The Nobel laureate Robert Mundell believes that the International Monetary Fund (IMF) should be lender of last resort for European countries discussed how to help Greece to overcome the budgetary crisis, reported Bloomberg. “Greece must first seek help from Europe, meanwhile, made budgetary reforms,” he said. “It must contribute to be able to rely on the help of Europeans.” Greece’s problems continue to divide Europe in terms of whether and how to help her. “The IMF should support if Europe as a whole needs it,” said professor Columbian University. The euro as it is still safe. “Europe will be better if it falls to 1,30-1,25 dollars,” he said. “This will make it easier for Greece and other European countries to solve its budgetary problems.” The financial crisis in Greece put the euro under pressure as investors drive to seek asylum in the U.S. dollar and the yen, which are regarded as safe assets. The world of the financial analyzer are coming in the time of many speculations with the bankrupcy of Iceland and the coming financial problems of Greece.
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The U.S. regulators on Friday closed the first bank this year – Horizon Bank in Bellingham, Washington, putting the start of an expected peak of bankruptcies of small banks in the country this year, Reuters reported. By Federal deposit insurance corporation in the United States (FDIC) said that Horizon Bank had total assets of approximately 1.3 billion and total deposits of 1,1 billion dollars to 30 September. Closure is expected to cost the bank insurance fund for deposits FDIC 539,1 million dollars. 18 of these Horizon Bank branches will reopen from Saturday as branches of Washington Federal Savings and Loan Association. Small local banks in the U.S. are faced with constant pressure over the deteriorating condition of the loans, many of which are related to unsuccessful projects for commercial properties. Last year, regulators in the country closed 140 banks, the largest number since 1992 in 2008 have closed 25 banks and only three in 2007. FDIC Chairman Sheila on Bear said earlier that bankruptcies will reach a peak in 2010 and then begin to stabilize. The forecast of the Federal Corporation for the period from 2009 to 2013 the cost of the closed banks to reach a total of 100 billion dollars. Bankruptcy lossed fund deposit insurance agency, but it has recently collected about 45 billion dollars by forcing banks to recharge their insurance premiums to it for three years ahead. Regulator to increase its budget this year by 56%.
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Especially those in difficulties largest Japanese airline Japan Airlines – JAL may cut 15 600 jobs over three years, or 30 percent of its staff. This is part of a restructuring program after the bankruptcy, said the BTA, referring to AFP, quoting a Japanese media. Redundancies, accompanied by a reduction of wages and social benefits will be carried out simultaneously with the sale of several airline subsidiary, including hotels Jalal Kiodo notes news agency, without citing its sources. Japan Airlines is expected to reduce its staff by about 36 000 people by 2012-2013 financial year (ending in March). Quasi-official organization responsible for remediation activities for companies in difficulty (ETIC), which marked Japan Airlines autumn trust, may decide to implement a plan to rescue the airline by 19 January when she is expected to declare bankruptcy.
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The banks in Romania have started to sell hundreds of homes and land, confiscated by the owners, values, starting from 5 thousand and reaching hundreds of thousands, even millions of euros. The bad mortgage loans, which get to bankrupcy large number of banks in the new European Union member, took the financial institutions to make large selling of the real estates. Thus, banks are seeking to recover outstanding mortgage loans from its clients, most of the auctions for the properties are held in the form of closed auctions without announcing to the public, says ZF. Some of the most attractive offers at prices 20 to 40 percent lower than the market are not advertised on the sites of banks, with the exception of Raiffeisen Bank and Bank Leumi. In some cases, banks are required to conduct the auction several times to reach a sales price that would enable them to repay their mortgage loans. The interest level for the mortgage loans dropped twice in the last months, but even this actiona was unable to unblock the proprty market. Unlike the U.S. market, where banks publish auctions real estate website specialized in Romanian financial institutions are not obliged to publish their auction sites and the media, says the publication. On their site Raiffeisen Bank Romania has more than 10 ads for upcoming auctions for the sale of properties in different parts of the country. One is for sale apartment in northern Bucharest area of 59 square meters with a starting price of 176 thousand lei. (€ 41 500).
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European companies will remain under pressure to restructure started despite economic recovery, experts warn the restructuring, said on Sunday. Survey of experts conducted by the company Alix Partners, shows that over 50 percent of them expect to double the work of restructuring of companies next year. This year there was a wave of bankruptcies and credit rolled over falling demand. Among the affected were the large chain retail Arcandor the German and British Woolworths, and many companies in the real estate sector and entrepreneurs. According to the survey among those at risk of bankruptcy companies are those companies owned by equity, as they have many loans from the time the credit boom. Earlier this month the credit rating agency Moody’s said that the level of arrears of European companies that have “junk” rating (awarded to high-risk securities) increased to 9% – very sharp increase over last year although lower than initial expectations. By Moody’s predicts that this level will peak in the fourth quarter of this year.
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