Why is Italy’s economy so sickly and has the country’s new government found the cure for its economic ills? As Rome locks horns with Brussels over a draft Italian budget that the European Commission has rejected for breaching EU rules, the Financial Times has consulted leading economists, academics and industrialists about the root causes of the country’s sluggish growth, the Financial Times reported.
In India, NBFCs and lenders to the housing sector have become increasingly important in supporting consumer spending as the nation’s formal banking sector is weighed down by bad loans, Bloomberg News reported. Nomura Inc. estimates that the loan books of NBFCs and housing lenders have grown at a compounded annual rate of 17 percent in the past two years, compared with 8 percent for banks. Such growth looks difficult to sustain as liquidity dries up, with the Bloomberg Economics India Banking Liquidity Index showing a nearly 1 trillion rupee shortfall of cash in the banking system.
Bombardier Inc. bonds are joining the company’s stock plunge on fresh concern over cash-flow prospects at the manufacturer of planes and trains, Bloomberg News reported. The market swoon underscored investor anxiety about Bombardier’s prospects despite Chief Executive Officer Alain Bellemare’s upbeat 2020 outlook at an investor conference Tuesday -- his first public comments since the company lost a quarter of its market value after reporting earnings last week. Canada’s largest aerospace company surprised investors Nov.
Noble Group Ltd.’s earnings were salvaged by a surge in alumina prices but its core coal trading business struggled to make money in the third quarter, highlighting the challenge the company faces as it emerges from a marathon debt restructuring, Bloomberg News reported. The company is pinning its hopes on Asia-focused coal, alumina and liquefied natural gas trading businesses to help it make money once the restructuring is completed this month. Noble reported a third-quarter operating loss from supply chains of $12 million in its energy unit, which includes thermal coal and LNG trading.
Nyrstar NV, one of the world’s largest zinc smelting companies, is collapsing under the weight of its own debt, Bloomberg News reported. The shares plumbed fresh lows on Tuesday and the price of its bonds due next year is now 50 cents on the euro. Analysts say the company is headed for an inevitable restructuring, and the shares will soon be worthless. Here are five charts that explain how this powerhouse producer was pushed to the brink. When it listed in Brussels in 2007, Nyrstar made its money buying zinc ore from mines and smelting the raw material into a refined metal.
After four years, dozens of arrests and a handful of restructurings, holders of bonds from Brazil’s construction giants are still suffering the fallout from a corruption scandal that all but halted the industry in Latin America, Bloomberg News reported. The building unit of Odebrecht, which was forced into talks with banks earlier this year amid dwindling cash flow and a dearth of new projects, is again seeking help to deal with debt it can’t afford to pay back, according to a person familiar with the matter who asked not to be identified because the information is private.
Greece’s central bank is working on a plan to help banks cut their bad debts in half, the latest effort to restore trust in the country’s financial system, two people with knowledge of the matter said. Under the proposal, Greek lenders would transfer about half of their deferred tax claims to a special purpose vehicle, which would then sell bonds and use the proceeds to buy some 42 billion euros ($47 billion) of bad loans from the lenders, according to the people. They asked not to be identified because the plan hasn’t been finalized yet, Bloomberg News reported.
European Union governments have reached a preliminary deal to clamp down on money-laundering by strengthening bank supervision, but do not address key loopholes, documents show. A series of money-laundering cases at banks in several EU states have forced regulators to act after public outcry, Reuters reported. The preliminary deal, which could be finalised before EU finance ministers are due to meet in December, confirms proposals made by the European Commission in September to give more powers to the European Banking Authority (EBA).
President Tayyip Erdogan’s AK Party on Tuesday submitted a bill to parliament to tighten Turkey’s bankruptcy law aimed at preventing what the government says is abuse of the regulation by some healthy companies, Reuters reported. A section of the current law is designed to give struggling firms temporary protection from creditors. Since going into effect eight months ago, it has seen a surge in applicants, officials and bankruptcy lawyers say, as a currency crisis has pushed the inflation rate to 25 percent and shaken the economy.
Italy’s fiscal stimulus plans would leave the country vulnerable to higher interest rates that could ultimately plunge it into recession, the International Monetary Fund warned on Tuesday, recommending instead a “modest” fiscal consolidation to reduce financing costs, Reuters reported. The IMF said after an annual staff review of Italy’s economic policies that any temporary, near-term growth gains from the stimulus is likely to be outweighed by the “substantial risk” of a rapid deterioration.
Resources by Country & Region
Like its predecessor, the European Insolvency Regulation (Recast) (hereafter ‘EIR (recast)’) sets out rules to (among others) establish which court has jurisdiction to open a crossborder insolvency case. In terms of ‘jurisdiction’, main insolvency proceedings still take place before the courts of the European Member States where the debtors’ centre of main interests (‘COMI’) are situated.
Find your case: the INSOL Europe European Insolvency Regulation Case Register - by Prof. Reinhard BORK
First launched in 2011 at the INSOL Europe Annual Conference, the INSOL Europe European Insolvency Regulation Case Register is a database that summarises cases from first instance and appeal courts of Member States of the European Union, as well as the CJEU, that deal with a significant point relating to the European Insolvency Regulation (both Regulation EC 1346/2000 and Regulation EU 2015/848). It is an internet-based system within which information on court decisions and judgments relating to the European Insolvency Regulation (‘EIR’) is collected and disseminated.
On 11 October 2017 the Senato della Repubblica approved the final version of a law aimed at systemically reforming Italian insolvency law, which in its fundamentals dates back to 1942. Law no. 155/2017 (‘the act’) has been published on the Gazzetta Ufficiale on October 30, 2017 , and entered into force on 14 November 2017 (Year 158, No. 254). This reform is based on the preparatory work of the ‘Rordorf Commission’, a group of experts appointed by the Ministry of Justice in January 2015 with the task of writing a reform proposal to modernise insolvency statutes.
This updated edition describes the framework of the European Insolvency Regulation Recast (adopted in June 2017), reviews its major rules, highlights the differences from the old EIR 2000, and makes references to the most important and recent cases of the Court of Justice of the European Union. An essential guide for non-European judges, practitioners and scholars who are confronted with this domain of law, as well as anyone dealing with EU-related cross-border cases, this book serves as a concise and comprehensive introduction to the EIR Recast.
Chapter 15 for Foreign Debtors covers all aspects of the UNCITRAL Model Law on Cross-Border Insolvency as well as chapter 15 of the Bankruptcy Code, and provides details about the Foreign Representative, avoidance actions, creditor protections, concurrent proceedings, comity and much more. The book also includes an extensive appendix filled with more than 500 pages of sample case documents and forms related to chapter 15 proceedings.
This book is the latest addition to our list of publications and it provides basic information on Islamic finance. It is meant to be a useful reference tool to the majority of insolvency practitioners who do not work in this field. The chapters in this book were selected on the basis that it is expected that most INSOL members currently have very limited understanding of Islamic finance.
The book has 10 chapters, a country study, and an annexure with a glossary of Islamic finance terms. Following the introductory chapter there are chapters on: