Bankers monitoring Greek political developments

bankofgreeceBankers have sent out an alert due to the political uncertainty in Greece. The Bank of Greece is carefully monitoring developments and has already planned a meeting to prepare for the delay of the planned review of Greece’s international creditors from the European Commission (EC), European Central Bank (ECB) and International Monetary Fund (IMF).

The slowing down of negotiations has put public funds at risk with estimations showing that there are enough funds until March. Estimates show that there are only enough funds until March, however the focus is currently on what will happen on December 29 when the third round of the presidential elections take place to decide whether national elections will follow.

The first reaction of markets will signal the course of development. Currently, capital movements are being reported but it is still considered early to judge the situation. FX Chief for Bofa Athanasios Vamvakidis underlined that the key to the next stage will depend on the completion of an agreement with the troika that appears to be difficult at this stage.

The liquidity of banks has already noted a marginal decrease. The current political climate strenthens the fear for disturbances and the possibility of a financial gap that would reverse the flow of public revenue and create problems for the proper functioning of the market.

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