WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: The USD was modestly weaker in early European trade on Wednesday amid increased expectations that the Fed will probably not rush to push interest rates higher.
GREECE: In a Eurogroup meeting that took place via teleconference y-day, euro area finance ministers approved a first list of reforms the Greek government submitted to the intuitions shortly after midnight on Monday, as part of the February 20 Eurogroup decision for a four month extension of Greece’s present Master Financial Assistance Facility Agreement (MFFA). With this hurdle out of the way, the Greek government now shifts its focus on ensuring adequate coverage for the State’s considerable funding needs in the weeks ahead taking into consideration that, as suggested by the Feb. 20 Eurogroup statement, any disbursement of the available commitments to Greece under the present bailout arrangement would require its successful conclusion and be subject to approval by the Eurogroup.
SOUTH EASTERN EUROPE
SERBIA: The National Bank of Serbia issued a decree on Tuesday, asking commercial banks to provide more favourable terms to borrowers of CHF-denominated loans.
BULGARIA: According to the latest National Bank of Bulgaria monetary statistics, deposits of the non-government sector rose by 2.4%YoY in January, while total loans fell by 8.4%YoY.
CESEE MARKETS: Most emerging stock markets and CEE currencies firmed in early European trade on Wednesday after Fed Chair Yellen signaled at her semi-annual testimony before the US Senate’s Banking Panel yesterday that the US Central Bank is in no rush to incept its rate-hiking cycle. In a similar vein, government bonds strengthened receiving additional support from Central Bank monetary easing expectations.
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