By the Blouin News Business staff

Posts Tagged: Government debt

China’s banks patriotically bail out local governments

by in Asia-Pacific.
A fan of 100 yuan notes
Photo Credit: AFP/Getty Images/Frederic J. Brown

Four trillion yuan ($682 billion) of bank loans made to China’s three top tiers of local government – provinces, municipalities and counties – fell due for repayment at the end of last year. Three quarters of it couldn’t be repaid, the Financial Times estimated last week. That is approaching half a trillion dollars worth of debt. 

Read more »

Egypt’s currency takes a pounding

by in Middle East.
Protesters in Cairo's landmark Tahrir Square on November 18, 2011
Protestors in Cairo. AFP/Getty Images/Khaled Desouki

A first read on Egypt’s introduction foreign-currency auctions at the end of last week is that the government is trying to manage an orderly devaluation of the Egyptian pound through a two-tier exchange rate. The currency’s fall to a record low of 6.30 to the U.S. dollar on Sunday suggests a measure of success, though it is success only in the sense of achieving the…

Read more »

Euro zone government bonds ring in the New Year with CACs

by in Europe.
New Year Fireworks, Berlin
Fireworks explode on New Year’s Eve on January 1, 2012 in Berlin, Germany. Getty Images/Andreas Rentz

From the New Year, all newly issued euro zone sovereign debt will include a legal provision that can force investors to accept losses in a crisis. Collective Action Clauses (CACs) were originally intended to give legal clout to investors from the developed world who needed to push through restructuring of the bonds of developing counties’…

Read more »