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Czech Airlines (CSA), part of the Czech airline group Smartwings, has filed in a Prague court for a reorganisation under solvency law as it grapples with a calamitous drop in revenue during the COVID-19 pandemic, Reuters reported. The airline sector has been among the worst hit by the pandemic and CSA, one of the world's oldest airlines, said its revenue last year dropped to a fifth of the previous year's total and led to a loss of 1.57 billion crowns ($72.7 million).
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Central banks from Asia to Europe escalated their efforts to calm panicking markets, pledging to buy more bonds and signaling more policy accommodation, after U.S. Treasury yields surged to the highest level in a year, Bloomberg News reported. The Reserve Bank of Australia waded in with more than $2 billion of unscheduled purchases, while Korea announced buying plans for the next few months. European Central Bank Executive Board member Isabel Schnabel said more stimulus could be added if the surge in yields hurts growth.
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China is set to reduce local government bond sales and rein in its budget deficit this year, scaling back the pandemic stimulus measures that fueled debt while helping the economy recover, Bloomberg News reported. The government is likely to reduce its quota for special local bonds -- mostly used for infrastructure spending -- to 3.5 trillion yuan ($541 billion) from 3.75 trillion yuan last year, according to the median estimate of 10 economists surveyed by Bloomberg. The fiscal deficit target is forecast to be cut to 3% of gross domestic product from 3.6% in 2020.
FBD said on Friday it estimates that gross claims and expenses arising from a landmark Covid-19 business interruption pubs test case ruling earlier this month will amount to €150 million, the Irish Times reported. The figure includes claims that will ultimately be picked up by reinsurance companies that have shared the risk with FBD. Meanwhile, the Dublin-listed insurer increased provisions for its net exposure to pubs claims to €65 million from €30 million that had been set aside last summer. The charge includes €11 million of expected payments to reinsurers to reinstate protection.
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Petroleos Mexicanos had its first back-to-back quarterly gains in four years as the weakening of the peso boosted the value of its dollar-denominated crude, Bloomberg News reported. Fourth-quarter net income was 123.2 billion pesos ($5.9 billion), following a profit in the previous quarter and compared with a year-earlier loss of 171.5 billion, Pemex said on Friday. Its currency-related gains more than offset operational losses. Pemex has struggled to reverse 16 years of production declines and meet a government goal to reduce imports of fuel and produce more gasoline domestically.
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Saudi Aramco has asked banks to extend by a year a $10 billion loan it raised last May, two sources familiar with the matter said, suggesting that rebounding crude prices are not pushing the oil giant to reduce debt for the time being, Reuters reported. The sources confirmed a report by Loan Pricing Corporation, a fixed-income news provider owned by Refinitiv. It is at the banks’ discretion whether to extend the loan, but lenders will likely agree in order to maintain a good relationship with Aramco in the hope of receiving future business, LPC said citing a banker.
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Chancellor of the Exchequer Rishi Sunak signaled he’s prepared to raise taxes to fix the U.K.’s battered finances, while also vowing to maintain support for businesses and workers as long as the coronavirus pandemic lasts, Bloomberg News reported. Sunak promised to be “honest” with the public in his budget statement on Wednesday. He said he’ll outline a blueprint to address the budget deficit in a “fair” way -- government advisers project it to reach 19% of gross domestic product.
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An agreement on the overhaul of cross-boarder corporate tax rules is within reach by a summer deadline now that Washington has dropped a proposal that could let U.S companies opt out of the future deal, French Finance Minister Bruno Le Maire said on Friday after a meeting with G20 counterparts, Reuters reported. U.S. Treasury Secretary Janet Yellen on Friday told the G20 meeting that Washington was dropping the former Trump administration’s demand for a “safe harbor” clause in talks to reform global taxation rules, which other countries said would make a deal impossible.
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Thai Airways International Pcl, the nation’s flag carrier in the middle of a debt restructuring, reported a record loss last year after the coronavirus outbreak ground most of its services to a halt, Bloomberg News reported. The net loss widened to 141.2 billion baht ($4.7 billion), or 64.68 baht a share, from 12 billion baht, or 5.51 baht a share in 2019, Thai Airways said in an exchange filing Thursday. The annual loss was the largest ever for a Thai company, according to data compiled by the Stock Exchange of Thailand. Revenue slumped 73.8% to 48.3 billion baht.
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DHFL on Thursday said it has received no objection from the Reserve Bank and has filed an application with NCLT for submission of the resolution plan of Piramal Capital & Housing Finance, the Economic Times reported. Earlier this week, DHFL had announced Piramal group's resolution plan getting approval from the RBI.