Sovereign & Supranational

Highlights

• 15 May 2013
  • Luxembourg’s credit risks from oversized financial sector remain contained
    Although the risks to Luxembourg stemming from its oversized financial sector have increased since the beginning of the euro area crisis, we continue to assess these risks as “low” because we believe that the government’s balance sheet is not susceptible to the same level of deterioration that other European countries with large banking systems have experienced during the crisis. Nonetheless, the risk of a systemic shock in Luxembourg’s financial industry damaging economic growth and thereby undermining the government’s balance sheet remains the main risk facing this small country... Full Report
• 13 May 2013
  • Update to Global Macro Outlook 2013-14
    Over the past three months, the global economy has lost momentum as it recovers from last year’s slowdown. Overall, we expect real GDP growth in the G-20 advanced economies of around 1.2% during 2013, a little weaker than previously forecast, followed by 1.9% in 2014. We continue to expect the G-20 emerging economies to outpace advanced G-20 members... Full Report
• 10 May 2013
  • Greece’s approval of omnibus bill, first major privatisation and surpassed fiscal targets are credit positive
    The bill’s approval is credit positive as (1) it reflects increased political commitment to fiscal consolidation and the economic reform agenda; (2) it will rejuvenate and streamline the public-sector workforce; and (3) along with other measures in the Omnibus bill, it paved the way for disbursements under the Second Economic Adjustment Program for Greece totalling €8.8 billion. Moreover, the country’s first major privatisation reflects improved investor confidence and will help the government meet its fiscal targets... Full Report​​