Tag Archives: international monetary fund

Strong demand for the first EFSF bond

LONDON (Dow Jones) – The first issue of the European financial stabilization facility (EFSF) with a maturity of five years has met on Tuesday as strong demand from investors. The issue was oversubscribed more than eight times, for the offered volume of EUR 5 billion bids were received for more than 40 billion EUR from over 500 addresses, as a syndicate bank said.

The price indication for the initial return was set at six basis points over mid-swaps. The mid-swap is an important benchmark in the interbank market. The three banks, Citigroup, HSBC and Societe Generale are joint lead managers in this first EFSF emission, with the EUR 5 billion to be included in the capital market to Ireland to help the financial crunch. The EFSF has all three major rating agencies are an "AAA" rating.
As part of the Support Programme for Ireland EFSF plans in the years 2011 and 2012 a total capital raising of up to EUR 26.5 billion. After the acute debt crisis in the spring of 2010, the EU had put up with the International Monetary Fund (IMF), the Euro-shield with a total volume of 750 billion EUR. Its core consists of the EFSF, which has a circumference of 440 billion EUR and is supported by the euro countries. Added to IMF assistance come in the amount of EUR 250 billion and a credit line of the EU Commission of 60 billion EUR.

DJG / DJN / apo / mle / dok

Return on the bond EFSF by 6 to 8 basis points over mid-swaps

LONDON (Dow Jones) – The European financial stabilization facility (EFSF) on Tuesday set at an initial price indication, according to an underwriter, the initial return for its first bond with a maturity of five years at 6 to 8 basis points over mid-swaps.

Midswaps are an important benchmark in the interbank market. The three banks, Citigroup, HSBC and Societe Generale are joint lead managers in this first EFSF emission, with the EUR 5 billion to be included in the capital market to Ireland to help the financial crunch. The EFSF has all three major rating agencies are an "AAA" rating.
As part of the Support Programme for Ireland EFSF plans in the years 2011 and 2012 a total capital raising of up to EUR 26.5 billion. After the acute debt crisis in the spring 2010 the EU had put up with the International Monetary Fund (IMF), the Euro-shield with a total volume of 750 billion EUR. Its core consists of the European Financial Stability Facility (EFSF), which has a circumference of 440 billion EUR and is supported by the euro countries. Added to IMF assistance come in the amount of EUR 250 billion and a credit line of the EU Commission of 60 billion EUR.

DJG / DJN / apo / mle / dok

Premier Cowen remains alone at the end

Brian Cowen: Nach chaotischen Tagen, einer missratenen Kabinettsumbildung und scharfer Kritik aus den eigenen Reihen hatte der Premier bereits seinen Verzicht auf den Parteivorsitz erklärt. Quelle: dpa

Brian Cowen: After days of chaos, a wayward cabinet reshuffle and sharp criticism from within the ranks of the Prime Minister had already announced his abandonment of the party. Source: dpa

HB LONDON / DUBLIN. "Our patience is exhausted. Trust (to our coalition partners) is completely collapsed," said Green Party leader John Gormley on Sunday afternoon at a press conference in Dublin. The failure of the coalition, new elections before the date fixed by Cowen, 11 March, probably.

However, the Greens would still pending decisions on the budget savings 2011 support from the opposition out. The law could adopted before the early elections in mid-March be. After a cabinet reshuffle had failed Cowen only abandoned on Saturday his party leader.

Finance Minister Brian Lenihan had prior to the termination of the Coalition warned by the Greens, who before the elections final vote on the budget savings held in 2011 to . Let This is dangerous for the country. The adoption of Saving measures is a condition for the bailout of International Monetary Fund and European Union in the amount of 85 billion euros. However, most cuts and Tax increases already approved.

The opposition called on the government to fast on the Conservation Act to allow voting to the election as early as possible perform. Cowen said, but on Sunday in an interview, The vote on the law could not save within a Week are scheduled.

His successor, leaving the head of government with a tortured land high debt and many unemployed. After days of chaos, a wayward cabinet reshuffle and sharp criticism from within its own ranks Cowen had said on Saturday his refusal of the party. He also affirmed their commitment to stay up to the elections, Prime Minister want. The opposition spoke of a "farce". It was "simply not acceptable" that Cowen stay in office, said the leader of the Labour Party, Eamon Gilmore.

The shrewd tactician Cowen had in the past ten days pulled out all the stops to get in office. But he overstepped the mark and changed – not in a only the opinion of the opposition frame-long campaign – five other ministers. Apparently, to a young, unspoilt Team to go into the election, which he to increase his Opportunities to delay as long as possible would have.

With the coup after it spoiled the lord of the manor "Taoiseach" as the Prime Minister called in Gaelic, even with his last political friends. Of "shame" and "fraud" was in Parliament in the speech. Even faithful companions Dublin Cowens only shake his head. "Grotesque" named deputy Cowens the party chairman, Noel O’Flynn, the night and fog action.

The Greens as coalition partner, yet reliable companion Cowens, beat his fist on the table. They refused Consent to the appointment of new ministers and forced against Cowen his will, already on 11 March to call new elections. The plans the great strategists were crossed, his intra-party Opponents scented morning air. Cowen was only the resignation, he now wanted to not fully be at the mercy of his opponents.

And after the termination of the joint government work by the Irish Open now the evidence suggests, that the public even before the 11th March called to the polls be. Moreover, it is already this week a vote of no confidence the opposition parties, Labour and Fine Gael against Cowen his capacity as prime minister to give.

If anyone is Cowen is, however, unclear. Within The Fianna Fail party in recent opinion polls 8 Percentage has slipped, distinguished opponent Michael Cowen Martin as a favorite. Party Vice O’Flynn put themselves and others on Saturday laid on the former foreign minister.

The convalescent from a serious cancer of Finance Brian Lenihan, who also had a candidate, probably too long to Cowen noted. Tourism Minister Mary Hanafin and Minister of Social Affairs Éamon Ó Cuív rather have an outside chance. The group will be on Wednesday set.

But under the circumstances, the new man in his party, the Opposition leader. Labour and Fine Gael party are currently to be stronger. Whoever Cowen as Taoiseach "follows, he has it easy in any case not. The government is survived by her Successors scorched earth. The government deficit is 32 percent, the debt has grown to well over 160 billion €. Every week thousands of people flee from the Emerald Isle to to escape unemployment and poverty, determined the Economic Research Institute ESRI few days ago.

exceeds Greece savings targets

ATHENS. Even Finance Minister Giorgos Papakonstantinou progress reports: In 2010 he was able to cut the budget deficit to 19.45 billion euros – to 30.9 billion last year. Therefore, the deficit was reduced by 37 percent. In the consolidation program that Greece has voted with the EU and the International Monetary Fund (IMF), a savings target was set of 33.2 percent. The success is due primarily to the account of drastic cuts in budgetary expenditures, which were reduced from the previous year by 9.1 percent. The specification of the savings program was 7.5 percent.

On the revenue side of the finance ministers failed to be objective, however: instead of expected tax revenues increased six percent to only 5.5 percent. A consequence of the recession: According to preliminary calculations, the Greek economy last year shrunk to about four percent.

The budget figures showed that Greece are under the EU agreed with IMF and consolidation program, said in a statement to the Athens Finance. The implementation of the savings targets is a prerequisite for the granting of international assistance loans of 110 billion €. The money will be in several installments by 1 Quarter of 2013 and paid to allow the highly indebted country to refinance to a large extent, bypassing the capital markets.

The Greek Government, meanwhile, feeling against the hopelessness: In summer, the economy would grow on swinging, Development Minister Mihalis Chrysohoidis said on Thursday. The booming exports would end the recession in its debt-ridden country.

By 2010, exports had increased by eight percent, although the overall economic performance was probably shrunk by more than four percent. Chrysohoidis called the success of the export sector a "new miracle" – but the orders from the European Union of Greek companies have recently increased by 15 percent.

Greece experienced the highest budget deficit in 2009 of all euro countries: 15.4 percent of gross domestic product (GDP). Last year, the debt ratio, according to preliminary calculations, to 9.4 percent – a remarkable success. In this year, 7.4 percent can be achieved. For 2014, sees the consolidation program envisages a deficit of only 2.6 percent. So that Greece would then meet for the first time the requirements of the EU Stability Pact, which imposes an upper limit of three percent of GDP.

Why did the Greeks have made is the most ambitious fiscal consolidation program of all euro countries. Whether the bill is a success is uncertain. For the draconian austerity measures have driven the country deeper into recession. Also this year the GDP, according to the latest projections, by about three percent decline. The tax revenue bubble therefore more modest than originally thought. The Minister of Finance, more needs to save in order to achieve its objectives and consolidation of the economic cycle to cut even more money – a vicious circle.

The only bright spot so far: the Greek exports. They grew last year despite the recession, to nearly eight percent. Exports to EU countries rose by 15 percent even. After two weak years, tourism could grow again this year, especially since most of the Greek hoteliers have reduced their prices. Tourism contributes almost one-fifth of GDP and is thus an important pillar of the economy. Development Minister Michalis Chrysochoidis said on Thursday that he expected in the summer so a return to growth. The Minister is therefore more optimistic than the experts of the EU and the IMF, for the fourth quarter with a slight economic growth expected before. Portugal can also reduce deficit

Even if the economy should pick up again sooner than expected: the remains precarious debt dynamics of the Mediterranean country. According to IMF calculations, the debt later this year will reach 152 percent of GDP next year and increase to 158 percent. Until 2014 the debt ratio to decline again, but only slowly. Debt of this magnitude are, according to many economists not to use sustainable – especially not when the financial markets is so high risk premiums as they currently require to pay the €-crisis states. Stubbornly remains therefore speculations about a previous or subsequent impending restructuring of the Greek national debt – even if denied on Thursday the governments in Athens and Berlin and the European Commission this scenario again with emphasis.

The highly indebted Portugal has made progress on its austerity measures, according to the government probably faster than expected. The budget deficit last year was probably down to the target market of 7.3 percent of gross domestic product, Finance Minister Fernando Teixeira dos Santos said on Thursday. Then, in his words indicate, the most recent government data. Accordingly, the government revenues have risen in 2010 to 4.6 percent more than expected, while spending 3.7 percent less than predicted grew.

2009 the deficit was still 9.3 percent. This year, the government is targeting a deficit of 4.6 percent. It counts on a cut in wages and salaries in the civil service and tax increases. In this way they will prevent, to Greece and Ireland’s next Euro member aid from the European Union (EU) and International Monetary Fund (IMF) to take claim of need. Many experts expect, however, that the low growth country but ultimately from the euro rescue must resort to billions in aid. politicians and experts doubt continue to Greece

Nevertheless, the doubts are growing among politicians and economists that Greece manages for long without a debt. The President of the Federation of German Industries (BDI), Hans-Peter Keitel is calling for an immediate rescheduling program for Greece in order to reassure the financial markets. "Greece is to relieve only by a rescheduling of the debt crisis. The restructuring program would have to start today rather than tomorrow," BDI President Keitel said in an interview with Handelsblatt (Friday edition). The debt burden is already high and will continue to grow oppressive.

The euro-zone countries now have to provide clarity. "It is counterproductive to aggravate the situation by 2013 artificially and then take a cut debts," Keitel said. The creditors know the Greek government bonds and debts had already been priced in, argued the BDI President.

Fierce criticism Keitel practiced at the finance ministers of the euro countries. "The harm daily utterances of individual finance ministers about the pros and cons of individual measures. Let the financial markets only with actions, not calm, with speeches," said Keitel. Therefore, the countries of the Euro-zone hire expertise as quickly as possible tools to present that could be implemented immediately. "Otherwise, the financial markets to force solutions," the BDI President said.

Coffers of the States

Foreign exchange and gold reserves

The world is changing. Financial crisis and debt crisis have shifted the balance of power, all states are facing bankruptcy. Blessed is he who has reserves and are one or the other gold bullion in the cellar. Which countries made in recent years have mostly aside and where not too much to be had.
It takes into account the foreign exchange reserves, the gold treasure and special drawing rights (SDRs) at the International Monetary Fund (IMF), one in the 1960s, artificial currency unit.