Wednesday, 18
March 2015
Greek
market
insights
º The total liquidity in
the Greek banking system at this moment is
estimated to be approximately €3.5bn. This
amount includes the
last “injections” from
the European mechanism of Emergency Liquidity Assistance
(ELA). As a means of
comparison, last autumn, when political uncertainty began, the
equivalent amount was
about €8-10bn and
even that was thought
to be considerably low.
º It is estimated that
the capital reserves
available to the Greek
state to pay its fixed
costs in and outside
Greece will most likely
run out around 10 April.
Sources mention that
the Greek Ministry of
Finance is considering
a number of emergency scenarios. For example, according to one of
the scenarios, if necessary, salaries and pensions will be paid on
time; however, allowances will be delayed
or in the case the government encounters a
large emergency, only
part of the above obligations will be paid and
the rest will be settled
when liquidity is once
again achieved. However, the Prime Minister,
Alexis Tsipras, ensures
that the payment of salaries and pensions will
take place as normal.
º The additional financial gap is estimated to
reach €5bn following
the latest negative developments in the fiscal gap front as well as
that in the field of privatizations. This estimate has been made by
the auditors and it most
likely reflects the new
reality from October
onwards.
º The Special Public
Prosecutor in charge of
combatting Fraud has
initiated an investigation enquiring into the
sale of the Pangaea, a
wholly owned subsidiary
of the National Bank
of Greece, to an Israeli fund, exactly one year
ago. Pangaea managed all the real estate
properties of the NBG
Group.
º Rumours have been
spreading since yesterday that all Cypriot subsidiary banks owned by
Greek financial institutions will be purchased.
As we have been informed, the first mover in this strategy is
the Hellenic Bank which
is targeting the Cypriot subsidiaries of Piraeus Bank. The rationale behind this initiative
is based on the popular
opinion that “we will not
allow Athens, following
the PSI, to drag us down
with them in new “adventures”.
º The Greek Prime Minister will visit Moscow
in the context of the anti-fascist celebrations
which will take place
in Russia. In the meantime, sources within the
government reveal that,
apart from Messrs. Dragasakis and Kotzias,
there will be more Ministers who will be visiting Beijing in the same
group.
Continued on next page
Wednesday, 18
March 2015
Greek
market
insights
º Mr. Wright, CEO of Eldorado Gold which operates the mines in
Chalkidiki, was again
in Athens. The purpose
of his visit was to explore the government’s
intentions concerning
the future of the investment. He met with the
appropriate Minister,
Mr. Lafazanis. However, sources state that
he did not receive any
commitments. The only
thing certain is that Mr.
Lafazanis will soon visit
the investment.
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