Greece, reclassified by FTSE Russell as a “developed market”

Greece’s capital market was reclassified on Monday by FTSE Russell from “advanced emerging market” status to “developed market” status, in a new sign of the country’s economic recovery following the sovereign debt crisis. The decision could attract additional investment and expand the pool of capital available to Greek companies.

Following the change, 62 companies listed in Greece will leave the FTSE Russell index dedicated to advanced emerging markets and be included in the developed markets index, according to Piraeus Securities. The reclassification could make them more visible to international funds investing in developed Europe.

Euronext Athens described the decision as a major international recognition of the structural reforms and progress achieved in recent years. Yianos Kontopoulos, chief executive of the Athens Stock Exchange, said the change would create new financing opportunities for listed companies.

Also on Monday, index provider STOXX reclassified Greece as a developed market. Nine Greek companies, including National Bank of Greece, Eurobank, Piraeus Bank, Alpha Bank, PPC and Metlen, will be included in the pan-European STOXX Europe 600 index.