Economy of Greece

By John Geddie

Another round of Greek debt relief could make the country's bonds a safer investment than those of several other eurozone countries, a major US bank has told its clients.

By Marcus Bensasson

The root of Greek Finance Minister Yanis Varoufakis's desperation for debt relief will be laid bare in the coming days.

Statements by the German and Dutch finance ministers regarding the prospects of Greece and its partners reaching a deal dashed expectations at the Athens bourse on Wednesday and sent the benchmark down over 4 percent. A government statement on the freezing of the port privatization tenders did not help either.

The Athens Stock Exchange (ASE) noted a rise at 11.00 am on Tuesday, with the basic share price index increased by 2.96%, standing at 787.88 points and turnover at 12.12 million euros.

The biggest gains in individual sector indices were recorded in Banks (+8.05%), Financials (+5.13%) and Construction (+4.50%).

The pessimism hanging over the country?s chances of finding a way out of the economic and liquidity impasse following Monday?s Eurogroup led Greek stocks to significant losses in Monday?s session, which came ahead of the eurozone ministers? meeting, and with banks again suffering the biggest decline.

In anticipation of yet another crucial Eurogroup meeting ? this time scheduled for Monday in Brussels ? traders mostly held back on Friday, with sellers keeping the upper hand.

The Greek bourse has apparently already priced in the clash between the new administration in Athens and the country?s creditors, as well as the expected isolation of Finance Minister Yanis Varoufakis at next week?s Eurogroup meeting, as stocks gave up less than 2 percent on Friday upon the announcement of the five-day ultimatum given to Athens to present its next moves.

The European Central Bank?s decision not to accept Greek bonds as collateral for local lenders to gain access to liquidity as of next Wednesday, along with the Greek and German finance ministers? meeting, weighed heavily on the Athens bourse on Thursday. However the 9 percent drop at the start of the session had been reduced to just 3.37 percent by the end.

By Marius Zaharia

Greece's new SYRIZA government spent its first week in power trying to make friends with European policymakers and wary investors. The firm that says it is one of Athens's largest private creditors is already on board.