Greek bank stocks battered by EU talks about forcing losses on government bond holdings |
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October 24th, 2011
ATHENS, Greece — Shares in Greek banks plunged on the Athens Stock Exchange Monday amid expectations they will have to accept higher than agreed losses on the country’s government bonds as part of a new eurozone debt deal. Greek banks hold billions in the country’s government debt, and investors fear they will be unable to withstand losses on the bonds without some form of state support.
ATHENS, Greece — Shares in Greek banks plunged on the Athens Stock Exchange Monday amid expectations they will have to accept higher than agreed losses on the country’s government bonds as part of a new eurozone debt deal.
Greek banks hold billions in the country’s government debt, and investors fear they will be unable to withstand losses on the bonds without some form of state support.
Bank stocks were down on average by more than 15 percent late afternoon Monday, pulling the exchange’s general index down 5.7 percent to 737.98. Other European stock indexes were buoyed by the prospect of a debt agreement.
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