Greece

Greece is unlikely victor in bank selldown race

3 Oct 2024

Athens sold 10% of National Bank, effectively ending the privatisation of the major lenders it rescued. Germany, the Netherlands, the UK and Ireland still own bank stakes. Greeks can thank continued government support and a strong economy, fuelled by rising investment.

Flying PIIGS nations stir rethink in Europe’s core

12 Aug 2024

Former crisis economies like Spain, Greece and Italy have outpaced France and Germany by up to 20% since the pandemic. Lower exposure to manufacturing, a tourism boom and Brussels funds all helped. The role reversal may push Berlin to tolerate looser fiscal and monetary policy.

Euro zone banks’ periphery premium is here to stay

13 Jun 2024

Lenders in Ireland, Italy, Greece and Spain on average trade with a 30% higher price-to-tangible-book value than French, German and Dutch ones. It reflects a reversal of fortunes between the old periphery and core – but also different business models, meaning the gap may persist.

Wild weather turns up heat on EU debt stragglers

2 Aug 2023

Scorching temperatures have ruined harvests, strained infrastructure and dimmed southern Europe’s tourist appeal. If heatwaves’ frequency intensifies, the bill to prevent and fix damages will rise. Fiscal laggards like Italy and Greece may need extra help from Europe.

Greece’s reform labours are only half complete

5 Jun 2023

Investors like the euro zone’s former problem child, but a large current account deficit and corruption undermine its appeal. It’s not clear Kyriakos Mitsotakis will do what’s needed to boost savings and improve the rule of law if re-elected as prime minister, says Hugo Dixon.

Greek vote can bear gifts for debt investors

22 May 2023

A big win by Kyriakos Mitsotakis in Sunday’s polls makes him odds-on to stay as Greece’s premier. That will help the $200 bln economy continue its rebound after crises in the 2010s. Forthcoming investment-grade status is another reason for Greek sovereign debt to keep rallying.

It’s time to worry about Greece again

26 Aug 2022

A bugging scandal threatens Prime Minister Kyriakos Mitsotakis’ government and renewed political instability. It’s not a re-run of the Grexit crisis. But the country’s high deficit and debt are a cause for concern when interest rates and energy prices are rising, says Hugo Dixon.

Piraeus faces Sisyphean task to end Greek tragedy

21 Apr 2021

The Athens-based bank wants to raise 1.4 bln euros to speed up bad debt sales. New shares sold at a steep discount to book value imply juicy upside if CEO Christos Megalou hits near-term profit goals. A history of capital hikes plus rocky GDP growth make it an uphill struggle.

Greek banking reform takes hazy turn

16 Feb 2021

On the eve of Piraeus Bank’s big recap, the head of the country’s bank bailout fund, HFSF, abruptly resigned. He had championed better corporate governance. The move overshadows welcome Greek banking improvements, including a bad debt cleanup plan and new insolvency code.

Review: Greek crisis drama shows EU’s good and bad

10 Jan 2020

“The Last Bluff” tells how politicians and bureaucrats negotiated and bullied Alexis Tsipras, Greece’s prime minister, into submission in 2015. The book captures the strange excitement of complex negotiations, and the enduring appeal of the powerful but flawed European vision.

Bad debt sale will test Greek banks’ recovery

12 Dec 2019

Eurobank is preparing to dispose of $8 bln in dud loans under a government scheme to cut such exposures by $33 bln. CEO Fokion Karavias has enough capital to absorb a projected $1.4 bln loss. Rivals whose shares have also gained from an economic rebound have less wiggle room.

Greek poise goes beyond flawed bond markets

12 Dec 2019

The $720 mln rights issue by Lamda to start work on Athens’ Hellenikon project gives a boost to Prime Minister Kyriakos Mitsotakis, who championed the development. It’s a far better gauge of confidence in Greece than sovereign debt yields, which are partly skewed by ECB policy.

Hercules is set to soothe Greece’s Achilles heel

13 Nov 2019

A program named for the mythical hero should help slash the eye-popping 75 billion euros of bad loans at the country's banks. Pricing and tax credits remain unresolved. But the plan will give Athens a better shot at its ambitious goals for economic growth.

Dixon: Greek PM makes good but not perfect start

30 Aug 2019

When Kyriakos Mitsotakis met German Chancellor Angela Merkel yesterday, he was able to point to a list of quick wins, including lifting capital controls. But the new Greek prime minister has also made errors. To change the country for good, he’ll have to learn from them.

Greece’s new PM needs to avoid banking own goal

1 Aug 2019

The fund that oversees state shareholdings in the country’s four big banks has been a force for better governance. Even so, recently elected Prime Minister Kyriakos Mitsotakis may decide to overhaul its leadership. A changing of the guard now would send the wrong message.

Cox: A mall and gold mine are key to Greek revival

30 Jul 2019

Prime Minister Kyriakos Mitsotakis sees growth as a panacea for the Hellenic Republic’s ills. His new government is unblocking long-stalled projects to generate jobs and attract foreign direct investment. Never has a shopping centre been so important to the cradle of democracy.

Dixon: Bold PM can bring virtuous circle to Greece

3 Jul 2019

Liberal conservative Kyriakos Mitsotakis is expected to replace leftist Alexis Tsipras as prime minister after Sunday’s election. If he roots out the bad practices that have bedevilled Greece for decades, the country could finally enjoy an investment-led recovery.

Snap election will limit Greek policy errors

28 May 2019

Prime Minister Alexis Tsipras has called an early vote. He was likely to lose to the pro-business New Democracy party even if he had held out for a few more months. An early ballot is better for the economy given his Syriza party’s attempts to woo voters with giveaways.

Alexis Tsipras mistimes Greek pre-election gamble

7 Dec 2018

After nearly a decade of bailout-related austerity, the prime minister is promising giveaways ahead of a 2019 vote. There’s a case for spending more. But Italian jitters and the end of the European Central Bank’s bond-buying make this a bad moment to test investors’ patience.

Greece tries “hair of the dog” bank recap plan

28 Nov 2018

Athens-based Eurobank, saddled with bad real estate debt, is buying property company Grivalia for 760 million euros. It can then use the latter’s equity to spin off 7 billion euros in dud loans. It’s a novel way to recapitalise a bank, but probably hard to copy.