National Bank Of Greece Stocks Moderately Rise As EU-Greek Talks Gain Momentum

EU troika and Greek representatives reportedly reach common ground on issues of privatization, but all eyes on mid-May deadline for unlocking new funds, if no clear plan disclosed.

National Bank of Greece’s (NYSE:NBG), the largest bank of Greece, stock rose by 0.02 points or +1.71% from the previous trading day. This comes against the backdrop of the EU troika leaders reaching an agreement with Greek government representatives on issues regarding privatization. It has been one of the sticking points that have dogged the two sides, especially as Greek PM, Alexis Tsipras’s government unleashed populist measures, including halting privatization program, amongst others after years of financial mismanagement.

However, either Greek authorities or the EU itself does not officially confirmed it, which leaves to speculation as to whether the two parties will be able to reach a compromise by the middle of May, which is when Greece will run out of cash, is defaulted, and squeezed out of the euro zone.

To this end, a conference will be held tomorrow on April 22nd, attended by deputy finance ministers, followed by a meeting of finance ministers later on 24th April, both which will be held in Riga, Latvia. According to European Commission Vice President, Valdis Dombrovskis, it is hoped that Greece will be able to provide a clear reform package, ahead of a meeting in May, since the Riga meeting will only take stock of the status of negotiations between the two sides. Both sides have expressed cautious optimism, though privately express grave concerns at the same time.

Time may not be on Greek’s side. After many talks in Brussels and the IMF’s spring meetings, officials say that they are still yet to agree as to how the country will move forward on its reform program, provided if it is solid enough to allow more funds to keep it afloat while there is still a chance.

National Bank of Greece officials say that the signs do not look too rosy. The two sides look nowhere close to bridging a gap amongst a host of many issues that has been affecting many Greek households and consumers, who have been bearing the brunt of austerity cuts that have reduced their disposable income. Depositors and borrowers alike had been withdrawing their cash from their banks, as they anticipate the inevitable prospect of a “Grexit”.

So all eyes are now fixed on mid-May as a make or break point, because Greece has now to step up or ship out, as they have been given enough time to conclude that a “Grexit” is bad for both sides and a compromise plan of action is in the need of the hour.