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 retained a negative tone on Tuesday amid heightened concerns about the Greek issue. Elsewhere, EMU peripheral sovereign spreads undertook some further widening while, in FX markets, the JPY was among the main outperformers as market uncertainty favors its safe-haven appeal.
GREECE: In a live interview to a local TV station late y-day, Greece’s Prime Minister Alexis Tsipras said that a “No” referendum outcome would reinforce the government’s negotiating power while, in case of a “Yes” outcome, he “would act in line with the Hellenic Constitution”, reportedly hinting that he would be willing to resign or undertake the necessary steps required for the formation of a national unity government. Meanwhile, local press reports suggested that EU Commission President Jean-Claude Juncker made a last-minute offer in an effort to facilitate an agreement being reached between Greece and its official creditors before the expiration of the country’s current financial assistance arrangement at midnight today. Local newswires quoted an unnamed Greek government official saying that the government is listening with interest what has been proposed but “Alexis Tsipras will vote No on Sunday” giving the impression that the EU Commission President’s proposal has effectively been rejected. Meanwhile, a number of EU officials, including EU Commission President Jean-Claude Juncker, Chancellor Angela Merkel and EU Parliament President Martin Schulz, insisted that Greece’s upcoming referendum is essentially a question regarding whether Greece wants to remain or not in the euro area.
SOUTH EASTERN EUROPE
BULGARIA: The Central Bank of Bulgaria issued a statement with respect to the bank holiday and the introduction of capital controls in Greece. According to BNB, the domestic banking system, including the subsidiaries of the Greek banks, is operationally and financially independent.
SERBIA: In a statement issued at its website on Monday, the National Bank of Serbia highlighted that that the subsidiaries of Greek banks in Serbia will continue to operate as normal within regular working hours.
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