Headlines

The British government outlined the central argument on Monday it hopes will persuade voters to stay in the European Union, publishing a detailed economic analysis finding that Britons will be poorer if they quit, the International New York Times reported. The release of the publication by the Treasury, complete with complex algebraic calculations, is an important moment before a referendum, to take place June 23, on whether Britain should end more than four decades of integration and quit the 28-nation bloc.

Greece’s creditors have agreed to press the country for additional austerity measures if it falls short of budget targets, a move that papers over disagreements between the lenders but could test the stability of Greece’s fragile government, The Wall Street Journal reported. European Union institutions and the International Monetary Fund are set to resume talks in Athens on Tuesday and Wednesday after reaching a deal among themselves in Washington at the weekend.

Mozambique faces a deepening crisis after the International Monetary Fund suspended funding to the southern African nation following the discovery of more than $1bn in previously undisclosed government debt, the Financial Times reported. The scandal will heap pressure on Maputo, which is dependent on donors to finance about a quarter of its budget. Mozambique is battling to narrow a wide fiscal deficit, its currency has plummeted and its foreign reserves are dwindling.

Argentina returned to the international bond markets for the first time in 15 years on Monday as it winds down a long-running battle with investors following its 2001 default, the Irish Times reported. Argentina announced a $10 billion-$15 billion bond, whose proceeds will help pay off the holders of its defaulted bonds who had rejected the payment terms of the country’s debt restructuring. New President Mauricio Macri wasted little time after taking office in December in agreeing terms with most of the holdouts, led by US hedge funds Elliott Management and Aurelius Capital.

Russian coal and steel producer Mechel said on Monday it had agreed a debt restructuring deal with the country's biggest bank Sberbank totalling 30 billion roubles ($446 million) and $427 million, Reuters reported. The mining company, controlled by businessman Igor Zyuzin, borrowed heavily before Russia's economic crisis and has struggled to keep up repayments as demand for its products weakened alongside tumbling coal and steel prices.

Greece’s creditors are considering seeking extra austerity measures that would be triggered if Athens misses its fiscal targets, in a bid to bridge differences between Europe and the International Monetary Fund and break a deadlock threatening to unravel the Greek bailout, The Wall Street Journal reported. Under the proposal, say officials involved in the discussions, Greece would have to sign up to so-called contingency measures of up to about €3 billion, on top of the package of about €5 billion in tax increases and spending cuts Greece and its lenders are already negotiating.

For Chinese banks, the decision to lend to companies like Bohai Steel was for years a no-brainer. Lenders took heart from its state backing, which appeared as solid as the millions of tons of steel pipes that rolled off its production lines each year, the International New York Times DealBook blog reported. That ironclad image is now tarnished. Plunging demand and a worsening glut in production capacity have left Bohai Steel struggling to repay as much as $30 billion in debt. Worried creditors — more than 100 of them — are locked in negotiations with the company and local officials.

China etched in details of plans to help workers laid off from the bloated coal and steel industries, saying assistance would include career counseling, early retirement and help in starting businesses, among other measures, The Wall Street Journal reported. New guidelines released by seven Chinese ministries over the weekend build on previously announced commitments to restructure the coal and steel industries, whose excess production is dragging on the economy, and to take care of an estimated 1.8 million workers who will be displaced.

The International Monetary Fund has successfully concluded negotiations for a $2.8bn bailout for Tunisia, the latest in a series of loans to countries in north Africa and the Middle East to help them cope with the stresses posed by a growing influx of refugees and a collapse in oil prices. Tunisia, which was home to the uprising that set off the 2011 Arab Spring, has been struggling to cope with the political and economic transition since the overthrow of Zein al-Abidine Ben Ali, the country’s former dictator.

The number of British manufacturers who are struggling financially has risen by 20%, with food and drinks companies hardest hit – despite the weak pound making UK exports cheaper abroad, The Guardian reported. Data from the insolvency firm Begbies Traynor showed that 21,061 UK manufacturers, many of which rely heavily on exporting, ended the first quarter of this year in a state of significant financial distress – 20% more than a year ago.