WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Major European bourses opened higher in early trade on Monday amid market optimism that an agreement will probably be sealed between Greece and its official creditors following news that the Greek government submitted late y-day new reform proposals. Against this environment, yield premiums of EMU periphery sovereign bonds vs. their German counterparts narrowed while the EUR gained some ground.
GREECE: In an attempt to break the impasse at official discussions with official creditors, the Greek government presented late y-day to the EU Commission President, the German Chancellor and the French President, revised reform proposals. The emergency Euro Summit is scheduled to take place at 17:00GMTtoday and is reportedly expected to conclude four hours later with a press conference. Ahead of that meeting, Greece’s Premier is scheduled to meet with ECB President Mario Draghi, IMF Managing Director Christine Lagarde, EU President Jean-Claude Juncker and Eurogroup President Jeroen Dijsselboloem at09:00GMT. Around 90 minutes later at 10:30GMT euro area finance ministers are scheduled to convene to discuss the Greek government’s revised reform proposals, laying the ground for the Euro Summit that will follow.
GREECE: The IMF board approved the combined 5th-6th-7th review of the Cypriot Economic Adjustment Programme.
SOUTH EASTERN EUROPE
BULGARIA: Major domestic stock indices moved broadly lower last week amid growing concerns over the Greek issue.
ROMANIA: The leu came under renewed pressure over the last few sessions in view of mounting concerns over the Greek issue.
SERBIA: The EUR/RSD moved slightly upwards on a weekly basis on Friday, in thin trade volumes.
CESEE MARKETS: Looking into this week, Turkey’s MPC meeting and an expected approval of Serbia’s 1st review under the country’s SBA with the IMF take centre stage in the CESEE region.
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