European debt crisis

Greece?s anti-austerity government needs to raise at least three billion euros ($3.4 billion) through additional fiscal measures by the end of this year to meet the minimum budget targets acceptable by creditors, an official with knowledge of the discussions said.

By Yiannis Papadoyiannis

The European Central Bank raised the emergency liquidity assistance (ELA) ceiling for Greek banks by 1.1 billion euros on Tuesday, in the wake of Monday?s Eurogroup meeting that recorded some progress in the talks between the government and its creditors.

The Eurogroup meeting on May 11 did result in a statement of progress for Greece but it was not one exulting resounding success. All eyes now turn to the European Central Bank (ECB) where it is hoped that the ECB will reinstate its waiver on Greek banks’ collatoral.

Greek government bond yields rose on Monday as Germany raised the idea of a referendum on the painful reforms Europe is asking Athens to implement in exchange for further aid, adding another layer of uncertainty to the issue.

German Finance Minister Wolfgang Schaeuble said securing public backing for the necessary sacrifices might be useful.

Countries in Central and Eastern Europe (CEE), including Turkey, are expected to see strong economic growth, while those in Southeastern Europe (SEE) will grow more slowly, according to "Mind the Credit Gap," the IMF's new Regional Economic Issues report released on May 10.

By EU Economic and Monetary Affairs Commissioner Pierre Moscovici

Global growth and world trade are expected to strengthen modestly, though at a slightly slower pace than envisaged in winter.

By Eleni Chrepa

German Finance Minister Wolfgang Schaeuble warned that sovereign defaults can catch officials off guard as Greece prepares for a finance ministers? meeting Monday with the European Central Bank threatening to tighten the screw.

Greece's government is sticking to its non-negotiable 'red lines' on labour and pension issues and expects its EU and IMF creditors also to make concessions to reach a deal, the government spokesman said on Thursday.

By Vassilis Karamanis

Greek banks are increasingly being hampered from trading currencies, one of most liquid markets, as international dealers cut back credit lines and costs soar, according to people with knowledge of the trades.

Bulgaria's real GDP growth is expected to accelerate to 1.3% in 2016 from 1.0% this year, according to the European Commission's Spring 2015 Economic Forecast released on Tuesday.

The country is expected to swing to 1.0% inflation next year from 0.5% deflation in 2015. The unemployment rate is forecast to decrease to 10.4% in 2015 and 9.8% next year from 11.4% in 2014.