27 November 2012 11:58 [Source: ICIS news]
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LONDON (ICIS)--European chemical company stocks were up in line with general markets on Tuesday following the long-awaited approval of the latest tranche of the Greek bailout funds by eurozone finance ministers and the International Monetary Fund (IMF).
€43.7bn ($56.8bn) was approved in total funding several weeks later than expected, as a result of ongoing negotiations on the terms of the loan deal.
The IMF was understood to have been pushing for a write-down of portions of Greek debt by eurozone debtholders, a proposal strongly opposed by Germany and several other creditor nations.
Measures that are currently under consideration by the eurozone include cutting the interest rates on the country’s official loans and extending the debts’ maturity by 15 years to 30 years, and granting Athens a 10-year interest repayment deferral.
€10.6bn of the loan will be for budgetary financing, while €23.8bn will be in the form of bonds earmarked for bank recapitalisation, would be paid out in December. The remainder will be paid in three tranches in the first quarter of 2013, according to a statement issued by eurozone finance ministers.
“[Greece’s] debt ratio is expected to decrease to 124% of GDP by 2020 through significant upfront debt reduction measures of 20% of GDP,” said IMF managing director Christine Lagarde.
At 11:27 GMT, the Dow Jones Euro Stoxx Chemicals index was up by 0.21%, with every company but three in the index marking an uptick in trading price.
The FTSE 100 in the UK was also up, by 0.31%, while Germany’s DAX index rose by 0.47%, the CAC 40 in France increased by 0.17% and the IBEX 35 index in Spain rose by 0.28%.
Shares in German specialty chemicals company Brenntag were up 0.80%, while French major Arkema’s stock price rose by 0.55% and shares in German lubricants manufacturer Fuchs Petrolub was trading up 1.32% apiece.
Shares in Swiss specialty chemicals company Clariant increased in price by 0.47% compared to yesterday’s closing price, while Belgian company Solvay’s shares were trading up 0.55%, and shares in UK polymer manufacturer Victrex were trading up 0.46%.
($1 = €0.77)
Surinder Malhi contributed to this article
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