Default rate for retail sector is expected to spike to 9% in 2017 from 1% over the last 12 months, says Fitch
Residents of the energy-rich region had long enjoyed a tax-free and heavily subsidised existence but the collapse in crude prices since 2014 sparked cutbacks and a search for new revenue.
About that still-evolving budget agreement, which includes an income tax increase, let us say this: We can do the math. As painful a concession as it is an obvious one, there is no question that Illinois needs more revenue, so blot-out-the-sun large are its shortfalls due to previous governing incompetence – a projected $5.3 billion budget deficit by fiscal year’s end, $11 billion in unpaid bills, $130 billion in pension liability. Cuts in that amount would be staggering, crippling not only essential investments in the state’s future – in schools, infrastructure – but falling disproportionately and almost unforgivably on the state’s most vulnerable.
The Kuwaiti government on Monday approved the 2017/2018 budget with a projected huge deficit for the third year running due to the sharp fall in oil prices. Finance Minister Anas Al Saleh said the fiscal year’s budget which begins on April 1 is projecting a shortfall of 6.6 billion dinars (Dh79.34 billion; $21.6 billion).
Greece needs a new tranche of financial aid under its 86 billion euro bailout by the third quarter of the year or it faces the risk of defaulting on its debts.
Primary dealers have rescued two of the last four sovereign-debt auctions, as Prime Minister Narendra Modi’s administration is expected to announce an unprecedented 6.25 trillion rupees ($92 billion) in gross market borrowings to fund the fiscal deficit, a survey conducted by Bloomberg shows.
Japan’s primary deficit in fiscal 2020 is now expected to total 8.3 trillion yen ($72.2 billion), up from 5.5 trillion yen projected in July. And its ratio to nominal gross domestic product is projected at 1.4 percent, up from 1.0 percent, according to the Cabinet Office.
The Bank of Korea (BOK) has left its key rate unchanged at an all-time low of 1.25 percent since June when it made a surprise rate cut to bolster Asia’s fourth-biggest economy. “We plan to maintain the monetary easing policy to support the recovery of economic growth,” the BOK said in a report submitted to the National Assembly earlier in the day.
France’s National Front will combine the euro exit at the heart of its economic platform with a cocktail of unorthodox policies including money printing, currency intervention and import taxes, a top party official told Reuters.
Outstanding general debt rose from 274 trillion won in 2007 to 413 trillion in 2012 under the Lee administration.
The amount increased by 168 trillion won over the past four years to 581 trillion won at the end of 2016.
Andrea Enria, chairman of the European Banking Authority, said in a speech on Monday that the scale of the region’s bad debt problem had become “urgent and actionable”, with lenders burdened by more than €1tn of toxic loans.
Italy’s 14 biggest banks held 284.4 billion euros worth of so called non-performing exposures at the end of September, just 1.6 billion euros less than three months earlier, even as provisions on those loans rose, figures from the European Central Bank showed.
In a Eurobarometer survey published in December, 47 percent of Italians considered the euro a ‘bad thing’ for their country, against 41 percent in favour.
However, other recent surveys in Italian newspapers have shown a majority of Italians wanting to keep the single currency.
Net debt probably reached 46.4 percent of gross domestic product in January, up from 45.9 percent in December. Gross debt is forecast to have risen to 70.2 percent of GDP, up from 69.5 percent at the end of 2016, Rocha said.
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