National Bank Of Greece (ADR) (NBG) Stops Bail-out

Banks of Greece experienced a hard time during last week because of its falling stock, so the country commenced meetings, looking forward for the 3rd bail-out. The Government of Greece is looking for the outcome as soon as possible on bailout negotiation.

In the past, after the improvement seen in bailout meetings during the week, Greece was assured about cracking a deal tomorrow. The country is managing to concern with Eastern Central Bank (ECB) for the financial services, as the country is highly determined to dodge another default.

Nevertheless, organizations, such as the International Monetary Fund (IMF), the European Commission (EC), and the European Stability Mechanism (ESM) can also play a great role for them, but the approval is necessary from the country’s parliament for the finalization of the 3rd bail-out.

If the deal would be successful, it will crack 86 billion Euros and 93 billion dollars, if this will not happen Greece could be probably default according to European Central Bank obligation.

On Monday, a Europe Commission representative, Annika Breidthardt, states about the activities of ECB and ESM, “The Commission together with the teams of the IMF, the ECB and the ESM are working day and night and have been working throughout the weekend to finalize the text of the memorandum of understanding and an additional list of prior actions which the Greek authorities could legislate shortly.”

National Bank of Greece experienced a bad time with a significant loss in the business last week; major losses were broadcasted by the country’s bank, which is why the 3rd bail-out is very important for the bank.

This month is a deciding point for a country to meeting the ECB obligation, whose bank sector totally depends on the central bank’s support to meet the ECB obligations. By means of program, called emergency liquidity assistance, institutional investor Central Bank of Europe has prolonged a lifeline to Greek banks. This plan has facilitated the bank to survive and prevent against serious drowning.

In the International market, a question arises about the Greek’s progress in future, analyst are frightened regarding the 3rd bail-out, which the government would need to put extraordinary effort on, if the country takes the helm to rescue from the 3rd bail-out.

Now, in these hard times, Greece feels the necessity for the best evaluated strategies and well planned statistical policies to defeat the recession, and pull the economy together in the country. In fact, the policies that are introduced by government of Greek in the country are truly flopped and not liked by the Greeks.

Nevertheless, majority of the natives casted opposing votes in the internal referendum that clearly viewed the country’s posture. According to today’s report by Athens stock market, National Bank of Greece stock closed at 10.39% at $0.89 earnings per share.