Headlines

Eurozone-bound Latvia is scrambling to defend the reputation of its banking sector amid allegations it is becoming an easy access tax haven, and even a money laundering hub, France 24 reported on an Agence France-Presse story. Prime Minister Valdis Dombrovskis has flatly denied that the ex-Soviet Baltic state has the makings of an offshore paradise along the lines of troubled Cyprus, with its hefty Russian deposits.

Metals recycler CMA Corporation has gone into voluntary administration, TheBull.com.au reported. CMA operates more than 17 recycling facilities across Australia, New Zealand and Asia and has about 190 staff. The directors of CMA have appointed Phil Carter, Marcus Ayres and Nicholas Martin of PPB Advisory as voluntary administrators. "PPB Advisory will undertake an urgent review of CMA's operations," Mr Carter said in a statement on Friday. Until the completion of the review, CMA would continue to operate as usual. A meeting of CMA creditors will be held on August 14.

The number of corporate insolvencies increased by 20% in Scotland in the second quarter, in a sign that conditions remain tough for many businesses, The Herald Scotland reported. However, the number of firms going into some form of insolvency proceeding fell by 58% compared to the same quarter last year. Figures compiled by the official Insolvency Service show there were 197 corporate insolvency proceedings in Scotland in the three months to June, up from 164 in the first quarter.

France's stagnant economy has thwarted most of President François Hollande's economic plans, leaving him reliant on state-sponsored jobs to deliver his key remaining objective: curbing rising unemployment by the end of the year, The Wall Street Journal reported. A primary vehicle for government efforts to buoy the job market is the financing of up to 75% of the cost of thousands of jobs for young, low-skilled workers. Over 40,000 youths have been channeled into such jobs so far this year, and the government predicts that number to rise to 100,000 by the end of December.

Britain could soon start selling its stake in Lloyds Banking Group after the country's largest retail bank accelerated a turnaround and flagged a return to payouts for shareholders, Reuters reported. Prime Minister David Cameron is keen to show that Britain's part-nationalised lenders are on the mend, and a profitable sale of part of the state's 39 percent stake in Lloyds would allow him to claim at least partial success. Royal Bank of Scotland, the other bank Britain bailed out with billions of pounds of taxpayers' money during the 2008 financial crisis, is still struggling to recover.

Takeshi Fujimaki, a former adviser to billionaire investor George Soros who won a seat in Japan’s upper house of parliament last month, said a delay in increasing the sales tax and reduction of Federal Reserve stimulus could cause the nation’s government bond “bubble” to burst, Bloomberg reported. Japan’s public debt, the highest ratio globally, may balloon to 245 percent of gross domestic product this year, according to the International Monetary Fund.

A family-owned retail fashion business in rural New South Wales founded in 1936 has collapsed, with administrators saying tough trading conditions and a poorly-timed expansion are to blame, SmartCompay.com.au reported. Brenstew, which currently trades in five retail outlets located in Dubbo, Tamworth, and Armidale under the brands Blowes Menswear, The Wardrobe and URXs, had administrators appointed last week. The company turns over more than $6 million annually.

Tokyo Electric Power Co. is having difficulty sticking to its 10-year restructuring plan as its nuclear reactors remain idle, a key member of a government-backed fund providing financial assistance to Tepco said Thursday, The Japan Times reported. “Because the restarting of the Kashiwazaki-Kariwa plant is falling further behind schedule, it is a fact that differences between the business plan (and the current situation) are widening,” Yoshiharu Kawabata told reporters, referring to the complex in Niigata Prefecture, the biggest of Tepco’s three nuclear plants.

Rolling stock repair and refurbishment company Railcare was placed in administration on July 31, with restructuring partners Kim Rayment, Ian Gould and Bryan Jackson from BDO appointed joint administrators, the Railway Gazette reported.

Brazil’s representative to the International Monetary Fund’s executive board abstained from approving the fund’s new €1.8bn contribution to Greece this week and issued a stinging criticism, arguing that Athens might be unable to repay its rescue loans, the Financial Times reported.