Financial economics

Property companies brace for difficult months ahead

Real estate investment companies (REICs) have been reading up on the strategies developed during the period of the deep recession in the early 2010s ahead of the difficult months ahead for the property market.
The three main policies REIC managers will be following this year are investment risk management, lower bids for property purchases, and the targeting of higher returns.

Interest rates on deposits down to three-year low

Average interest rates on deposits in the Turkish banking industry have been falling since the second half of 2019 and hit 9.6 percent, which marked a three-year low, state-run Anadolu Agency reported.

The country's Central Bank delivered a significant 1,275 basis point cut since July 2019, slashing its benchmark one week-repo rate from 24 percent to 11.15 percent.

Global debt hits record $253 trillion

The global debt-to-GDP ratio hit a new all-time high of over 322 percent in the third quarter of 2019, with total debt reaching close to a record $253 trillion, the Institute of International Finance (IIF) has said.

Total debt across the household, government, financial and non-financial corporate sectors surged by some $9 trillion in the first three quarters of last year.

FX reserve requirement practice, ratios revised

The Turkish Central Bank on Dec. 28 revised Foreign Exchange reserve requirement practice and ratios in order to support financial stability and the real loan growth-linked reserve requirement practice, the bank said in a statement. 

The bank has decided to raise reserve requirement ratios for FX deposits/participation funds by 200 basis points for all maturity brackets, it added.

"As early as of December, the average salary will amount to 500 euros"

He said in an interview for daily "Blic" that the increase in the public sector would follow from the November salary, which is paid in December.
"Talks with the IMF are currently underway, and we are encouraged by a budget surplus of RSD 46.6 billion in August," Mali said.

Strong rally on Greek bonds with ten-year bond at under 1.9 percent yield

A strong bond market rally today followed the government's announcement of a complete lifting of capital controls which were instituted in June, 2015.

The yield on the ten-year bond dropped to 1.83%, a 12 basis-point drop, or 6.45 percent as compared to Monday's closing.

It should be noted that the return on the 10-year bond has dropped by approximately 15 basis points.

Home sales on Greek islands jump

Holiday home transactions on selected islands of the Cyclades recorded a 54 percent annual increase in the first half of the year, according to an analysis of data from the Property Transaction Value Register of the Finance Ministry's General Secretariat of Information Systems.