In Brief
Greek February CPI flat at 2.7 pct, but above eurozone Lower oil prices helped Greece’s inflation rate to remain flat at 2.7 percent year-on-year last month but it stayed above the eurozone average and could begin to rise again in the second half, analysts said yesterday. Greek inflation has fallen consistently since July and is seen as declining in March but remains 90 basis points above the eurozone’s average, and economists warn weak domestic competition and potential higher oil prices may reverse the trend in the medium term. «Low fuel prices compared to a year ago helped keep the CPI low, but they’re still well above the euro area’s,» said Piraeus Bank economist Michael Lambrianos. «The inflation trend in the second half may increase amid expectations oil prices may rise.» The country’s EU-harmonized rate, used to measure inflation in the 13 countries sharing the euro, was also steady at 3 percent in February. (Reuters) Bank of Cyprus memo criticizes Marfin, Piraeus NICOSIA (Reuters) – Bank of Cyprus has criticized Piraeus Bank for disposing of its stake in the Cypriot lender to a domestic rival which it says has set its sights on controlling the bank. Marfin Popular Bank agreed to acquire an 8.07 percent Bank of Cyprus stake from Piraeus on Tuesday. Both banks had made separate takeover offers for Bank of Cyprus in December and January, spurned by the Cypriot bank. Marfin says the move does not herald an aggressive takeover, but this cut little ice with Bank of Cyprus. «So-called friendly overtures from third banks, like Piraeus and Marfin Popular Bank, have as their sole purpose the control of the group to their advantage, and (working) against our shareholders and staff,» Bank of Cyprus said in an internal memo sent to 4,000 staff on Wednesday afternoon. Eurobank 5-yr FRN EFG Eurobank successfully launched an issue of 750 million euros of five-year euro floating rate notes (FRN), the lender said yesterday. The notes have a coupon of three-month Euribor rate plus 15 bps, and were targeted mainly at foreign institutional investors, the lender said in a statement. The proceeds will be used for the medium-term general funding of the bank. Bank of America Securities Ltd, Deutsche Bank and Lehman Brothers are lead managers for the deal, with BBVA and Natixis senior co-managers and Piraeus Bank co-manager, EFG Eurobank said. (Reuters) Sidenor Morgan Stanley initiated coverage of Greece-based metals company Sidenor with an «overweight» rating and a price target of 14.80 euros. The investment bank said Sidenor offers investors an attractive risk-reward profile and a compelling valuation. Sidenor should experience strong and stable end-user demand for its product offering, Morgan Stanley said. (Reuters) Turkish primary surplus Turkey’s total public sector primary surplus stood at 7.4 percent of gross national product in 2006, surpassing a 6.5 percent target, Finance Minister Kemal Unakitan said yesterday. The primary surplus, which excludes interest payments on government debt, is a key indicator of state finances and the sustainability of the balance of payments. (Reuters)
