Greek Bank Stocks Drop in Early Trading; ASE Index Down 2%
Greek bank stocks declined in early Athens trading after Greece reached an agreement with its private creditors on a debt swap plan.
The ASE Index fell 2 percent to 809.52 at 10:56 a.m. in Athens. National Bank of Greece SA fell by as much as 3.4 percent, Alpha Bank SA (ALPHA) declined as much as 5 percent, EFG Eurobank Ergasias SA dropped by as much as 4.4 percent and Piraeus Bank SA (TPEIR) fell by as much as 4.9 percent.
Investors will forgive 53.5 percent of their principal and exhange their remaining holdings for new Greek government bonds and notes from the European Financial Stability Facility.
Greece’s four largest banks are the country’s biggest private creditors, with almost 29 billion euros of remaining exposure to sovereign bonds and have so far taken combined losses of only 4.3 billion euros, according to their most recent disclosures.
To contact the reporter on this story: Paul Tugwell in Athens at ptugwell1@bloomberg.net
To contact the editor responsible for this story: Tom Stoukas at astoukas@bloomberg.net
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