Greece has lost the dubious distinction of being the riskiest government borrower in the eurozone after its bond yields dipped below Italy’s for the first time since 2008, the Financial Times reported. Greek bonds have staged a powerful rally this year as investors hungry for yields have snapped up debt from former euro area crisis spots — a trend that gained further momentum after Standard & Poor’s upgraded Athens’ credit rating to BB- late last month.
Investors in frontier-market bonds are on course to get their best returns in seven years. It looks like it’ll be a lot tougher in 2020, Bloomberg News reported. Some of the biggest money managers are already becoming more selective. BNP Paribas Asset Management, which oversees almost $500 billion in assets, is sticking to countries with sound fiscal management such as Ivory Coast, or those with investment-grade ratings like Kazakhstan, Uruguay and Morocco. Aberdeen Standard Investments sees opportunities to get above-market returns by buying the bonds of Sri Lanka, Ecuador and Ghana.
United Group, the private-equity backed cable company, has struck a €1.2bn deal to acquire Bulgaria’s former state owned telecoms operator Vivacom, the Financial Times reported. The sale is one of the largest deals struck by United, owned by BC Partners, to consolidate the Balkan media and communications industry. It agreed to buy Tele2 Croatia for €220m in May and has so far rolled up about 100 Balkan businesses. It comes in spite of a long-running ownership dispute around Vivacom, which is still rumbling through the courts.
Brussels has cut its growth forecasts for the eurozone to their lowest level since the height of the bloc’s sovereign debt crisis, warning the slowdown will persist for at least the next two years, the Financial Times reported. The European Commission on Thursday reduced its annual projection for eurozone GDP growth to 1.1 per cent in 2019 — down 0.1 percentage point from its last forecast and marking the lowest annual expansion since 2014.
Bribe allegations leveled in court against a VTB Group executive may complicate the Russian state-owned bank’s attempts to recoup a $535 million loan that’s part of a major debt scandal in Mozambique, Bloomberg News reported. A New York court heard testimony last month that the VTB executive in charge of the deal, Makram Abboud, took $2 million in kickbacks. The bank denies the allegations, made by a former Credit Suisse Group AG banker at a criminal trial in which VTB isn’t a party, and its employee hasn’t been charged with any wrongdoing.
TVT Media, a London-headquartered provider of media localization and end-to-end content services, filed for insolvency on October 21, 2019, according to regulatory filings, Slator reported. TVT’s operations in the UK generated revenues of nearly GBP 10m (USD 12.6m) in 2017 (the most recent year for which numbers are available), but the company’s global size is likely a multiple of the figure given that it operates large subsidiaries in the US, the Netherlands, Poland, Australia, Singapore, and Japan.
The government is mulling a special window for resolution of stressed non-banking finance companies under the Insolvency and Bankruptcy Code, a senior government official said, Mint reported. A special window, is certainly something which is being examined closely, the official said. The move also comes against the backdrop of financial sector players like Dewan Housing Finance Corporation Ltd (DHFL) facing troubles. Punjab and Maharashtra Co-operative (PMC) Bank is also grappling with financial woes.
India’s financial crisis has hit ordinary people hard. School teachers and electrical engineers have seen their pension savings get stuck in bonds of defaulted institutions, a Bloomberg View reported. More than a million depositors of a cooperative bank can’t access their cash. Homeowners have spent billions of dollars on apartments that will never be finished. Yet for workers in rich nations, the blowup in India’s shadow-banking and real-estate industries is an opportunity. Will they profit from it or get burned like their Indian counterparts?
Italy has warned that a German proposal to complete the EU’s banking union would harm the competitiveness of the bloc’s banks, in comments heralding complex negotiations over Europe’s most ambitious integration project since the creation of the single currency, the Financial Times reported. Speaking on the margins of a gathering of eurozone finance ministers in Brussels, Roberto Gualtieri took issue with a key part of bank regulation plans laid out by his German counterpart this week in the Financial Times.
A small Chinese lender made a rare decision to skip early redemption on its local tier-two bond, sparking fresh concern on the country’s smaller lenders as non-performing loans rise amid an economic slowdown, Bloomberg News reported. Guangdong Nanyue Bank Co, based in the coastal province in Southeast China, said it won’t exercise an early redemption on its 1.5 billion yuan ($215 million) 6% tier-two bond next month, according to a filing on Thursday on the China Bond website. It didn’t give a reason for its move.
Resources by Country & Region
A judicial “cookbook” and recipes for international insolvency cooperation by Nicoleta Mirela Năstasie
In 2014, I attended a training programme related to guidelines and best practices for judicial cooperation in cross-border insolvency.
Explaining that in my daily judicial activity I had insufficient time to determine the most appropriate method to transform general guidelines and rules into concrete measures in pending litigations, someone asked me: “What do you want, Judge, a cookbook for insolvency?”
My direct and immediate answer was: “Yes, if a cookbook helps me to find practical solutions and be efficient”.
The speed of reforms across the world in insolvency law is truly breath-taking. In Europe and neighbouring countries, the pace has accelerated of late. Countries, such as Armenia, France, Greece, Latvia, Poland and Romania, inter alia, have within the past decade carried out reforms, many under very challenging economic conditions.
Almost a decade after the onset of the European debt crisis, Greece continues to struggle. While the country has managed to address many of its fiscal inconsistencies, the real economy has yet to reap the benefits of stabilisation, recording only a sluggish growth of 1.9% in 2018.
The financial crisis of 2008 affected the economic players more than ever, with the winding-up of a large number of financial institutions worldwide. Due to the specialisation of banks among other legal entities, insolvency is a scenario to be avoided, with restructuring being the more favourable solution.
It is the case in most European jurisdictions that there are various forms of protection available for parties with an interest in property which places any prospective purchaser on notice, or in some circumstances prevents a sale, where there are competing interests in relation to it.
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: