Bi-Weekly Report 17-30 April 2018

Turkey                                                                                    

The CBRT hiked its key policy rate aggressively, by 75 bps to 13.5% to stem the deterioration in the currency

Lending activity (FX-adjusted) slowed in Q1:18, mainly due to weaker support from the Credit Guarantee Fund and higher lending interest rates

Customer deposits (FX-adjusted) increased in Q1:18, supported by more attractive remuneration rates

Romania

Credit expansion strengthened in Q1:18, despite the ongoing tightening in monetary policy

The deposit base continued to expand in Q1:18, in line with economic activity

The real estate market continued to improve in Q1:18

Bulgaria

Credit expansion strengthened modestly in Q1:18, providing support to the economic recovery

Customer deposits maintained momentum in Q1:18, in line with solid economic growth

The real estate market maintained its strong momentum in Q4:17

Serbia

The EC reiterated that the pace of Serbia's EU accession depends on intense progress in two key areas

FYROM

The EC recommends the start of EU accession talks with FYROM

Fiscal prudence continued in Q1:18, with revenue underperformance offset by lower primary spending

Albania

The EC recommends the launch of EU membership talks with Albania, following steady progress on the implementation of 5 key priorities

Cyprus

The banking sector posted a loss in FY:17, due to higher provisions

Egypt

Less-than-envisaged fiscal consolidation this year

SDR-denominated Suez Canal receipts set to post positive growth for the first time in 3 years and reach a record high in 2017/18, on the back of a rebound in global trade

Appendix: Financial Markets