Athens stock market reopens after 5 weeks closure

By in

The Athens stock exchange has reopened this week over a month after Greece’s financial crisis forced governments to suspend all trading.
After 5 weeks it will open, however not without certain restrictions for local investors, the Greek finance ministry stated it was to prevent more cash leaving the banking system at a rate that was too fast.

Capital controls were introduced on June 29th, including the closure of banks and financial markets and cash machine withdrawals were limited to €60 each day. The banks reopened on July 20th, after a new bailout plan was arranged with the EU; however withdrawals still remain limited to €430 a week. Other capital controls have been relaxed, so Greek companies could make payments abroad.

Shares in the largest Greek banks were showing cracks before the market closure. Piraeus Bank has lost 57% so far in 2015, while Alpha Bank is down by 32%. The benchmark Athens index has dropped by 32% over the past year.