Stalemated bailout negotiations: Greece's future hangs in balance
The Dollar Business Bureau Greece has made a plea to its eurozone creditors and International Monetary Fund (IMF) to refrain from further imposition of austerity on its already slowing economy. Since the country has met its budget targets, the government's spokesperson said that there is no reason for tougher conditions on the proposed bailout package, the terms for which have been in negotiation for months. It is crucial for Greece to receive the 86 billion Euro bailout package in order to fulfill its interest obligations, which it will inevitably default on without external aid. The tug-of-war between the creditors and the Greece government has culminated in a stalemate, with neither party willing to budge from its position with respect to stringent reforms and spending cuts. "The Greek government ...
IMF urges governments to tackle record global debt of $152 trillion
The Dollar Business Bureau The International Monetary Fund (IMF) has expressed concern over the mounting level of global debts, which has already reached a record $152 trillion, thereby generating fresh risk of global economic and financial crisis. Cautioning that the debt level was on a continuous rise, the IMF exhorted the governments to stimulate growth through investments, fiscal and business reforms, and targeted measures to mitigate the probable global economic risks; ones that paralysed the world financial and economic system during the 2008-09 periods. "For a significant deleveraging to take place, restoring robust growth and returning to normal levels of inflation is necessary," it said. It noted in its half-yearly fiscal monitor research, covering 113 countries that global debt currently accounted for 225% of global ...
Govt clears Bankruptcy Law: Jaitley
The Dollar Business Bureau The Bankruptcy Law has been passed by the Joint Parliament Standing Committee, and is expected to be discussed in the current budget session of the Parliament, Finance Minister Arun Jaitley said on Wednesday.Speaking at the second meeting of the MoF’s Consultative Committee, Jaitley said the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) and the Debts Recovery Tribunal Act (DRT) have also been amended to make the recovery process efficient. Giving out further information on this announcement, the Finance minister said the government has taken an array of measures to deal with the Non Performing Assets (NPAs) in the banking sector, especially in the case of public sector banks (PSBs). The Ministry ...
RIL raises $225 million through overseas bond issue
The Dollar Business Bureau Reliance Industries Ltd (RIL) has raised $225 million through a 10-year-term overseas bond issue guaranteed by the Export-Import Bank of the United States. The Mukesh Ambani-led company has issued the debt bond with a fixed interest rate of 2.512%, which will be matured in January 2026. “The Notes will bear a fixed interest rate of 2.512% per annum, with interest payable semi-annually. The principal amount of the Notes will be payable in consecutive semi-annual installments commencing on July 15, 2016 up to the maturity on January 15, 2026,” the company said in a statement on Thursday. According to RIL, this is the first time the US Ex-Im Bank has guaranteed the issuance of Notes by a private ...
RBI-SEBI initiative of debt to equity conversion not enough
The Dollar Business Bureau The co-ordinated efforts of the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) to ease the process of conversion of debt into equity is unlikely to significantly benefit lenders as well as corporate borrowers for most of the current set of large corporate borrowers which, are already in distress or are close to distress, said a rating & research company report on March 25, 2015. However, the report welcomed the new joint initiative by the RBI and SEBI, as it would enhance the ability of the banks to convert debt into equity which, will provide another tool in the hand of lenders to fight non-performing assets (NPA), when in ...
