ECONOMY

Global funds try to protect local holdings

global-funds-try-to-protect-local-holdings

Major foreign funds with holdings in Greek listed firms – mainly banks – are keen to ensure their losses are contained. Ahead of the bank recapitalizations and following the major drop in stock prices last week, senior officials have arrived in Athens to get a better idea of the government’s intentions and try to protect what is left of their investments.

Kathimerini understands that associates of John Paulson, Wilbur Ross and other well-known US investors visited Athens over the past week to discuss the future of Greek banks and the economy in general with senior government officials.

They may not have managed to see Deputy Prime Minister Yiannis Dragasakis, but they did meet with Economy Minister Giorgos Stathakis. They asked him for some kind of provision that would protect their holdings in Greek banks from annihilation when the recap process is conducted. It is not yet known whether the government made any commitments in that direction, only that there was “an understanding expressed.”

Fund officials have stayed in Athens to hold meetings with market and bank officials too.