…vent – their debts worth more than the value of everything they own – and will be facing bankruptcy. Foreign lenders and business partners of Greek companies will be looking at big losses. 4. Sovereign debt crisis Sovereign debt is the money a government borrows from its own citizens or from investors around the world. But if Greece leaves the eurozone, setting a precedent that such a…
Eurozone finance ministers and the IMF have agreed on a deal on emergency bailout for debt-laden Greece. They have agreed to cut debts by 40 billion euros ($51 billion) and have paved the way for releasing the next tranche of bailout loans – some 44 billion euros. Greek Prime Minister Antonis Samaras welcomed the deal, saying “a new day begins for all Greeks”, but it was condemn…
…tiations. New rules on prudent banking are seen as vital to bolster the euro, as bank failures triggered the financial crash. Under the deal expected to take effect in March 2014, banks with more than 30 billion euros ($39 billion) in assets will be placed under ECB oversight. The ECB would also be able to intervene with smaller lenders and borrowers at the first sign of trouble. Speaking after th…
…d: “Everyone should weigh their words very carefully.” Earlier, Christian Social Union leader Alexander Dobrindt, an ally of Angela Merkel, said he expected Greece to leave the eurozone in 2013. He said he saw “no way round” a Greek exit. He also called the European Central Bank (ECB) chief Mario Draghi “Europe’s currency forger”. His party, a junior coali…
es not take into account any future plans by the lenders themselves to raise their own capital. The country’s economy minister Fernando Jimenez Latorre indicated that it may need to borrow about 40 billion from the eurozone rescue funds. Bankia was found to be the bank most in need of additional capital, requiring 24.7 billion euros. It was followed by Catalunya Bank (10.8 billion euros), No…
collected. Otherwise, there would be a likelihood of massive withdrawals to avoid it, our correspondent adds. There has also been speculation that Russia could help finance the bailout by extending a 2.5 billion-euro loan already made to Cyprus. Cypriot Finance Minister Michael Sarris will travel to Moscow for meetings on Monday, reports say. There are a lot of Russian deposits in the Cypriot ban…
s rate rose to 26.2% from 25.8% the previous month, and in Italy it rose to 11.1% from 10.8%. In contrast, unemployment in Germany held steady at 5.4% of the labor force, while in Austria it fell from 4.4% to just 4.3%. Data earlier this month showed that the eurozone had returned to a shallow recession in the three months to September, shrinking 0.1% during the quarter, following a 0.2% contracti…
…and send turmoil throughout the global economy. Tough austerity measures were attached to the two international bailouts awarded to Greece, an initial package worth 110 billion Euros ($138 billion) in 2010, then a follow-up last year worth 130 billion Euros. Many Greeks are unhappy with the conditions attached to deals which have been keeping Greece from bankruptcy and all but one of the parties s…
…deal to shore up the euro. The Spanish prime minister called for Thursday’s European Union summit to “dispel doubts” about the euro. The Italian and Spanish indexes both closed about 4% down. The fall on Spain’s Ibex index was exacerbated by a Reuters report that the Moody’s credit rating agency is planning to downgrade Spain’s banks. Earlier, Spain formally req…
ere put in place when banks reopened on March 28 after they were closed until a bailout agreement. A new decree, which will remain in place for seven days, lifts all restrictions on transactions under 300,000 euros, a move aimed at helping cash-starved domestic businesses which had difficulty paying suppliers and employees. Also, the daily limit on transactions outside of Cyprus not requiring prio…
se overall lending capacity by 60 billion Euros • Targeting 60 billion Euros of unused structural funds to help small enterprises and create youth employment • A pilot launch of EU project bonds worth 4.5 billion Euros for infrastructure improvements, focusing on energy, transport and broadband. In Brussels, both Italy and Spain were pushing the eurozone bloc to agree steps to reduce the interest…
ion”. UK Chancellor George Osborne said the aim of protecting the interests of EU states not signing up to the banking union “has been achieved”. Under the deal, banks with more than 30 billion euros ($39 billion) in assets will be placed under the oversight of the European Central Bank. The ECB would also be able to intervene with smaller lenders and borrowers at the first sign…
A closely-watched survey suggests that the eurozone’s economy is set to contract by 0.5%-0.6% in the July to September quarter, tipping it into its second recession in three years. The Markit Flash Eurozone PMI Composite Output Index, which measures new orders in manufacturing and services, was 46.6 in August, compared with 46.5 in July. A score below 50 indicates contraction. Output declin…
World leaders meeting at a G20 summit in Mexico have urged Europe to take all necessary measures to overcome the eurozone debt crisis. They voiced unease over what one top official described as “the single biggest risk for the world economy”. But European Commission President Jose Manuel Barroso said “the challenges are not only European, they are global”. Sunday’s v…
…has denied reports that an announcement on a European rescue plan for its banks is close. The International Monetary Fund (IMF) is estimating that Spain’s banks need a cash injection of at least 40 billion Euros ($50 billion). The IMF said on Friday that a “stress test” showed Spain’s financial sector was well managed but “vulnerable”. The eurozone finance minis…
out, which has helped calm markets. On Tuesday, the interest that Spain pays to borrow for three months fell to 0.946%, from 2.434% at a similar auction in July. Six-month debt dropped to 2.026%, from 3.691%, at the sale. But the rate of interest Spain pays on longer-term borrowing has remained high because of investor concerns, making it difficult for the nation to service its debts. Last month,…
as warning that not too many quick decisions should be expected from the finance ministers’ meeting, which is supposed to add detail to the agreements from the eurozone leaders’ summit on 29 June. The communiqué from that summit said it expected the finance ministers “to implement these decisions by 9 July”, although many analysts say that now looks optimistic. Leaders hav…
…Greek citizens. “The eurozone has shown considerable solidarity having already disbursed, together with the IMF (International Monetary Fund) nearly 150 billion Euros in support of Greece since 2010.” European Council President Herman Van Rompuy has announced that EU leaders want Greece to remain in the eurozone but to "respect its commitments" He said the EU would take act…
insured deposits in the largest bank, Bank of Cyprus, should raise a total of 10.6 billion euros. Cyprus is also set to sell off a large portion of its gold reserves, in a move that will raise another 400 million euros. “The sheer size of the increase has underlined the extent of the enormous challenges facing Cyprus itself,” said Jonathan Loynes of Capital Economics in an analyst note…
…inance Minister Anton Siluanov, speaking after talks with his Michael Sarris, said Russian investors were not interested in Cyprus’ offshore gas reserves. Russia gave Cyprus an emergency loan of 2.5 billion euros in 2011. Anton Siluanov said that no new Russian loan had been on the table with Michael Sarris because of limits imposed by the EU on Cypriot borrowing. However, Russian PM Dmitry…
A new survey suggests that business activity in the eurozone contracted at its fastest pace in almost three-and-a-half years in October. The Markit Flash Eurozone Purchasing Managers’ (PMI) Composite Output Index fell to 45.8, from 46.1 in September. A figure below 50 indicates contraction. The reading is consistent with a quarterly rate of economic contraction in the bloc of 0.5%, Markit s…
…limited room for manoeuvre and are expecting details on how the new government intends to make another 11.7 billion Euros ($14.8 billion) of cuts by 2014. New Democracy won 129 seats in Greece’s 300-seat parliament on Sunday, followed by the radical anti-bailout party, Syriza, with 71, Pasok with 33 and the Democratic Left with 17. New Democracy won 129 seats in Greece's 300-seat parlia…
nd invading conquerors. Mansa Musa I of Mali has been named the richest person in history 2. ROTHSCHILD FAMILY – $350 BILLION (BORN 1744) 3. JOHN D. ROCKEFELLER – $340 BILLION (BORN 1839) 4. ANDREW CARNEGIE – $310 BILLION (BORN 1835) 5. TSAR NICHOLAS II OF RUSSIA – $300 BILLION (BORN 1868) 6. MIR OSMAN ALI KHAN – $236 BILLION (BORN 1886) 7. WILLIAM THE CONQUEROR R…
…sident Karolos Papoulias is wrong.” The caretaker government was sworn in this week after elections failed to produce a viable coalition to run the country. New elections have been scheduled for 17 June. The vote could result in a government that would refuse to implement the austerity measures that Greece’s last remaining international creditors are insisting on. Speculation is increa…
Deutsche Bank reports a sharp fall in profits, in part due to weaker performance in investment banking during the eurozone debt crisis. Net income for the first three months of the year was 1.4 billion Euros ($1.9 billion), down 35% on the 2.1 billion Euros the bank made a year earlier. Revenue was down 12% at 9.2 billion Euros. The bank said although the business environment was “more stab…
Oklahoma tornado kills at least 51 people as two entire schools flattened in MooreAt least 51 people have been killed after a huge tornado tore through Oklahoma City suburbs, with the death toll likely to rise. Worst hit was Moore, south of Oklahoma City,…
Eurovision 2013: Azerbaijan inquiry into "nul points" for RussiaAzerbaijan's President Ilham Aliyev has ordered an inquiry into why his country gave Russia "nul points" at Eurovision Song Contest 2013. Voters and the official Azerbaijan…
Oscar Pistorius will not compete in 2013South African athlete Oscar Pistorius will not compete again this year as he awaits trial for murder of his girlfriend Reeva Steenkamp. Paralympic gold medallist Oscar…
Iraq: At least 54 people killed in series of car bomb attacks in Baghdad, Basra and SamarraAt least 54 people have been killed and many others injured in a series of car bomb attacks in Iraqi cities Baghdad, Basra and Samarra, officials say. Baghdad was worst hit,…
Alberto Fujimori: Peru jailed ex-president's health worseningA senior doctor treating Peru's ex-President Alberto Fujimori has said that the jailed former leader has severe and worsening health problems. Dr. Alejandro Aguinaga said…
China urges North Korea to release Yu Xuejun's fishing boat captured for $100,000 ransomChina has called on North Korea to secure the release of a fishing boat and its crew seized earlier this month. Owner Yu Xuejun said the vessel had been in Chinese waters…
Oklahoma tornado kills at least 51 people as two entire schools flattened in Moore
Ray Manzarek dead: The Doors co-founder dies aged 74 after long battle with cancer
Christine White dies in a nursing home in Washington at the age of 86
Brazilian husband caught cheating wife as lover escapes from window
Travis Alexander case: Jodi Arias’ attorneys file motion for mistrial
Laura Fernee claims she is too pretty to work
Full spring cleaning burns more calories than running a marathon
Face Trainer: Training balaclava claims to tone up saggy faces
Macaulay Culkin at risk of lung cancer
Eurovision 2013: Azerbaijan inquiry into “nul points” for Russia
Oscar Pistorius will not compete in 2013
Kate Middleton has a Marilyn Monroe dress blow up moment at William van Cutsem wedding
Iraq: At least 54 people killed in series of car bomb attacks in Baghdad, Basra and Samarra
Richard DeCoatsworth: Philadelphia police recommended bringing charges of witness intimidation against former officer
How Duck Dynasty couples met: Jep and Jessica Robertson
How Duck Dynasty couples met: Jase and Missy Robertson
How Duck Dynasty couples met: Willie and Korie Robertson
How Duck Dynasty couples met: Si Robertson and Christine
How Duck Dynasty couples met: Phil Robertson and Miss Kay
2013 Billboard Music Awards: Taylor Swift picks up 8 statues including Top Female Artist and Top Billboard 200 Artist
Selena Gomez gives Justin Bieber a tender kiss on cheek backstage at 2013 Billboard Music Awards
2013 Billboard Music Awards winners. Full list.
Alberto Fujimori: Peru jailed ex-president’s health worsening
China urges North Korea to release Yu Xuejun’s fishing boat captured for $100,000 ransom
Oklahoma tornado kills one person and injures dozens
Kim Kardashian cuts a striking figure in clingy long-sleeved black dress as she dines with Jonathan Cheban and her mother
Syrian troops seize strategic rebel stronghold in Qusair
Keanu Reeves weight gain: Actor almost unrecognizable while boating in Cannes
Angelina Jolie to play her mother Marcheline Bertrand in biopic
Anna Wintour bans Kris Jenner from Met Gala 2013