Debt Negotiations stall on Greek Bank Stocks

Stocks in the National Bank of Greece and Piraeus fell approximately 9%, while Alpha bank fell by almost 10%.

 

Officials from the International Monetary Fund (IMF) pulled out of talks with Greek politicians in Brussels yesterday, citing "major differences".

Greece is seeking to avoid defaulting on a €1.5bn debt repayment to the IMF.

The payment is due by the end of the month.

Shares on the Athens Stock Exchange had soared on Thursday amid renewed optimism about Greece's talks with its creditors.

The index climbed more than 14% - the best performance in several weeks.

But the IMF's withdrawal has dampened investors' moods.

On Friday, Jeroen Dijsselbloem, president of the Eurogroup of finance ministers, said a deal without the IMF was "unimaginable".

 

However, German chancellor Angela Merkel urged all parties to continue negotiations.

Speaking at a business conference in Berlin, Ms Merkel said: "Where there's a will there's a way, but the will has to come from all sides so it's important that we keep speaking with each other".