Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: The majority of global equity markets moved lower on Thursday and US Treasuries firmed in early European trade on the back of news that Saudi Arabia and other Gulf states launched airstrikes against rebel forces in Yemen’s capital. Y-day’s weaker-than-expected US February’s durable goods orders mainly affected by adverse weather conditions, also had an impact.
GREECE: The ECB reportedly renewed its approval for the provision of ELA facility to Greek banks at its meeting y-day and increased the funding ceiling by €1.3bn to €71.1bn. In other news, the Euro Working Group decided at its meeting y-day that Greece is not legally entitled to receive the €1.2bn of the remaining €10.9bn HFSF buffer that has already been returned back to the ESM and the issue will be re-assessed at a later stage. Speaking to a local TV station earlier today, Minister of Economy, Infrastructure, Shipping and Tourism George Stathakis expressed his optimism that Greece will reach an agreement early next week with its EU partners on the package of reforms the government will propose and on the release of official funding.
SOUTH EASTERN EUROPE
BULGARIA: Prime Minister Boyko Borisov said on Wednesday that state budget revenues in Q1 2015 increased by BGN 820mn on an annual basis thanks to measures recently adopted by the government in its fight against contraband.
ROMANIA: The government approved on Wednesday a tax-cuts plan for the period of 2016-2019 in a move aimed to boost the domestic economy.
SERBIA: The Public Debt Administration sold RSD 2.6bn of 2-year floating T-Notes at an auction on Wednesday, well below amounts of RSD 10bn offered and RSD 7.1bn bid. The issue bears an annual coupon of Reference Interest Rate NBS + Fixed Spread, with the average fixed margin coming in at 1.34% above the Central Bank (NBS) key policy rate of 7.50%.
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