The sacking at the government’s request of the chief executive of Greece’s biggest bank, in which a US hedge fund is the second-largest investor, took markets by surprise. Yet the move underscored a daunting obstacle for international companies entering the Greek market: the Athens government’s track record of interfering in corporate affairs whether or not the state is a shareholder. Issues of governance loom larger than ever as the SYRIZA-led administration pushes ahead with privatisation sales agreed as part of Greece’s 86 billion euro third bailout, while unions and even some cabinet members raise obstacles to deals that are already underway. Kerin Hope reports.
Read more: State meddling remains obstacle to international investments
Theodore Fessas, the founder and the Chairman of Quest Holdings, is the Chairman of the Board of Directors of the Hellenic Federation of Enterprises (SEV). In an exclusive interview with Business File he tells Economia publisher Alexandra C. Vovolini and Business File managing editor Antonis D. Papagiannidis his views on pension and social security reform, how to attract foreign investments, as well as prospects for the Greek economy.
Read more: Getting down to business
Greek banks successfully completed their latest round of recapitalisation, resulting in an increase of private ownership across the sector. The high capitalisation should help mitigate loan quality risk and combined with the cleaning up of their balance sheet pave the way for a gradual recovery of profitability in 2016-2017. However, a lot depends on the macroeconomic and political situation. The banks’ ability to lower deposit and operational costs as well as cope with the large stock of non-performing loans will be the main drivers. Business File reports.
Read more: Greek banks aim for a gradual return to profitability in 2016
Concerns about deadlock in the negotiations between the Greek government and the official creditors despite an improvement in their relations since last September have helped reverse a good deal of the months-long rally in bonds. Moreover, the demanding conditionality of the programme has made market participants factor in the possibility of higher political uncertainty, contributing to the slump. The completion of the review would add to the good track record of implementation and be the catalyst for unfolding events that could lead to Greece’s return to the markets later this year. Business File reports.
Read more: Greek bonds eye the review for direction
The start to 2016 was filled with optimism for many. With two national elections having been held last year, a referendum on austerity over and done with, and a fresh bank recapitalisation scheme now complete, the leftist-led government could get on with the job of governing the country within the euro zone. However, just weeks into 2016 and doubts over the economy’s ability to rebound have grown. With the brake being put on two key foreign investments, a difficult pension reform ahead and continued uncertainty over the next review of the country’s bailout, sentiment has been shaken. This has prompted consumers to remain cautious and some economists to predict that Greece this year will once again be one of the world’s worst economic performers. Business File reports.
Read more: Doubts resurface over economic rebound
The European Central Bank on Tuesday lowered the ceiling for emergency liquidity assistance (ELA) Greek lenders can tap from the Greek central bank to 87.9 billion euros from 88.9 billion euros, the Bank of Greece said on Wednesday.
"The reduction by 1.0 billion euros of the ceiling reflects an improvement in the liquidity of Greek banks," the central bank said in a statement.
Greek banks, which were shut for three wqeeks over the summer, have relied on emergency funding in recent months after a wave of deposit outflows, prompted by political uncertainty and the protracted bailout negotiations between Greece and its international lenders.
e.kathimerini.com, Wednesday, 07.10.2015 : 11:09
