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Posts Tagged ‘crisis’

Prime Minister Wen Jiabao yesterday warned that the world must remain vigilant against the risk back to the brink of economic collapse along with the worsening debt crisis in Europe. He also asked the government did not draw premature stimulus from the economy.

“A Few people assume the global economy had recovered and they tried to pull the stimulus of economic policy. I think it is too early,” Wen said when meeting with Japanese Prime Minister Yukio Hatoyama in Tokyo, quoted from Reuters.

During his visit, Wen also said that economic recovery is still vulnerable to various risks still threaten. He asked for international cooperation to solve crimes crisis. According to him, today’s world requires preparation to face a difficult future. The reason, he said, the debt crisis in beberepa European countries could have an impact on the recovery path that will bring changes in the European market. “In this case China ensure the persistence of a sense of crisis,” Wen said

Bank Regulators of United States (U.S.) returned confiscated five troubled banks on Friday local time, including three banks owned by Bank of Florida Corp.. This figure adds in U.S. banks closed so far this year to 78. Federal Deposit Insurance Corp. Bank of Florida in the Southeast, Bank of Florida Southwest, and Bank of Florida, Tampa Bay has combined assets of the fund amounted to USD1, 48 billion in assets and 13 branches.

Quoted by the AFP on Sunday (05/30/2010), EverBank of Jacksonville, Florida, has agreed to acquire the banking operations, including joint deposits amounting to USD1, 32 billion. The regulators also closed in Las Vegas-based Sun West Bank. The bank has assets of USD360, 7 million and deposits amounting to USD353, 9 as well. All deposits will be taken over by National Bank in the city of Los Angeles. Read the rest of this entry »

Once again, Fitch Ratings warned, if it allows lower the credit rating of Greece to the status of “junk” (garbage). Despite the recently approved bailout of the European Union and the IMF’s 110 billion euros for the debt laden state. While the rescue package to remove the short-term risk of “default” (failed), to restore sustainable public finances will be a “challenge” to the debt will increase to 150 percent of gross domestic product in 2013 before becoming stable, Fitch said.

“The risk of possible decrease in height and are in accordance with Fitch’s negative outlook on the ratings assess the national debt in Greece remains appropriate,” the rating agency said in a statement, as quoted from the AFP on Wednesday (05/19/2010).

Negative or positive prospects to show what direction a country’s credit rating will likely be taken over in a year or two years next year, according to Fitch’s website pages. Just to remind, on April 9, Fitch lowered the long-term credit rating of BBB + to Greece from BBB-, the last reduction before the Greek bond is deemed to be called junk, or speculative grade.

The crisis that plagued the countries in Europe, likely to spread to surrounding countries. One of them is predicted Spain could be the next Greek, due to debt problems. Governments in these countries, very concerned about the economic situation, because the debt burden facing the country is quite heavy.

If comparing with other countries, for a country like Spain, which only a few years ago began to experience improvement, but is now equated with its deficit-ridden states, such as in Greece.

As quoted from Associated Press, Sunday (14.2.2010), the collapse of the real estate sector and the explosion of consumer interest in the fuel, giving a negative impact on the euro currency in Spain. Moreover, the high unemployment rate nearly 20 percent, so the government started thinking about the deficit in 2009 equals 11.4 percent of GDP.

“That’s the way-the way in which governments in Europe, including Spain,” said one analyst, who predicted the crisis in Spain as well other countries such as Portugal, Ireland, and Greece.

Nevertheless, Spanish officials to clarify the news, saying their situation is better in crisis in some cases. Like the national debt as a proportion of GDP by 66 percent this year and peaked at 74 percent in 2012.

“Far below the average EU and Greece under the 113.4 percent for 2009,” he said.
Spain indicated, does not have credibility problems such as Greece, such as fudging debt, and the banking system is relatively healthy compared to countries other to save their banking systems.