India’s market regulator on Thursday ordered enhanced disclosure norms for credit rating agencies in an effort to increase transparency as the country reels under a slew of rating downgrades and defaults that have roiled debt and equity markets, Reuters reported. The Securities and Exchange Board of India (SEBI) directed ratings agencies to formulate a uniform benchmark for the “probability of default” for each rating category and disclose that on their website for the ratings of long-term and short-term instruments.
European Union finance ministers are on Thursday discussing new rules that would make it easier to restructure euro zone sovereign bonds, a draft document shows - a move that could drive up yields of high-debt states, Reuters reported. Under the measure, part of a set of reforms that could be approved at Thursday’s meeting, holders of debt issued by one of the 19 euro zone countries would find their power to block bond restructuring or haircuts vastly reduced. If approved, it would apply to bonds issued on or after Jan.
Kenya will more than double its capital gains tax rate to 12.5% from 5% to bring it in line with international standards, Finance Minister Henry Rotich said in budget proposals to parliament on Thursday, Reuters reported. Analysts said the move showed the government had opted to squeeze already hard-pressed taxpayers, rather than cut expenditure, to make ends meet. “They are basically trying to get more and more out of a small tax base,” said Kenneth Minjire, head of securities at Nairobi-based Genghis Capital.
Industrial output in the eurozone dropped in April, hit particularly by falling car production, adding to concerns of a prolonged slowdown in the region that may in turn apply pressure on the central bank, the Financial Times reported. Monthly output dropped 0.5 per cent, compared with March, the regional statistics office said on Thursday, in line with a Reuters poll of analysts. The Eurostat March figure showed a decline of a revised 0.4 per cent.
Three additional former executives of The Abraaj Group were charged in New York in a fraud investigation into the firm’s collapse last year that was the world’s biggest private-equity insolvency, Bloomberg News reported. Former Chief Financial Officer Ashish Dave, former Managing Director Rafique Lakhani and former Managing Director Waqar Siddique were charged with multiple counts including fraud and conspiracy, in an indictment unsealed Thursday. James Margolin, a spokesman for Manhattan U.S. Attorney Geoffrey Berman, declined to say whether any of the men are in custody.
The German government has said the country’s economy will face sustained headwinds in the coming months, as global trade tensions hit its export industries and the labour market shows signs of a slowdown, the Financial Times reported. Germany’s economy grew 0.4 per cent in the first quarter of 2019, in part because of strong consumer spending. But in a statement, the German economy ministry said the outlook for the second quarter “remains muted”.
EU finance ministers and officials have warned Italy that it needs to bring its public finances back into line with the bloc’s rules, saying previous commitments to rein in its debt must be honoured, the Financial Times reported. Arriving at an EU meeting in Luxembourg, France’s economy minister urged Rome to “accept the hand” extended by the European Commission, which last week warned Italy that it was in breach of its obligations while stressing that Brussels was open to discussions on what action needs to be taken.
Sub-Saharan African states have borrowed so much money since the debt forgiveness programmes earlier this century that they risk falling back into financial distress, Fitch warned today, the Financial TImes reported. However, the rating agency argued that multilateral debt relief had not been squandered, as some have argued, because it has “delivered lasting benefits” in the form of faster economic growth and improvements in measures of human development.
Faced with the choice of accepting rent cuts or hunting for new retailers to fill hundreds of stores, U.K. mall owners are swallowing their medicine, Bloomberg News reported. Some of Britain’s biggest commercial landlords including Hammerson Plc and British Land Co., voted in favor of a rescue plan for billionaire Philip Green’s Arcadia Group that meant having to accept dozens of store closures and rent cuts of at least 25% at almost 200 sites.
Brazilian conglomerate Odebrecht SA’s construction unit expects to speed up talks with Petroleo Brasileiro SA to resume providing services to the state-run oil company and participate in its public auctions in the second half of 2019, an Odebrecht executive said on Thursday, Reuters reported. Olga Pontes, Odebrecht’s compliance director, says Odebrecht Engenharia e Construcao (OEC) should be able to resume its relationship with Petrobras because of steps taken by the conglomerate to improve governance and compliance in the wake of a 2016 leniency deal tied to a corruption scandal.
Resources by Country & Region
A field of extremely high importance in a bank’s governance is the problem related to culture and integrity, and its being taken into account in an effective way in the entire organisation. This can be difficult to achieve since the notion is not inbuilt in the organisation and the leaders do not give it much attention.
A closer look at…The General Approach of the Council on the European Commission’s Proposal Directive on Preventive Restructuring Frameworks by Emmanuelle Inacio
On 11 October 2018, the (Justice and Home Affairs) Council agreed upon its position on the compromise text concerning the European Commission’s Directive Proposal on preventive restructuring frameworks, second chance and measures to increase the efficiency of restructuring, insolvency and discharge procedures and amending Directive 2012/30/EU of 1 October 2018.
Has Newton had his day? relativity and realism in European restructuring by Riz Mokal and Ignacio Tirado
Isaac Newton had good reason for believing space to be absolute, and absolute space to be essential to the operation of the laws of motion. In a famous example, he noted that water in a rapidly spinning bucket is at rest relative to the bucket, yet has a concave surface.
The INSOL International Helsinki 2018 Joint One-Day Seminar took place at the Hilton Helsinki Strand Hotel on Wednesday 13th June and was jointly organised by INSOL International, INSOL Europe and the Finnish Insolvency Law Association (FILA) and enjoyed the presence of more than 100 delegates representing ten different jurisdictions: Denmark, Finland, France, Germany, Hungary, Romania, Sweden, the UK and the US.
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: