Greek debt crisis: Greek bank stocks rise as bailout talks progress

 
James Nickerson
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Greek banks recorded massive losses when the bourse reopened last week (Source: Getty)

Greek bank stocks have risen as the country comes closer to agreeing a third bailout worth €86bn (£60.8bn) with international creditors.

Banks have risen to the top of the Athex Composite Index, with Piraeus Bank trading up 6.94 per cent, Alpha Bank rising 4.1 per cent, Eurobank climbing 1.79 per cent and the National Bank of Greece up 1.53 per cent in late morning trading.

The Athex Composite Index rose 2.2 per cent to 691.23.

It follows heavy losses in the first few days of the Athens Stock Exchange resuming trading last week. After five weeks of closure, banks had registered near-30 per cent losses.

Read more: Greek shares plummet as the Athens Stock Exchange reopens

Stocks have risen as creditors come closer to finalising a bailout deal, with the possibility of reaching an agreement by Tuesday.

Read more: Greece hopes to conclude bailout talks by Tuesday, ahead of next repayment to European Central Bank

Greek Prime Minister Alexis Tsipras said last week the country was in the final stretch of concluding a deal, which should arrive in time for the country to pay off its €3.5bn debt to the European Central Bank by 20 August, the day the debt matures.

Amid the optimism, however, was some downbeat economic data as industrial production in Greece fell 4.5 per cent year-on-year in June.

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