Russia may lose its investment grade for the first time in a decade after Standard & Poor’s signaled it’s considering cutting the country’s rating.
Ann Bishop, the outgoing executive director for the Employee Retirement System of Texas, said the plan’s unfunded balance is about $7.5 billion. That number is projected to increase to nearly $10 billion by 2018 if the Texas Legislature, which convenes in January, doesn’t immediately pursue reforms, the Austin American-Statesman reported.
France’s national debt rose to the equivalent of 95.2 percent of gross domestic product by the end of the third quarter, from 95.1 percent at the end of the previous quarter, official data showed on Tuesday.
“In these conditions, neither the state nor enterprises nor banks can refinance their debts. This is because both portfolio and direct investors, and foreign banks, including Asian lenders, are not ready to take risks and provide any long-term financing, irrespective of whether Russian enterprises and banks are hit by the sanctions or not,” Zadornov said.
Plunging oil prices will prompt energy companies to cut investments in new projects by 25 percent or more in 2015, analysts said over the past week, as firms try to stay cash-flow positive and keep debt in check.
Greece stood a step away from early elections that could repudiate its international bailout and rekindle a eurozone crisis after lawmakers failed today to elect a president.
Russia is rushing to avoid a run on banks, rocked by sanctions over Ukraine and an economy on the verge of recession, after containing last week’s record ruble decline. Lawmakers agreed to a 1 trillion-ruble ($18 billion) boost to the agency’s funds, an 11-fold increase, and doubled the level of insured deposits on Dec. 19, following central bank measures to ease demand on banks as foreign debt payments loom.
Brazil’s central bank reduced its 2014 growth forecast to 0.2% from 0.7% in a report released Tuesday.
While the IMF tends to demand reforms aimed at stabilizing a country’s economy in exchange for loans, analysts speculate that China’s terms are more focused on securing its interests in the resource-rich countries.
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