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An independent assessment by Ernst and Young reiterated on Monday that subprime lender Provident Financial’s doorstep lending unit will likely face insolvency if its 50-million-pound settlement plan is not endorsed by a UK court, Reuters reported. Provident said on Monday that the division, which lent to people who are turned away by mainstream banks, was placed into a managed run-off last month, after a surge in customer complaints against it. Rival Amigo’s rescue plan was rejected by the court in May.
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Argentina will make a partial payment to the group of wealthy government creditors known as the Paris Club of an outstanding debt of $2.4 billion, Bloomberg News reported. The club will spare Argentina from default in the understanding that the country can rework a $45 billion credit with the International Monetary Fund. The South American nation has used a 60-day grace period to try to reach an agreement with the group after failing to make the payment by May 31. Argentina’s global bonds due in 2030 pared an intra-day decline to trade at 37.23 cents on the dollar on the news.
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Securities misconduct in Canada has risen sharply as perpetrators attempted to capitalize on pandemic-driven uncertainties, while social media frenzy surrounding certain stocks and cryptocurrencies also opened the door to more wrongdoing, regulators said on Tuesday, Reuters reported.
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The International Monetary Fund is set to discuss a proposal to create a record $650 billion of new reserves for its members on Friday, bringing the plan to increase resources for nations struggling with the pandemic’s economic and health costs one step closer to approval, Bloomberg News reported. The executive board -- composed of 24 individuals from IMF member countries and Managing Director Kristalina Georgieva -- typically meets several times a week and will vet the specific details of the proposal.
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European Central Bank (ECB) policymakers are still some way apart on their new inflation strategy but hope to reach an agreement before debating the future of their pandemic-fighting programme in September, sources told Reuters. ECB rate setters agreed on some side issues at a retreat last weekend, such as including environmental considerations into their policy decisions and adding owner-occupied housing costs to their measure of inflation, the three sources close to the matter said.
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The paramount issue for Peru’s economy is a swift recovery from the mass destruction of jobs last year, while the widening fiscal deficit and recent inflation spike are both temporary, according to economists advising Pedro Castillo, the nation’s probable next president, Bloomberg News reported.
Future cooperation between Canadian miner Centerra Gold Inc. and Kyrgyzstan’s government in operating a gold mine in the Central Asian nation is unlikely, according to the nation’s finance minister, Bloomberg News reported. The government took over Kumtor mine late last month, using environmental concerns and tax issues to justify the move. It is now the subject of international arbitration initiated by Toronto-based Centerra, while the mine’s operating company Kumtor Gold filed for chapter 11 protection in New York on May 31.
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Construction giant Arabtec Holding on Monday said that a Dubai court has accepted its petition to open bankruptcy proceedings and had also appointed a trustee for each of its entities, the Khaleej Times reported. The court ordered each appointed trustee to publish the bankruptcy decision of each entity, review its debts, deposit a record of its creditors, and conduct all the procedures stipulated under the bankruptcy law within 35 days. The court also instructed each trustee to prepare an initial separate report on the assets of each entity and its rights with third parties.
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An arm of Sanjeev Gupta's industrial empire which counts Jaguar Land Rover as its main customer faces collapse within days amid last-ditch negotiations with its lender, Sky News reported. Sky News has learned that Liberty Aluminium Technologies (LAT) is in detailed talks with Close Brothers in an attempt to avert the division being placed into administration. Sources said on Monday that LAT, which employs 250 people at three UK sites, could be forced into insolvency proceedings as soon as this week, although there remains hope that such an outcome could be avoided, they said.
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Borgward will file for bankruptcy, which will be announced at the beginning of July, Sina Tech reported today, according to Gasgoo.com. In 2014, BAIC Foton acquired the iconic German brand and in March, 2019, Ucar, a chauffeured car service provider in China, bought 67% stake of the company with 4.109 billion yuan. Many former employees of Borgward revealed that in order to help Borgward enter into high-end vehicle market, Foton has been marketing Borgward as a brand with German origin, but its heavy investment seems to be a failure.