Daily Digest 12/18 - Spain Can’t Endure Budget Cuts, Congress Targets Pensions
Spanish regions can’t endure more spending cuts, Andalusia’s budget chief said, as she defended levying a tax on bank deposits.
Maria Jesus Montero Cuadrado, budget chief of Spain’s most populous region, is resisting central government demands for more cuts through 2015. Undermining health or education is a “red line” for Andalusia, which has a 36 percent jobless rate, she said in an interview in Seville yesterday.
A three-day trial began today before U.S. Bankruptcy Judge Steven Rhodes in Detroit on the city’s request to make the payment as part of a deal to cancel interest-rate swap contracts that have cost it about $4 million a month since July 2009. To pay for the settlement, the city wants Rhodes to let it borrow $350 million.
Authorities here worried a few years ago that the local economy was headed for ruin because there was no more space in this remote city, nestled among towering hills, for industry to grow. The solution? Level the hills.
Asset quality at Indian banks is deteriorating as a surge in funding costs hurts the repayment ability of businesses already bearing the brunt of the slowing economic growth. Stressed assets, which include bad and restructured loans, rose to 10.02 percent of total debt, the highest in a decade, as of June 30, central bank data show.
Wheelock College in Massachusetts is on the other end of the student-debt spectrum. Eighty-two percent of the class of 2012 took out loans. Those who borrowed carried an average debt burden of nearly $49,500, according to school-reported data. Graduates from Anna Maria College, also in Massachusetts, were not far behind, borrowing close to $49,200, on average.
Meanwhile, the budget deal that passed the House last week, and which is scheduled to come before the Senate on Tuesday,would allow spending to rise by $62 billion combined in fiscal years 2014 and 2015, easing across-the-board spending cuts known as sequestration. It includes offsetting revenue and long-term spending cuts, so that the bill overall would reduce the deficit by $23 billion over 10 years.
Japan’s current thinking is that the danger no longer comes from the USSR and the north with the end of the Cold War; now it is China and a nuclear North Korea that preoccupies Tokyo.
Last March China decided to boost its annual defence spend by 10 percent or 86 billion euros. That increase alone is more than double Japan’s 35 billion euro annual defence budget
The total amount of bad loans held by Italian banks continued to rise in October, data published Tuesday by the country's banking association showed, and has been at a 14-year high for three consecutive months.
Gross bad loans grew by 22.9% on the year to 147.3 billion euros ($202.8 billion), ABI said, with bad loans net of impairment rising by 28% to EUR77.4 billion.
While 38 percent of private industry workers received pensions in 1979, just 14 percent did in 2011, the most recent figures from the Employee Benefit Research Institute, which advocates for employee benefit programs.
The ONS said that the change - if implemented already - would add 112 billion pounds to Britain's public sector net debt for the 2012/13 fiscal year, when it already stood at 1.182 trillion pounds or 74 percent of gross domestic product.
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