I am curious to see what they will do tomorrow the GGB
I am curious to see what they will do tomorrow the GGB after what the Chinese premier said.
For every 1 unit that spreads are reduced, equity of the NBG enhanced by €5 millions.
Last Friday the spreads fell 31 points, that means the equity of the NBG expanded by €155 million.
When NBG announced the capital increase the spreads were at historic high of 960 units.
The capirtal increase of €1.8 billion represents 360 units of spreads (1800 / 5 = 360)
If the spreads from 786 units were closed on Friday 186 points recede further and go to 600 units which in my opinion is feasible to do very soon, then this means that spreads have fallen a total of 960-600 = 360
So the NBG capital will have been strengthened via the spreads, as reinforced by the capital increase of €1.8 bil.
This means that theoretically the capital increase was completely unnecessary.
I say theoretically because in practice the €1.8 billion gives great advantage in the NBG administration to works with greater comfort in the exploitation of future opportunities whose aim will be to assign a value to the shareholder.