Funds go short on Greek banks

Greek analysts are concerned by foreign funds increasingly going short on Greek banks over the last month.

The trend became apparent in July and is based on debt rating firms’ repeated warnings that the banking sector, with its nonperforming loans, remains one of the main drags on the economy.

BlackRock Investment Management started by taking short positions on Alpha Bank stock on July 9, but UK-based Lansdowne Partners has been more active lately, with negative positions on three of the four biggest Greek banks, with National being the exception.

The Athens Stock Exchange’s banking index is down 15 percent from the year’s high.