Athens Stock Exchange index plunges by 8 pct to three-year low

The Athens Stock Exchange general index plunged by 8 percent on Monday to a three-year low, amidst a negative climate across European stock markets and in particular due to increasing concern over the developments concerning the fate of the new Greek bailout program, as local analysts noted.

The index crashed standing at 462.97 at 16:30 local hour, according to Greek national broadcaster ERT.

It was the lowest point than the level it had reached in June 2012, when the country was facing a second general election within two months and scenarios of an imminent bankruptcy and exit from the European common currency zone.

Bank shares were hit hardest on Monday, diving by more than 20 percent from Friday's session, reflecting concern over the near future of the banking sector and real economy, according to experts.

Local analysts commented that the dramatic image of the Athens Stock Exchange comes as trade unions are culminating their protests against the pension system reform which is a key issue in negotiations with international lenders before the release of further loans to Athens.

On Friday foreign envoys left the Greek capital after a five-day marathon round of talks on the terms of the disbursement.

Greek cabinet ministers have acknowledged speaking to Greek media during the weekend and on Monday that after the end of the first round of dialogue on the assessment of the bailout there is still long distance separating Greece and creditors in many issues.

Experts warn that if the review will drag on for several weeks or months the uncertainty will have a negative impact on the Greek economy again. Endit