Entries Tagged 'Money' ↓

In Brussels, European Commission President Jose Manuel Barroso, gave assurances that he would discuss on the next EU summit the issue of payment difficulties faced by Ukraine in its relationship with Russian giant Gazprom, reported AFP.

Russia, supported by Italy, asked Brussels to support Kiev to repay debts and pay five billion dollars.

Barroso acknowledged, however, during a telephone call with Russian Prime Minister Vladimir Putin, that it is “difficult, if not impossible”; that EU to assist Ukraine in resolving this dispute which threatens to start a new crisis of gas.

Russian group, warned this week, that will request an advance of 100% for exports to Ukraine if will be recorded disruption of payments.

The European Commission adopted a draft regulation that establishes a single system of supervision for financial institutions at the continental level.

According to the Executive officials of the European Union, the new system aims to integrate and consolidate national control of banks, insurance companies and securities markets so as to avoid the emergence of new crises such as that which we cross at the moment.

“A better supervision of financial markets is essential for reasons both moral and economic. The Commission made these proposals to help restore confidence, to a better protection against crises, to protect future growth and jobs” said Commission President Jose Manuel Barroso.

European official added:” We must to do this now or we will not make it ever. If we cannot reform the financial sector and supervisory system now when we have a real crisis, then when we will do this?”

Bank of America, the largest bank in the U.S., plans to repay 45 billion dollars to the U.S. Treasury. Other leading banks such as Goldman Sachs, JP Morgan Chase and Morgan Stanley have announced a similar intention in recent days.

The reason of the Bank of America is the desire to eliminate the debts created by state aid collected. A good sign we would say, if keep in mind that the amounts are part of a plan to support banks in difficulty.

Reimbursement will be supported including the capital increase. Worth over 35 billion dollars, it would take place by the end of September, according to sources cited by the publication “Financial Times” taken by Reuters.

Through a bond issue, Bank of America has already obtained a capital increase of 13.47 billion dollars and concludes, therefore, an important step in the goal set by the U.S. government after the application of stress tests in the banking system.

The Australian government is proving grants to the middle class of about 700 dollars to support the local economy by encouraging consumption, part of a government program with funding of 33 billion dollars, according to Mediafax.

Beneficiaries, roughly half of the population of Australia, are encouraged by authority to spend money received from the state to help their compatriots not to lose their jobs.

A similar program, in which were included at the end of last year, pensioners and parents, was considered a success, according to authorities , after was recorded increasing of sales in the retail sector.

Australia has entered into recession, after lowering the world price of raw materials that led to a pronounced decline of activity in the mining sector.

As expected that the unemployment will rise significantly in the next period, the government asked the recipients of state aid to spend money for “nation good”, informs Mediafax.

Banks in the United States are fighting to be in the first wave of lenders that will repay the funds granted by the federal government.

In the conditions in which the authorities have sent to executives on Wall Street, that will allow a series of five or six financial groups to repay a part of the loans before other creditors, writes Financial Times.

Bankers expect that the Treasury and Central bank (Fed) to nominate the following weeks, the first banks to repay funds from government, in the context in which the state has granted billions of dollars to creditors through economic incentive of 700 billion dollars.

The banks which have a better financial situation hope that through return of government loans, to obtain advantages in the face with rivals such as Citigroup or Bank of America, creditors that may remain included in the government for a longer period.