Financial Communique » Finance Minister

Egypt will received 3 billion USD loan from IMF

Viliyana Filipova — Mon, 06 Jun 2011 12:52:29 +0000

Egypt and the International Monetary Fund yesterday signed an agreement for a loan of $ 3 billion. According to Egyptian Finance Minister Samir Radwan funds will be used to restore the country’s economy. “Egypt has finalized negotiations with the IMF and signed an agreement to revive the Egyptian economy,” said Radwan a press conference in the Egyptian capital Cairo. In his words amounts of the loan will be disbursed within 12 months, the interest rate will be 1.5 percent. The Egyptian economy suffered severely in popular unrest in late January and early February this year. Only by the revolution on January 25, “now the country’s reserves in gold and foreign currency decreased by $ 8 billion to 28 billion dollars by the end of the year can almost melt. The budget deficit rose to 11% and $ 2 billion. Many industrial plants and not currently operating at full capacity due to ongoing strikes and unemployment exceeded 10%. Because of recent events FDI in the country dried up and the reduced flow of tourists has led to losses of 2.2 billion dollars for the budget. At present the capacity of the hotel is filled to no more than 20%, with most of the tourists are Egyptians.
The U.S. has already pledged financial support to Egypt and to simplify part of the debt of the Arab country. Obama said Washington will simplify debt by $ 1 billion of Cairo and the country will provide loan guarantees for $ 1 billion to “create infrastructure and jobs. Saudi Arabia also promised loan to Egypt worth $ 4 billion on preferential terms.

Russia plans to spend 650 billions USD for the army

Viliyana Filipova — Thu, 24 Feb 2011 11:28:25 +0000

The Russian army will be equipped with 8 new submarines, 100 warships, 600 aircraft and 1000 helicopters totaling 650 billion dollars by 2020. Among the new equipment of the Russian Navy will include two new ship platforms for helicopters, except two who have already purchased from France. The submarines will be armed with ballistic missiles Bualva despite recent problems in testing a new missile. The analysts from the ambitious program makes sense only if it is accompanied by reform of the armed forces. A painful reform to optimize the Russian armed forces is underway. According to the Associated Press this year 200 thousand Russian officers will lose their jobs, 9 of every 10 units will be disbanding. Last week Russian Finance Minister Alexei Kudrin announced that defense spending will triple from 0.5 percent of gross domestic product (GDP) now to 1.5 percent of GDP next year. A significant part of the new funds will be allocated to modernize the Russian navy. Besides submarines will be ordered 35 corvettes and 15 frigates.
For the Air Force will be commissioned mainly Su-35 fighters and Su-34 and Mi-26 helicopters and Mi-8.

Australia opened the second Stock Exchange

Viliyana Filipova — Wed, 24 Mar 2010 21:45:10 +0000

Australia ended the monopoly of the stock exchange, permitting the creation of a second exchange for trading in shares in the country. Authorization is granted to Japan’s Nomura, but its purpose is to create competition to help develop the market. Among the main priorities of Australia has become the local stock market in the center of financial services in Asia-Pacific region, said Finance Minister Chris Bowen of the country, quoted by AP. According to him, higher competition should lead to cost reductions of about 6 million Australian citizens who have contributions to pension funds. “If Australia really wants to be considered a financial center if we are to global center for financial services, the monopoly days of our financial market must be completed,” said Bowen. Authorization for establishing a second exchange in the country is a company of Chi-X Global, which is part of network of Nomura Holdings.
The company operates the exchanges in Europe and Canada.

Lithuania will not hurry for the Eurozone

Viliyana Filipova — Mon, 30 Nov 2009 07:58:08 +0000

Lithuania will not adhere to the “painful” scheme for adopting the euro, which will shrink consumption and greatly harm the economy, said Prime Minister of the country Cubilus Andrews. The country probably will fail to meet EU requirements for the deficit within 3 percent of GDP by 2011, so the adoption of the euro can not happen before 2013, said in an interview yesterday, Finance Minister of Lithuania Ingrid Simon. “These are very ambitious and very painful measures, and, of course, there are any limits on what measures can enter,” said Cubilus. The aim is not to kill the entire economy and stability in society by reducing costs, salaries and pensions. Lithuania’s economy contracted by 14,3 per cent in the third quarter after the government took budget cuts, equivalent to 8 percent of GDP this year. Even after these stringent measures, the evaluation of the European Commission Lithuania will have a deficit of 9,7 per cent in 2011 to 9.8 per cent for this. Lithuania, whose currency – liras is tied to the euro should be introduced European single currency “as soon as possible, but the opportunities in turn have practical limits and practical measures should be introduced,” said Cubilus. The government has proposed the 2010 budget cuts of 5 percent of GDP, aimed at social welfare. Lithuania lags behind neighboring Estonia, which plans to join the eurozone from January 1, 2011, after years of using the government budget surplus for the establishment of reserves. This allowed the public finances remain intact even after the crisis hit the country.
The other Baltic states – Latvia, does not think that will be able to introduce the euro before 2014

Expect a greater decline in the British economy for the year

Viliyana Filipova — Thu, 26 Nov 2009 09:06:43 +0000

The British finance minister Alistair Darling is expected next month to revise downwards its forecast for the presentation of the British economy in 2009. It will do so in the economic report to parliament before the budget discussions for next year, transmits Reuters. Sources from the British finance ministry have shared before the Agency on Thursday that an unexpectedly strong decline in first quarter will likely lead to a contraction of the economy by about 4.75 percent for the year instead of a set in drafting the budget 3.5%. The estimate to restore growth at the end of the year will not be changed. British economy decreased in 6 consecutive quarters, forming the most prolonged recession of at least 50 years, lagging behind other leading economies, are already restored. Reuters sources are moderately cautious in their expectations out of the recession around the end of the year, based on a recent survey by the British Union of Industrialists and data on retail sales in October. “We assume that the economy will show growth of around 0.2% -0.4% in the last quarter,” said a source from the ministry. Darling himself hinted in bringing down its forecast last Thursday, when he declared in parliament that his original forecast was in line with most experts when drafting her. “Since then, new data showed that most economies, including ours, have suffered a serious blow in the first quarter,” the minister said.
Sources from the ministry indicate that Darling will probably stick to its forecast for growth of 1% -1.5% in 2010 were within this range and most experts forecast.