Market information Tuesday December 29th

The Dutch Central Bank (DNB) has added the Dutch Municipalities Bank (BNG Bank) to the list of Dutch system banks. The bank, which mainly provides credit to Dutch authorities and (semi) public entities, must therefore keep an extra buffer of 1% of its risk-weighted capital. Besides BNG, the list of national system banks consists of ING Bank, Rabobank, ABN Amro and SNS Bank.

Saudi Arabia reports a deficit of EUR 89 billion in 2015, approximately 16% of the gross domestic product (GDP). The deficit is mainly caused by the collapse in oil prices. The International Monetary Fund (IMF) projected a deficit of 20% of the GDP, hence the news was received positively by the markets. Saudi Arabia will reduce subsidies on fuel, causing an increase of national fuel prices of 50%.

The Russian economy contracted in November, after being stable for five months. This was reported by the Ministry of Economic Affairs in Moscow. The gross domestic product (GDP) on an annual basis was 0.3% lower in November 2015 compared to October 2015. On a yearly basis, GDP has now declined with 3.9%. The ministry expects a growth of 0.7% for 2016.

The 6M Euribor remained unchanged at -0.04%. The 10Y Swap decreased 2 basispoints to 0.96%

In the attachment, today’s market data on money and capital market rates as well as other rates are presented. For more history of these rates or other rates feel free to ask: update@zanders.eu.