Greek bank shares bear brunt of the debt crisis

Jessica Morris
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Greece shut bank branches for two weeks earlier this year (Source: Getty)

Greek bank shares have shouldered the brunt of the country's debt crisis, with one index showing they've shed around three quarters of their value so far this year.

The FTSE/Athex banks index, which includes banks listed on the Athex and Cyprus Stock Exchange, slumped 8.56 per cent to 241.37 points today. This means it's tumbled 63 per cent since the end of July, as well as shedding 74.9 per cent from the start of this year.

Greek banks saw billions of euros leave their accounts earlier this year, as the risk of Greece exiting the Eurozone intensified. The country's government shut bank branches for two weeks, while ATM withdrawals were limited to €60 a day, to help stem outflows.

Read more: Greece's banks could still tip the fragile country into disaster

Recapitalising the country's battered banks - as well as preparing for a visit from the Troika and vying for debt relief - is among the critical issues Greek prime minister Alexis Tsipras will face in his second term.

Tsipras is widely expected to reappoint former finance minister Euclid Tsakalotos tomorrow, who has previously said Greece and its international lenders want the country's banks to be recapitalised by the end of this year.

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