Greek PM Tsipras names anti-austerity cabinet
Updated: 2015-01-28 09:26
(Agencies)
|
||||||||
BANK SHARES DIVE
The first meeting of the new cabinet is expected at 10.30 a.m. (0830 GMT) but already the scale of the challenges it faces were starting to become apparent.
On the financial markets, yields on Greek three-year bonds jumped above 14 percent. This was up four percentage points since Sunday's vote although down from 16 percent at the beginning of the year, before the European Central Bank announced plans to stimulate the euro zone economy by buying debt issued by the bloc's governments.
A dive in banking stocks pushed the Athens bourse down by 3.69 percent. Investors are worried about Greek banks' liquidity and whether they will have continued access to ECB funding, with an extension to the country's bailout deal with the euro zone due to expire at the end of this month.
A German central banker warned of dire problems should the new government call the country's aid programme into question, jeopardising funding for the banks. "That would have fatal consequences for Greece's financial system. Greek banks would then lose their access to central bank money," Bundesbank board member Joachim Nagel told Handelsblatt newspaper.
Moody's credit rating agency said uncertainty created by the Syriza victory is negative for Greece's credit rating, adding that it "undermines depositor confidence and has an adverse effect on economic growth prospects".
The government's plan to negotiate a new debt deal has already run into resistance from its euro zone peers, which fear allowing Athens to write off some of its obligations would encourage other troubled countries to seek similar relief.
- US, China expected to lead on climate talks
- Chinese high-court member discusses legal reform
- Northeastern US braces for 'crippling' blizzard
- At least 2 dead, dozens hurt after bus hits road barrier
- Red carpet of 21st annual SAG Awards in Los Angeles
- New Year celebrated with dance mix
- Businesswomen shine at the World Economic Forum
- Dogs compete at the Siberean Cup
Most Viewed
Editor's Picks
Premier Li attends Davos Forum |
Li Na expecting first baby |
Star's marriage is 'bittersweet' news for fans |
Infographic:Chinese IPOs in the US in 2014 |
Tale of two cities |
China's 2014 diplomacy |
Today's Top News
Yahoo to spin off its 384m Alibaba shares
China opens its market to all US apples
Beijing gears up for Super Bowl
Rock-Paper-Scissors: Paper wins
10 million new jobs on way in China, Li vows
Obama's trip to India spurs triangle chatter
Motorola to make phones in Tianjin
Chinese plan NJ's tallest building
US Weekly
Geared to go |
The place to be |