piraeus bank group

Economic Indicators Bulletin in Southeastern Europe - November 2013

  • On November 27th, the Bank of Albania (BoA) decided to cut its key policy rate by 25 basis points (bps) to the historically low level of 3.25%. The last rate cut, of 25 bps, was in July. The BoA estimates that inflation will remain subdued in the medium term due to weakening domestic and external economic growth.
  • Bulgaria’s foreign exchange reserves contracted in October by 1.3% YoY from an increase of 16.2% in October 2012, while in September reserves covered 124.7% of the short-term gross external debt from 133.4% in September last year.
  • The international rating agency, Standard & Poor's, raised its long/short-term foreign and local currency sovereign ratings on the Republic of Cyprus to B-/B with stable outlook. S&P notes that the risks regarding the implementation of the financial assistance programme have improved, leading to the full and timely payment of debt service. The stable outlook reflects the balance between the implementation risks and the upside potential of the local economy.
  • The international rating agency, Standard & Poor's, affirmed Romania’s long/short-term foreign and local currency sovereign credit ratings at BB+/B with positive outlook. S&P estimates that Romania is making steady progress on fiscal consolidation, financial sector stability and higher exports – improving the country’s competitiveness. The successful implementation of the fiscal consolidation and structural reforms may lead to an upward revision of the rating.
  • Serbia’s public debt in January-October totalled 58.5% of GDP from 59.3% in 2012.