Financial crisis in Europe has been continuing. Standard & Poor's has cut its credit ratings of 15 Spanish banks on Monday (13/2) in a follow up step downgrade of Spain by the agency last month. Standard & Poor's has downgraded Spain's sovereign debt to A from AA-on January 13.
Standard & Poor's lowered credit ratings on 10 banks by one level and in five other banks with two levels. Spain's largest financial institutions affected by downgrades including Santander, BBVA, Bankia, and CaixaBank, rating agency said in a statement.
Rating Santander, the eurozone's largest bank by market capitalization, was lowered to A + from AA-. Then, the ratings for BBVA, Spain's second largest bank, to A from A +.
Earlier, on Monday, Fitch Ratings downgraded the credit ratings of four of the largest Spanish bank, Santander, BBVA, Bankia, and Caixabank, after Spain's sovereign debt downgraded last month.
Rating agency analysts estimate the profitability of Spanish banking system remains below its historical average over the medium term because the bank continues to operate in bad economic and financial environment.
Showing posts with label Finance. Show all posts
Showing posts with label Finance. Show all posts
Tuesday, February 14, 2012
Monday, December 19, 2011
Let's Invest in Indonesia, Fitch Raised Investment Grade of Indonesia
Fitch, one of the world rating agency, on Thursday ( Dec 15 /2011), raised Indonesia's debt rating from BB + to BBB- as an investment rated.
The increase in this ranking makes investment in Indonesia is reduced risk and the lure foreign investors into the Indonesian market. Although quite surprising because previously expected to be given in 2012, investors are factoring the possibility of considering the development of Indonesia's solid macroeconomic performance.
Earlier, on February 24, 2011, Fitch Indonesia raised its outlook from stable to positive. Remain high economic growth at 6.5 percent with the inflation rate is low (less than 4 percent), a stable exchange rate, coupled with budget deficits and low levels of debt GDP ratio is healthy.
Fitch projected growth in gross domestic product (GDP) averaging more than 6.0 percent per year over the forecast period through 2013, amid a global economic conditions are less conducive.
Indonesia domestic-oriented economy and the success of creating a relatively strong economic growth without causing external imbalances, or reliance on short-term external financing shows that the economic growth prospects will be resilient to external shocks, as happened in 2008.
Public debt is low and positive real interest rates provide the authority flexibility policy to respond of the slowdown. Higher levels of trust on macro policy framework is the key to increase this ranking. Tolerance of nominal currency gains within the framework of monetary policy, and a willingness to tighten policy if inflation reached a high single digit, and fiscal policies carefully strengthening the basis for the rise in the rankings.
Higher levels of trust on macro policy framework is the key to increase this ranking. Tolerance of nominal currency gains within the framework of monetary policy, and a willingness to tighten policy if inflation reached a high single digit, and fiscal policies carefully strengthening the basis for the rise in the rankings.
Fitch believes credit profile has a new rank at the level of tolerance. The ratio of gross government debt to GDP is expected to drop from 26 percent at the end of 2010 to 25 percent by the end of 2011, far below the median of the BBB, which is 36 percent. Moreover, the ratio of debt to revenue is projected to fall from 163 percent at the end of 2010 to close to the median projection BBB of 126 percent in 2012, despite the existence of structural fiscal weaknesses in the form of low incomes, only 17 percent of GDP compared to 33 percent of the median BBB.
The increase in this ranking makes investment in Indonesia is reduced risk and the lure foreign investors into the Indonesian market. Although quite surprising because previously expected to be given in 2012, investors are factoring the possibility of considering the development of Indonesia's solid macroeconomic performance.
Earlier, on February 24, 2011, Fitch Indonesia raised its outlook from stable to positive. Remain high economic growth at 6.5 percent with the inflation rate is low (less than 4 percent), a stable exchange rate, coupled with budget deficits and low levels of debt GDP ratio is healthy.
Fitch projected growth in gross domestic product (GDP) averaging more than 6.0 percent per year over the forecast period through 2013, amid a global economic conditions are less conducive.
Indonesia domestic-oriented economy and the success of creating a relatively strong economic growth without causing external imbalances, or reliance on short-term external financing shows that the economic growth prospects will be resilient to external shocks, as happened in 2008.
Public debt is low and positive real interest rates provide the authority flexibility policy to respond of the slowdown. Higher levels of trust on macro policy framework is the key to increase this ranking. Tolerance of nominal currency gains within the framework of monetary policy, and a willingness to tighten policy if inflation reached a high single digit, and fiscal policies carefully strengthening the basis for the rise in the rankings.
Higher levels of trust on macro policy framework is the key to increase this ranking. Tolerance of nominal currency gains within the framework of monetary policy, and a willingness to tighten policy if inflation reached a high single digit, and fiscal policies carefully strengthening the basis for the rise in the rankings.
Fitch believes credit profile has a new rank at the level of tolerance. The ratio of gross government debt to GDP is expected to drop from 26 percent at the end of 2010 to 25 percent by the end of 2011, far below the median of the BBB, which is 36 percent. Moreover, the ratio of debt to revenue is projected to fall from 163 percent at the end of 2010 to close to the median projection BBB of 126 percent in 2012, despite the existence of structural fiscal weaknesses in the form of low incomes, only 17 percent of GDP compared to 33 percent of the median BBB.
Thursday, November 3, 2011
Simple Commercial Real Estate Loans Funding
If you are planning to open a large enterprise, however lack the adequate of funding, then you'll be able to make the decision to acquire a commercial real estate loan. This loan will be procured through different means depending on your monetary capabilities. The most perfect resolution though is utilize a broker, because this project may occasionally require quite some.
People who find themselves preparing to open up a enterprise however don't have the capital to take action often resort to getting a commercial real estate loan, but the query is, how one can get one? Even enterprise homeowners with credit scores that attain 700 and higher are nonetheless turned down by financial institutions for commercial real estate loans. So generally, they discover it really exhausting to get financing, given the restricted options. Despite this, there are a variety of ways folks can get commercial real estate loans. All you want to do is to make sure the supply or the financial lender that it is possible for you to to pay your mortgage on the agreed time that it is due. Here are some ways so that you can get hold of a business loan with none of those hassles involved.
Quite a few business house owners go along with bank cards so as to get hold of a industrial loan. Actually, this is called a quick approach to get a mortgage, and it is easy to set up. On the other hand, the interest rate and charges can exceed a charge of 18-27%, making you lose most of your earnings to the bank card company. Another choice that you need to use in order to get a loan is through investors. Though they are an possibility, it have to be noted that there's very little investment cash available at this time for each new and current businesses. If you want to use an investor, he/she would wish to manage a part of your business. It will undoubtedly affect the dynamics of you needing a enterprise to name "yours".
Some industrial loans are also obtained through exhausting money lending. Often known as asset based lending, that is an choice in case you are an proprietor of your very personal commercial property. The rates of interest for a business mortgage obtained this way is excessive, often at the least up by 15%, and it usually comes with a brief time period and excessive points. That is a lot of money that can be used for different financial functions, but it surely does not provide a sensible long-term answer on your business.
People who find themselves preparing to open up a enterprise however don't have the capital to take action often resort to getting a commercial real estate loan, but the query is, how one can get one? Even enterprise homeowners with credit scores that attain 700 and higher are nonetheless turned down by financial institutions for commercial real estate loans. So generally, they discover it really exhausting to get financing, given the restricted options. Despite this, there are a variety of ways folks can get commercial real estate loans. All you want to do is to make sure the supply or the financial lender that it is possible for you to to pay your mortgage on the agreed time that it is due. Here are some ways so that you can get hold of a business loan with none of those hassles involved.
Quite a few business house owners go along with bank cards so as to get hold of a industrial loan. Actually, this is called a quick approach to get a mortgage, and it is easy to set up. On the other hand, the interest rate and charges can exceed a charge of 18-27%, making you lose most of your earnings to the bank card company. Another choice that you need to use in order to get a loan is through investors. Though they are an possibility, it have to be noted that there's very little investment cash available at this time for each new and current businesses. If you want to use an investor, he/she would wish to manage a part of your business. It will undoubtedly affect the dynamics of you needing a enterprise to name "yours".
Some industrial loans are also obtained through exhausting money lending. Often known as asset based lending, that is an choice in case you are an proprietor of your very personal commercial property. The rates of interest for a business mortgage obtained this way is excessive, often at the least up by 15%, and it usually comes with a brief time period and excessive points. That is a lot of money that can be used for different financial functions, but it surely does not provide a sensible long-term answer on your business.
Tuesday, October 4, 2011
The Condition of Greece's Debt and its Effect on Dollar and Gold
Investors hunt for safe havens, especially U.S. Treasury and gold to avoid risky assets after Greece has been getting closer to default on its debts.
If using credit-default swaps, it costs a record $5.8 million upfront and $100,000 annually to insure $10 million of Greece’s debt for five years, up from $5.5 million in advance on Sept. 9, according to CMA.
Athens authorities said the deficit target in 2011 would have missed so that Greece requires additional funds which is bigger than expected. Greek 2011 deficit has been estimated to reach 8.5% to Gross Domestic Product (GDP). This figure is much higher than the previous target of 7.6% for 2011 as well as a requirement of lenders.
On the other hand, Greece budget is also increasingly severe because in 2012 the deficit should be reduced even lower to a level of 6.8% of GDP. This figure is still above the lenders target at 6.5% deficit in Greece next year.
Angela Merkel -German Chancellor- said that she won’t let Greece go into “uncontrolled insolvency” as politicians try to limit contagion to other euro members.
If later Greeks really experienced default, likely, EU policy makers will strive Greece default to be 'controlled default' or 'orderly default'. That is, Greece creditors would be forced to take a 50% discount on their investment. The goal is the banking sector in Europe will be able to deal with.
Serious problems that occurred in Europe makes the U.S. dollar rose against most major currencies including the euro. U.S. dollar index rose 0.51% to as low as 79.47 from 79.30 previously. Against the euro, the dollar strengthened to a level of U.S. $ 1.3354 from U.S. $ 1.3390 per euro.
Gold futures also rose for a second session as market players worried about the condition of Greece. That way, the demand for gold and other metals also surged. Supposedly, Tuesday (10/04/2011) is the day of approval of the bailout worth 8 billion euros (equivalent to 10.7 million U.S. dollars) to Greece. However, it was postponed until mid-October. Therefore the potential for Greece olderly default is feared will rise. With this condition, the possibility of physical gold demand will increase in coming days.
In the aftermath of the recent selloff, the gold price position is further than before. And, current conditions is a positive signal (bullish) for the price in the future.
If using credit-default swaps, it costs a record $5.8 million upfront and $100,000 annually to insure $10 million of Greece’s debt for five years, up from $5.5 million in advance on Sept. 9, according to CMA.
Athens authorities said the deficit target in 2011 would have missed so that Greece requires additional funds which is bigger than expected. Greek 2011 deficit has been estimated to reach 8.5% to Gross Domestic Product (GDP). This figure is much higher than the previous target of 7.6% for 2011 as well as a requirement of lenders.
On the other hand, Greece budget is also increasingly severe because in 2012 the deficit should be reduced even lower to a level of 6.8% of GDP. This figure is still above the lenders target at 6.5% deficit in Greece next year.
Angela Merkel -German Chancellor- said that she won’t let Greece go into “uncontrolled insolvency” as politicians try to limit contagion to other euro members.
If later Greeks really experienced default, likely, EU policy makers will strive Greece default to be 'controlled default' or 'orderly default'. That is, Greece creditors would be forced to take a 50% discount on their investment. The goal is the banking sector in Europe will be able to deal with.
Serious problems that occurred in Europe makes the U.S. dollar rose against most major currencies including the euro. U.S. dollar index rose 0.51% to as low as 79.47 from 79.30 previously. Against the euro, the dollar strengthened to a level of U.S. $ 1.3354 from U.S. $ 1.3390 per euro.
Gold futures also rose for a second session as market players worried about the condition of Greece. That way, the demand for gold and other metals also surged. Supposedly, Tuesday (10/04/2011) is the day of approval of the bailout worth 8 billion euros (equivalent to 10.7 million U.S. dollars) to Greece. However, it was postponed until mid-October. Therefore the potential for Greece olderly default is feared will rise. With this condition, the possibility of physical gold demand will increase in coming days.
In the aftermath of the recent selloff, the gold price position is further than before. And, current conditions is a positive signal (bullish) for the price in the future.
Monday, October 3, 2011
Things to be Prepared When the Crisis Came
Imperceptibly we've entered the month of October and the market turbulence continues. When we got out (to the trade) before the market drop means the position is more secure. But what about our investments for the long term? What should be done and observed by us in such conditions at these times while waiting and hoping the stock grow up again?
When we waiting for stock (exchange) there are some things we have noticed with our financial portfolio so that we do not make the family's financial situation getting worse. The first should always be considered and taken care of is the amount of the Emergency Fund that we have. Are the numbers still correspond to our needs? Do we ever use in part of the Emergency Fund before and yet repaying again?
Back to the Emergency Fund formula, for those who are still single and do not have children / dependents then it only takes 3 months for monthly needs, or to more easily calculated from the income. For having 2 dependents must provide funds amounting to 6 months income. Whereas if we have more than 2 dependents, Emergency Fund should be prepared for 12 months.
Make sure the number of our Emergency Fund remains adequate and in accordance with our needs and placed on a secure financial products and can be withdrawn at any time. The last thing we do not want to happen is, when the stock was down all of a sudden we're stuck in an emergency, while our Emergency Fund amount is less or does not suit our needs. As a result we have to dilute our investment in financial/ capital market products that are currently the number has definitely decreased.
The second thing we have to consider within current circumstances is to ascertain whether our insurance policy keep running and ready at any time needed. For some of us who have limited health insurance coverage (there's nominal limit per year), check whether our limit and family are still okay and the numbers are sufficient if there are conditions under which we should be treated.
If we buy own insurance (particularly health insurance hospitalization), make sure you have paid insurance dues and make sure the policy is still running (not lapse). Notice also the types of policies and protections that we have, do not get wrong when buy type of insurance. Let us not forget to pay the insurance policies that have matured, if our policy lapse, in an emergency we can not use the insurance to pay the claims of our hospital.
In the current market conditions that broke down as it is today and might have an impact on the economic crisis, the economic situation became unstable. If this happened within a long time, it did not rule on company performance. When the condition worsens it can happen the company where we worked has financial difficulties or even losses. Beware. Therefore, in an unstable condition as now it is not advisable to create new debt, especially consumer debt. Hold first to not buy goods that have not been needed until the condition gradually recovered.
Finally, within the current conditions prevailing 'Cash is the King'. By holding more cash we can use it when needed in emergency conditions. In addition, cash can be used to take the opportunity to invest when prices are stuck down and started up again so that we can invest in a cheap price. Which must always remember is, every crisis or decline in stock prices and other investment instruments, there is always a chance for profit. Then, a genius who dare to take risks will have many advantages.
When we waiting for stock (exchange) there are some things we have noticed with our financial portfolio so that we do not make the family's financial situation getting worse. The first should always be considered and taken care of is the amount of the Emergency Fund that we have. Are the numbers still correspond to our needs? Do we ever use in part of the Emergency Fund before and yet repaying again?
Back to the Emergency Fund formula, for those who are still single and do not have children / dependents then it only takes 3 months for monthly needs, or to more easily calculated from the income. For having 2 dependents must provide funds amounting to 6 months income. Whereas if we have more than 2 dependents, Emergency Fund should be prepared for 12 months.
Make sure the number of our Emergency Fund remains adequate and in accordance with our needs and placed on a secure financial products and can be withdrawn at any time. The last thing we do not want to happen is, when the stock was down all of a sudden we're stuck in an emergency, while our Emergency Fund amount is less or does not suit our needs. As a result we have to dilute our investment in financial/ capital market products that are currently the number has definitely decreased.
The second thing we have to consider within current circumstances is to ascertain whether our insurance policy keep running and ready at any time needed. For some of us who have limited health insurance coverage (there's nominal limit per year), check whether our limit and family are still okay and the numbers are sufficient if there are conditions under which we should be treated.
If we buy own insurance (particularly health insurance hospitalization), make sure you have paid insurance dues and make sure the policy is still running (not lapse). Notice also the types of policies and protections that we have, do not get wrong when buy type of insurance. Let us not forget to pay the insurance policies that have matured, if our policy lapse, in an emergency we can not use the insurance to pay the claims of our hospital.
In the current market conditions that broke down as it is today and might have an impact on the economic crisis, the economic situation became unstable. If this happened within a long time, it did not rule on company performance. When the condition worsens it can happen the company where we worked has financial difficulties or even losses. Beware. Therefore, in an unstable condition as now it is not advisable to create new debt, especially consumer debt. Hold first to not buy goods that have not been needed until the condition gradually recovered.
Finally, within the current conditions prevailing 'Cash is the King'. By holding more cash we can use it when needed in emergency conditions. In addition, cash can be used to take the opportunity to invest when prices are stuck down and started up again so that we can invest in a cheap price. Which must always remember is, every crisis or decline in stock prices and other investment instruments, there is always a chance for profit. Then, a genius who dare to take risks will have many advantages.
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