Capital Management Expert: Greek Economy can Turn Around with Another Gov’t

Greece’s economy can recover and the country can lure many investors as long as a center-right government, investment – friendly is in power, said head of Hayman Capital Management, Kyle Bass.

According to a Kathimerini newspaper report, Bass spoke to Bloomberg saying that he sees great prospects in Greece’s economy and urges investors to buy Greek bank stocks. In the past, Bass had sent a letter to the International Monetary Fund asking to “stop punishing Greece”, and demanding a new recapitalization of Greek banks.

Greek banks are finally doing all that needs to be done, Bass said, pointing out that their cumulative capitalization compared to GDP is among the lowest in the world, a clear call to investors to consider how devalued they are.

Bass said that a change in government within the next two years will be beneficial for the Greek economy. Not that the profitability of the listed companies will take off, or that the fundamentals of the economy and businesses will drastically improve, but the first signs of recovery are already showing.

The key to the improvement, the investment analyst said, will be a shift towards a center-right, entrepreneurship-friendly and investment-friendly government. The polls in Greece show that the opposition leads by a two-digit percentage difference.

“Greece may not currently have the right leadership, but I think something great will happen in Greece over the next two years,” Bass said characteristically.

“Currently there are no remarkable foreign direct investments in Greece and what I believe is due to the current political situation. International investors need a more entrepreneurship-friendly political leadership before they actually start to position themselves and I expect some emblematic privatizations will be made in the coming years,” Bass said.