The Athens Stock Exchange closed yesterday's trading session with a significant rise in the wake of the intervention of Kyriakos Mitsotakis at the Morgan Stanley roadshow, who clarified that "there will be no extraordinary tax on Greek banks.". The significant rise recorded yesterday by the General Index was led by banks, which had suffered in recent sessions. According to the brokerages, the reason for the slide in the general index was the banks and rumors of a special tax. 

THE QUESTION OF THE LAW

Any tax on the banks' profits would violate the law on deferred taxation. Banking sources informed BnB Daily that accepting a new tax would require a change in the law. However, the fact that the prime minister ruled out this scenario has freed up investors as there is no longer any uncertainty for the banking system."

NO CAPITAL or SIZE AFFECTED

The same sources point out that after the denial of the tax, banks do not have to face any focus of uncertainty and are expected to play a leading role in the rise of the Athens Stock Exchange. Additionally, the increased profits will enable the implementation of the announced business plans for dividend distribution, thereby alleviating the burden on balance sheets. 

POSITIVE IMPRESSIONS

The same sources said that the investment community's impressions of the domestic banking system were positive, as funds, institutions and rating agencies got the answers they wanted. This was also evident on the Athens Stock Exchange board. Faster amortization of deferred taxes, dividend distribution, balancing interest income losses, earnings and credit expansion received a vote of confidence from the investment community.