Greek stock market on course to re-open as ECB gives assent
The reopening of the Athens stock market moved a step closer on Tuesday after the European Central Bank gave its approval to Greek proposals setting the ground rules for trading, a spokeswoman for the Athens Exchange said in a telephone call.
The timing of the reopening, after more than four weeks of closure, will be decided by Greece’s finance ministry in a decree that will also decide any trade restrictions and ground rules for trading, according the spokeswoman, who asked not to be named in line with policy.
The ECB’s Executive Board discussed the Greek proposals at a regular weekly meeting Tuesday. While the central bank isn’t formally responsible for stock market regulation, it has rationed the bank liquidity needed for its operation since February, as the election of Prime Minister Alexis Tsipras’ SYRIZA party raised the prospect of default and exit from the euro.
Spokesmen for the Bank of Greece, the ECB and the Greek finance ministry declined to comment. A Greek government official said that the bourse may reopen by Friday, without elaborating further.
Trading suspended
Trading on the Athens Stock Exchange, the Multilateral Trading Facility, or ENA, and the Electronic Secondary Market for government bonds, or HDAT, has been halted since June 29, following the introduction of capital controls in Greece. Redemption of units in mutual funds and short-selling have also been on hold.
Banks reopened on July 20 with limited services available, following a four-week forced closure after Tsipras capitulated to creditors’ demands and agreed to implement prior actions required in exchange for a third bailout program.
Technical experts from the ECB, the International Monetary Fund, the European Stability Mechanism and the European Commission are in Athens to negotiate with their Greek counterparts the conditions which will be attached to an 86 billion euros ($95 billion) lifeline over the next three years.
[Bloomberg]
