Category Archives: Greece

Cyprus, Eurozone, Greece

#Eurogroup, Agenda highlights

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The Eurogroup 0f December 5th will discuss draft budgets of the euro area member states, will be briefed on the ongoing second review of the Greece’s economic adjustment programme and will adopt its work programme for the 1st half of 2017.

Meeting information_preview

Budgetary plans and prospects

At its morning session, which starts at 10.30, the Eurogroup will discuss the euro area member states’ draft budgetary plans for 2017. It will also look into the budgetary situation and budgetary prospects in the euro area as a whole.

The discussion on draft budgetary plans will be based on the European Commission’s opinions on these plans, published on 16 November.

The Commission evaluated the plans’ compliance with the rules of the Stability and Growth Pact (SGP) and assigned them to one of the following three categories:

  • compliant (Germany, Estonia, Luxembourg, Slovakia and the Netherlands)
  • broadly compliant (France, Ireland, Latvia, Malta and Austria)
  • at risk of non-compliance (Belgium, Cyprus, Finland, Italy, Lithuania, Portugal, Slovenia and Spain)

Ministers of the member states whose plans are considered to be at risk of non-compliance will be expected to explain how they intend to meet the SGP targets.

Greece’s draft budgetary plan is not being evaluated in this exercise because it is assessed separately, as part of Greece’s ongoing macroeconomic adjustment programme.

To ensure better coordination of national fiscal policies, the euro area member states have to submit their draft budgetary plans for the European Commission’s evaluation between 1 and 15 October each year.

Greece

The Eurogroup will be briefed by the institutions on the state of play of the second review of the economic adjustment programme, following the review mission which took place mid-November.

Depending on the progress achieved in the context of the second review, the Eurogroup may return to the issue of debt-related measures and the IMF’s involvement in Greece’s programme.

The second review focuses on Greece’s budget for 2017, its medium-term fiscal strategy and the labour market reform.

Eurogroup work programme

The Eurogroup will adopt its work programme for the first half of 2017.

Banks, Greece

Euroxx: Credit Contraction of Greek Banks at 1.9% y-o-y in April ‘16

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According to the latest data released by Bank of Greece, total credit dropped by 0.2% m-o-m and 1.9% y-o-y (March: -2.1% y-o-y) to €202.1bn in April ‘16. Net flow remained negative, although on a decelerating pace, on net deductions of €117m from net outflows of €146m in March ’16.

In particular,

Ø  Corporate lending remained flattish (-0.1%) m-o-m and down by 1% y-o-y to €95.7bn, accounting for 47.4% of total credit. Net flows remained positive in April at €118m from €224m a month ago.

Ø  Loans to sole proprietors eased by 0.4% m-o-m and decreased by1.3% y-o-y to €13.3bn, accounting for 6.6% of total credit. Net flows remained negative at €46m from net deductions of €9m a month ago.

Ø  Individuals & private non-profit institutions’ lending remained flattish m-o-m (-0.2%) and dropped by 2.9% y-o-y (March ‘16: -3% y-o-y) to €93.1bn, accounting for 46.1% of total credit. Monthly net deductions settled at €189m in April ’16 from €361m in March.

Ø  Outstanding balances in housing loans remained flattish m-o-m (-0.3%) and dropped by 3.3% y-o-y to €66.4bn. Housing loans account for 71.3% of household lending and 32.8% of total credit. Deductions reached€178m in April ’16 from €214m in March.

Ø  Consumer credit remained almost unchanged m-o-m (-0.1%), while dropped by 1.6% y-o-y (March ‘16: -1.7% y-o-y) to €25.3bn. Consumer credit accounts for 27.2% of household lending and 12.5% of total credit. Net flows remained negative in April ‘16, on deductions of €14m vs deductions of €47m in March ‘16.

 

Source: Euroxx Research, research@euroxx.gr