WORLD ECONOMIC & MARKET DEVELOPMENTS
GREECE: The April 7 Eurogroup resulted in a framework agreement that unlocked the return of the institutions’ mission heads to Athens, which will reportedly take place after the IMF Spring Meetings (April 21-23), with an aim to reach a staff-level agreement. The framework agreement reportedly foresees a package of measures comprising reductions in pensions worth 1% of GDP to be implemented in 2019 and a decrease in the tax-free threshold worth another 1% of GDP to be implemented in 2020 if the primary surplus for 2018 reaches the agreed target of 3.5% of GDP or in 2019 if it falls short of the target. With regard to the medium-term debt relief measures, it is understood that they will be discussed at a subsequent Eurogroup, after the measures agreed in the staff-level agreement have been legislated by the Greek government.
SOUTH EASTERN EUROPE
BULGARIA: The domestic equities market amassed hefty gains last week thanks to positive investor sentiment towards Bulgarian shares. Meanwhile, the local BGN sovereign bond yield curve flexed around the 5-year tenor, while Eurobonds outperformed.
SERBIA: The EUR/RSD gained a bit of ground last week approaching levels near the zone that could trigger new National bank of Serbia (NBS) intervention in order to halt further depreciation of the local currency.
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