Europe

The Biden administration told Congress it plans to cancel $4.65 billion in debt owed by Ukraine, according to a letter obtained by Bloomberg News, the latest in a series of moves meant to bolster support for Kyiv before President-elect Donald Trump takes office, Bloomberg News reported. The White House will cancel half of a $9 billion loan delivered to Ukraine as part of a $60 billion supplemental package approved in April.

European Central Bank monetary policy must remain restrictive given lingering inflation risks, according to Governing Council member Robert Holzmann, Bloomberg News reported. With wage gains in parts of the region still too strong and geopolitics posing threats to price stability, a return of inflation to the 2% target isn’t fully assured, the Austrian official said Thursday in an interview in Vienna. Similarly, while an interest-rate cut in December is the most likely outcome, it isn’t certain, he said.

The Republic of Estonia-owned Nordic Aviation Group AS (Nordica) and Regional Jet OÜ (Xfly) will cease operations after it was announced the companies will be filed for bankruptcy, Aerotime reported. It had been hoped that Lars Thuesen, the owner of Jettime, could potentially take the companies private but on November 18, 2024, Nordic Aviation Group, which runs Nordica and Xfly, were informed that he would not be investing. “Nordic Aviation Group and Xfly have gone through a challenging path over the past 15 months since the airline began its turnaround process in August 2023.

Sweden’s Northvolt AB hired restructuring expert Paul O’Donnell to oversee its main factory unit, as time runs short for the struggling battery maker to mend its finances outside of bankruptcy court, Bloomberg News reported. O’Donnell, who has helped Thames Water engage with creditors, will become chairman of Northvolt Ett AB, the subsidiary that contains the flagship cell-manufacturing plant in northern Sweden. Northvolt has struggled to raise $300 million in emergency funding, with Bloomberg News reporting on Friday that talks on the package were on the verge of collapse.

Fitch Ratings sees an increasing risk to creditors from Southern Water Ltd’s outsize swap portfolio, which is creating liabilities that outrank the claims of even senior bondholders, Bloomberg News reported. The ratings agency downgraded the UK utility to one step above junk status with a negative outlook on Tuesday, citing “challenging funding conditions” and the risk of default should it fail to maintain two investment-grade ratings.

For some in the investment banking industry, the UK’s latest proposals to deregulate its capital markets may be a step too far, Bloomberg News reported. In what would be one of its boldest moves to attract listings, Britain’s Financial Conduct Authority has proposed lifting the threshold at which London-listed firms raising additional funds must produce a prospectus — a lengthy document detailing financial performance and potential business risks — from 20% of their share capital to 75%.

It’s “crystal clear” that European Central Bank interest rates will be reduced further but officials shouldn’t rush the process due to uncertainties including rising trade tensions and global conflicts, according to Vice President Luis de Guindos, Bloomberg News reported. “My impression is that we will continue reducing the restriction of our monetary-policy stance over the next months and quarters,” Guindos told Bloomberg Television on Wednesday.

Iceland’s central bank accelerated its easing campaign with a half-point reduction in western Europe’s highest borrowing costs as price pressure is slowing, Bloomberg News reported. Policymakers at Sedlabanki in Reykjavik lowered the 7-day term deposit rate to 8.5% on Wednesday, the biggest cut in more than three years. The decision was in line with the expectations of the north Atlantic nation’s largest banks, Islandsbanki hf and Landsbankinn hf, as well as the central bank’s survey of market participants.

In October 2024, there were 116 company insolvencies registered in Scotland. At the same time, the total number of company insolvencies was comprised of 50 CVLs, 60 compulsory liquidations, five administrations and one receivership appointment. There were no CVAs, the Scottish Financial News reported. However, it must be noted that the total insolvency rate in Scotland in the 12 months to October 2024 was 53.1 per 10,000 companies on the effective register, marking a 1.5% decrease from the preceding 12 months ending October 2023.

Thames Water extended the deadline in its search for billions of pounds in new equity, as it demands more from potential investors on how they plan to help turn around the beleaguered utility, Bloomberg News reported. Investors originally had to submit indicative, non-binding bids on Nov. 28, but that has now been extended by a week to Dec. 5. The utility last week demanded further details on how any investor plans to improve performance, one of the people said.