Greek stocks slumped in an otherwise upbeat European
market on Monday, as the country’s government scrambled to reach a
reform agreement with international lenders before it runs out of money.
The Athex Composite Index plunged 1.4% to 758.10, setting it on track for the lowest close in over a week.
On Friday Greece’s authorities submitted a list of fresh proposals for economic overhauls, but to date officials from the European Central Bank, the International Monetary Fund and the EU are not convinced the suggested reforms are detailed enough.
Also Friday, Fitch Ratings downgraded Greece’s sovereign-debt rating to “CCC” from “B”, citing “uncertain prospects of timely disbursement from official institutions.”
In February, Athens and the Eurogroup of finance ministers agreed to a four-month extension to Greece’s bailout program, but the country doesn’t actually get the financial aid until the two sides agree on a range of reforms.
With debt payments due over the next few weeks, the country will run
out of money in April, unless the next portion of bailout cash is
released, economists have suggested.
According to the media, Greece and its creditors spent the weekend locked in talks and will continue to discuss the reform plans in Brussels at 1 p.m. local time, or 7 a.m. Eastern Time.
In the meantime, European stocks climbed on hints of more monetary easing from China. Chinese stocks jumped on Monday.
The Stoxx Europe 600 index rose 1.1% to 399.76, after posting its worst week since mid-December last week.
France’s CAC 40 index climbed 1.1% to 5,091.14.
Germany’s DAX 30
index was 1.5% up to 12,043.92, while London’s FTSE 100 index put on 0.7% to 6,904.81.
