Black Monday: Shares in National Bank of Greece, Eurobank and Piraeus are collapsing

Share prices at Greek banks have fallen by more than a quarter as the combination of the global crash and uncertainty around a Grexit weight heavy on the financial sector. 

 

Athens Stock Exchange had fallen by seven per cent in mid-afternoon trading – but it was the banks that were hit hardest. 

 

The National Bank of Greece was down 14 per cent at pixel time while Piraeus had fallen 18.2 per cent.  Athens-based Eurobank had plummeted 26 per cent. 

 

The drops come as the country reels from further political turbulence. Prime Minister Alexis Tsipras resigned last week after just seven months in power, calling snap elections for the country on 20 September. 

 

 

Leader Vangelis Meimarakis has therefore passed the baton to Popular Unity, a far-left group of 25 members of Greek parliament, to see if they can form a government under Panagiotis Lafazanis.

 

However, it is expected that they will also be unsuccesful, in which case a caretaker government must be formed until the Greeks go to the polls. 

 

This is now occuring against a backdrop in which global markets have been collapsing. 

 

China's Shanghai Composite index closed 8.5 per cent down. The FTSE 100 was down 4.5 per cent down in mid-afternoon trading.