Financial Communique » EUR

The Eurozone banks are competing for 2 trillion EUR in 2012

Viliyana Filipova — Sat, 03 Dec 2011 14:54:31 +0000

The European banks to compete with the governments of the euro area to recruit 2 trillion. dollars next year because of the need for refinancing of reaching maturity bonds. In 2012 the Eurozone governments have to repay 1.1 trillion. euros and short-term bonds and 519 billion of this amount are Italian, French and German bonds reaching maturity in the first half of the year. In the first half of next year, European banks need to service their debts to 665 billion dollars by the end of December, 370 billion dollars, revealed details of Citigroup Inc.
“Serious investors flee as the bonds of European banks and government securities of euro area countries”, said Mark Grant, director of Southwest Securities Inc. “The quality of the financial performance of both the asset class is in question and nothing is being done to tackle Europe’s debt crisis”. In 2012, the European banks need to refinance an average of 230 billion dollars every three months, said Lisa Hintz, an analyst at Moody’s Corp. in New York. For comparison, the 11 quarters September 30, 2011 banks have repaid an average of 132 billion dollars, she said.
“In such a situation of scarce funding banks to compete effectively with governments,” said Hitntz. “Just look at their business model. What soft loans could obtain an Italian or Spanish bank, when the price of its financing is similar to that of government bonds, or about 7% and above? “she said.

IMF consider buying of European bonds

Viliyana Filipova — Fri, 07 Oct 2011 08:44:41 +0000

New initiatives as part of a wider plan to tackle debt and banking crisis in Europe were presented on Wednesday, writes Wall Street Journal. Germany issued a proposal to establish a national buffer funds to recapitalize banks if it proves necessary, while a senior International Monetary Fund (IMF) said that the institution can intervene to help with the purchase of bonds struggling Eurozone countries. In his visit to Brussels, German Chancellor Angela Merkel said that eurozone countries must quickly agree on a system of buffers in the banking sector.
“I think the time is pressing, so an agreement should be reached soon,” said Merkel. The idea of the IMF to intervene in the bond markets, perhaps through a separate legal instrument designed specifically for that purpose, would help to lower risks of new countries to be dragged into a spiral of debt. Such a step would support the initiative of the governments of the euro area to allow the purchase of bonds by the fund for financial stability. The IMF Director for Europe Antonio Borges, who announced the idea in Brussels earlier today said that it can prevent the spread of the crisis in countries like Spain and Italy.
These countries, says Borges, have a problem with the market confidence, rather than solvency. Intervention of the IMF would help solve this problem, he said. The proposal the IMF may not be as easy to implement, because the idea has not yet been approved by the principal shareholders of the Fund. There is no formal request for assistance from the Eurozone. Some countries are shareholders of the IMF believed that Europe has sufficient resources to cope with the crisis alone.

The public debt in Eurozone countries will reach 83.3% from their GDP in 2012

Viliyana Filipova — Mon, 12 Sep 2011 19:26:08 +0000

The total debt of 17 countries of the Eurozone in 2012 will reach 83.3 percent of their gross domestic product, announced today by the European Commission. During the crisis period, the value of total debt in the Eurozone grew by about one third. In 2007 the index was over 20 percentage points lower. The data show not only that most euro area countries have exceeded the debt limit in the Stability and Growth 60% of the GDP, but the Eurozone as a whole has long exceeded the limits laid down in its economic base documents. This in turn highlights systemic, not accidental nature of this sovereign debt crisis that year and a half now threatens the existence of a common European currency, according to Russian news agencies.
“In times of high and still rising debt levels in the European Union countries, providing support for public finances is a prerequisite for sustainable economic growth and job creation. EU Strategy for gradual and differentiated fiscal consolidation remains valid against the permanent market storms and uncertainty about the pace of recovery”, said the European Commissioner for Economic and Monetary Affairs Commissioner Olli Rehn said in a message to the EC.
In his words, Member States should focus on meeting objectives and to take further measures if necessary. “This development underlines the need for the fastest adoption of a legislative package to support our economic management,” said the Commissioner.

Greece collected 1.3 billion EUR from public debt sale

Viliyana Filipova — Mon, 05 Sep 2011 18:59:02 +0000

Greece collected 1.3 billion EUR from markets once managed to sell 26-week treasury bills at a slightly lower rate than achieved in the previous auction. The National Agency of Greece debt management said the securities were sold at yields of 4.80 percent. For comparison, on August 9th investors yield reached 4.85 percent. Athens relies heavily on funds from both international relief programs to avoid bankruptcy. Because higher-than-expected budget deficit, however, is likely to ask the Greek authorities to the second rescue package to be reduced by one year.
“Athens is expected to offer the program to continue to act not by 2014 but by 2013, so that 109 billion to cover the financial needs of the country”, says the publication.

Make money in the financial crisis

Viliyana Filipova — Fri, 19 Aug 2011 19:46:37 +0000

Definitely the last years it is hard to find the best way to invest your money even if they are much or less. Definitely the financial crisis hurt a lot of investors and banks, but still there are a lot of ways to get rich with hard work. The investors lost a lot of money in stocks, forex trading and etc, but still some of the basic features of the economy are stong.
The basic ways to make more money fast are to work hardly. And the main idea of this is to get more work as Freelancer in your niche. You can increase your incomes faster, and get job from all over the world as consultant, specialist or just regular worker in internet. The advantages of this way to increase your income is that you will get earned money fast – when you finish the project or consultation. Also you will get high result of your knowledge when selling it on internet to distant country. This can be highly profitable for you, as you can earn high salary from foreign country, without living your home. The disadvantage is that most of the jobs in freelancing projects are based on computer knowledge, which is problem for people engaged in building, arts and etc.
Another very successful way for making money is to produce and sell your production through internet and ebay. Definitely this is good way if you have such abilities and having some sense of seller. This is good way to make high income, as your sell your production in higher developed country. The main disadvantage is the you need seller experience and sense.
In thew years of financial crisis many people lost their jobs and investments. The salaries are lower and lower, but definitely with hard working each person can find good way to get some extra cash and earn enough to have good lifestyle.

EU will request information from banks for employees with yearly incomes of more than 1 million EUR

Viliyana Filipova — Mon, 25 Jul 2011 19:57:00 +0000

Since the European banks will be required to disclose more information about the number of employees who earn more than 1 million annually. It shows the mood in Brussels. The European Commission has proposed to the authorities in different countries to collect information on the number of people earning over 1 million a year and a breakdown of their income – salary, bonuses, long-term bonuses and pension contributions. The information will be sent in the new European banking regulator, who will publish it for the country in the same form for the 27 Member States of the European Union. The idea was included in the comprehensive proposals as part of the bill for major changes in the rules for the banking sector. Much of the proposals concern the introduction of a new international agreement, known as “Basel III”, which aims to increase the quantity and quality of banks’ capital. Most of the proposals contained in the rules that if adopted, will be binding on Member States and institutions. But the package also contains a directive that – despite the introduction of a requirement for disclosure of remuneration – aims to harmonize and strengthen sanctions against banks that violate the rules.
It includes various measures for managing corporate finance sector to reduce dependence on foreign banks’ credit ratings by focusing attention on internal estimates. In the draft includes proposals for capital buffers and bank supervision. Both parts of the package of proposals – draft rules and draft – require the approval of Member States and the European Parliament before they take effect. In addition, since the directive is approved, Member States will have to include it in their national legislation. The elements of both parts of the package would appear to be controversial, sparking intense debate between MEPs and the Member States before they reach the final voting. Some Member States as they would like more flexibility in standards and ratios for additional capital and would have insisted that they be larger than recorded in the proposals. Some of the definitions of what it includes high quality equity you already have been seriously discussed. Ultimately, it seems likely the last version of the legal measures to be agreed during the second half of 2012.
EU is the first organization in the world, which will begin performances by the introduction of “Basel III” in its legislation.

Forex Brokers tips

Viliyana Filipova — Tue, 05 Jul 2011 20:46:30 +0000

Nowadays, the online currency trading Forex tray increasingly popular all over the world. With this, rapidly grew the investment companies in USA and Europe, which offer this service. However, when you decide to open a forex account, how to proceed and what are the basic features, which you should follow. Here are advices which the Top Forex Brokers are giving to you, before starting your real money account in some company
The reputation of the Broker
Look for a Forex broker honesty, his manner of work, attitude towards customers, etc. The views on the issue can be found in publications, forums or acquaintances, who have had experience in this business. There are a few cases in which the broker applies tricks for larger profits. Sometimes if a customer starts to win, he can be placed in unfavorable terms of trade. Known cases like this where such customers are set to manual execution, respectively, a delay of implementation and often requoting. Although it sounds unbelievable, it is quite possible because Forex is the least regulated markets internationally.
Spread
The spread is the difference between bid and offer quotations, and hence a major part of the company’s profit. On every broker has declared the spreads of various currency pairs. The trends recent years, increased competition and reduced the spreads. Another question is whether the spread is fixed or variable. Some brokers offer variable spreads depending on market conditions. In normal circumstances it is lower than that of brokers offering fixed.
Slippage
The slippage is the difference in price between the submitted order and the execute of the policy of different brokers in the execution of limit and stop orders. Some of them guarantee the correct execution of these orders, but in most cases under certain conditions. For example, requires such contracts to uphold a certain distance from the market (say 50 pips) or be introduced some time before the fundamental data or foreclosure on Friday. The other kind brokers do not guarantee these orders. The slippage position can be seen with market orders. Other things being equal it should be as negative and positive. If in most cases trade watch negative slippage, should ask questions about the integrity of your firm.
Margin
A marginal deposit that serves as collateral for open positions and allows to trade with funds far exceeds the deposited amount. This ratio typically ranges from 50:1 to 400:1. Margin used in various different couples. Also, some brokers require a higher margin over the weekend. Look for information and policy positions of the closure in the absence of sufficient funds in their account.

Pimco: Europe has no other choice

Viliyana Filipova — Thu, 23 Jun 2011 20:25:16 +0000

The European leaders must resign themselves to monetary union, set down without leaving his option and at the same time to deal with the debt crisis in the region, says Richard Klarida, strategic advisor to Pacific Investment Management Co., The largest bond fund world.
“The challenge for Europe is that the euro was created without a mechanism to leave the monetary union”, said Klarida. “Now they have to create such a mechanism in motion”.
His two-day meeting in Brussels, EU leaders committed themselves to stand up for Greece in the event that the Greek Prime Minister George Papandreou failed to pass a package of new spending cuts. Thus the failure of the Mediterranean countries will be prevented for the moment, but the euro will be supported.
If Greece does not use the euro, the country could devalue its currency and thus lower debt levels and to encourage exports. The plan depends on the ability of the Greek prime minister to push for new budget cuts 78 billion euros in the Greek Parliament. The program was agreed by experts from the European Commission (EC), European Central Bank (ECB) and International Monetary Fund (IMF).
Profitability of Greek, Irish and Portuguese bonds shows that the rescue plans for these countries may not have the desired effect. “We have three countries that have systems”, said Klarida. “Spreads are seeing on their bonds suggest that the support they receive may not be enough”.
The yield on five-year Irish bonds is 11.6 percent higher than the yield on equivalent German bonds. In February, spreads on Irish bonds was just 5.8%. The situation is similar to Portugal. Portuguese spread in February was 3.5 percent and now is 11.8%.

EIB will inverst 1 billion USD in Romania for 2011

Viliyana Filipova — Sun, 03 Apr 2011 12:53:30 +0000

The European Investment Bank (EIB) is to grant Romania loans worth between 800 million and 1 billion for the implementation of ten investment projects this year. Their focus will be on limiting the consequences of climate change, said EIB Vice-President Matthias Kollatz-Ahnen.
“We are optimistic that we will see economic growth in Romania in 2011,” added Kollatz-Ahnen at a press conference in Bucharest yesterday. Romanian economy experienced a decline for two consecutive years, in 2010 gross domestic product shrank by 1.3 per cent and in 2009 – by 7,1 percent. The EIB will support projects in the country that aim to reduce by 50% of electricity consumption in the old blocks built in the years of communism. The other areas to be directed to the EIB investments are energy system, including the rehabilitation of power plants and co-bank loans for small and medium enterprises. According to Matthias Kollatz-Ahnen EIB will also support expansion of the network of public transport in the country, especially in Bucharest where air pollution has a serious impact “on the health of residents, according to a survey this week of Romanian environmental NGO Ecopolis. The EIB has invested 3.9 billion euros in Romania in the period 2006 to 2010 and the beginning of the Bank’s activities in Romania in 1990 the value of loans is 8.1 billion. In 2010, the EIB granted loans to Romania for 410 million euros.
The International Monetary Fund estimates that Romania will return to growth in 2011 with an increase in GDP of 1.5 per cent.

Romania joined to the Pact for the EUR

Viliyana Filipova — Sun, 27 Mar 2011 13:59:50 +0000

Romania is not a member of the Euro zone, but joined the pact for the euro. The country is seeking to avoid new debt crisis, but will retain its tax policy. The six countries outside the euro area, including Romania, joined the “Pact for the euro,” said Basescu in Brussels. Harmonization on taxes, encouraged by the present Covenant does not mean that we should all have the same level of taxes, he said. Romania will never join if its right to maintain the single rate of taxation has been called into question, said the president. Bucharest adopted in 2005 tax reform, based on introduction of a tax / flat tax of 16 percent on profits of companies and income of individuals, which is considered a trump card in the country’s efforts to attract foreign investment. Basescu explained that the purpose of the pact – to stimulate competitiveness and employment, are included among the priorities of Romania. This pact confirmed the correctness of the measures taken by the government assured the Romanian president, given the savings plan, adopted in mid-2010 to reduce the budget deficit. The pact for the euro, encouraging economic reform, debt reduction and coordination of tax policies, was passed in the night of Friday the summit of the EU in Brussels.