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| Version 1 | Version 2 |
|---|---|
| Greece markets hit by debt default fears | Greece markets hit by debt default fears |
| (about 6 hours later) | |
| Greek financial markets were in turmoil on Wednesday after the new anti-bailout government appeared determined to defy the country's international creditors. | Greek financial markets were in turmoil on Wednesday after the new anti-bailout government appeared determined to defy the country's international creditors. |
| New Greek Prime Minister Alexis Tsipras said his party could not disappoint the voters which had elected them. | New Greek Prime Minister Alexis Tsipras said his party could not disappoint the voters which had elected them. |
| Greek five-year bond yields jumped to 13.5%, reflecting fears investors may not get their money back. | Greek five-year bond yields jumped to 13.5%, reflecting fears investors may not get their money back. |
| Share prices also fell for a third consecutive day with the Athens Stock Exchange (ASE) losing more than 9%. | |
| The biggest losers were bank shares, which plunged 26.67%. | The biggest losers were bank shares, which plunged 26.67%. |
| In the two sessions since Sunday's election, banks have seen 43% of their value wiped off, with investors fretting that the possibility of Greece leaving the euro would see bank accounts converted back into a new Greek national currency. | In the two sessions since Sunday's election, banks have seen 43% of their value wiped off, with investors fretting that the possibility of Greece leaving the euro would see bank accounts converted back into a new Greek national currency. |
| And bond yields are now at their highest since a 2012 restructuring which wrote off a large proportion of Greek debt held by private investors. | And bond yields are now at their highest since a 2012 restructuring which wrote off a large proportion of Greek debt held by private investors. |
| 'Rough' | 'Rough' |
| The dramatic movements came after new Greek Prime Minister Alexis Tsipras said in his first cabinet meeting that he planned to negotiate with creditors over the €240bn (£179bn; $270bn) bailout. | The dramatic movements came after new Greek Prime Minister Alexis Tsipras said in his first cabinet meeting that he planned to negotiate with creditors over the €240bn (£179bn; $270bn) bailout. |
| "We are coming in to radically change the way that policies and administration are conducted in this country," he said. | "We are coming in to radically change the way that policies and administration are conducted in this country," he said. |
| Mr Tsipras has already appointed a team of anti-austerity ministers and pledged to halt the full privatisation of Greece's biggest port, Piraeus Port Authority, a sale made as part of its international bailout. | Mr Tsipras has already appointed a team of anti-austerity ministers and pledged to halt the full privatisation of Greece's biggest port, Piraeus Port Authority, a sale made as part of its international bailout. |
| It also said it would also stop the planned sale of its 51% stake in Public Power Corporation of Greece, its biggest utility. | It also said it would also stop the planned sale of its 51% stake in Public Power Corporation of Greece, its biggest utility. |
| Shares in the port were down nearly 8%, while shares in the utility dropped 13%. | Shares in the port were down nearly 8%, while shares in the utility dropped 13%. |
| Mr Tsipras also plans to reinstate public sector employees deemed to have been laid off without proper justification and has announced rises in pension payments for retired people on low incomes. | Mr Tsipras also plans to reinstate public sector employees deemed to have been laid off without proper justification and has announced rises in pension payments for retired people on low incomes. |
| Germany's Economy Minister Sigmar Gabriel criticised the decision to halt the privatisations, saying Athens should have discussed the decision with its eurozone partners before making an announcement. | Germany's Economy Minister Sigmar Gabriel criticised the decision to halt the privatisations, saying Athens should have discussed the decision with its eurozone partners before making an announcement. |
| "Citizens of other euro states have a right to see that the deals linked to their acts of solidarity are upheld," he said. | "Citizens of other euro states have a right to see that the deals linked to their acts of solidarity are upheld," he said. |
| The EU has repeatedly warned the new government to stick to its commitments. A default could force Greece out of the euro. | The EU has repeatedly warned the new government to stick to its commitments. A default could force Greece out of the euro. |
| Felix Herrmann, a market strategist at DZ Bank, said: "Now Tsipras has announced his new cabinet and his new finance minister seems to be a rough guy from the very far left of the political spectrum. This is raising fears that there's a clash coming up between Athens and its lenders." | Felix Herrmann, a market strategist at DZ Bank, said: "Now Tsipras has announced his new cabinet and his new finance minister seems to be a rough guy from the very far left of the political spectrum. This is raising fears that there's a clash coming up between Athens and its lenders." |