Eurozone leaders agreed to a third bailout package for Greece, helping the country once again stave off financial disaster and potential departure from the Eurozone, but the Global X FTSE Greece 20 ETF (NYSEArca: GREK) is being punished.
GREK, the lone dedicated Greece exchange traded fund, is off 5% at this writing on volume that is already nearly double the 90-day trailing average, making the fund one of the worst-performing ETFs in terms of percentage losses to this point in Monday’s session.
Greece may have averted further financial disaster, but the country still has hurdles to clear after coming perilously close to an official Eurozone exit early Monday morning. The country must still pass the reforms set forth by the Eurozone by Wednesday.
“An EU statement spoke of up to €86bn (£61bn) of financing for Greece over three years. Though it included an offer to reschedule Greek debt repayments “if necessary”, there was no provision for the reduction in Greek debt – or so-called “haircut” – that the Greek government had sought,” reports the BBC.
Contentious weekend discussions pushed Greece to the brink of a Eurozone exit. As the Financial Times notes, Greek Prime Minister Alexis Tsipras was “crucified” by some of his fellow Eurozone leaders and finance ministers. Tsipras was even on the receiving end of a scolding Alexander Stubb, the Finnish finance minister.