Economy of the European Union

BELGRADE - Under an 80 mln euro loan agreement signed by the Serbian government with the EBRD on Friday, 70 mln euros will go to further construction of science and technology parks in Serbia, with the remaining 10 mln to go to the BIO4 campus in Belgrade.

The banking market is witnessing a trend of conversion of mortgage loans that were contracted with a floating interest rate into a long-term fixed interest rate (mainly five years), as the persistence of inflation at high levels continues to make borrowers nervous about the evolution of interest rates after the end of the freeze that banks have implemented.

Investors from non-EU countries played a leading role in the increase of foreign investments in Greek real estate in 2022, mainly aspiring to secure a residence permit through the Golden Visa program.

The European Central Bank will almost certainly deliver another interest rate hike tomorrow, pressing ahead with its fight against inflation even as the eurozone slides into a recession.

Analysts predict that ECB policymakers will copy May's move and again raise borrowing costs by 25 basis points, taking the closely watched deposit rate to 3.5 percent.

Not much progress is expected on the reform of European Union debt rules at EU finance ministers' talks on Friday, officials said, as Germany and France remain at odds over whether there should be a minimum annual debt reduction obligatory for all.

LONDON - Serbian PM Ana Brnabic said on Tuesday the EBRD Board of Directors was due to approve an 80 mln euro loan to Serbia on Wednesday.

In the first major financial crisis of the 21st century which erupted in 2007-2008, and whose tsunami reached Europe's shores in 2010, five European countries failed to avoid bailouts: Greece, Ireland, Portugal, Cyprus and, in part, Spain. Of these, only one, Greece, had twin deficits - in its current account and its budget.

Mali further explained the measures presented last night for TV Prva.
"It is about a set of measures that are primarily aimed at raising the standard of living of the citizens of Serbia. And in conditions that I would say are the conditions of the biggest, most difficult economic crisis, global economic crisis ever," he said.

The Eurozone economy was in a technical recession in the first three months of 2023, according to data published earlier today by the European statistical office Eurostat, BTA reported.

The spread between interest rates on loans and deposits is decreasing significantly, mainly after the recent increases in interest rates on new term deposits by Greek banks, according to the Hellenic Bank Association (HBA).