HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: In reaction to firmer than expected euro area November flash PMIs and the likelihood the APP programme to not be extended beyond September 2018, euro area sovereign bonds moved lower. In FX markets, the USD remained under pressure after the November FOMC minutes reinforced market uncertainty over the pace of rate tightening beyond December where a 25bps rate hike is currently fully priced-in.
GREECE: The Greek side has apparently agreed with DG Competition on the lignite-fired production units that will be put up for sale while the market test is to be held in December 2017. As regards the electronic auctions that are scheduled to begin on November 29, the notaries have not yet made a decision on whether they will recall the abstention from their duties which was decided in reaction to incidents of violence against them. As regards the out-of-court workout mechanism, since its launch on August 3 2017, 8,651 debtors have submitted an application but so far only 24 applications are at an advanced stage while none have yet successfully completed the process. According to press reports, the stress tests for the Greek four systemic banks that will be conducted in February 2018 will incorporate in their results any deleveraging transaction that will take place until their completion in May 2018.
SOUTH EASTERN EUROPE
BULGARIA: Credit activity slowed down to 4.2% YoY in October from 4.9% YoY in September.
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Daily Overview November 24 2017