Headlines

The eurozone and the International Monetary Fund are at loggerheads in their attempts to reach a deal that would allow the IMF to join the EU’s €86bn bailout of Greece, the Financial Times reported. Talks between euro area ministers and the IMF on Monday broke up with little headway having been made in resolving splits over the programme, despite ministers approving a set of “short-term” debt relief measures for Greece.

Bankers were scrambling on Monday to secure a €5 billion recapitalisation of Monte dei Paschi di Siena (MPS), the world’s oldest lender, after prime minister Matteo Renzi’s decisive loss in Italy’s referendum on constitutional reform added more uncertainty over the deal, the Irish Times reported. Italy’s troubled banking system and a complex rescue and restructuring of MPS has lurched into investor focus after Mr Renzi confirmed he would step down after a worse than expected defeat in Sunday’s vote.

Cleaning up Italy’s banks is an opportunity ripe for the wasting, the International New York Times DealBook blog reported. The failed referendum on Sunday need not cause a crisis if UniCredit completes its rights issue and fellow lender Banca Monte dei Paschi di Siena can be quickly stabilized. Political turmoil and weak growth, though, could push up bad loan levels, and the political will to fix them may be lacking.

Ireland has become increasingly dependent on defined-contribution pensions as a source of funding for retirement, figures from the Organisation for Economic Cooperation and Development (OECD) show, which has warned that such schemes put too much risk on the individual and their design needs to be improved, the Irish Times reported. There were 13 OECD countries in which assets in funded pensions represented more than 50 per cent of gross domestic product (GDP) in 2015, up from 10 in the early 2000s, according to the intergovernmental economic organisation.

In one of the most significant constitutional cases in decades, Britain’s Supreme Court began a hearing on Monday to determine whether Parliament should vote before the government begins formal steps to quit the European Union, the International New York Times reported. The outcome of the case could affect the timetable laid down by Prime Minister Theresa May, who wants to start withdrawal negotiations by the end of March. Mrs. May wanted to use prerogative powers to avoid a vote in Parliament.

An application to extend developer Sean Dunne’s bankruptcy will be heard at the High Court next month. Ms Justice Caroline Costello has fixed January 31st for the hearing, expected to last three days. Issues concerning whether there will be any cross-examination of either Mr Dunne or Chris Lehane, the official administering his bankruptcy, will be decided later. The matter was before the judge in the High Court bankruptcy list for case management purposes on Monday, when she told Mark Sanfey SC, for Mr Lehane, and Bill Shipsey SC, for Mr Dunne, it would be heard on January 31st.

Spain's infrastructure company Ferrovial SA is in talks to acquire from its Spanish rival Grupo Isolux Corsan SA three power transmission projects in Brazil, according to a Ferrovial letter seen by Reuters on Friday. Isolux is undergoing debt restructuring in Spain and has stopped development of the power transmission lines, whose licenses it obtained from the Brazilian government in licensing tenders in 2014 and 2015. Brazil's electricity watchdog, Aneel, is considering canceling the licenses and promoting a new tender to find a substitute for the battered Spanish company.

Ireland has ranked fifth among European states in terms of the ratio of non-performing loans (NPLs) held by its banks, according to a report by the European Banking Authority in London, the Irish Times reported. The analysis shows Ireland with an NPL ratio of just more than 20 per cent, ranking fifth behind Cyprus, Greece, Portugal and Slovenia. Across the board, the rate was 5.4 per cent with Luxembourg the best in class with a figure of about 1.5 per cent.

Oi SA could scrap a proposed three-year restriction on creditors swapping part of their debt for equity, in a sign that Brazil's No. 4 wireless carrier wants to lure bondholder support to exit bankruptcy protection faster, two people with knowledge of the matter said on Friday. The limit, which Oi included in a reorganization proposal on Sept. 5, drew creditor anger and helped slow the carrier's in-court restructuring. Chief Executive Officer Marco Schroeder told Oi's two bondholder groups this week that shareholders now seem less reluctant to accept a debt-for-equity swap, the people said.

A UK distressed debt investor that has been at the centre of a rescue plan for Italy’s third biggest bank, Monte dei Paschi di Sienna, has emerged as the leading bidder for a niche bank being sold in Dublin, the Irish Times reported. Sources said Attestor Capital in London is the preferred bidder for EAA Covered Bond Bank in Dublin, which is being sold under the wind-up of failed German bank WestLB.