piraeus bank group

Economic Indicators Bulletin in Southeastern Europe - September 2013

  • The International Monetary Fund (IMF) concluded Albania’s economic review, following its September visit. In its review, it is noted that economic growth in 2013 will remain weak, due to tight lending conditions and declining corporate balance sheets and remittances. Assessing public debt repayment and adopting a medium-term debt target could, however, improve the country’s economic prospects.
  • Real GDP growth in Bulgaria is expected to be 0.6% in 2013 due to weak investments, according to the country’s Minister of Finance. Economic activity is expected to reach 2.0% in 2014.
  • On September 27th, the European Stability Mechanism (ESM) disbursed EUR 1.5bn to Cyprus, thereby completing the second tranche of the country’s financial assistance programme. The disbursement aims to cover recapitalization of the local cooperative banking sector. The loan will have a floating rate and will be repaid in two equal instalments maturing in 2029 and 2030. The amount of assistance disbursed to date is EUR 4.5bn. out of a total of EUR 9.0bn.
  • The IMF approved Romania’s new 24-month Stand by Arrangement (SBA), of EUR 1.98bn on September 27th. The agreement will be treated as precautionary as per the two previous ones, while the SBA will act as a buffer for the implementation of necessary structural reforms.
  • Real GDP growth in Serbia in 2013Q2 was 0.2% YoY compared to a revised 2.7% in 2013Q1 and a contraction of 0.1% in 2012Q2. Net exports were the main growth driver in 2013Q2, as final consumption and gross fixed capital formation contracted.