Fitch note on Greek Economy

In its latest comment on Greece (05/02/2013) Fitch noted that Greece has hit its fiscal target for 2012 and posted a minor primary surplus despite economic underperformance. The deficit reduction was achieved by a combination of larger than expected cuts in primary government expenditure and private and official sector debt relief. Fitch stressed that continued…

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Critical votes on prior actions and budget

New Democracy and PASOK officials were hopeful that both the omnibus bill, including structural and labor reforms and the 2013 budget, will be voted in the parliament next Wednesday and Sunday respectively estimating that 153-157 MPs will back the measures. Reportedly, PM sources said that contact with the coalition parties and the troika would continue…

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Prior actions required for loan tranche disbursement

According to a press report (Kathimerini), ten prior actions are required for the Greece to the disbursement of the next loan tranche. Namely: (1) revision of the privatizations programme; target revised to EUR10bn by 2016 and EUR25bn by 2020 from EUR50bn previously, (2) tax reforms: appointment of auditors, (3) new medium-term fiscal adjustment programme for…

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Extension drives to fiscal gap

FinMin Yannis Stournaras told Reuters that “we estimate the funding gap that would be created if we get the two-year extension at €13-15bn” adding that the fiscal gap to reach its 2013-14 targets remained at €13.5bn, which most likely refers to the recently discussed cost cutting measures of €11.5bn and additional revenues of €2bn. According…

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Retail trade eased 9,2%

According to Hellenic Statistical Authority (ELSTAT), turnover index in retail trade eased 9,2% y-o-y in May (Apr: -11,6%, Mar: -15,1%) and 8,3% m-o-m. The most notable y-o-y movements were in: retail sale not in stores turnover (down 22,3%), clothing & footwear turnover (down 19,3%), furniture, electrical equipment & household equipment turnover (down 16,9%), and pharmaceutical…

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Still a bumpy road ahead

Even after forming a coalition government,  this will not entirely remove uncertainty around the success of Greece’s fiscal and structural adjustment efforts, is the comment of Eurobank EFG Equities.  The Research Department of Eurobank identify the following main challenges in the short-term: 1) Some level of programme renegotiation and eventual outcome (potential agreement for a softer form…

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Greece: Credit expansion remained negative in September in Greece – September ‘11

According to the latest data just released by BoG, total credit rose 0.2% m-o-m, yet eased 1.9% y-t-d and 2.2% y-o-y in September (Aug: -1.3% y-o-y) reaching €252.9bn, which corresponds to 113.9% of GDP from 107.7% at YE ‘09. Euroxx Research point out that deductions continued unabated across the board reaching €1,059m in September from €1,310m…

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