WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Most European bourses reversed early losses to stand in a marginally
positive territory at the time of writing amid expectations that the People’s Bank of China may adopt
further monetary easing measures to support domestic economic activity.
GREECE: Today’s media reports presented the main axes of a plan the Greek government is
expected to unveil at tomorrow’s extraordinary Eurogroup including, among other: (i) 70% of the
measures/conditionality laid out in the present adjustment program will remain in place while the
remaining 30% which are deemed “toxic” for the domestic economy will be replaced by 10 reforms;
(iii) lowering of this year’s target for the general government primary surplus to c. 1.5% of GDP
compared to 3.0% envisaged in the present bailout agreement; (iii) a restructuring of public debt
through a menu of debt swaps; (iv) adoption of measures for dealing with the domestic
humanitarian crisis and restoring social justice.
SOUTH EASTERN EUROPE
SERBIA: The dinar under pressure, in line with the trend in other emerging market currencies.
ROMANIA: The government and the IMF did not sign a letter of intent on Monday after the
conclusion of the latest round of talks on Roman’s precautionary Stand-By Agreement.
BULGARIA: Industrial production rose by 0.9&YoY in December, vs. an upwardly revised 1.1%YoY
increase in November, rattail sales rose by 6.4%YoY over the same month, marking the highest pace
of annual increase since February, 2014, while, the trade deficit widened by 13, 6%YoY in 2014.
CESEE MARKETS: The majority of emerging stock markets fell and CEE currencies broadly
weakened in European trade on Tuesday, as escalating geopolitical tensions in Ukraine and caution
prevailing ahead of the extraordinary Eurogroup tomorrow overshadowed mounting optimism
about further monetary easing by the People’s Bank of China