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Greek Stocks Lower On U.S. Exchanges Following Debt Deferment

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Greece reportedly surprised its creditors Thursday with a plan to defer a $350 million payment due Friday to the International Monetary Fund.

A number of Greek stocks trading on U.S. exchanges were lower on the news.

The National Bank of Greece (ADR) (NYSE: NBG) dropped nearly 7.9 percent to $1.85 and Piraeus Bank SA (OTC: BPIRY) fell by a similar percent to $1.05.

The exchange-traded Greek Global X Funds (NYSE: GREK) was off 4.4 percent at $12.20.

The Greek government said it will bundle all the payments it owes in June totaling $1.69 billion and transfer it at the end of the month under a rarely-used IMF provision, according to the Financial Times.

Greece's move "holds political and financial-market implications that are hard to predict," according to The New York Times.

Earlier, IMF Managing Director Christine Lagarde said at a Washington news conference that she believed Greece would make Friday's payment, according to multiple reports.

But a spokesman for Greece's ruling party Syriza had warned of the possible non-payment on Wednesday.

The IMF acknowledged Thursday that Greece's move to bundle June payments into one lump sum is compatible with a 1970s Executive Board decision, according to the Greek news site enikos.gr.

"The decision was intended to address the administrative difficulty of making multiple payments in a short period," the IMF said in a widely reported statement.

Posted-In: Financial Times GreeceNews Eurozone Markets

 

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