ATHENS: Greece’s financial markets will reopen on Monday, ending a five-week suspension that began after the country imposed capital controls amid a confrontation with creditors.
Greek traders will be able to buy stocks, bonds, derivatives and warrants only if they use new money such as funds transferred from abroad, cash-only deposits, money earned from the future sale of shares or from existing investment account balances held at Greek brokerages, the Finance Ministry said in a decree on Friday. Foreign investors will be excluded from all restrictions, provided that they were already active in trading before the imposition of capital controls last month.
The resumption will end the longest interruption to trading in the Athens Stock Exchange since the 1970s. The shutdown was enacted as Greece attempted to shield its financial system from ruin as it fought austerity measures sought by European lenders. Local investors have been without prices in the $41 billion equity market since June 26 as the bourse remained closed even after banks reopened with limited services on July 20.
“I think the markets opening is another small positive sign that conditions are normalizing in Europe,” said Jason Benowitz, a New York-based senior portfolio manager at Roosevelt Investment Group Inc. “In Europe overall, we’re starting to see signs of life and QE beginning to have an impact. Greece’s last-minute negotiations and referendum put a pause in the healing, and now it can resume.”
