Financial Crisis News

[Corvo Attano]

Malivian Ministry of finance proposes taking some debt to pay part of the bailout for the Hutorian Banks. Implores Terran governments to do the same.

[Locksley Holdings]

Locksley Visits Istalian Presidential Palace
Reportedly has lunch with the President


Locksley arrives at the Istalian presidential palace.

Brock Locksley, has been snapped arriving at the presidential palace in Istalia, rumoured to be meeting with the President of the Republic Filippo Marra for lunch. This comes after speculation that Locksley is planning to take part in "Hutoremove" and relocate to Istalia. Locksley remained quiet when pressed for answers by the press on the short walk between the car and the gate. He did respond to a few, albeit vaguely and in a very limited way.

He remained silent when asked about whether or not he was moving, showing nothing but a smile. When quizzed about the situation in Hutori, he remarked: "I'm talking but nobody is listening." One reporter also inquired about whether or not Locksley was suspending business activity in Hutori to which he replied: "I hope I don't have to". Let us hope that he isn't as vague as he was today when he takes part in an online QnA later this month.

Lockley left the palace some two hours after he first entered after which he visited the Casa Sulla Collina for a brief 30 minutes before returning to Hutori via his private jet. Pundits are still trying to understand Locksley's intentions.

[Axxell]

Benedict VII invites the world to unify the efforts to aid the most vulnerable and those most in need. The Holy See warns the world also about the communist super-state in Majatra but the health conditions of the Holy Father stir the whole church

[Axxell]

The Government has finally presented the Shield against the collapse of the Hutorian banking system
Guarantee Fund, Bad Bank and an extraordinary tax for the financial intervention but the opposition attacks: "Socialism! Nationalizations and gifts for inefficient and maybe fraudulent companies!"

ROMULA - Finance Minister Niccolò De Medici, after lengthy months of waiting, finally presented to the Parliament the two government bills to address the expected collapse of the hutorian banking system.
The result of a work in close collaboration with the President of the Council (we remember you that Marra is also an economist) and experts from the High School of Economics of Milona headed by Ennio Santalamazza, the Financial Shield will foresee, as already announced, the creation of a Guarantee Fund to assist the suffering banks and a bad bank which will be in charge of the management of bad debts and assets at risk, a measure which will be supported by an increase in sales taxes, a necessary measure, as the Minister said, dictated by the emergency of an unprecedented breakdown.
For the sake of clarity, we report the words spoken by the Minister De Medici in front of the Chamber of Deputies:

Hon. MPs,
the Government is ready to present this extraordinary budget measures to face the collapse of the Hutorian banking system and so of its financial markets.
This budget, supported by an emergency Solidarity Tax (both on essential and luxury sales) and by the reallocation of the funds previously provided for the now completed project of "Expansion of the Triesta Port", will allow the Nation to create an Extraordinary Banking Rescue System which will be protect the banking system in case of serious sofferences, a plan (OOC: which will work more or less like this: https://en.wikipedia.org/wiki/Swedish_banking_rescue) which will assure the coverage of the savings for the citizens and companies as well as will support the possibility of the banks to continue to offer credit to their clients.
Furthermore, the creation of the "bad bank" in the form of a Special purpose entity, to isolate illiquid and high risk assets held by the those istalian banks which will risk serious and irreversible sufferencies. This "bad bank", which will be officially known as "National Society for the Assets Management" will be dissolved after it will repay all bondholders and meet its objectives.
But we cannot allow a simple transfer of money from tax payers to the financial sector, in fact we should ask to the banks, bondholders and institutional investors to take their fair share of the pain. In dealing with the banking crisis, the objective must be to minimise the risk to taxpayers and to get credit flowing to businesses and homebuyers. In case will be not possible save some banks, they will be let it go alone protecting the savings and the credits but if necessary these banks will be nationalized but only with the purpose to be dismantled and then sell.
The banks which will use the rescue funds will be obliged to repay with interest the funds made available by the Government, with a rate of interest commensurate with the severity of the bank's financial responsibility for bankruptcy. These banks will be followed by the Ministry of Finance, which will ensure that the banks concerned will take all necessary measures to reset their finances and repay the intervention. In the case of guilty of an illegal and against the law bank's management, the interested bank will be put under the control of a government commissioner who will have to lead the management for the repayment period of the funds granted and to bring back on market, dismantle and sell the institute. The Commissariat will also enforced for those institutes which will be nationalized and marketed or those that will be dismantled. The Ministry of Finance will oversee any sale, dismantling, recapitalization, etc... of all other banking institutions.

The Rescue Plan, if supported by all the government forces, found the strong opposition of the Republican Party, who even judged the program as "socialist", accusing the Government of increasing taxes to make gifts with taxpayers' money to inefficient and bankrupt business which should be left to fail while the government should be concerned with ensuring the citizens' money alone.
The President of the Council, however, defended the reform arguing that the Government would not be able to protect the savings of citizens if the whole system will collapse, as expected by economists from all over the world and instead intervene to support the most critical situations will guarantee the whole system. Moreover, such a huge bankruptcy would definitely cut access to private and corporate credit by banks, but Marra pointed out especially on the fact that doing nothing would heavily hurt the creditors of the Istalian banks, both internally and abroad, which would firstly penalize Istalia in the eyes of the world from the standpoint of trustworthiness and confidence and would also lead to an another massive collapse which would extend to the rest of the world, already extremely weakened.

Berlusconi and Marra welcome the Chancellor of Dorvik: strengthen the relations and work together internationally

Dorvik's delegation led by Stella Schaefer is landed at Romula last night and was received at Quattroregni Palace this morning by the President of the Republic and the President of the Council.
The Minister of Foreign Affairs and the Minister of Finance have also followed the Chancellor in his first official trip out of Dorvik: in fact, the Chancellor would be very interested in enhancing the relations between Dorvik and Istalia and thus further fostering the Istalian investments in what currently seems to be the most developed country in all Artania, and which had already seen several decades ago come the PMI Media Group and its controlling holding, the Mariani Investment Group.
At the center of this meeting between the two governments, however, there will be the global crisis and the risk of another disastrous fall and in facts Dorvik was the first nation to propose to the World Congress the creation of one or more international financial institutions supported, as well as from Istalia, by several other nations such as Zardugal and Trigunia, an idea which Dolgaria's representative has recently relaunched when the threat of a collapse of the butorian banking system has come to the forefront of the world scene.

[Locksley Holdings]

http://classic.particracy.net/viewbill. ... lid=520806

[Axxell]

Ministry of Finance announces: "we will wait for the outcome of the vote in Hutori"

[Auditorii]

Dolgavian central bank chief announces International Development and Stability Bank

[Adithya]

Dorvish Chancellor Mrs.Schaefer Meets Istalian Prime Minister Mr.Marra,Discusses Economic and Military Cooperation between both nation's:-

viewtopic.php?f=17&t=353&start=880

[IntruderEmerald]

OUTGOING ALORIAN PRESIDENT ELLIS REECE SAYS ALORIAN ECONOMY IS 'IN A MUCH BETTER PLACE NOW'

Ellis Reece, who ran for a second term as president in December 4216 but lost, said today the Alorian economy is now stronger than it was before he became president, and the 'ordinary people are benefiting' from the economic growth. GDP growth in the last quarter of 4216 was 3.1%, compared to 2.9% the quarter before that. The Alorik is still weak, however it is stronger than it was when he became president in 4213. Ellis Reece said wage growth is at its highest this century. While this is true (average weekly earnings increased by 3.2% last year), inflation has also started to rise due to the weak Alorik. Inflation currently stands at 2.6%, so in real terms wages only rose 0.6% last year. Reece claims his biggest achievement is finding efficiencies in the budget and slashing taxes for the low and middle-income earners. Consumer spending has been steadily rising in the last two years, and Reece says this is because people have more money in their pockets due to the government's tax cuts.

Reece praised the AIP's coalition partner, the Demokratische Allianz, by highlighting the will of both the DA and his own party to 'get on with the job without drawing party lines'. The new Alorian president, Paula Brahms, will be hoping to form her own cabinet. The current cabinet no longer has a majority due to the AIP's disappointing election results, but Ellis Reece hopes his party can still be in the new cabinet. Ellis Reece's own future is unclear, as a leadership challenge is being mounted against him after the party's poor election results.

[Maxington]

Central Bank Governor-General announces investment into International Development and Stability Bank through National Investment and Stabilization Fund.