Sale of bad debts worth EUR 240 million
In the next ten or so days, the Deposit Insurance Agency will come out with the first public call for the sale of doubtful and bad debts in the amount of EUR 240 million, Finance Minister Sinisa Mali announced. After 18 years, we are making a big step towards having these old debts sold. The state will earn something, and on the other hand, all collateral and security instruments – buildings, equipment, land, will be reintegrated into the economy, in order for them to be activated and to contribute to the further growth of our economy – Mali told Tanjug. The minister added that there were around 700 to 800 million euros of old, doubtful and bad debts at the Deposit Insurance Agency and that one lot would be sold the next year as well.
WB sees 4% GDP growth for Serbia in 2020
The projection that Serbian economy would grow by 4% in 2020 depends on the dynamics of structural reforms and the progress in joining the EU, the World Bank estimates. It adds that, although political events have somewhat overshadowed the economic reforms, Serbia will complete the reform of some of the biggest state companies and banks. World Bank Senior Economist Lazar Sestovic said that the projection was based on the growth of exports and foreign investments in Serbia.
Serbia to have 600 MW of renewable energy capacity in 2020 - energy min
Serbia expects to have an installed renewable energy capacity of 600 MW in 2020, energy minister Aleksandar Antic said on Friday. The government is considering the launch of an auction-based model for incentives for the development of renewable energy projects, instead of the currently used feed-in tariff, Antic said in a government press release. Serbia currently has an installed renewable energy capacity of 150 MW and will add a further 200 MW by the end of 2018, Antic said. In the current year, the country plans to add 42 MW of new wind power capacity from the Alibunar wind farm, 105 MW from the Kovacica wind farm and about 100 MW from the Cibuk wind farm, Antic said in March. Earlier this year, Antic said the government plans to have put into operation 1,000 MW of electricity generation capacity by 2020 in the biggest investment cycle in the country's energy sector in the last 30 years.
NBS: Key policy rate kept on hold
At its meeting yesterday, the NBS Executive Board voted to keep the key policy rate on hold, at 3.0%. In making such decision, the Executive Board was guided by the expected movement in inflation and its underlying factors, and the effects of past monetary policy easing. After reaching this year’s low in April, inflation returned within the target tolerance band, in line with expectations, and touched 2.6% in August.
Dow rises for first time in 3 days, but gains capped amid fear of higher rates, European markets tumble at the close as Italy, China woes weigh, FTSE MIB falls 2.4%
The Dow Jones Industrial Average rose for the first time in three days on Monday, but its gains were kept in check as investors continued to fret over a sharp rise in interest rates. The 30-stock index climbed 39.73 points to 26,486.78, led by gains in Walgreens Boots Alliance. The S&P 500, however, closed just below breakeven at 2,884.43 to post a three-day losing streak. The Nasdaq Composite also pulled back 0.7 percent to 7,735.95, posting its third straight losing session, as large-cap tech shares fell.
The latest corporate earnings season kicks off this week with major banks like Citigroup, J.P. Morgan Chase and Wells Fargo all scheduled to release their latest quarterly results. S&P 500 earnings are expected to have grown by 19.2 percent in the third quarter, according to FactSet data. Corporate profits grew by more than 20 percent in the first two quarters of the year.
Stocks also fell Monday after a decline in overseas markets. Chinese stocks saw declines after the People's Bank of China (PBOC) announced measures on Sunday to cut the amount of cash that banks have to hold as reserves, with the reserve requirement ratios set to be slashed by 100 basis points, effective from next week. The news comes as the nation continues to battle with the U.S. over a tit-for-tat trade war, and is the fourth time the PBOC has slashed its reserve requirement ratio (RRR) in 2018.
European markets finished Monday's session deep in the red, as investor confidence took a knock from weak trading seen in markets overseas. The pan-European Stoxx 600 tumbled 1.12 percent by the close, with all sectors in the region failing to post gains by the end of trade.
The EU reiterated concerns over Italy's budget plans over the weekend, saying it is worried Rome's plans breach what it asked the country to do earlier this summer. In response, Italy said it would "not retreat" from its current spending plans. The news appeared to ratchet up the pressure on the country's already fragile banking sector, with Unicredit, Ubi Banca, Mediobanca and Banco BPM all closing the day down 3.5 percent or more each.