reece’s
financial community has enthusiastically embraced the euro and sees
itself as the emerging financial centre of the Balkans and the region’s
natural link to the European Union
Doing business with and within the outside world has long come naturally
to companies such as Papadakis
Investment Group, which trades in a wide range of commodities and
extends loans to governments, banks and large companies.
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“We
specialise in all areas of financing,” says group president
Panagiotis Papadakis. “We
have operations in more than 60 countries and we work to help poor ones.
We can provide finance for projects that help the people of the world.”
Mr Papadakis emphasises the importance of the EU in developing Greece’s
financial markets and he expects his company’s business with London
to increase. “There is a great friendship between Britain and Greece,
and there are many business links between the two countries.
“As members of the EU, business opportunities between the countries
will increase with the development of joint ventures and other activities.
We hope this will be the case between Greece and the UK.”
But
while Mr Papadakis feels comfortable doing business across the world,
for some Greek companies the process of swapping the drachma for the
euro and ensuring the Athens
Stock Exchange (ASE) conforms with standard practice in European
stock markets has required a change of approach.
Greece has traditionally been characterised by large public-sector corporations
and numerous small companies, but now the local business community and
private shareholders are being persuaded to look at investment and business
in a different way.
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ASE
vice-president Lito Ioannidou
says: “One of the challenges we face is to change the mentality
of the average Greek investor. The best way of ensuring the market works
is to educate investors that they have to be informed before they make
any decisions, and not be influenced by rumour.”
Success can only be partly secured through good regulation by the market
authorities, warns Ms Ioannidou, as much depends on the instincts and
attitudes of the investors themselves.
She says: “No matter how good the institutional framework may be,
it will not offer enough protection to an investor who doesn’t
abide by a few basic rules of behaviour. Our main goal is to carry out
education in the nature of investment and securities, and in the proper
ideals of a stock exchange.”
Greece
joined the eurozone in January. New rules governing the remote members
of the stock exchange – companies that do not trade on the premises
but at some distance away from it – have been introduced for companies
which trade on the ASE but are registered or domiciled elsewhere in
the EU. These companies are seen as a potentially useful source of extra
liquidity and the rules have been modified to bring them in line with
a European Commission directive aimed at ensuring equality of rights,
treatment and terms of competition among all European investment companies.
The stock exchange set up a specialist Investors’ Help Unit Desk
open from nine in the morning until nine at night. The aim was to provide
information for the smaller retail shareholders to play a greater role
in the market.
Other
measures introduced to encourage non-institutional shareholders include
the publication of investor guides in simple language and improvements
in the stock exchange’s website setting out the regulatory framework
and information on share transactions.
The ASE has created an electronic hub with the aim of distributing company
statements and announcements to all potential investors. In a further
bid to spread the spirit of free enterprise beyond Athens, the stock
exchange has launched a series of regular seminars in major cities around
the country.
Stock exchange must equip for a wider function
For
potential foreign investors, the ASE organises roadshows and advises
listed firms and securities brokers to hold similar events in Greece.
“We encourage listed companies to set up an investor relations
department and related websites, so they can provide up-to-date investment
information in a structured and easily accessible manner,” says
Ms Ioannidou.
“Most listed companies are starting to respond positively and,
of course, some have had investment departments and websites of their
own for some time.”
However, if the stock exchange is to function in a bigger and wider
dimension than in the past, it has to be adequately equipped.
Ms
Ioannidou adds: “The second challenge we face is to increase market
liquidity and retain those funds within the country. This will be achieved
by an increase in the number of members of the ASE, the increased activity
of those companies, the introduction of new products and, above all,
the potential and proper behaviour of listed companies.”
The ASE is promoting new business such as a market for companies specialising
in innovation, as well as Eagak, a Greek market for firms operating
in the emerging capital markets.
“Eagak will operate as a financial springboard for the subsidiaries
of Greek companies located in the Balkans, North Africa and other emerging
markets,” she adds.
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