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> Economy

Political uncertainty affects Greek bonds

The Greek economy has improved but investors are still shy

Newsroom October 15 07:53

The government may have received its vote of confidence in Greek Parliament, however this has not lifted the cloud of uncertainty being caused by negative polls and other indicators.

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The Greek stock market closed with heavy losses in excess of 6.16%. The General Index also closed well below the “psychological” and technical level of 1,000 units at 948.21 points, noting a 5.7% decrease. The negative results are due to the negative climate abroad, caused by political developments in our country.

The Wall Street Journal reports that investors are thinking twice about Greek bonds. “With SYRIZA ahead in the polls, it’s not surprising the market is pricing in bigger risks,” said Gareth Colesmith, portfolio manager at Insight Investments, in an interview with the Wall Street Journal. The same article states that despite investor belief that Athens has made impressive strides, they are still continuing to treat Greek bonds as a risky bet.

Government Spokeswoman Sofia Voultepsi criticized the main opposition Coalition of the Left (SYRIZA) party leader Alexis Tsipras of endangering the Greek economy by his stand. “If Alexis Tsipras plays the tough guy in Europe, it won’t be long before ATMs in Greece shut down, like they did in Cyprus,” said Ms. Voultepsi in a radio interview with Parapolitika on Tuesday.

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