Headlines

Greece’s crisis is approaching a potential breaking point after a year of relative calm, as a government with declining political stamina confronts creditors’ unyielding demands, The Wall Street Journal reported. The ruling left-wing Syriza party, grappling with slumping popularity, is considering the option of calling snap elections in 2017, as it loses hope of winning concessions on debt relief or austerity from the eurozone and International Monetary Fund.

The Spanish government may to have to take over several bankrupt toll roads, the minister for public works said on Monday, adding that the state's chances of reaching a rescue deal involving the motorways' bank lenders was slim. The government has been trying for the past three years to negotiate some arrangement with creditors to help prop up nine struggling toll roads while also avoiding saddling the state deficit with several billions euros of debt. The deal would have involved steep losses for lenders - one plan envisage a 50 percent writedown on the debt - alongside an aid package.

Early last month, Prime Minister Narendra Modi summoned his cabinet to a room in India’s capital, told them to leave their cellphones outside and delivered a shocker: He was about to go on national television to declare that almost 90% of the country’s paper money would no longer be legal tender, The Wall Street Journal reported. The move, prepared in secret by Mr. Modi and his advisers, kicked off a radical experiment in government control and instantly put India at the forefront of a nascent global campaign against cash.

Oi, the Brazilian telecom operator at the centre of a R$65bn debt default, the largest in the country’s history, is likely to consider more favourable debt-for-equity swap conditions for creditors in talks this week, the Financial Times reported. Oi chief executive officer Marco Schroeder said he was hearing creditors were discussing among themselves a proposal to convert some of the estimated R$32bn owed to bondholders into equity immediately and restructure the remainder into 10-year notes rather than accepting three-year convertible bonds as earlier proposed by the company.

Turkey’s economy contracted for the first time in seven years during the third quarter, official data showed on Monday, as mounting uncertainties since a failed summer coup crimped domestic demand and devastated key industries like tourism. Gross domestic product in July through September shrunk by 1.8% annually, sinking deeper into negative territory than a 0.4% drop forecast by 10 economists in a Wall Street Journal survey and reversing Turkey’s resilient growth record since its latest decline in the third quarter of 2009.

A financial fund is seeking judgment of €18 million against two businessmen over loans from the former Anglo Irish Bank provided for purposes including a housing development in Dublin, the Irish Times reported. Promontoria (Arrow) Ltd, which took over the loans, is seeking judgment against Martin Walshe, Cooldrinagh Lane, Leixlip, and Gerry McIntyre, Ladycastle, Straffan, both Co Kildare. Promontoria is also seeking judgment against Mr McIntyre for another €2 million in relation to another loan to him from Anglo to renew an existing facility with that bank.

Banca Monte dei Paschi di Siena SpA will step up efforts to win investors for a debt-for-equity swap over coming days, pressing ahead with a 5 billion euro ($5.3 billion) capital raise to avoid a state rescue that would impose losses on bondholders and shareholders, Bloomberg News reported. The company’s board met on Sunday and agreed to stick with the overhaul’s existing timeframe after it had requested an extension to the year-end deadline from the European Central Bank, the lender said in a statement.

Credit Agricole is poised to become the first bank to issue a new form of senior debt, thwarting expectations that BNP Paribas would open the new market and providing a much-needed template for what is expected to become a new European standard, Reuters reported. The issuer announced the inaugural non-preferred senior bond offering on Thursday, bringing one of the most eagerly awaited deals in the European financial bond market in 2016. The new security, which will sit between traditional senior and Tier 2 debt, has been almost a year in the making.

Southern Ontario steelmaker Stelco is seeking court approval to move forward with its restructuring following an agreement with Bedrock Industries, CTV News reported on a Canadian Press story. Ontario Finance Minister Charles Sousa said in a statement Friday that Bedrock's proposal would mean that operations at the Hamilton and Lake Erie facilities would continue and 2,100 jobs would be preserved.

A group of creditors of Brazil's struggling phone operator Oi SA, including export credit insurers and banks, plans to present to the company in the next two weeks a new restructuring proposal. The group, represented by FTI Consulting Canada ULC, Milbank, Tweed, Hadley & McCloy LLP, Mattos Filho, Veiga Filho, Marrey Jr. and Quiroga Advogados, said in a statement that it is in talks with the Sawiris Group and bondholders represented by Moelis & Co for an alternative restructuring plan for Oi, Reuters reported.