National Bank of Greece (ADR) (NYSE:NBG) performed poorly on the bourses and is likely to maintain the same pace as talks between Greece, and its international creditors are leading nowhere. The Wall Street Journal reported that the discussions between the two parties hit rough patch as both continued to play blame game.
Talks changed into blame game
According to European officials, Greek officials are not providing proper information to European Commission, the European Central Bank, and the International Monetary Fund over its plans to deal with the economic scenario. On the other hand, a Greek official stated that the European technical teams are trying to intrude in their space and are doing more than their plain role of fact-finding. The so-called technical discussion is aimed to figure out when Greece will run out of money and if the rest of the euro zone is ready to support the New Greek government.
European Commission President Jean-Claude Juncker expressed his displeasure over the rate of progress in talks. Greece has been least co-operating in chalking out details about its plans. Such behavior is fuelling doubts over the country’s future in the euro zone. Based on the limited information provided by Greece, the technical team has estimated that the funds with the Greek government may last for few weeks. Also, the Eurozone and the Greek government maintain difference of opinion over the latter’s bill for the poor. While the Greece was asked not to pass the bill that intends to offer subsidized food and electricity to low-income people, the same stands passed by the lawmakers in Athens. The bill alone will cost the government $213 million.
Meanwhile, Morgan Stanley has raised a red flag on Greece, stating that the country is standing on the verge of forceful exit. The comments from the research firm drove the shares of National Bank of Greece (ADR) (NYSE:NBG) down by 6.61% during after-hours to $1.21.