Global index provider FTSE Group said yesterday that no changes will be made to the current classification of Greece: the country will continue to be classified as a developed market within the FTSE Global Equity Index Series during 2005.
The decision has been confirmed by the FTSE Equity Index Committee, following a six-month period of negotiations between FTSE Group and the Athens Stock Exchange (ASE), including a close examination of market structures and conditions.
The ASE partly meets of all the criteria for developed status, but there are a number of areas where additional work needs to be undertaken to bring the market conditions in line with the needs of international investors. FTSE recognises that improvement has been made by the ASE over the last six months, and so will take no action to alter the Developed status at this time.
However, the Committee has asked that FTSE continues to engage with the ASE to ensure that work on the outstanding criteria areas will continue to progress. The next country classification review will take place in September 2005.
“FTSE has developed objective and transparent criteria for classifying countries and we will continue to work with both international investors and the Athens Stock Exchange to ensure that areas of concern in the Greek market are addressed,” says Mark Makepeace, Chief Executive, FTSE Group.