Two workers change the name and posters of Banco Espirito Santo after processing in Novo Bank, in an office in Lisbon (Portugal). EFE / File
->
The Bank of Portugal received three binding offers for Novo Bank
->
06/30/2015 15:10 (-6 GTM)
Lisbon, June 30 (EFE) .- The Bank of Portugal (BoP) announced today that it has received three binding proposals to acquire Novo Bank, the third largest Portuguese financial institution resulting from the split of the collapsed Banco Espirito Santo (BES). In a statement released this day, deadline for submission of final bids, the banking regulator did not specify what the three entities who finally submitted a binding offer for Novo Banco, but Portuguese media suggest that it is are . US company Apollo and Fosun and Chinese Anbang In total there were five entities exceeded the previous phases of the sales process of Novo Banco: the Spanish Banco Santander, US funds Apollo and Cerberus, the Chinese Fosun and the Anbang insurance, also of Chinese origin. Santander and Cerberus have finally decided to retire from the race by the bank. In his note, the BOP indicates that analyze the proposals in the coming weeks to proceed make a decision. With 72.465 million euros in assets and a market share of 18%, the Novo Bank is the third largest Portuguese financial institution, after the state Caixa Geral de Depósitos (CGD, with 100,000 million) and the Banco Comercial Portugues (BCP, with 78,800 million). The Espirito Santo, intervened August 3, 2014 for accounting irregularities and management was split by a healthy part BOP (Novo Bank) and other toxic, which keeps the name of BES. Due to the unprecedented application in the case of BES resolution mechanism adopted by the European Union in 2012, Novo Bank was recapitalized with 3,900 million euros of public funds and other 1,000 million from the Portuguese financial sector.
The Ministers of Economy and Finance of the euro zone on Tuesday ruled out another extension of the rescue Greece, unable to carry out the necessary formalities before the current program expires at midnight, announced the Slovak Finance Minister Peter Kazimir, on Twitter.
The Eurogroup ministers again hold another conference call on Wednesday morning, said Michel Reijns spokesman Eurogroup chairman Jeroen Dijsselbloem through the same network. (See more information. What the Greeks do not want to give)
“The program will be over at midnight,” Kazimir said. “The last deadline for an extension of the Greek program was the weekend. Because parliamentary procedures, there is an inability to extend the program beyond today,” he added.
“The Eurogroup is over. The letter (the Greek Prime Minister Alexis) Tsipras includes three requests. The extension of the program and a reduction (debt) is not possible,” he said for his part the Finnish Minister Alexander Stubb.
Regarding the request of the leader of Syriza that is granted the country a new bailout program, Stubb said that such claims “are always treated through the normal procedures” . In his letter, Tsipras asks its partners a “short” further extension and a new “loan” of two years from the European Stability Mechanism (ESM), a permanent rescue fund for the eurozone, to address the payment of debt, both external and internal.
Greek Prime Minister makes no mention in his letter to a share of the International Monetary Fund (IMF) on a loan of this type. After months of negotiations, the lack of agreement on measures that Athens must apply within the loan conditions have led to the end of the four-month extension granted to Greece rescue program. (See also: Do you know what is happening with Greece)
This means that Greece lost the chance to access the remaining funds, which would total 16,000 million euros, today explained EU sources. The figure includes only the European part of the last installment outstanding 7,200 million euros in the second bailout to Greece, of which 3,500 million correspond to the IMF, ie only affect 1,800 and 1,900 ECB bailout fund eurozone, according to sources.
To those 3,700 million the ECB and the bailout fund would total was 10,900 million from the reserve eurozone to recapitalize Greek banks and profits from operations with debt bonds this year by the ECB, which represent between 1,400 and 1,800 million euros.
BRUSSELS Ministers of Economy and Finance of the euro area today ruled out further expansion of the bailout of Greece, unable to carry out the necessary formalities before the current program expires at midnight announced the Slovak Finance Minister Peter Kazimir, on Twitter.
The Eurogroup ministers again hold another conference call on Wednesday morning, said Michel Reijns spokesman Eurogroup chairman Jeroen Dijsselbloem, through the same network.
“The program will be over at midnight,” Kazimir, “the last deadline for an extension of the Greek program said it was the weekend. Because parliamentary procedures it is a failure to extend the program beyond today, “he added.
” The Eurogroup is over. The letter (the Greek Prime Minister Alexis) Tsipras includes three requests. The extension of the program and a reduction (debt) is not possible, “he said for his part the Finnish Minister Alexander Stubb.
Regarding the request of the leader of Syriza that the country is granted a new bailout program, Stubb said that such claims “are always treated through the normal procedures.”
In his letter, Tsipras asks its partners a “short” further extension and a new “loan” of two years from the European Stability Mechanism (ESM), a permanent rescue fund for the eurozone to tackle its debt, both external and internal.
The Greek prime minister did not refer in its letter to a share of the International Monetary Fund (IMF) on a loan of this type.
Thousands of Greeks protested in Athens this afternoon by the setting. Photo: AFP
After months of negotiations, the lack of agreement on measures that Athens must apply within the loan conditions have led to the end of the four-month extension granted to Greece rescue program.
This means that Greece lost the chance to access the remaining funds, which would total 16,000 million euros, EU sources explained today.
The figure includes only the European part of the last installment outstanding 7,200 million euros in the second bailout to Greece, of which 3,500 million correspond to the IMF, ie only affect 1,800 ECB and 1,900 fund rescue Eurozone sources said.
To those 3,700 million the ECB and the bailout fund would amount is 10,900 million of reserves from the eurozone to recapitalize Greek banks and operations benefits its bond debt this year by the ECB, which represent between 1,400 and 1,800 million euros.
At least 20,000 people, according to police, protested on Tuesday in Athens to support the “yes” The referendum called for Sunday, and support measures required of Greece and its creditors reforms.
To shouts of “resign” in the direction of the government, and slogans like “Greece is Europe” and “Yes Europe “, the demonstrators braved the rain and gathered in Syntagma Square outside parliament.
According to the protesters, many of them hostile to the government of Syriza, Greece is staking its future in Europe if they fail definitely its negotiations with EU partners.
On Monday, more than 13,000 supporters of the leftist Syriza ruling demonstrated in the same place to support the “no” in the referendum.
During the event, several participants expressed their dismay at the fact that on Sunday the conditions of creditors no longer be on the table, since the European program of aid to Athens expires at midnight Tuesday.
Greece sent a request to the International Monetary Fund (IMF) to defer payment of debts that expire Tuesday “until November” , said Deputy Prime Minister Yannis Dragasakis to state television.
Tuesday within that Athens has to pay 1,600 million euros the International Monetary Fund (IMF) is satisfied. Greek Finance Minister Yanis Varoufakis, admitted that his country would not pay the installments on time.
“We have submitted a request to the IMF to take the initiative to delay payment for November,” said Dragasakis, which allow Greece to avoid default.
Greece used in this way an arrangement of the IMF statutes allowing “at the request of a Member State”, without voting necessary “postpone” the date of reimbursement between 3 and 5 years, which corresponds to the duration of their loans.
The IMF board, which represents its 188 members, met to decide the matter, he told AFP one source close to the negotiations.
The executive director of the IMF, Christine Lagarde , had assured l June 19, as part of the stalled negotiations, that the agency would not grant any extension to Athens for payment . “The payment of Greece until 30 June. There will be a grace period of one or two months,” Lagarde warned after a meeting of the Eurogroup in Luxembourg. “If the July 1 that was not paid and not paid.”
Greece experienced a second day of capital controls: the banks were closed and the Greeks could only remove 60 euros from ATMs. The government of Greek Prime Minister Alexis Tsipras, asked its eurozone partners a new credit program for 29,000 million euros that would govern until 2017 and would be operated through the European Stability Mechanism (ESM) and restructuring the debt maturing after that date
second day of yard, and the maturity of Greek debt payments scheduled for tonight at midnight, Greece could finally reach an agreement today with creditors enabling it to avoid falling into default, according to local media said.
The Greek government wants to order a third aid program or third rescue to its partners in the euro, reported the agency Bloomberg News quoted the office of Greek Prime Minister Alexis Tsipras. A program two years under the European Stability Mechanism (ESM) would be .
The Government of Tsipras had repeatedly requested that the debt of the European Central Bank trasfiriera the ESM to improve the conditions of return and interest, request that the partners have so far rejected. The sources did not state whether the prime minister has received a response to this request or whether still in contact with its European partners, after a morning of intense activity between Athens and other capitals in search of a last-minute agreement before the expiry of the current extension of the rescue at midnight.
However, the Greek Government maintains its recommendation of ‘no’ in the referendum next Sunday on the proposal of institutions (European Commission, European Central Bank and International Monetary Fund) . The Greek Government claim to finish a sustainable agreement within the euro. This is the message of a ‘no’ to a bad agreement in the referendum on Sunday, said sources close to the negotiations.
“From the outset we made it clear that the decision to call a referendum is not the end but the continuation of negotiations with better conditions for the people, “he added.
The truth is that nothing is closed yet . And the situation is rather confused, because midmorning the Greek finance minister said that today will not be paid to the Fund.
Today is the deadline for payment of the loan received by Greece from the International Monetary Fund (IMF), 1,600 million euros, that Athens will not return unless we find a last minute solution.
The negotiations for an agreement between Athens and creditors this week to broke when Tsipras rejected a European proposal and decided to submit it to a referendum among greigos which must vote on Sunday. Europe and warned that no agreement in the consultation will be a No to Europe and the euro.
Asked about this new rapprochement between Athens and its creditors ( Tsipras said even that would be traveling to Brussels sellear a pact tonight ), the German Chancellor, Angela Merkel , said is not aware that a breakthrough has been achieved in the negotiations .
When asked if there was a chance of agreement before the deadline expires, Merkel said in Berlin that the Greek program expires at midnight and did not know that “have strong indications to the contrary “.
” The door is open to negotiate, is all I can say at this time, ” he said.
The European Commission has indicated, meanwhile, that an assessment General debt situation and financing needs of Greece may be part of a last-minute deal.
The main European stock markets opened the session today even at a loss, but contained and with obvious variations, always keeping an eye on Greece
Meanwhile, the rating agency S &. P today lowered the credit rating of Greece and sees possible 50% out of the euro
Madrid, April 30 (EFE) .- The Spanish balance of payments current account recorded a deficit to April 2.000 million euros, 54.5% less than in the same period of 2014, when it accumulated a negative balance 4,400 million, according to the Bank of Spain released today.
The balance of payments, which measures transactions in goods, services, income and transfers of Spain abroad and developments in Spain in the first a quarter is explained by payments amounted to 129,900 million euros, compared with revenues totaling 127,900.
So, the positive balance of goods and services stood behind the first four months of 2015 to 5,900 million euros, when the previous year was 4,400.
In this game, the balance of tourism and travel until April recorded a surplus of 8,100 million euros, while in 2014 totaled 8,200. EFE
The President of the European Commission, Jean-Claude Juncker, made a last Time to Athens to try to reach an agreement before midnight tonight , when due the aid program to Greece , reported European and Hellenic sources quoted by the daily Kathimerini on line.
Tsipras was reconsidering , after an initial rejection, last minute offer made by Juncker, to reach an agreement before midnight tonight, the daily Kathimerini reported.
A Greek spokesman said the premier Alexis Tsipras will vote ‘no’ in the referendum called for Sunday, July 5.
According to sources quoted by the newspaper, if Tsipras accept the offer should do so in writing before the end of the day -a time to convene an emergency Eurorupo approve the agree- and should commit to campaigning for the ‘yes’ in the referendum.
The offer Juncker contemplate in particular that the VAT on hotels and tourist structures was 13% instead of 23% claimed by the creditors.
If the offer was also accepted the Ministers of Economy and Finance of the euro zone could make a declaration which states the commitment of 2012 to consider an extension of the maturity of loans, reduction of interest and extension of a moratorium on interest payments applied from October.
A Greek spokesman explained that the proposal was heard “with interest “. But “Alexis Tsipras will vote ‘no’ on Sunday”
Brussels (Reuters) – The European Union reached a preliminary Tuesday to eliminate roaming charges or roaming on mobile connections across the bloc of 28 countries in June 2017 agreement and to demand telecommunications operators, such as Deutsche Telekom and Orange, dealing with fair way all traffic on the Internet.
The draft agreement is an important step plan to reform EU telecom market on the continent, with which aims to boost growth and catch up with the development in the US and Asia.
“Under the agreement, roaming surcharges on European Union are abolished on June 15, 2017 “Latvia, which holds the rotating EU presidency, said in a statement after 12 hours of talks with EU lawmakers said.
As for the controversial issue of net neutrality, the EU plans to order telecommunications operators treat all Internet traffic equally and that the locks are only allow to counter cyber during peak periods or attacks.
Companies such as Deutsche Telekom, Orange and Telecom Italia had pushed for more freedom of action in order to tap into a potentially lucrative source of income, but internet activists say this could create a two-speed Internet that benefits companies with lots of money.
draft agreement must be ratified by the member states of the EU in the next six months, when Luxembourg takes over the EU presidency on July 1.
The Washington-based institution recognized that broke many of their own rules to lend to Greece.
The Greeks say the IMF as one of the causes of the crisis in their country. (Photo: Reuters)
WASHINGTON , (Reuters) .- As Finance Minister France in 2010, Christine Lagarde objected to the International Monetary Fund ( IMF ) be involved in Greece.
Now, at a time when the country is on the brink of a default by a stretch of 1,600 million euros (1,800 million) of debt issued by the international lender, the mandate of Lagarde front to IMF will be marked by Greece, on Sunday held a referendum that could clear the way for his exit from the euro zone.
The institution with headquarters in Washington acknowledged that broke many of their own rules to lend to Greece.
IMF ended up supporting the austerity measures proposed by the European Commission and the Bank European Central, its partners in the “troika” of creditors of Athens, instead of leading the negotiations as he had done with other countries, including Russia, and during the financial crisis in Asia.
The fact that the IMF has provided loans to Greece on behalf of Europe, which has nominated every manager of the lead agency since its creation in 1946, could expose the institution to greater scrutiny, especially due it has 24,000 million in outstanding Greek loans, part of the largest program ever.
“When it became clear that the program of Greece had a poor performance, they did not push enough in the area euro, which at that time had a wrong policy emphasis that focused only on austerity, “said Jacob Funk Kirkegaard, a member of the Peterson Institute in Washington.
The Fund in Greece and continued support led to decisions by the governments of the euro area it caused a deep division within the institution.
Some economists IMF had doubts on loans to Greece 2010 under the restrictions of the “troika” of lenders, where the Fund would be a junior partner of the European Central Bank and the European Commission.
Members of IMF also they protested the “exceptional” size of the program because Athens did not meet the Fund’s criteria for debt sustainability, which means you would have trouble paying.
The IMF , however, he agreed to participate in a joint rescue with Europeans of 110,000 million euros for Greece, persuaded by the fear that the crisis could spread to Athens French and German banks.
Subsequently, the Fund admitted that its forecasts for the Greek economy had been too optimistic. Instead of growing after a year of austerity measures, Greece’s economy fell into one of the worst recessions that have hit the country in peacetime and its production fell 22 percent between 2008 and 2012.
If Greece fails to pay the 24,000 million dollars due to the IMF , that would seem tiny previous default of countries such as Sudan, Zimbabwe and Somalia.
Brussels. Greece will hold a referendum on July 5 to define the country’s future, ie, whether to accept the program of reforms and cuts proposed by creditors.
1. The question on which the Greeks will vote
The Greek people must answer the question of whether to accept the program of cuts and reforms demanded by creditors of the country.
This package includes tax increases, such as VAT, taxes on companies and luxury goods, reforming pensions and increasing the retirement age to 67 years and a reduction in military spending.
In return, the creditors sent to the Greek coffers 15,500 million. To strengthen the economy further provides for the delivery of 35,000 million euros until 2020 through a growth plan the budget of the European Union (EU).
The second current aid program would last for five months. However, according to the President of the European Commission, Jean-Claude Juncker, has not given the exact wording of the question we must answer the Greeks know.
2. The problems posed a referendum
The Greeks can not reject or approve a rescue package on Sunday July 5 that the second aid package expires this Tuesday, June 30. Formally there is no other offer.
EU diplomats considered unlikely that the government in Athens use the vote on a referendum to stay or not in the common currency, the euro, as opinion polls They indicate that the majority of Greeks are in favor of remaining in the euro zone.
In case of voting on this issue, the government of Prime Minister Alexis Tsipras could suffer a setback.
3. The scenario if the Greeks vote in favor of an agreement with creditors
In this case the creditors likely would resume negotiations with Athens, because they can not ignore this democratic vote.
“Our aim remains to reach a fair agreement,” said Juncker. “The door remains open”. Also the president of France, Francois Hollande, wants talks to continue.
However, the problem that will have won the second aid package and actually no longer be a basis on which remains negotiate.
4. The scenario in case of a “no”
In this case, the country is heading for the exit from the eurozone, the so-called “Grexit”. However, this will not happen automatically: it is the politicians that define the course of events
The Greek prime minister, Alexis Tsipras, advised his people to vote for the “no”.. The President of the European Commission Juncker today asked the Greek people to vote “yes”.
“It is trying to convince the Greek government to support the ‘yes’,” said for his part European Monetary Affairs Commissioner of the European Union, the French Pierre Moscovici.
5. Europe does not have the political desire for a “Grexit ‘(a Greek exit from the euro)
The eurozone partners want to Greece follow within the euro. “For me, the output of Greece in the eurozone was never an option and never will be,” Juncker said. German Chancellor Angela Merkel recalled today:
“If the euro fails, Europe fails”
. 6. The “Grexit” no po ndría endanger the euro
Most economists expect it. There are several arguments in favor and one of them is that foreign banks reduced in recent years its presence in Greece .
The output of Greece is not therefore comparable to the bankruptcy of US investment bank Lehman Brothers in 2008, sparking a global banking crisis.
Also, Greece is considered a special case . The effects on other eurozone countries as heavily indebted Spain and Italy may be limited; it is likely that people will not agolpe there at the gates of the banks. In addition, the European Central Bank (ECB) can continue stabilizing banks by buying government debt.
7. On Tuesday, one day key
On Tuesday, Greece must pay a fee maturing of 1,600 million euros to the International Monetary Fund (IMF). The European Commissioner for Economic Affairs, Pierre Moscovici, is skeptical about whether Athens will succeed, “ Greece probably will not do it,” he told French channel RTL. Athens coffers are empty. Without agreement on a reform package, they will not flow 15,500 million euros in aid to the creditors-the IMF, the ECB and partners in Europe had recently offered.
8. In that case, Greece will declare bankruptcy on July 1?
Even if negotiations fail, it is possible that Greece the payment immediately cesacisión Wednesday .
9. Bankruptcy does not necessarily leaves Greece out of the euro
The EU Treaty does not provide for a country leaving the eurozone. Athens can stay in the eurozone even without pay. The German finance minister, Wolfgang Schäuble, said: “It is clear that Greece will remain a member of the eurozone and Greece will remain part of Europe.”
.
10. The characteristics of a “Grexit”
Because there are no rules for this, it should be negotiated and carried out unilaterally by Greece or the eurozone. The country could remain part of the euro zone on paper, but should issue its own currency money to provide their banks.
Economists already several times mentioned a parallel currency or a return to the drachma. According to the president of the Ifo Institute in Munich, Hans-Werner Sinn, this has its advantages: “The new currency would depreciate against the euro, and that the country would be competitive.” Even if you leave the eurozone, Greece remain part of the EU, although generous support of the other 27 members of the alliance needed would be
A government official said he did not meet the financial commitment.
Thousands protested in Athens against austerity measures demanded of Greece by its creditors. Photo: Reuters
Greece will not make a payment of 1,600 million euros in loans from the International Monetary Fund (IMF), said a government official in Athens , highlighting the depth of the financial crisis facing the country.
The ministers have repeatedly said that Greece would not have the funds to pay the IMF, unless an agreement is reached with creditors to 7,200 million euros unlock frozen during the negotiation of both parties to the conditions required to Athens for help.
The weekend talks broke down, leading to the imposition of capital controls on banks Greeks.
According to the latest report of IMF financing operations, the default lead to the cancellation of direct access to over disbursements for Greece in the body, but not for technical cooperation.
At present the default, it would trigger a phase of reporting to the Board and to the country itself in arrears, pending which may be given the cooperation and interest of the borrower to honor its obligations.
This process would last a month, but the IMF managing director, Christine Lagarde, said Saturday that once the payment is not run by Greece, shall immediately notify the Board, which would accelerate the process towards Phase action.
Average Year and patience
According to the same schedule, if you spend 15 months without the accredited collaborate, is suspended immediately technical support, you will revoke the creditor delinquent voting power and enter into the procedure for automatic expulsion. But the same managing director has said he will not grant more grace periods to Greek government.
This extreme measure requires the approval of 85% of the members and presented only once, in 1954, when they drove the body to Czechoslovakia extinct.
According to the financial state of Greece at the IMF, the government of Alexis Tsipras would have to pay off the 25,000 million euros owed to the agency in 2019 .
From falling into arrears with the IMF, Greece will not have access to 7,500 million required this year to meet other obligations bag would be built with funds from the IMF, the European Central Bank and the European Rescue Fund.
Earlier this month, the Greek government said it would not pay the maturity of 300 million euros at that time had to pay instead group together all payments June and pay the 30th (With information from agencies)
S & P reacts and cut the sovereign rating of Athens
The rating agency Standard and Poor’s downgraded Greece to “CCC” , considering that the decision of Athens to hold a referendum to decide whether to accept the bailout of creditors is a bad sign for the “economic stability” of the country.
“The decision to convene Greece a referendum on the plan by creditors is a further sign that the government will favor Tsipras domestic politics to the detriment of economic and financial stability (and) the payment of debt “, he estimated the agency said in a statement.
S & P evaluates to “50%” the risk of Greece leaving the eurozone and ensures that no “positive developments”, the country will enter “inevitably” in default on its detained debt in the private sector “in six months.”
The new note has a negative outlook. The agency added that degrade again in the “next six months” if, for example, which does not comply with its private creditors.
The note would then be relegated to “SD” (selective default) indicates the rating.
Default partial banks
Fitch Ratings put on “partial default” four major Greek banks following the introduction of capital controls in the country to stop a leak mass and a bank run.
“The degradation of NBG notes (National Bank of Greece), Piraeus, Eurobank and Alpha reflects Fitch’s view that these banks have failed and have fallen into default if no capital controls Thus was laid, given the high rate of deposit withdrawals and the ECB’s decision not to raise the ceiling of the emergency liquidity assistance the Bank of Greece, “the agency said in a statement. (With information from AFP)
The Hellenic measures capital controls
After banks: will be closed until Monday July 6 and will reopen on Tuesday 7 July
The withdrawal of money from ATMs limited to 60 euros per person per day: accounts with two holders may withdraw 120 euros with the same card;. foreign tourists may withdraw as much money as they want within the limits of the funds available
Payments by credit cards:. the trade account with a bank should keep accepting card payments. The same applies to Internet shopping
Transfer outwards. Transfer via Internet from Greek accounts is authorized. Outward transfers will be subject to review by a Validation Committee of banking transactions of the Ministry of Finance. The commission will take into account “the public and social interest” of the transaction, including whether it is health expenses
Retirements:. The payment of pensions is exempt from the limitation of banking transactions. It works to open banks on Thursday for their retirements
There will be free shuttle until the banks open. residents and foreigners can use the subway, buses and free trams in the capital and in its periphery.
“No money, no hope,” the Greeks in the yard
The Greeks came Monday at the corralito “without money or hope” after the government decreed the closure of banks for eight days and limited to 60 euros daily money that can be withdrawn from ATMs.
“Tomorrow (today) wages are paid. But the banks are closed and my boss has no money. What are we going to do? We have to pay the bills, “said concerned Sofia Chronopoulos, a young saleswoman tissues.
The Greek economy is based on the cash and Greece is a country where less you pay with bank cards.
As Sofia, many Greeks are wondering how they will be given in the coming days, during which only can count on 60 euros per day until next Tuesday, July 7.
Yesterday morning many ATMs were not replenished. “The cashier does not work”, Vaggelis, he is not worried by the maximum of 60 euros explains. “It’s enough for me.”
The Greeks began to empty the cash after the decision to call a referendum on Sunday was announced.
“no money and no hope. How did we get to this situation? “Asks Chris Bakas, an unemployed 28 years.
Nikos Gyallitsis, owner of a cafe in the center of Athens, estimates it will lose 50% billing and fears, as many traders that their clients disappear. “People are going to save the money for food and gasoline,” he says. (With information from AFP)
The main European stock markets recorded heavy losses Monday between 2 and 5.2% due to the worsening crisis in Athens and the fear that Greece leave the euro, on the first day of open markets after the authorities declared a bank holiday and a playpen in the Hellenic country.
Even within Europe, all seats were affected by this, the most accused have been the peripheral countries as Portugal fell 5.2%; Milan, also 5.2% and Madrid, 4.6%.
In the Spanish market, Banco Santander fell 6.7% to 6.33 euros and BBVA lost 6% to 8.82 euros. Other entities also posted losses, with the prospect that the crisis will spread to other countries in southern Europe. Bankia fell 4.2% to 1.13 euros, Banco Sabadell gave up 5.2% to 2.17 euros, Bankinter lost 4.3% to 6.63 euros, Banco Popular 7.2% to 4.37 euros . CaixaBank 4.3% to 4.17 euros
In the case of Paris, the CAC 40 lost 3.7%; while 3.6% gave Frankfurt and London, 2%.
The situation in Europe also affected Wall Street, the Dow Jones Industrial Average, its main indicator, He sank 1.9%. The index fell 349.93 points to close at 17596.75 units, the selective S & P500 fell 2.1% to 2057.66 integers, and the Nasdaq composite index fell 2.4% to 4958.47 points . Moreover, in the region of San Pablo bag lost 1.9% to stand at 53 014 points.
The markets around the world have been affected by the failure of negotiations between Athens and its creditors, after Greece decided to convene on Sunday, a referendum on the reform proposals of the troika.
The calling of the referendum caused Greece’s creditors to suspend the negotiations and not would extend their rescue, which ends tomorrow, when Greece must also pay 1,600 billion to the IMF.
Similarly, the European Central Bank (ECB) announced that it would raise emergency loans to the Hellenes banks, hard hit by massive capital flight, forcing the Greek prime minister, Alexis Tsipras, to close banks and impose a limit on withdrawals of deposits.
This control of capital, known as corralito, has been implemented today, a session in which the Hellenes banks have been closed as the Athens Stock Exchange.
The tension that has caused Greece has been felt ever since the opening, when the main squares recorded very heavy losses, in some cases exceed 4% as in the case of Lisbon and Frankfurt.
In most markets, banks were the ones who dragged the indices affected by . the important gains that recorded risk premiums, which in the case of Spain it has come to add 70 basis points in the opening
However, at the end of the session, these gains have been achieved smooth; Spanish risk premium is over 155 basis points; Italian, at 160; and Portugal, 229.
The only one that has increased has been to Greece, which has ended in 1,429 basis points, after starting the day in 1160.
On hand, the main European political leaders have sought to reassure the public, although some of them have been critical of the Greek government, as in the case of the president of the EC, Jean-Claude Juncker, who has asked the Greeks to say yes to European proposals in the referendum on Sunday.
In the event that the Greeks accept these proposals, creditors may be willing to resume negotiations, as declared some of them, they are confident that the country remains in the euro zone, although its output, it is a scenario that openly contemplated.
In this regard, the Commissioner for Economic and Financial Affairs of the EU, Pierre Moscovici, said that there is still room negotiations with Greece, an opinion shared by other leaders like Spanish Economy Minister Luis de Guindos, who after noting that the reforms undertaken in Spain are those that allow it to face a crisis like the one caused by Greece, said today that ” there is still time “for the deal.
Despite the upheaval that has been generated in the market by Greece, Fidelity experts considered that the risk of a significant impact outside Greece is limited and have said that although they are watching the highest level of concern, soon investors will again focus on local issues.
“No panic, this is the main highlight “ highlighted, meanwhile, Renaud Murail of Barclays Bourse in Paris. However, the expert said that as it is very difficult for the market to speculate on an uncertain political scenario, investors trimmed positions.
The euro meanwhile, recorded a slight rise against the dollar to a level of $ 1.1177 after Sunday’s single currency fell below the threshold of $ 1.10, to 1.0955 per dollar, touching a minimum of four weeks.
The market “is kidnapped by what happens abroad (outside the US) and Greece”, said Bill Lynch, of Hinsdale Associates. However, the analyst added that he is convinced that the Greeks will vote “yes” to stay within the euro zone, and that the market has no reason to collapse in free fall.
Tokyo
The Nikkei index of the Tokyo Stock Exchange fell on Monday to a minimum in more than a week also affected by concerns after the Greece risk falling this week in a default on its debt soared dramatically.
The Nikkei was down 2.8 percent , to 20109.95 points, its level lowest close since June 19. This was its biggest daily drop since January 6.
In turn, China’s prime minister vowed on Monday that the country will continue to invest in euro zone debt, official Chinese media reported, adding that the funding crisis in Greece is also a problem for Beijing.
Reviews Li Keqiang were revealed just before a summit with the European Union in Brussels that seemed aimed at calming financial markets in the region, rattled by the growing risk of Greece leaving Eurozone
There have been four times more demand for shares that will go on sale
BILBAO, 29 (EUROPA PRESS)
Euskaltel will go public next July 1 at a price of 9.50 euros per share, which would give a value to 100% of the company’s 1,202 million euros, according to Europa Press sources of the company .
The price, according to the prospectus of the offering, was moving in a range between 8.7 and 11.05 euros per share, so is finally set slightly below the middle of that range.
According to market sources consulted by Europa Press, the book was oversubscribed more than four times the price fixed, that is, there have been four times more demand for shares that will be on sale in the stock market.
After closing this Monday the bookbuilding, it will proceed to undertake the process of allocation to investors. Existing shareholders of the company, Kutxabank, Iberdrola and International Cable, will be selling 80.4 million shares equivalent to 63.55% of the company.
With the price set at 9.50 euros , it is valued at 1,202 million 100% of the shares of the company, which has a capital of EUR 379 613 400 divided into 126 537 800 shares.
Kutxabank sell 22.5 million shares and It will reduce its stake from 49.9% to 30.10%, a percentage that, the bank guarantees the “root” of the company to Euskadi. In the case of the other shareholders, International Cable and Iberdrola sold its entire stake in the group, which currently stands at 48.10% and 2%, respectively.
The share capital of the company It is divided into 126 537 800 shares with a nominal value of 3 euros each. A date of issue of the prospectus, the selling shareholders own 100% of capital and voting rights, and therefore the control of the company.
The capital of the offer put on sale may be extended to 69.9% assuming that the option of ‘greenshoe’, reserved for placement agents is exercised.
SIGNIFICANT SHAREHOLDER
After the IPO and assuming the ‘greenshoe’ option is exercised in full, Kutxabank continue as a significant shareholder with 30.1% of share capital, and the remaining 68.6% correspond to ‘free float’, excluding the shares acquired by the company itself in the offer to distribute to the template.
Euskaltel shares begin trading on July 1 and for this reason, the operator has prepared a ceremony to be held in the Bilbao Stock Exchange.
After the IPO, the entire staff of Euskaltel will become shareholders of the company and, in particular, the staff are giving away about four million shares, namely the equivalent of two months’ salary for each of employees.
INCENTIVE PLAN
On the occasion of the IPO, it has established a Plan Investment Incentives for 24 managers who receive 25 million net. This plan, as was reflected in the IPO prospectus, provided that the executives included in the same reinvest 50% of the incentive (12.5 million) in shares of the company, assuming the commitment to maintain the same, at least for a year.
However, after the controversy caused by this policy incentives, Euskaltel agreed that managers included in the Plan reinvested in the company’s entire income obtained and are committed, as it was plans to keep these shares for at least one year. With this variation, all staff of the company will own about 2% of the company
ATHENS The Greek Prime Minister Alexis Tsipras said that he would respect the will of the people in the referendum on Sunday and He said that is not asked to continue as prime minister at all costs.
“I will not be prime minister for all time,” Tsipras said in an interview with public television ERT, suggesting it might resign if the people do not support the line his government in the referendum
, Efe said.
The Government has requested the “No” in the referendum of Sunday in which citizens must answer yes or no support measures proposed by the creditors in exchange for rescue.
Tsipras said he struggled to achieve a “fair deal” with institutions and he was convinced that the negotiations will continue on Monday, but the query yields a “No” as a result.
“We will survive and we will choose our future,” said Tsipras, who He added that “the day after tomorrow the sun will rise in the east” and people will continue “having oxygen” because “the Greeks survive without program (rescue).”
The head of the Greek government hinted that morning Greece will not pay tomorrow the International Monetary Fund (IMF), the stretch of 1,600 million euros maturing loan.
“We will pay if we hitherto sustainable agreement,” Tsipras said, thereby leaving clear that the disbursement will not occur.
He stressed that the IMF “wants to be paid without paying” with the argument that the Greek debt “is not sustainable” and added that the European partners accept “a la carte positions IMF “but they do not agree on addressing debt sustainability, as it wants the Fund.
Regarding the lifting of capital controls to be introduced today, the Prime Minister noted that” banks will open a hours after the referendum result “and said that pensioners, who now have been unable to withdraw their pensions despite being exempt from the restrictions,” should not worry because their pension will only be severely trimmed if we reverse “.
This Tsipras alluded to the proposal from the institutions, IMF, European Commission (EC) and European Central Bank (ECB), which advocates cutting these benefits.
Regarding the proposal agreement by creditors, Tsipras stressed that the text was received by the Executive Eurogroup and no other that has been published after that an increase in VAT collected from hotels to 23% (currently 6%).
The government had offered a 13% as a compromise, an idea that was eliminated in the corrected text by the IMF.
In an unprecedented move, President of the EC, Jean-Claude Juncker published yesterday the proposal, which contained this amendment.
The government, meanwhile, has reacted by publishing the text he had put on the table, and the counter of the institutions, which still Figure a rate of 23% for VAT on hotels and restaurants.
The executive said he made the decision to publish these texts for the public to know about what you have to decide in the referendum.
On the possibility of reaching an agreement, and that the consultation was not finally concluded, the Prime Minister said that nothing is closed.
“My phone is available to all” he said and explained that he spoke with Juncker and President of the European Parliament, Martin Schulz, and got the session of the European Chamber groups be convened to discuss the extension of the rescue.
The Greek prime minister said the referendum was called for Sunday it is a way for the country to have the “best weapons in the negotiations” with creditors; meanwhile the people are protesting.
ATHENS The Greek prime minister, Alexis Tsipras, estimated Monday that the referendum was called for Sunday is a means that Greece has “best weapons in the negotiations” with creditors.
“The referendum must make way for the continuation of negotiations (…) our goal is to enable us have better weapons in them, “said the prime minister in an interview with state television ERT.
From implicitly confirmed that the payment of 1,500 million euros to the International Monetary Fund (IMF) scheduled for Tuesday, will not be made for their country where banks “have been led to suffocation.”
“Is it possible that creditors expect the payment to the IMF when imposed choking the banks, “the Greek prime minister asked, adding:”. when they decide to stop suffocating them, will be paid “
also said he does not want to remain prime minister at any cost, without clarifying what would be their attitude if the referendum next Sunday won the “Yes”.
“I’m not a prime minister to continue in office and rain as the wind blows”, responded to a question about a possible resignation , after stating that “respect the decision” of the Greeks.
Demonstrations in favor of the “No”
On this day, some 17,000 protesters, most of them supporters of the party Syriza, demonstrated in Athens and Thessaloniki for the “No” in the referendum called.
According to police estimates, over 13,000 people gathered in Syntagma Square outside parliament, in the central Athens, and more than 4,000 in Thessaloniki, the second city of the country, six days of the notice in which the Greeks must decide on the proposal to extend the rescue the country receives in return for its economy conditions.
“No to the blackmail of the troika (EU, ECB and IMF)”, “No to the ‘memoranda’ (austerity),” Our lives do not belong to creditors “read some banners of msnifestantes who came to the square.
Some hours earlier, several European leaders had warned the Greeks calling them to vote for the “Yes” in the crucial referendum on Sunday, insisting that the “No” mean a “No to Europe”.
In addition to the banners in Greek, others in English reading “Jails for Euro-bankers” (prison for European bankers), “European people all together” (All Europeans together ).
Another rally for the “No” on Sunday night in the same place, brought together about 2,000 people.
“Betrayal” ‘the EC
On Monday, the President of the European Commission (EC), Jean-Claude Juncker urged Greeks to vote “yes” in the referendum not to turn its back on Europe while the country was the first day of “corralito “.
From Brussels, Juncker harshly attacked in an emotional speech, Tsipras government, and said he felt” betrayed “by their behavior in the failed negotiations, after which Greece passed its first day with exchange control and banking holiday, the day before the deadline to pay a coupon on its debt.
The financial system will be paralyzed until July 6, one day after the scheduled date of the referendum.
The frustration Juncker explained, according to analysts, by the fact that in five months of negotiations the president of the EC has been the closest and sometimes the only-ally Athens.
“I will ask the Greek people to vote Yes” Juncker said, referring to the referendum that unexpectedly Tsipras called last Friday night. A “No” in this referendum would mean “to say no to Europe,” he added.
The Greek government responded harshly Juncker and questioned his “sincerity” and renewed his demand for an “extension a few days” plan for Greece ( ending Tuesday) until the planned referendum is held Sunday, and in order to preserve the balance of the Greek banking system, illiquid.
European shares ended Monday with heavy losses. the Frankfurt Stock Exchange ended down 3.56%, the Paris market fell 3.74%, Madrid and Lisbon fell 4.56% to 5%. In both London limited its losses to 1.97 percent.
In Greece where the government called “cold blood” after announcing capital controls, the referendum took dye query about staying in the euro.
London – European stocks tumbled Monday on fears that Greece leave the eurozone, after his government implemented the so-called corralito, consisting of the closure . temporal banks and the introduction of capital controls
The Frankfurt Stock Exchange was down 4.23 percent; Paris, 4 percent; London, 2.15; Madrid, 4.38; and Milan, 4.33.
Meanwhile, the Athens stock exchange closed until July 6 and will reopen on Tuesday, July 7, like banks, announced the Greek capital market commission.
“The market will be closed throughout the period of bank closure” decided by the government, the commission said following a meeting of the Board of Directors of the Athens Stock Exchange held on Monday.
The Greek government yesterday adopted a series of capital control measures to protect the domestic banking system.
Meanwhile, the euro fell to $ 1.1081, after being below 1.10 dollars in the Asian market, up from $ 1.1160 in New York Friday.
The debt market was also affected, and the rate of coupon 10-year Greek debt rose to 14,574 percent, a record since 2012.
In Spain, the rate on 10-year bond rose to 2.317 percent compared to 2.110 at the close Friday, as in Italy where these bonds totaled 2,350 by one percent from the 2,150 on Friday.
“The Greek butterfly seems to be about to cause a storm in the financial markets,” said Michael Hewson, analyst at CMC Markets.
Some Analysts, such as the Swedish bank Nordea, considered premature the possibility of a Greek exit from the euro zone.
“The ‘Grexit’ has begun but, with the help of the ECB, will not be contagious for the rest of the eurozone, “said Bruno Cavalier, chief economist at Oddo Securities.
The Asian markets also suffered a setback as a result of the Greek crisis.
Shanghai ended a fall of 3.34 percent; Tokyo, 2.88 percent; Sydney, 2.23, Seoul, 1.42; and Taipei, 2.39.
The Stock Exchange of Hong Kong fell by 3.63 percent before recovering somewhat and registered a decline of 2.55 percent.
On Friday, Prime Minister Greek, Alexis Tsipras, announced a referendum on the demands of its creditors, scheduled on July 5, after five months of negotiations with the European Union (EU), the European Central Bank (ECB) and International Monetary Fund (IMF).
The comments in the section above are poured are the responsibility of the participants. Help us maintain a healthy exchange of ideas, denounced by a “click” on the flag icon, each entry it deems inappropriate. If the comment does not comply with RULES , will be removed. Click here for the rules .
Welcome to our feedback service. We invite you to analyze, comment on and question the articles and reports published by El Diario. To maintain a healthy exchange of ideas to all our users, we need to follow the rules that we detail below. By participating in the feedback service you accept the application of these rules.
You agree that you are fully responsible for the content that you post.
Not intentionally publish content that violates the copyright, trademark, patent or other intellectual property right of a third person.
No disseminate defamatory, obscene or aggressive that violates the right of a third person to privacy according to municipal, state, federal or even international or is deemed inappropriate. It indemnify Publications Paso del Norte (*), its employees and affiliates of each and every one of the claims and / or damages (including, but not limited to attorneys’ fees) that are submitted by third parties in relation to the content you published. He did not write content that discriminate against others because of their gender, race, ethnicity, nationality, religion, sexual orientation, disability or any other category.
You understand and agree that The Journal is not responsible for content posted by third parties. it is his understanding that the discussion forums, El Diario published oversees the content and reserves the right to remove, edit or alter content that seems inappropriate for any reason without consent of the author . We reserve the right according to our own discretion to withdraw a user the right to publish content on our site.
You understand and agree that the discussion forums should be used for non-commercial purposes. request resources or financial support. It will not promote commercial enterprises or perform any commercial activities in our discussion forums.
You understand and agree that the use of any information obtained through the discussion forums at your own risk. El Diario in no way endorses the broadcast content users, and it can not be made responsible for its accuracy.
With every content that you post, given to The Journal without paying royalties irrevocable, perpetual, exclusive and fully sublicensable license to use, reproduce, modify, adapt, publish, translate, create derivative works from, distribute, perform and display such content in whole or parts worldwide and to incorporate them in their work in any way now known or hereafter developed.
BRUSSELS (EFE) .- The president of the EC, Jean-Claude Juncker, placed the responsibility for the current serious situation in Greece today, to recommend to his Government that “tell the whole truth” and ask the Greeks say yes in the referendum and Europe.
After the breakdown of dialogue between Athens and its creditors and a dizzying weekend that Greece has called a referendum on a proposal that is not in effect, has called for a new extension to the eurozone and has decreed a financial corralito, Juncker sent a message of reassurance to the Greeks and was very critical of the government of Prime Minister Alexis Tsipras.
The head of the Greek government sent one last night letter to European Council President Donald Tusk and the leaders of the eurozone, Juncker excluded, in which it requested a further extension to the rescue of his country, which expires at midnight on June 30.
letter has been discussed today in European capitals by eurozone leaders and their economic teams and as Juncker, they have shown their willingness to dialogue, but without waiting for changes in the situation before the current one expires tomorrow rescue and messages tranquility to their citizenships and markets.
So in Germany, his Vice Chancellor and Economy Minister Sigmar Gabriel said that Berlin is willing to resume talks if the July 5 wins “yes”, while the Spanish Economy Minister Luis de Guindos, asked the Greek government responsibility to analyze and reconsider a proposal that was “reasonable and meet the rules.”
The president of France, Francois Hollande, said that “What is at stake is crucial, whether the Greeks want to stay in the euro area or take the risk of leaving”.
Juncker, in his extraordinary appearance today before the press, addressed his message the Greek people, who asked that, “whatever the question,” July 5, vote “yes” because that would be tantamount to saying “they want to continue with the eurozone and the EU family.”
A “no” he said, “would mean that Greece says no to Europe”.
also he reiterated that “Greece leaving the euro has never been nor will be an option” and rejected the qualifications of ” ultimatum and blackmail “made by Athens on the proposals.
The Government of Tsipras, Juncker, who said he felt” betrayed “and now” saddened “, asked her to” tell the truth to the Greek people ” , while noting that the situation is “in the last millisecond” and that “the time has run out”.
“We must tell the Greek people what is at stake and it’s not easy but others have done it, “Juncker said, referring to reforms in countries such as Ireland, Portugal, Cyprus and Spain.
From Athens, the government spokesman, Gavriil Sakelaridis, replied that” honesty is a essential to indicate good faith and credibility in a negotiation “element.
Juncker, however, avoided direct to Tsipras critical and his team, and yes left clear their thoughts with their calls to take responsibility for part of Athens and to reveal the contents of the proposals which led to the breakdown of dialogue.
“I’ve done everything to reach an agreement with the Government of Greece,” the former prime minister of Luxembourg, who insisted in that agreement must also be approved by the other 18 democracies of the euro which “have left billions of taxpayers’ money to Greece”.
Europe, he said, “can not work if no are able to manage differences … In the euro area there are 19 democracies, 18 against and one against 18 “.
” We have moved mountains to the last moment, when the Greek authorities closed the door, “he said the head of the EU executive, who endeavored to explain details of the failed European proposal, which he said he has “no cuts in wages and pensions” and is not “stupid austerity package”.
“It is demanding but fair” and measures “to create greater social justice, more growth and a more modern and transparent public administration,” he said.
He also stressed that “in many things was the EC he had to insist on more social measures “, and includes an offer of investment 35,000 million euros until 2020.
With regard to the restructuring of the Greek debt, another point where Athens has insisted on including and Brussels and the eurozone wanted to leave for a few months, the president of the EC noted that “had planned to leave for the autumn”.
Community sources stressed, moreover, that “tomorrow expires the program and with it all the associated facilities” so that from July 1 “there will be no program nor attendance” without discard the possibility that Athens may request that negotiations commence a new rescue, but would have the same demands for fiscal discipline and reforms, others.- Elena Moreno
Asian stocks fell on Monday after Greece decided to close its banks and impose capital controls in a dramatic turn in their attempt to manage its huge debt.
Oil prices fell and the euro depreciated against the dollar after the announcement of Athens of measures to contain the withdrawal of Greek banks and adding pressure on creditors to make concessions before the expiry of its bailout program Tuesday.
The Tokyo Nikkei 225 index lost 2% to 20283.98 points. The Shanghai Composite index was down 0.4% to 4178.56 despite a surprising reduction of interest rates in China this weekend.
The Hang Seng of Hong Kong was left January 1 , 7% to 29192.67 points. The main market table of Seoul, the Kospi, fell 1.6% to 2057.52 and the S & P / ASX 200 Sydney 1.8% to 5447.80. The references of the bags of Taiwan, Singapore and New Zealand also fell sharply.
“Even if somehow an agreement, Greece’s ability is reached to implement the agreed reforms is doubtful,” said IHS Global Insight economist Rajiv Biswas in a report.
A Greek exit from the euro would reduce the growth of the Asian economy by 0.3% next year due to disturbances that cause the trade and financial markets, Biswas said.
At the global level, it is unlikely that the brinkmanship of Athens with its creditors have an impact as server as the financial panic triggered by the collapse of Lehman Bros. September 2008, economists said.
Juncker appealed directly to common sense Greek for vote “yes” for the next July 5 referendum organized by the Greek Prime Minister Alexis Tsipras .
“Do not commit suicide for being scared to death, have to vote ‘yes’ regardless of the question”, he reiterated in a . Direct the Greek people, who said “deeply love” speech
MORE: European stock markets plunge amid fears that Greece will leave the euro area
MORE: United States urged Greece to “achieve sustainable agreement”
Juncker defended Monday morning the enormous efforts made for its part, the European Commission and the European institutions “in the form and substance” and regretted the Greek decision to “unilaterally break negotiations “last Friday night, when he called a referendum.
” The proposal made to Athens is not stupid austerity package. Not lower wages and no pension cuts, and we have to be clear, “added the head of the European Commission.
1583 corralito bank crisis, Greece 1
Also said he was “remorseful” and “betrayed” failed of negotiations between Greece and its creditors, and regretted that the “efforts” last minute to reach an agreement have not been taken into account.
“I am deeply remorseful for the show that gave Europe on Saturday (…) After all the efforts I have made, I feel betrayed, and that my efforts have not been sufficiently taken into consideration,” said the highest authority EC to the press.
However, the Greek government responded Monday so lapidary to Juncker, putting question his “sincerity” in negotiations between Athens and its creditors.
“An essential element of good faith and credibility in a negotiation is the sincerity” executive spokesman, said Gabriel . Sakellaridis in a brief written statement in response to Juncker
Greece bailout 1583 (5) .jpg
Details of the talk
“The Greeks left the table unexpectedly, because we had not finished working. We were proposing, for example, raise VAT hotels 23 percent. The negotiating team left the negotiating Athens last proposal came in the worst possible. “
According to the account of Juncker, Greece included lower adjustments . the above worth 12,000 million euros (equivalent to 13.400 million)
In addition, addressed one of the most critical aspects: “The Eurogroup was willing to discuss measures to alleviate the Greek debt, to make this autumn. And for that we talked to Klaus Regling, the ESM (European Stability Mechanism) “
For all this, Juncker concluded by assuring.” Today I have no new proposals to do “Actually. Two hours earlier, his spokeswoman Mina Andreeva had already come out against rumors (and the conciliatory words of European Commissioner Pierre Moscovici), indicating that there would be a new official proposal from the institutions.
greece corralito bank crisis, 1583 2
Close
Survey
To participate in the survey must complete this capcha
AFP
Close
Send note via email
Enter the data of the person you want to send this notice
European shares tumbled at the opening Monday after Greece ordered a playpen and the fear that the country out of the euro area .
In Paris , at 10:15 GMT the CAC-40 lost 3.29 percent; and Frankfurt , the Dax yield 3.18 percent. In turn, London registered a loss of 1.59% while Madrid the Madrid Ibex-35 fell 3.75 percent. Also, Milan lost 3.54% while Lisbon collapses 4.49 percent.
Greece Crisis Bags 1583 3.jpg
The debt market was also affected, and coupon rate of ten-year Greek debt rose to 14,574%, a record since 2012 .
In Spain, the rate on ten-year bonds rose to 2.720% just after 0600 GMT compared to 2.150% on Friday to close. The rate in Italy rose meanwhile to 2,598% (compared to 2,110% on Friday).
The Athens Stock Exchange, which on Monday did not work, will be closed until July 6 inclusive and will reopen on Tuesday, July 7, as banks , announced Monday the Greek committee of the capital market.
“The market will be closed throughout the period of bank closure” decided by the government, the commission said following a meeting of the board of the Athens stock exchange
MORE:. Banks Greeks closed until July 6 and may remove a maximum of 60 euros per day
READ MORE: Obama called Merkel to underline the importance that Greece remains in the euro
MORE: Expectation in the markets following the abrupt announcement of Greece to close banks
The government Greek adopted on Sunday a series of capital control measures to protect the national banking system.
The measures were the consequence of the decision of the Greek parliament to hold a referendum next Sunday, July 5 for the Greeks to decide whether to accept or reject the latest proposal from creditors
Following that announcement, the Greek government asked the creditors -the European Union and International Monetary Fund (IMF). – an extension of the program of aid to Greece which expires on June 30. But the request was rejected and led the European Central Bank (ECB) not to extend emergency aid to Greek banks .
Greece, whose reserves are almost empty, must repay $ 1,500 million to the IMF on Tuesday, June 30. It is very likely that the government will not make the refund and made into default
.
Greece Crisis 1583 2.jpg Bags
Free Shipping
travel urban transport will be free in Athens during this week that will run the playpen in Greece, announced the Deputy Transport Minister Christos Spirtzis.
The ministerial decree has been taken to make things easier for citizens during the restrictive measures of capital, and will apply in subways, buses and trams, but not in local communications, the minister said in a statement.
Neither is effective in Thessaloniki and other provincial cities, where urban transport is in the hands of private entities.
The Government published this morning a decree stipulating the bank closures and Exchange during a week limited to 60 euros daily withdrawals at ATMs effective , but keeps open the possibility of card payments and all transactions by domestic internet.
greece banking crises 1583
Payments abroad are limited to urgent needs such as payment of medical bills or buying drugs.
The measures tourists who may conduct transactions and withdrawals at ATMs using credit cards or debit cards issued in their country of origin.
Close
Survey
To participate in the survey must complete this capcha
AFP and EFE
Close
Send note via email
Enter the data of the person you want to send this notice
11:39 a.m. | EFE .- General Manager of the Bank for International Settlements (BIS) , the Spanish Jaime Caruana , warned of heavy reliance on monetary stimulus in the economy advanced.
At the general meeting of the BIS, held in the Swiss city of Basel, Caruana said that “Seven years after the global financial crisis, the policy mix remains highly unbalanced”.
“We remain too dependent on monetary stimulus and progress on structural reforms is still insufficient. The dilemmas faced by policy remain complicated,” said Caruana.
The general director of Bank for International Settlements (BIS) , the Spanish Jaime Caruana, said today’s heavy reliance on monetary stimulus in advanced economies.
“The current very low or setting rates is inevitable, and represents a new balance”, the general manager of the BIS said.
These interest rates so low “may largely reflect the shortcomings of existing analytical and policy frameworks to address financial booms and contraction of nature,” he said Caruana.
The normalization of policy should be welcomed. Overall, the low oil prices will print a significant growth of the global economy, which could support a continuing normalization of monetary policy impulse, “he added.
Caruna stressed that this standardization should take into account “the timely consideration of the specific conditions of each country” and “could generate some volatility in the short term but would help contain risks in a longer horizon.”
He also considered that financial booms can undermine productivity growth, as has happened in some advanced economies.
“Over the past year, the global economy grew at a rate not very away from its long-term average. However, business investment remained weak despite the strength of mergers and acquisitions and share buybacks financed with debt, “said Caruana.
” Risk-taking is more evident in financial markets on the real economy and the growth of labor productivity has continued to fall worldwide, “the CEO of the BPI said.
” The financial booms tend to undermine productivity growth, moving workers and other factors of production to sectors whose productivity grows more slowly, “said Caruana.
The productivity growth in advanced economies experienced credit booms in the prelude to the financial crisis of 2004-2007, dropped about 0.4 percentage points a year on average, compared to what had happened in that boom not occurred, ie if the relationship between credit and GDP had maintained its average rate of the past ten years the rise, according to Caruana.
“More surprising still that this effect persists even when the boom collapses,” the general manager of the BIS. Between 2008 and 2013, productivity growth in these countries fell on average 0.6 percentage points a year over what would have happened to the boom not occurred.
In fact, for the latter period, the estimated loss is almost as high as the productivity growth itself.
In addition, the extension in time of very low interest rates can impair the ability of intermediation of banks, to make the transformation of maturities and long-term loans less profitable, and by eroding the value proposition of retail banking.
“The good news is that large international banks now enjoy better health, having strengthened its regulatory capital ratios due to its benefits” and the less good that “they have not yet regained the full confidence of the markets, “said Caruna.
