Greece Rejoins Developed Markets: FTSE Russell Upgrades Athens Stock Exchange

In a landmark development for the Greek capital markets, FTSE Russell has officially announced the reclassification of the Athens Stock Exchange (ATHEX) to Developed Market status, marking a critical return to the world’s mature economies. The decision will take effect on Monday, September 21, 2026, ending more than a decade of Greece’s designation as an “Advanced Emerging Market” following its downgrade during the sovereign debt crisis.

A Vote of Confidence in the Greek Economy

The upgrade underscores the country’s successful structural reforms and the resilience of its financial system, particularly in enhancing market transparency, investor protection, and operational efficiency. According to FTSE Russell’s statement, Greece now fully meets all 22 of the FTSE Quality of Markets criteria, which are prerequisites for inclusion in the Developed Markets classification. These criteria cover:

• Regulatory environment and governance
• Market infrastructure and settlement systems
• Liquidity and accessibility for international investors
• Transparency and corporate governance standards

The last time Greece was classified as a Developed Market by FTSE Russell was before 2015, when economic instability and market dysfunction led to its demotion amid the eurozone debt crisis.

Market Fundamentals Back the Move

As of June 30, 2025, ATHEX met all key quantitative thresholds, including:

• Sufficient free-float market capitalization
• Number of investable securities
• Active trading volumes and market liquidity

The decision was further reinforced by Greece’s macroeconomic recovery and international creditworthiness. The country now enjoys:

• High Gross National Income (GNI) per capita, based on the World Bank’s Atlas method
• Investment Grade ratings from all three major credit rating agencies, with Stable or Positive outlooks

These conditions support a favorable investment climate and signal lasting stability in Greece’s financial and economic environment.

Strategic Implications for Investors and ATHEX

The reclassification is expected to broaden the investor base, attracting larger inflows from global institutional investors and index-tracking funds that are mandated to invest only in Developed Markets. This could lead to:

• Increased trading volumes and liquidity
• Greater pricing efficiency
• Reduced cost of capital for Greek-listed companies

In practical terms, ATHEX will now be included in Developed Market benchmarks, including various FTSE Global Equity Index Series (GEIS) products, which can significantly raise the profile of Greek assets in global portfolios.

“This recognition by FTSE Russell validates the reforms we’ve implemented and confirms our strategic trajectory towards long-term growth,” said a senior official from the Hellenic Capital Market Commission.

A Turning Point for the Greek Capital Market

This upgrade is not just symbolic; it marks a tangible shift in Greece’s global financial standing. After years of market underperformance, capital controls, and political-economic uncertainty, Greece is once again being recognized as a stable, mature, and investment-grade market.

It also aligns Greece with other European peers in the Developed Market category and signals its reintegration into the core of the global financial system.

Looking Ahead

The impact of this decision will likely be felt long before September 2026, as global fund managers begin to rebalance portfolios in anticipation of the reclassification.

Moreover, the credibility boost for the Greek economy could catalyze further foreign direct investment (FDI), corporate listings, and a more competitive and innovative financial ecosystem in Athens.

Greece’s return to the Developed Markets club is more than a technical upgrade — it’s a recognition of national resilience and a reintroduction to the global investment community.

Source: pagenews.gr