Will the National Bank of Greece NBG Defaultposted about 5 hours ago by All_about_AlphaSept 26, 2011
National Bank of Greece (NBG) managing director Apostolos Tamvakakis in published statements on Sunday stated that if the country implements the decisions it has undertaken then no default will be forthcoming.
"We can avoid (default), absolutely. No one can push us into bankruptcy if we do not want to default. I am certain that we can make it if we all decide to individually see what is in our best interest and the country's best interests," he was quoted as saying in an interview published by the Sunday edition of the Athens daily "Kathimerini".
Mr. Tamvakakis emphasized that any "alternative" -- i.e. exit from the Eurozone and return to a national currency -- "will bring the country back decades".
But this says nothing about the health of the bank it self...
There is always the fears of nationalization, or as the country defaults (if it does) and exits the eurozone the country will be forced to go back to its earlier currency devaluating the bank assets.
Underneath the (well deserved) fear that the Greek state may default, is a well-run and quite conservative bank, NBG. NBG's exposure to such prospect is the amount of Greek state debt it holds, so it is a deterministic number. Their risk is the same as any other Euro bank which holds Greek state debt, like French and German banks (which BTW hold a LOT more Greek state debt than NBG).
NBG has subsidiaries outside the Euro, like Turkey and non-Euro zone balkan states. This provides some protection against the vulnerability of the Euro zone (and particularly Greek) instability. Their Turkish subsidiary is growing by leaps and bounds.
none the less their stock dropped a high 68% percent form the begning of the year. being today sept 26 2011 valued at 0.77$, while it was in the high 3s at the beginning of the year.
Will it default?
Will Greece as a country default, causing its financial institutions and its entire financial system to collapse?
More importantly will the eurozone allow this default and what message will this default be sending to the whole world.
I am interested to hear your comments and thoughts.[Last edited about 5 hours ago]
National Bank of Greece (NBG) managing director Apostolos Tamvakakis in published statements on Sunday stated that if the country implements the decisions it has undertaken then no default will be forthcoming.
"We can avoid (default), absolutely. No one can push us into bankruptcy if we do not want to default. I am certain that we can make it if we all decide to individually see what is in our best interest and the country's best interests," he was quoted as saying in an interview published by the Sunday edition of the Athens daily "Kathimerini".
Mr. Tamvakakis emphasized that any "alternative" -- i.e. exit from the Eurozone and return to a national currency -- "will bring the country back decades".
But this says nothing about the health of the bank it self...
There is always the fears of nationalization, or as the country defaults (if it does) and exits the eurozone the country will be forced to go back to its earlier currency devaluating the bank assets.
Underneath the (well deserved) fear that the Greek state may default, is a well-run and quite conservative bank, NBG. NBG's exposure to such prospect is the amount of Greek state debt it holds, so it is a deterministic number. Their risk is the same as any other Euro bank which holds Greek state debt, like French and German banks (which BTW hold a LOT more Greek state debt than NBG).
NBG has subsidiaries outside the Euro, like Turkey and non-Euro zone balkan states. This provides some protection against the vulnerability of the Euro zone (and particularly Greek) instability. Their Turkish subsidiary is growing by leaps and bounds.
none the less their stock dropped a high 68% percent form the begning of the year. being today sept 26 2011 valued at 0.77$, while it was in the high 3s at the beginning of the year.
Will it default?
Will Greece as a country default, causing its financial institutions and its entire financial system to collapse?
More importantly will the eurozone allow this default and what message will this default be sending to the whole world.
I am interested to hear your comments and thoughts.[Last edited about 5 hours ago]