International Monetary Fund

Russia is experiencing recession, and the 2014 growth forecast has been cut to 0.2% from 1.3%, the International Monetary Fund mission chief to Moscow said on Wednesday.

Ukraine and Western-led sanctions are partly to blame, as political tension has dragged down the economic forecast for Russia, which at the beginning of the year, the IMF estimated could reach 3%, reports RT.com.

Credit rating agency Moody's on Tuesday upgraded the Greek banking system from negative to stable and said the country's economy would return to growth this year after a six-year recession.

Romanian Prime Minister Victor Ponta on Monday said the government will raise the defence budget by 700 million lei (some 156 million euro), from current 6.4 billion lei, in order to upgrade military capabilities.

Catherine Ashton, EU foreign policy chief, met Serbia's new Prime Minister and Foreign Minister, Aleksandar Vucic and Ivica Dacic, in Belgrade on Monday.

“I am absolutely delighted that I was able to make a special visit to Serbia today, to have the opportunity to congratulate you in person and to talk about the work that lies ahead,” she said.

International Monetary Fund chief Christine Lagarde is to meet with German Chancellor Angela Merkel on May 2 in Washington for talks expected to focus on the broader economic situation in the eurozone in general and to touch on the Greek economy and on the prospects for a launch of talks on lightening Greece's debt burden.

International Monetary Funds officials have recommended that Ukraine be granted a loan worth USD 17 B aimed at helping Kiev to reduce pressure on the economy.

Greece's general government primary surplus last year, as calculated by the country's international lenders, is estimated at 1.5 billion euros ($2.07 billion), Greece's deputy finance minister said on Wednesday.

Former Finance Minister Giorgos Papaconstantinou issued a statement on Tuesday denying claims that the International Monetary Fund’s ex-Managing Director Dominique Strauss-Kahn had insisted that the Greek debt be restructured as part of the bailout deal signed in May 2010.

 Despite economic turnaround, demand is not expected to recover while supply remains at high level

By Dimitris Kontogiannis

The European Commission’s statistical arm, Eurostat is expected to confirm on Wednesday the size of Greece’s 2013 primary budget surplus, which the government hopes will further boost its argument that it made the right decision to stick with the fiscal adjustment program agreed with the eurozone and International Monetary Fund.