Headlines

China Evergrande Group, the giant property developer that defaulted on its U.S. dollar bonds more than a year ago, has struck a crucial deal with a group of bondholders, bringing its prolonged debt negotiations close to the finish line, the Wall Street Journal reported. The Guangzhou-based developer became the highest profile victim of the Chinese government’s deleveraging campaign more than two years ago, which fueled a sharp slowdown in the property sector and ultimately led to dozens of dollar bond defaults.

European Central Bank head Christine Lagarde told EU leaders euro zone banks were resilient because they have strong capital and liquidity positions, but that the ECB could provide liquidity if needed, EU officials said on Friday, Reuters reported. Lagarde was presenting her assessment of economic and financial developments to EU leaders as European banking stocks fell sharply, with Deutsche Bank and UBS knocked by worries that actions by regulators and central banks have not yet contained the worst problems.

Swiss financial regulator FINMA said it was considering whether to take disciplinary action against Credit Suisse managers after Switzerland's second largest bank had to be rescued last week by UBS, Reuters reported. FINMA President Marlene Amstad told Swiss newspaper NZZ am Sonntag it was "still open" whether new proceedings would be started, but the regulator's main focus was on "the transitional phase of integration" and "preserving financial stability".

Some bankers and traders are grappling with how to interact with Credit Suisse across various markets including debt and foreign exchange, with some increasing scrutiny when dealing with the Swiss bank or its products, sources said. On Sunday, UBS offered to pay CHF 3 billion ($3.23 billion) for Credit Suisse, a hastily-agreed merger engineered by Swiss authorities following a scramble to save the bank, Reuters reported.

The Swedish central bank might have underestimated inflationary pressure and will likely have to stick to its forecasts of another interest rate hike in April, Riksbank Governor Erik Thedeen said on Sunday, Reuters reported. The central bank has raised rates to 3% from 0% a year ago and has yet to curb 9.4% inflation, well above the 2% target. It hiked the benchmark rate by 50 basis points in February and has indicated another hike by 25 or 50 basis points in April. "It could be that the inflation process is worse than we thought," Erik Thedeen told SVT television.

The IMF, World Bank and India, current president of the Group of 20 major economies, will convene a new sovereign debt roundtable again on April 3, an IMF official said on Thursday, with an eye to accelerating work on debt relief for countries in need, Reuters reported. The gathering of deputies will be followed by a principals' meeting on the sidelines of the World Bank and International Monetary Fund spring meetings in Washington, the official said, but no firm date has been set.

Fitch Ratings on Friday cut Argentina's foreign currency rating to "C" from "CCC-" citing an "imminent" default after the country ordered public sector bodies to sell or exchange their holdings of some sovereign dollar bonds, Reuters reported. A presidential decree said on Thursday that public sector bodies would have to sell or auction five local law dollar bonds maturing between 2029 and 2041, and to swap six foreign law dollar bonds for peso debt.

Panama's economic recovery has been "very strong," but the outlook remains uncertain as growth is projected to slow to 5% this year, the International Monetary Fund (IMF) said Friday, Reuters reported. Panama faces risks of new external shocks as well as potential disruptions to copper mining after delays reaching a renewed agreement with Minera Panama, the IMF said. Canadian miner First Quantum owns a 90% interest in the Cobre Panama mine through its unit Minera Panama. Panama's inclusion on the Financial Action Task Force grey list also poses risks.

Peru's government expressed qualified interest in tapping the international bond market later this year in a bid to better manage liabilities, Economy Minister Alex Contreras said on Friday, Reuters reported. The government might turn to capital markets during the first semester of this year if opportunities exist, the economy chief said during a news conference. The minister also forecast what he described as a "moderate" economic expansion in March, and then 4% growth in April.

Nigeria’s central bank beefed up the supply of banknotes to lenders to end shortages that have hampered individual and business transactions and crippled the cash-based economy since January, Bloomberg News reported. Most lenders including United Bank for Africa Plc, Zenith Bank Plc and FBN Holdings Plc called in staff on Saturday and Sunday to help customers access cash in banks or via automated teller machines. The disbursement, in compliance with a central bank directive, is being monitored “personally” by Governor Godwin Emefiele, according to spokesman Isa Abdulmumin.