Sovereign debt
OECD’s Gurría wants ‘mother of all’ firewalls in Europe
OECD secretary-general demands expansion of emergency funds available to struggling eurozone sovereigns; wants monetary conditions to remain ‘supportive’
Richmond Fed paper highlights benefit of debt ceiling
Fed research finds governments can see improvements in fiscal positions when utilising debt ceiling targets
Draghi applauds team effort on euro turnaround
ECB president says every institution in the eurozone contributed to turnaround witnessed since November; warns there is more to be done
ECB allows eurozone central banks to veto collateral
ECB says central banks in member countries can refuse bank bonds guaranteed by governments of countries involved in EU/IMF bailout programmes as collateral
ESRB assesses systemic risks to EU financial system
European Systemic Risk Board analyses key systemic risks to financial system in the EU; uncertainties surrounding sovereign debt and pressures on bank funding among top issues
Bank of Greece delivers policy report for ‘critical year’
Greek central bank announces bleak prediction for economy in 2012; calls on government to go above and beyond to ensure reform programme is implemented
Liikanen urges controlled and timely policy readjustments
Governor of the Bank of Finland applauds impact of emergency ECB policy steps and talks of careful unwinding of positions
IMF readies €28bn in support of Greece
International Monetary Fund managing director Christine Lagarde plans to get funds approved this week; Isda rules debt restructuring a ‘credit event’
Greece’s private bondholders approve ‘voluntary’ debt swap
An 85.8% majority approves Greek sovereign debt swap but strong-arm tactics raise concerns about the future legal certainty of sovereign bonds
South Africa must tackle capital flows ‘challenge’, says deputy governor
Sarb deputy governor says problems with capital flows in South Africa require “fresh thinking”; rand exchange rate fluctuations causing problems
EFSF gets go-ahead for collateral enhancement facility
Plan to restore worth to Greek bonds as collateral is authorised; two days after the European Central Bank was forced to stop accepting Greek bonds following downgrade
ECB rejects Greek bonds in reaction to rating cut
European Central Bank temporarily stops accepting Greek debt as collateral; move comes one day after rating agency drops country to a selective default rating
Buba’s Weidmann defends German role in eurozone rescues
President of the Deutsche Bundesbank says criticising German authorities for their action, or lack of it, in helping struggling eurozone counterparts is “quite inappropriate”
A new toolkit for eurozone survival
The eurozone’s short-term outlook depends on markets, voters, bureaucrats and politicians. Its longer term future requires radical change. Andrew Smithers considers the conditions that are needed for the eurozone to survive
EU leaders present plan for growth
EU member state leaders issue joint statement on restoring growth to the economy; all eyes on finance ministers’ meeting in Brussels
Governor of the Central Bank of the Philippines talks Basel III
Amando Tetangco explains how Basel III has a “perverse” impact on countries with strong fiscal discipline and why the Sifi designation is less important than rigorous regulation
Monetary policy can ease sovereign risk, says IMF paper
Fund study shows sovereign risk becomes a critical determinant of macroeconomic outcomes if the central bank is constrained in counteracting higher risk premiums
FSB Regional Consultative Group meetings continue
Middle East and North Africa consultative group is latest regional FSB body to meet; discussed financial vulnerabilities of the region
Markets will drive policymakers into action: Denmark’s Bernstein
National Bank of Denmark governor Nils Bernstein says eurozone governments are short of solutions to debt crisis but must reach a consensus
Debt crises lead to sharp and protracted recessions: IMF paper
Fund study shows debt crises reduce output growth by about 10 percentage points and last an average of eight years
NALM Africa 2011: African central banks rethink reserves allocations
The drop-off in US Treasury yields and concern about a eurozone sovereign collapse has prompted a number of African central banks to review their reserves allocations
Eurozone crisis altered sovereign spreads: IMF paper
Fund study says risk assessment of sovereigns and banking sector gradually converged as sovereign debt crisis evolved
Emerging market central banks lead gold rush
World Gold Council Global Demand Trends report shows central banks were net buyers of gold in third quarter of 2011, led by Russia, Bolivia and Thailand
Bank of England is ‘monetising the deficit’ with QE – Monetary Policy Forum
Former BoE employees agree the latest round of quantitative easing in the UK could be seen as a way of monetising the deficit; panellists stress Greece’s exit from the euro would be catastrophic