GREECE
Macro/Political:
- The Greek PDMA announced that during the 13W T-Bills auction of EUR 400mn which took place yesterday, the total bids reached EUR 986mn and the amount finally accepted was EUR 500mn at a uniform yield of 1.74% (vs 1.70% in the previous 13W T-Bills auction in January 2026).
Source: PDMA
- The Hellenic Parliamentary Budget Office, in an announcement on the new fiscal rules of the European Union, stated that there will be additional fiscal space of approximately 0.3% of GDP (approx. EUR 750mn) for 2026 budget following the application of the national escape clause for defence spending. Explaining the concept of fiscal space that may be used for relief measures, it emphasizes that, unlike the previous fiscal framework, an overperformance relative to the primary surplus targets doesn’t pave the way for additional spending, as this would constitute a breach of the fiscal trajectory agreed with the EU. However, such overperformance may instead be used to reduce public debt and to build fiscal buffers that would help support public spending during periods of economic slowdown.
Source: PBO
- In October 2025, the number of issued building permits in Greece amounted to 2,997 (13.5%, y-o-y). During the period January – October 2025, Total Building Activity (private-public) in Greece recorded a 4.2% decrease in the number of issued building permits, a 12.7% decrease in surface and a 7.1% decrease in volume, compared with the corresponding period of 2024.
Source: ELSTAT
Markets:
- Titan raised EUR 350mn at a yield of 3.50% through the issuance of a 5-year senior bond. Demand was very strong, with the final order book closing above EUR 2.6bn.
Source: Bloomberg
- S&P Global Ratings revised PPC’s (DEI), outlook from stable to positive, while maintained the credit rating at BB-. The positive outlook reflects the agency’s view that PPC will successfully exit lignite generation by the end of 2026 and expand its renewable asset base, while maintaining FFO to debt above 15%.
Upside risks that could lead to a credit rating upgrade, include the successful implementation of the strategic plan, demonstrated by the full closure of lignite plants, the commissioning of new renewable capacity, and the maintenance of strong credit metrics.Downside risks that could lead the outlook reverting to stable include material delays in the delivery of the business plan or a decline in the FFO to debt ratio below 12%. Finally the agency noted highlighted that a one notch downgrade of Greece’s sovereign rating to BBB- would not affect PPC’s credit rating.Source: S&P
CYPRUS
Macro/Political:
- President Nikos Christodoulides took a five-point plan to yesterday’s trilateral meeting with Turkish Cypriot leader Tufan Erhurman and UN envoy Maria Holguin, aiming to restart substantive negotiations on the Cyprus problem while advancing confidence-building measures. In a written statement, the UN said the two leaders met at the invitation of Holguin, who noted that such direct dialogue is essential for expressing views, concerns, and hopes. The UN envoy further stressed that this is a particularly important pre-negotiation phase, and that continuous, direct dialogue is essential. Speaking before departing the Presidential Palace, President Christodoulides said that his proposal addresses the core of the Cyprus issue while also incorporating confidence-building measures. He added that if there is political will and the proposal is accepted, the two sides can resume substantive talks from where they were interrupted in Crans-Montana.
Source: Cyprus Mail
- According to the Economic Research Centre of the University of Cyprus, Cyprus’ economic growth is projected to moderate from 3.9% in 2024 to 3.5% in 2025, remain stable at 3.5% in 2026 and 3.4% in 2027. Compared to the October forecast, the growth projection has remained unchanged. The growth outlook is primarily driven by favourable domestic developments during 2025 including a tight labour market, disinflation, high economic confidence, and robust growth in new loans, supported by lower interest rates.
Source: UCY
