Headlines

Prime Minister Wen Jiabao said Thursday that China would consider working with the International Monetary Fund to help shore up Europe’s finances. But he left unclear whether China was willing to drop conditions that so far have made its proposed help unappealing to European nations, the International Herald Tribune reported. While Chinese leaders have pledged not to link political demands to financial investments, they have sought concessions, such as getting the European Union to relax trade strictures against low-cost Chinese goods. Mr.

Central bankers and public interest groups have lined up to demand tougher rules for banks at the European parliament in Strasbourg, as the battle over how to make financial institutions safer without stifling Europe’s economy intensifies, the Financial Times reported. On Thursday, the public interest group, Finance Watch, called on the parliament to tighten the planned European Union directive on bank capital, even as bank executives and some politicians warned of a potential credit crunch.

Spain's jobless claims shot up 4% in January from December to 4.59 million, a sign that the euro zone's fourth-largest economy is still shedding jobs at a record rate, The Wall Street Journal reported. All sectors posted more claims but the rise was sharpest for services at 5.1%. In construction, weighed down by a four-year property slump, the number of residents registered as job seekers rose 2.1%. Compared with the same period a year ago, overall claims rose 8%.

Hungary's government Thursday appointed a controller to monitor finances at troubled national airline Malev after the state-owned company went into bankruptcy protection at the beginning of the week, Dow Jones DBR Small Cap reported. The airline has amassed a debt of HUF60 billion ($271.7 million), and has to repay the government HUF100 billion of state aid after it was found in breach of European Union rules.

British bank Lloyds has appointed a receiver to three hotels, including the Burlington in Dublin, over debts of more than €200 million owed by property developer Bernard McNamara, the Irish Times reported. Paul McCann of Grant Thornton has taken control of the hotels, including the five-star Parknasilla in Co Kerry and the Cork International Airport Hotel, as well as the former Ormond Hotel on the north quays in Dublin. The Ormond closed in 2006 shortly after Mr McNamara purchased the property. He tried unsuccessfully to sell it in 2009.

Belgium's economy fell back into recession at the end of 2011, reversing the strong growth it had seen in the first half of the year as the country became the latest to fall victim to the euro zone's twin fiscal and banking crises, The Wall Street Journal reported. Preliminary data released by the central bank on Wednesday showed the economy contracted on a quarterly basis for the second straight quarter in the final three months of 2011.

A sharp rise in unsecured loans to households is feared to aggravate the financial status of savings banks that are beset by non-performing loans extended for construction project financing (PF), The Korea Times reported. According to preliminary data from the Financial Supervisory Service (FSS), such loans extended by the secondary financial institutes last year exceeded 10 trillion won ($8.9 billion) for the first time. In September 2009, the amount stood at about 7 trillion won, signifying a 3 trillion won jump in less than two years.

The possible involvement of the European Central Bank in Greece's second bailout package continues to be under discussion among senior euro-zone and International Monetary Fund officials, who see a need for more resources to provide Athens with sufficient debt relief, The Wall Street Journal reported. The ECB's role is being actively discussed this week, said people with direct knowledge of the matter.

All is not lost for small, struggling companies around Milan. The local chamber of commerce’s “Fondo Sbloccacrediti Milano” – literally, “Milan’s fund to Free up Credit” – is a sign of the gloomy times across parts of Italy’s business community, the Financial Times reported. Set up by UniCredit, the country’s largest bank, and the local business lobby, the credit line offers a last ditch chance for small viable businesses with nowhere else to turn. With just €15m available, however, the fund may quickly prove inadequate.

The leader of the rightwing Laos party, junior partner in the Greek coalition government, has appealed to the European Union to ease the terms of the country’s second €130bn bail-out, or risk triggering a “social explosion”, the Financial Times reported. The passionate plea from George Karatzaferis came as Greek officials are scrambling to meet a deadline on Friday to restructure €200bn of debt controlled by private bondholders, an essential condition for the next rescue plan.