Russian stocks shrug off Greek bailout deal

Russian stocks ignored a second 130-billion euro deal sealed by eurozone countries and the International Monetary Fund for debt-laden Greece, demonstrating a downside movement in MICEX-RTS trade on Tuesday. Russia’s ruble-denominated MICEX stock index fell 0.73 percent to 1,567.58 while the dollar-denominated RTS was down 0.64 percent to 1,663.53 as of 1:35 p.m. Moscow time (09:35 GMT). The ruble gained 1 kopeck against the U.S. dollar to 29.78 but fell 10 kopecks against the euro to 39.54. Analysts polled by RIA Novosti said the risk of Greece’s possible default had long been priced in the stocks and the Greek news could no longer stir the market. Eurozone and IMF officials on Tuesday finalized measures after 12 hours of intensive talks to provide the second 130-billion euro bailout aid package to Greece to help it repay its massive debt and avoid a default. The deal requires Greece to reduce its debt to 120.5 percent of GDP by 2020, slightly above the original target of 120 percent, and will allow the country to launch a bond swap with private investors to write off another 100 billion of the country’s massive 360 billion euro debt. Eurogroup President Jean Claude Juncker said private bondholders could write off 53.3 percent of Greece’s debt. Greece needs the funds before March 20 to meet debt repayments of 14.5 billion euros.