Latest news with #debtcrisis
Reuters
16 hours ago
- Business
- Reuters
Vatican-backed report seeks financial reform to avert decades of lost development
LONDON, June 20(Reuters) - A commission launched by the late Pope Francis has outlined financial reforms it says could help to avert decades of lost development in poor countries that face onerous repayments as global public debts reach record levels. The Jubilee Commission report is published ahead of the once-a-decade United Nations Financing for Development Conference that takes place in Seville, Spain, later in June. The environment for this jubilee-year campaign could hardly be more different from the last - 25 years ago - that yielded billions in historic debt forgiveness. Mariana Mazzucato, a University College London professor and member of the commission, said today's debt crisis was symptomatic of "a broken investment model". "The solution has to be public investment strategies that build productive capacity, domestic value added and sustainable fiscal space," she said. The report recommends measures including more debt suspension initiatives and steps to ensure money from institutions, such as the International Monetary Fund and the World Bank, does not end up flowing from countries to private creditors. It also urges legal changes in London and New York - the jurisdictions for most bond contracts - to disincentivise creditors from refusing to take part during debt restructurings. After the debt forgiveness that followed the previous jubilee campaign, many developing countries, freed of their existing debt, turned to more expensive private lending, and China's lending ballooned. As a result, countries including Sri Lanka, Zambia and Ghana slid into default. A wave of sovereign defaults unleashed by the COVID-19 pandemic - and exacerbated by the pressure of Russia's invasion of Ukraine and a global rate-hiking cycle that boosted borrowing costs - largely crested last year. But the commission said dozens of countries are still squeezing spending to repay debt - with long-term implications for development and social cohesion. Average interest costs for developing countries as a share of tax revenues has almost doubled since 2014, while 3.3 billion people - and more than half of Africans - live in countries that spend more on debt service than health. The system, the commission's leaders said, traps countries in a cycle in which private lenders send cash when times are good - but quickly shut off access when global risk re-emerges. When lenders of last resort, such as the IMF, send money, the commission said that money often goes towards repaying creditors to avoid default. Martin Guzman, commission co-chair and Argentina's ex-Economy minister, said that created a problem for both creditors and debtors. "They don't come to the table with the right conditions for engaging timely and sustainable restructurings, and that aggravates the development crisis," he said.
Bloomberg
a day ago
- Business
- Bloomberg
Evergrande Tycoon's Ex-Wife Spent Millions on Homes as Firm Sank
The ex-wife of China Evergrande Group 's chairman spent millions on luxury apartments in London, nine months after the developer defaulted on its loans. While a court document in January unveiled her ownership of 33 units at the high-end residential development Thames City, it didn't include the timing of the purchase. The properties worth £49.8 million ($67 million) were acquired in September 2022, according to data compiled by Bloomberg News based on UK land registry filings. That's almost a year after Chinese authorities asked Evergrande Chairman Hui Ka Yan to pay debt with his personal wealth.
BBC News
a day ago
- Business
- BBC News
Thurrock Council debt expected to rise to £1.1bn
Thurrock Council's debt position is expected to rise to £1.1bn over the next year, according to a new report. Local government minister Jim McMahon wrote to the council leader saying "improvements to date remain fragile" and that there were still "substantial areas in which Thurrock Council still needs to improve".The government plans to extend its intervention, where appointed commissioners oversee the effectively bankrupt local authority, until 30 April Worrall, who became leader of Thurrock Council last month, said: "A lot has been done, but we have much, much more to do." The government said it was "not satisfied that the pace or scale of the council's response is proportionate to the issues it faces and has decided that Thurrock requires immediate urgent government action". 'Clear direction' The commissioners' latest report published on Thursday stated there were "too many areas of fragility in the council's recovery and still some major areas of work [are] yet to be done".The report said:A £41m budget gap which would require "ambitious savings" of 20% of the council's spendingDebt was around £800m but was estimated to rise to £1.1bn by the end of 2025/26A new council operating model "should be the catalyst for an ambitious transformation plan"Improving culture at the council was "an area of work that still seems underdeveloped".The commissioners said there had been areas of improvement since Thurrock was placed in special measures in said the administration "continues to own the recovery agenda and is taking steps to reengage with its communities" - and relationships between senior politicians and officers has said: "Thurrock Council is getting better. "Children's services have been rated as outstanding by Ofsted and our new Corporate Plan sets out a clear direction for the future, which we will be held accountable to."Whilst McMahon said Thurrock has "made significant progress", the minister told parliament the council has not "demonstrated that it has the capacity and capability to sustain its own journey of continuous improvement".The government has "indicated" it will provide financial support in 2026/27 for Thurrock to manage its debt. Follow Essex news on BBC Sounds, Facebook, Instagram and X.
Yahoo
2 days ago
- Business
- Yahoo
New Fortress Energy (NFE) Falls Hard Amid Bond-Price Slump
The share price of New Fortress Energy Inc. (NASDAQ:NFE) fell by 28.06% between June 10 and June 17, 2025, putting it among the Energy Stocks that Lost the Most This Week. A cutaway view of a modern energy infrastructure and its power generation facilities. New Fortress Energy Inc. (NASDAQ:NFE) owns and operates natural gas and LNG infrastructure and an integrated fleet of ships and logistics assets to rapidly deliver turnkey energy solutions to global markets. New Fortress Energy Inc. (NASDAQ:NFE) plunged to an all-time low this week after a Bloomberg report that various creditor groups have formed amid a mounting debt crisis at the LNG company. Currently, NFE is grappling with nearly $9 billion in debt, coupled with delays in pivotal projects that have hampered its cash flow. New Fortress Energy Inc. (NASDAQ:NFE) was also late in filing its Q1 report with the SEC, citing in part a delay in the $1 billion sale of Jamaican operations that was completed last month. Moreover, in the wake of downgrades by S&P Global and Fitch, some of the company's bonds have plunged to record lows below 50 cents on the dollar recently. To make matters worse, New Fortress Energy Inc. (NASDAQ:NFE)'s financial difficulties may also delay its $1.1 billion LNG export project in northeastern Mexico, which is seen as crucial to the long-term future of the company. While we acknowledge the potential of NFE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Nuclear Energy Stocks to Buy Right Now and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
3 days ago
- Business
- Reuters
Mexico's Pemex payment crisis: suppliers threaten July shutdown
MEXICO CITY, June 17 (Reuters) - The Mexican association that groups major global oil services companies warned that it is going through an "unprecedented crisis" due to the lack of payments from the state-owned oil company Pemex, the world's most indebted energy company. In a letter sent to President Claudia Sheinbaum and released on Monday afternoon, the association warned that many of these companies may have to stop operations as early as July. The letter did not specify the amounts owned to the group's members, which include Baker Hughes (BKR.O), opens new tab, Halliburton (HAL.N), opens new tab, Weatherford (WFRD.O), opens new tab, SLB Oil & Gas (SLB.N), opens new tab and Grupo Mexico ( opens new tab . Pemex, one of Mexico's largest companies, has an outstanding debt with an extensive list of suppliers and contractors of around $20 billion, in addition to another financial debt of $101 billion, despite the injection of billions of dollars from the government in the last few years to face the amortizations. In the letter, the Mexican Association of Oil Services Companies (AMESPAC) urged Pemex to process and release the invoicing for services rendered in 2024, to guarantee regular invoicing and timely payment for those of 2025, and to design a payment plan to settle all historical debts owed to companies of the sector. The service sector has significantly decreased its activities because of the lack of payments from Pemex, AMESPAC said in the letter, adding that "its cash flow is seriously compromised and in most cases it cannot guarantee operational continuity as of July of this year." "We expect a precise response that addresses our concerns and reverses the deterioration of national hydrocarbon production, which compromises Mexico's energy security and sovereignty," the letter concluded. This is not the first time that AMESPAC has called on the government and Pemex to urge payments and their impact on the state-owned company's hydrocarbon production. Last week, Reuters exclusively reported that Hokchi Energy, one of Mexico's largest private oil producers, has sought new ways to market its hydrocarbons in the face of delays in payments by Pemex. Despite numerous promises of payments and partial settlements, liabilities continue to accumulate while oil production continues to fall. Pemex reported an 11% year-on-year plummet in production during the first quarter, in addition to posting losses.
