk Spain into a 300 billion € bailout package, based on austerity. The Spanish have seen what happened to Greece, and are resisting. Who can blame them?
        Indeed, be realistic…