The city is required to raise enough money through property taxes to make the police and fire pension contributions, which increased dramatically this year, to start closing a combined $12.2 billion shortfall in the two pension funds. If the city doesn’t expect to raise enough from property taxes, it must deposit the anticipated shortfall by March 1.
Moody’s Investors Service warned that the city could default on debt as early as next month without state action, and local officials have floated the possibility of filing for bankruptcy.
The state’s unrestricted revenue forecast for the current fiscal year, which ends June 30, dropped to $1.3 billion from an earlier projection of $1.6 billion, according to a new preliminary forecast by the revenue department released Monday morning.
The deficit is expected to be in the range of C$30 billion ($22.9 billion), up from C$2.3 billion in the fiscal year that ends March 31. That amount of red ink will test three decades of fiscal restraint in Canada and underscore the contrast between Trudeau and his predecessors
Finance Minister Nelson Barbosa said at a news conference in Brasilia the plan could cost taxpayers about 37 billion reais ($10.2 billion) within three years, because it would stretch out debt maturities for some liabilities by as much as 20 years and concede grace period on some of them.
The 300 largest global oil and gas companies have also seen $2.3tn sliced from their stock market value over the same period, a 39 per cent slide since oil began its decline, an analysis by the Financial Times has found.
China is studying a Tobin tax as a new policy tool to curb capital outflows, an official at the country’s foreign exchange regulator said on Tuesday.
The U.S. is still feeling the consequences of a housing-market collapse that is widely blamed for triggering the Great Recession. The world’s largest economy stopped contracting in the second quarter of 2009, but house prices continued to fall over the next three years. While property costs since then have risen at a faster annual pace than an aggregate of 23 countries tracked by the Dallas Fed, prices are still 3.8 percent below their peak.
The Bank of Japan’s conditions for companies to qualify for exchange-traded funds it would like to buy sound like they come from a well-meaning government minister, not a monetary authority concerned about overall growth and inflation. Companies could qualify by offering an “improving working environment, providing child-care support, or expanding employee-training programs.”
Japan’s companies may soon get paid to borrow in the commercial paper market as brokers adjust to the Bank of Japan’s negative interest-rate policy. The Japan Securities Depository Center will start an interim system Tuesday that will help settle commercial paper with minus rates. The Tanshi Kyokai, an association of brokers, announced over the weekend that it plans to have the capacity to handle transactions with sub-zero yields from today.
While the central bank is forecast by economists to cut its benchmark to 1.5 percent Thursday, what really matters is how it adjusts an overnight money-market rate policy makers don’t make public. The rate on one-day certificates of deposit, which the authority communicates confidentially to banks, is said to have been lowered 19 basis points to 0.2 percent since the current easing cycle began in August.
The National Bank of Hungary cut its benchmark interest rate to 1.20% from 1.35%. All 12 economists in a poll by The Wall Street Journal expected the central bank to keep rates steady. The benchmark rate was 1.95% at the start of last year and 7.0% in August 2012, before the rate cuts began.
Still, the sheer size of the pot taken from borrower’s wages is “horrifying” said Chris Hicks, an independent researcher who focuses on student debt. “These are people who can’t afford to pay their student loans and they’ve garnished $176 million in three months from them,” said Hicks, who also works as a consultant for progressive organizations. “You have to wonder what conditions people are living in when they’re seeing that much of their wages garnished.”
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