Dewan Housing Finance Corp Ltd shares rose on Monday following five consecutive sessions of decline, after the Indian home loan provider said it was keen to sell assets and some of its businesses to improve liquidity, Reuters reported. The stock rose as management tried to assuage liquidity concerns on a conference call with investors, media and analysts. The stock was trading 5.9 percent higher at 117.70 rupees at 0745 GMT on Monday.
Difficulties getting access to their collateral in the event of loan default means potential new entrants into the State’s mortgage market are likely to “think twice”, the interim chief executive of the Banking and Payments Federation of Ireland said. Joe Brennan reports that his comments come against a background of increasing political clamour to make it even more difficult to repossess homes, The Irish Times reported.
Italy’s Treasury is not planning to seek EU approval to extend a state guarantee scheme Rome devised to help banks offload bad loans in order to include so-called “unlikely-to-pay” (UTP) loans, a government source said, Reuters reported. Italy introduced the ‘GACS’ scheme to ease bad loan sales. Under the measure, which expires in early March after being renewed twice, banks can buy a guarantee from the state to wrap the least risky tranche in a bad loan securitisation sale.
With fixed exchange rates and some of the world’s worst debt and balance-of-payment ratios, Lebanon’s newly-formed government knows it needs to act fast to avoid sinking into a full-blown economic crisis, Reuters reported. Lebanon’s ability to dodge financial disaster has for years confounded critics, whose warnings of debt defaults, balance of payments crises and a collapse of the pound currency, have all failed to materialise. The hope is that it will stay that way, but as the charts below show the numbers are daunting.
South Africa’s struggling power firm Eskom expects to make a wider 20 billion rand ($1.5 billion) loss in the current financial year and wants steeper tariff hikes than it previously sought, its chief financial officer said on Monday. The chief executive also said the government should consider injecting extra capital into state-owned Eskom to help it cope with what he said were low electricity tariffs, Reuters reported.
German airline Germania said on Tuesday it had filed for insolvency and would terminate flight operations immediately, citing rising fuel prices and a stronger dollar, the International New York Times reported on a Reuters story. There were also delays integrating aircraft into the fleet and a high number of "maintenance events", the company said in a statement. CEO Karsten Balke said it was unable to cover a short-term liquidity need. The company advised customers to contact holiday operators to be rebooked.
India’s Reliance Communications Ltd on Monday moved the National Company Law Appellate Tribunal (NCLAT) to withdraw its appeal in a dispute with Ericsson as it seeks to pursue a debt resolution plan through the country’s bankruptcy court, Reuters reported. Mumbai-based RCom, controlled by Anil Ambani, said on Friday it will seek fast-track resolution of its debt through the National Company Law Tribunal (NCLT), the country’s court that deals with bankruptcy cases. The NCLAT on Monday asked Ericsson to file a response by Feb. 8 and scheduled a hearing for Feb. 12.
A special government-appointed inquiry excoriated Australia's financial sector for misconduct on Monday, referring two dozen cases to regulators for possible legal action but leaving the structure of the country's powerful banks in place, the International New York Times reported on a Reuters story. Regulators will be subjected to a new oversight body and the financial industry's pay will be overhauled to remove conflicts of interest, according to the recommendations of the so-called Royal Commission.
Investor sentiment for the eurozone fell to the lowest level in more than four years as fears mount of a downturn in the single currency area against a backdrop of weaker global growth, the Financial Times reported. The overall index in the eurozone declined to -3.7 in February from -1.5 a month earlier, the lowest since November 2014 and its sixth decline in a row, a measure from Frankfurt-based research house Sentix showed. The Sentix index adds to other reports that signal the single currency area is slowing.
An Indian appeals tribunal has ruled against Tata Steel Ltd’s effort to dismiss rival bids for Bhushan Power and Steel, boosting JSW Steel Ltd’s offer to buy the indebted steel maker, Reuters reported. The National Company Law Appellate Tribunal (NCLAT) said the plea by Tata Steel was “not maintainable” as it was up to the committee of creditors of Bhushan Power and Steel to accept a debt resolution plan that could maximize asset value. The tribunal said it would not interfere with JSW Steel’s bid because more than 97 percent of the indebted firm’s creditors had approved the plan.