Posts belonging to Category IMF



US debt default would be like Lehman crash

Raising the debt ceiling

A U.S. debt default would create significant confusion and uncertainty in financial markets and could prove as catastrophic as the failure of Lehman Brothers in 2008, the Organization for Economic Cooperation and Development (OECD) said in a new report.

Lawmakers in the U.S. side-stepped a debt default at the 11th eleventh hour in October and brought an end to prolonged negotiations over raising the debt ceiling. But talks are set to resume in the new year with the debt ceiling extended until February 7 and funding approved until January 15.

“An outright default would have extremely severe effects” the OECD said in the report, released on Tuesday.

http://www.cnbc.com…  Mon.,  12  June 2017

Greek debt deal

Euro zone, IMF to seek compromise

Euro zone finance ministers and the International Monetary Fund will seek a deal on Monday on Greek debt relief that balances the IMF’s demand for a clear “when and how” with Germany’s preference for “only if necessary” and “details later”. Without the deal, no new loans can be disbursed to Athens, even though the bailout is now handled only by euro zone governments, and Greece needs new credit to repay some 7.3 billion euros worth of maturing loans in July.

Without the loans, Athens is likely to default – a bad start for a country that wants to return to market financing next year when its latest bailout, the third since 2010, ends in mid-2018. For its part, Greece has done what it could to secure a deal. It has agreed, albeit after months of negotiations, with the euro zone lenders and the IMF on pensions and tax reforms.

http://www.reuters.com…  Mon.,  22  May 2017

The world’s 100 largest banks

23 banks with more than a $1 trillon of assets

China’s largest banks kept growing in 2016, but the currency turmoil unleashed by Brexit battered European companies in S&P Global Market Intelligence’s latest global bank rankings.

China’s “Big Four” — Industrial & Commercial Bank of China Ltd., China Construction Bank Corp., Agricultural Bank of China Ltd. and Bank of China Ltd. — all maintained their rank as the four largest banks in the world with a combined $11.910 trillion in assets as of Dec. 31, 2016. Tokyo-based Mitsubishi UFJ Financial Group Inc. retained its place as the world’s fifth largest bank at $2.590 trillion in assets.

Brexit was not kind to European currencies in 2016 — the euro bought $1.055 at the end of 2016, compared to $1.086 a year earlier, while the British pound fell to $1.235 from $1.474 over the same period. The drop in the pound alone knocked $289.53 billion off of the asset value for London-based Barclays Plc, which fell two spots in the ranking to No. 17 with $1.496 trillion in assets; the bank’s assets would have been $1.785 trillion if converted to U.S. dollars using the year-end 2015 exchange rate.

http://www.snl.com…  Fri.,  21 April 2017

Political and financial risks threaten global growth

Will risks and financial vulnerabilities derail the modest recovery?

Global growth is projected to pick up to around 3½ per cent in 2018, from just under 3% in 2016 in our latest Interim Economic Outlook. The forecast modest recovery is supported by fiscal initiatives in major economies and broadly unchanged from the November Economic Outlook. While the pick-up is welcome, it would still leave global growth below the historical average of around 4% for the two decades prior to the crisis. This comes against the background of a five-year period where the global economy has been stuck in a low-growth trap. Consumption, investment, trade and productivity are far from strong and inequality is rising.Productivity gaps between frontier firms and laggard firms have widened, contributing to a growing income gap as wages have stagnated at less productive firms.

http://www.oecdecoscope.com…  Wed,  08 March 2017

Trump wants to deregulate the bank industry

Republican plan would ease Wall Street rules

The Republican chairman of a key House of Representatives committee has laid out his plan to roll back Wall Street rules and consumer protections conceived after the 2008 financial crisis, a step that will largely define the financial deregulation debate in the Trump era. Jeb Hensarling, chairman of the Financial Services Committee, outlined his legislation to clear away many rules bankers say have hobbled investment and economic growth in a staff memo seen by Reuters on Thursday. The plan comes after President Donald Trump on Friday signed a largely symbolic executive order that outlined an intention to ease banking rules, which he and other critics of the Dodd-Frank reform law passed after the financial crisis say hinder lending.

http://www.reuters.com … Fri.,  10 February 2017

Greek Debt

The last thing Europe needs: another Greek crisis

Greece needs European creditors to release cash from a bailout agreed in 2015 so it can make debt repayments, but officials are at loggerheads. Investors are starting to worry, demanding higher returns on Greek debt. Adding to the confusion is a warning from the International Monetary Fund that Greece’s debt is unsustainable and on an “explosive” path, an assessment that prevents the fund from participating in a rescue.

http://www.cnn.com … Thu.,  09 February 2017

Financial firms quit The City

Ireland says has fielded over 100 inquiries from UK financial firms

Ireland’s central bank has had over 100 inquiries from UK financial firms considering moving operations as a result of Britain’s vote to leave the European Union, Finance Minister Michael Noonan said on Tuesday. “The Central Bank has had in excess of 100 inquiries from the City of London from people who are anxious to find out what the regulatory regime would be here if they were to move activity,” Noonan told parliament.

 http://www.reuters.com … Wed.,  18 January 2017

Currencies that got crushed in 2016

Turkish Lira, British Pound, Argentina Peso, Mexican Peso…

2016 has been a roller coaster of a year, and currency markets are no exception. A few countries have fared well, but others have seen the value of their currencies fall dramatically. Here’s a list of the currencies that have been rocked hardest in 2016.

http://money.cnn.com … Fri.,  30 December 2016

Bloomberg added Bitcoin to its list of safe havens

The world’s biggest bitcoin wallet provider will have a record month thanks to Trump

The world’s biggest bitcoin wallet provider will “pretty easily” have its biggest ever month for activity in November, following a surge in use after Donald Trump’s shock election victory in the US. Peter Smith, the cofounder and CEO of London-based Blockchain, told Business Insider: “We’re setting a new record pretty much every day since the election in terms of activity on the platform. “People are basically hedging against economic instability”.

http://www.businessinsider.com … Mon.,  14 November 2016

China’s debt binge

IMF Warns China of Reliance on Credit, Other Imbalances

China needs to reduce its reliance on credit-fueled investment, and deal with rising corporate debt and other imbalances while those problems are still manageable, the International Monetary Fund urged Friday in its annual review of the world’s second-largest economy. The IMF said Beijing is relying excessively on credit to reach “unsustainably high growth targets.” The multilateral agency’s to-do list includes tackling corporate debt, reforming bloated state enterprises and strengthening the financial system to reduce distorting effects on China’s economic performance.

http://www.wjs.com  Sat.,  13 August 2016