Page 15 - bne_newspaper_November_30_2018

Southeast Europe
November 30, 2018 www.intellinews.com I Page 15
asset-backed securities to qualified investors without holding public offerings, according to the SPK’s latest regular weekly bulletin published on November 23. TKB will issue the papers via its recently established wealth financing fund.
According to amendments to current regula- tions published also on November 27 in the Of- ficial Gazette, Turkish banking watchdog BDDK relaxed conditions for local financial institutions’ funding of travel, accommodation and mobile phone expenditures.
The government sharply cut its domestic borrow- ing this month in a move to relax recently tightened liquidity conditions while it is also being made clear
via the that the government is encouraging local lenders to “voluntarily” cut lending rates.
Capital Economics said on November 26 in a research note that “evidence is mounting that Turkey’s economy is entering a deep recession in the aftermath of this summer’s lira crisis — both retail sales and industrial production fell in Sep- tember. The one crumb of comfort is that Turkey seems to be taking advantage of the boost to its competitiveness from a weaker currency”.
It added: “The Economic Confidence Index is con- sistent with GDP contracting by more than 10% y/y. Meanwhile, banks have so far avoided an out- right crisis, but nonperforming loans have picked up and this is leading to a severe credit crunch.”
European Parliament encourages Montenegro, snubs Serbia over EU accession
Denitsa Koseva in Sofia
While MEPs sent out an encouraging message to Montenegro, four other Western Balkan countries that are hoping to become members of the EU have been urged to meet various criteria in two resolutions adopted by the European Parliament (EP) on November 29.
The six Western Balkan states – Albania, Bosnia & Herzegovina, Kosovo, Macedonia, Montenegro and Serbia – are at different stages on their paths towards EU membership, with Serbia and Mon- tenegro being the most advanced, while neither Bosnia nor Kosovo have candidate status yet.
Montenegro and Serbia are the frontrunners
in the region’s EU perspective, and a European Commission strategy published earlier this year proposed 2025 as the accession date for both countries. However, Serbia’s unresolved issues with Kosovo are halting its progress, while the tiny
Adriatic country was praised for marking a good progress.
Montenegro was assessed as making efforts towards constructive regional cooperation and good bilateral neighbourly relations, and its border agreement with Kosovo was welcomed. Podgorica was also encouraged that “with strong political will and sustained progress, Montenegro could potentially be ready for EU membership by 2025”.
However, the country must improve media freedom and fight against corruption and organised crime. The same issues have been pointed out in previous resolutions and reports.
Serbia, on the other hand, did not get any endorsement of its potential accession date, but was urged to resolve its ties with Kosovo.