WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: In line with market expectations, the ECB stayed put at yesterday’s monetary policy meeting. The main interest rates were kept unchanged while ECB President Mario Draghi did not provide any clear hints on potential changes to the technical parameters of the Asset Purchase Programme. The ECB policy meeting did not exert a lasting impact on the EUR and German government bonds.
GREECE: According to press reports, talks between the Single Supervisory Mechanism (SSM) and the Greek banks on NPLs resolution are ongoing with a general target to reduce NPEs from €108.6bn currently to €60bn by 2019. According to data released yesterday by the BoG, travel receipts fell by 6.2% YoY for the period January – May 2016, but SETE President Andreas Andreadis expressed optimism for an increase in travel receipts for 2016.
SOUTH EASTERN EUROPE
ROMANIA: The finance ministry sold at an auction on Thursday RON 313mn (~€70.2mn) of 2021 government bonds, at an average accepted yield of 2.4%, 33bps below that achieved at a tender of same maturity paper in mid-June.
CESEE MARKETS: Emerging markets assets came under pressure earlier on Friday in view of a stronger US dollar and skepticism over whether Central Banks around the globe will provide additional stimulus, as was previously expected, in order to address any negative impact stemming from the Brexit vote. A decline in oil prices weighed further on energy-related shares. Meanwhile, CESEE currencies and government bonds were little changed earlier today, with Turkish assets recovering some ground after coming under significant pressure since last week’s failed coup attempt.
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