The European Central Bank gave the green light for the Athens Stock Exchange to reopen after one-month shutdown. According to Greek and foreign media, the ASE will open with temporary trading restrictions for local investors, while foreign investors will trade freely and will not envisage restrictions of capital controls (capital outflow). The ASE trading will resume after the Greek Finance Ministry will issue a ministerial decree. Athens Stock Exchange closed on Friday, June 26th 2015 at 797.52 units and remained closed ever since Monday, June 29th, when capital controls and bank holiday were imposed.
“The ECB accepts temporary restrictions to Greek investors for the buy of shares, but full freedom of movement like capital outflow by foreign investors.” (Capital.gr)
According to banking news website NewMoney.gr, “Greek investors will have restrictions in the use of “old money”, that is money on bank accounts, and will be allowed to use “new money” that is money form the chests, they had withdrawn before the capital controls.” The website consider this restrictions as “with a questionable effect” as nobody would put his money under restrictions.
NewMoney.gr had previously stressed that Greek investors would be ‘sacrificed’ in order to have the stock market reopen.
However, citing ASE sources, the website notes that “investors will be able to use the money available as credit balances at trading companies. It is not specified thought, whether the investors will be able to transfer funds to their trading accounts via money deposit or via e-banking, until the reopening decree is published.”
The Bank of Greece and the Greek Capital Mark Commission are awaiting for the ministerial decree in order to decide when the Athens Stock Exchange will reopen.
According to economic news website Capital.gr, there are efforts to reopen ASE on Thursday, July 30th 2015, while the ministerial decree is expected to be published later on Tuesday or Wednesday morning.
Among other shares, also the shares of the banking sector will be available for trading. A detailed information about the bank share will precede.
Capital.gr notes that “practically, the ASE will reopen with the exclusion of local investors as they will not be able to transfer money from their accounts on Greek banks to buy shares, nor will be able to change custodian. They will be able to buy shares only with new money or with funds that will come from abroad or from outside the banking system like credit balances of their codes, dividends etc.”
Note: Confirm the above mentioned information published by Greek media with your Stock Market traders, investors, etc.
PS I hope foreign investors and traders will not leave Athens Stock Exchange at once…