BRIC nations - Brazil, Russia, India and China - have experienced a 20 percent fall in loans from companies in 2008, according to a report from tracking firm Dealogic.
“BRIC combined syndicated loan volume hit USD 144.2 billion in full year of 2008, down 20 per cent from USD 180.2 billion recorded in 2007," said the report.
The last quarter was especially difficult, accounting for the majority of the down performance. In that quarter syndicated loan volume dropped to $23.1 billion, with only 50 deals being made during that time. That's the worst quarter since the first quarter of 2004, where only $13.2 billion was loaned. Only 38 deals were closed during that period as well.
Even so, other regions performed poorly too, with BRIC countries gaining in syndicated loan share by 1 percent globally. In 2008 they grew share to 5 percent from 2007's 4 percent, and 2006's 3 percent.
* Syndicated loans are simply a group of financial institutions offering financing while sharing the risk together.
Wednesday, January 14, 2009
Sunday, January 11, 2009
Dr. Alexander Mirtchev Warns Against the Mid and Long-Term Repercussions of Unbalanced and Even Mindless State Intervention in Emerging Markets' Fina
Emerging Markets Expert Assesses the Implications for Government Intervention in the Banking System
Sunday January 11, 2009, 4:14 pm EST
WASHINGTON, DC--(MARKET WIRE)--Jan 11, 2009 -- Alexander Mirtchev, Washington-based economic strategist and expert, reviewed the actions of governments in the emerging markets in support of the beleaguered financial sector and their potential effects with Mergermarket, the partner publication of the Financial Times.
Dr. Mirtchev explained that governments had little choice in taking urgent measures to the financial crisis. "With the crisis looming, it was not possible to stick to ideological positions or specific doctrines -- you do not consider the price of the carpet you are using to put out the fire in your house," said Mirtchev. However, he believes that it is high time to look beyond the immediate short-term pressures, and devise a broader policy response that would address the long-term needs to encourage productivity, competitiveness and growth. He is of the view that, when devising such strategies, governments have to take into account the truly global nature of today's financial system. "The world financial system has evolved to the point where no economy functions as a closed circuit. Economic interaction in a specific market cannot be considered a zero-sum game." In the case of emerging markets such as India, China, Mexico, Indonesia and others, "participation and integration in the global financial system makes sense," in particular with a view to the productivity and growth-generating role that these markets have in the world economy.
He considers that in the short-term direct government support and recapitalization can help banks and institutions continue their function as the mechanism that pumps capital throughout the global economy, and it seems already unavoidable. However, the key is, at the end of the day, to face the reality of the newly emerging global financial system of the XXI century, not to try and "put the genie back in the bottle" by returning to the model of the 1990s, and jumpstart the new, inclusive financial order that could accelerate the recovery and sustain growth.
Some emerging market governments have introduced "special enforcement and monitoring bodies to supervise the use of the funding by the banks, to ensure that the funds are spent exactly for the purposes required by the government, i.e. alleviation of the fallout from the credit crunch on businesses and the population." In particular, his view is that "the banks' shareholders and management will have to share the responsibility and the burden -- there should be no rewards for failure." In the case of Kazakhstan, he noted that "the State refrained from direct nationalization of the banks; rather the government is only offering to buy stakes in banks leaving them with the choice to accept or decline additional capital infusion in return for equity stakes."
Government financial packages to "ensure the stability of the financial system by propping up the banks for the duration of the crisis will need to be complemented with comprehensive strategies to support growth," Dr. Mirtchev told Mergermarket. "The financial sector's malaise cannot be realistically resolved just on the basis of government funding. The market and private investors would need to be engaged."
At the same time, Dr. Mirtchev argues that a number of the rapidly developing economies have better chances of pulling out of the crisis than some of the mature economies. He said that "due to numerous factors, emerging markets are much easier to micro-manage. With the right political vision and will, they should be able to move past the short-term tactics to the long-term necessity of modernization, productivity and competitiveness." He notes that unlike for example U.S. and Japan, many of the emerging markets enjoy the recent hard-won experience of successful privatizations. Therefore, their governments know quite well when and how to exit the companies. He considers that emerging markets would also be better served by preserving their openness to the global economy. "They know that being part of the international financial system exposes them to global shocks. However, they should not forget that this same openness brought them ten years of booming foreign direct investments that generated an unprecedented level of economic growth," Mirtchev indicated.
Dr. Mirtchev is President of Krull Corp., a Washington-based consultancy. He is also an independent director of Samruk-Kazyna National Welfare Fund of Kazakhstan, and serves as senior economic adviser to the country's Prime Minister.
To read the entire interview with Dr. Mirtchev in Mergermarket, visit http://www.mergermarket.com/.
About Krull Corporation:
Krull Corporation is a Washington, D.C.-based advisory and project management firm with expertise in dealing with economic growth, industrial expansion and restructuring issues. Founded by Dr. Alexander Mirtchev in 1992, Krull Corporation capitalizes on his extensive professional experience in market developments and reforms and focuses primarily on emerging and transitional economies. Over the years, the firm has provided its clients with outstanding strategic guidance and professional services in various areas. Combining a unique blend of global reach and understanding of local markets, Krull is able to consistently produce high quality results and returns.
Contact:
Contact:
George Atallah
Qorvis Communications
202-680-0238
Sunday January 11, 2009, 4:14 pm EST
WASHINGTON, DC--(MARKET WIRE)--Jan 11, 2009 -- Alexander Mirtchev, Washington-based economic strategist and expert, reviewed the actions of governments in the emerging markets in support of the beleaguered financial sector and their potential effects with Mergermarket, the partner publication of the Financial Times.
Dr. Mirtchev explained that governments had little choice in taking urgent measures to the financial crisis. "With the crisis looming, it was not possible to stick to ideological positions or specific doctrines -- you do not consider the price of the carpet you are using to put out the fire in your house," said Mirtchev. However, he believes that it is high time to look beyond the immediate short-term pressures, and devise a broader policy response that would address the long-term needs to encourage productivity, competitiveness and growth. He is of the view that, when devising such strategies, governments have to take into account the truly global nature of today's financial system. "The world financial system has evolved to the point where no economy functions as a closed circuit. Economic interaction in a specific market cannot be considered a zero-sum game." In the case of emerging markets such as India, China, Mexico, Indonesia and others, "participation and integration in the global financial system makes sense," in particular with a view to the productivity and growth-generating role that these markets have in the world economy.
He considers that in the short-term direct government support and recapitalization can help banks and institutions continue their function as the mechanism that pumps capital throughout the global economy, and it seems already unavoidable. However, the key is, at the end of the day, to face the reality of the newly emerging global financial system of the XXI century, not to try and "put the genie back in the bottle" by returning to the model of the 1990s, and jumpstart the new, inclusive financial order that could accelerate the recovery and sustain growth.
Some emerging market governments have introduced "special enforcement and monitoring bodies to supervise the use of the funding by the banks, to ensure that the funds are spent exactly for the purposes required by the government, i.e. alleviation of the fallout from the credit crunch on businesses and the population." In particular, his view is that "the banks' shareholders and management will have to share the responsibility and the burden -- there should be no rewards for failure." In the case of Kazakhstan, he noted that "the State refrained from direct nationalization of the banks; rather the government is only offering to buy stakes in banks leaving them with the choice to accept or decline additional capital infusion in return for equity stakes."
Government financial packages to "ensure the stability of the financial system by propping up the banks for the duration of the crisis will need to be complemented with comprehensive strategies to support growth," Dr. Mirtchev told Mergermarket. "The financial sector's malaise cannot be realistically resolved just on the basis of government funding. The market and private investors would need to be engaged."
At the same time, Dr. Mirtchev argues that a number of the rapidly developing economies have better chances of pulling out of the crisis than some of the mature economies. He said that "due to numerous factors, emerging markets are much easier to micro-manage. With the right political vision and will, they should be able to move past the short-term tactics to the long-term necessity of modernization, productivity and competitiveness." He notes that unlike for example U.S. and Japan, many of the emerging markets enjoy the recent hard-won experience of successful privatizations. Therefore, their governments know quite well when and how to exit the companies. He considers that emerging markets would also be better served by preserving their openness to the global economy. "They know that being part of the international financial system exposes them to global shocks. However, they should not forget that this same openness brought them ten years of booming foreign direct investments that generated an unprecedented level of economic growth," Mirtchev indicated.
Dr. Mirtchev is President of Krull Corp., a Washington-based consultancy. He is also an independent director of Samruk-Kazyna National Welfare Fund of Kazakhstan, and serves as senior economic adviser to the country's Prime Minister.
To read the entire interview with Dr. Mirtchev in Mergermarket, visit http://www.mergermarket.com/.
About Krull Corporation:
Krull Corporation is a Washington, D.C.-based advisory and project management firm with expertise in dealing with economic growth, industrial expansion and restructuring issues. Founded by Dr. Alexander Mirtchev in 1992, Krull Corporation capitalizes on his extensive professional experience in market developments and reforms and focuses primarily on emerging and transitional economies. Over the years, the firm has provided its clients with outstanding strategic guidance and professional services in various areas. Combining a unique blend of global reach and understanding of local markets, Krull is able to consistently produce high quality results and returns.
Contact:
Contact:
George Atallah
Qorvis Communications
202-680-0238
Monday, January 5, 2009
Profit Foodservice - BRIC Industry Guide Incorporates in-Depth Five Forces Competitive Environment Analysis
DUBLIN, Ireland--(Business Wire)--
Research and Markets
has announced the addition of the "Profit Foodservice - BRIC (Brazil, Russia, India, China) Industry Guide" report to their offering.
"Profit Foodservice Industry Guide" is an essential resource for top-level data and analysis covering the BRIC (Brazil, Russia, India, China) Profit Foodservice industry. The report includes easily comparable data on market value, volume, segmentation and market share, plus full five year market forecasts. It examines future problems, innovations and potential growth areas within the market.
Scope of the Report
* Contains an executive summary and data on value, volume and segmentation
* Provides textual analysis of the industry's prospects, competitive landscape and profiles of the leading companies
* Compares data from Brazil, Russia, India, and China, alongside individual chapters on each country.
* Includes a five-year forecast of the industry
Highlights
* The BRIC Profit Foodservice market grew by 6.7% between 2003 and 2007 to reach a value of $67.6 billion.
* In 2012, the market is forecast to have a value of $ billion, an increase of 9.4% from 2007.
* India was the fastest growing country with a CAGR of 8.3% over the 2003-2007 period.
Why you should buy this report
* Spot future trends and developments
* Inform your business decisions
* Add weight to presentations and marketing materials
* Save time carrying out entry-level research
Key Topics Covered:
* CHAPTER 1 Introduction
* CHAPTER 2 BRIC PROFIT FOODSERVICE INDUSTRY OUTLOOK
* CHAPTER 3 PROFIT FOODSERVICE IN BRAZIL
* CHAPTER 4 PROFIT FOODSERVICE IN RUSSIA
* CHAPTER 5 PROFIT FOODSERVICE IN INDIA
* CHAPTER 6 PROFIT FOODSERVICE IN CHINA
* CHAPTER 7 Appendix
* List of Tables
* List of Figures
For more information visit
http://www.researchandmarkets.com/research/f7c755/profit_foodservice
Source: Datamonitor
Laura Wood
Senior Manager
press@researchandmarkets.com
Fax from USA: 646-607-1907
Fax from rest of the world: +353-1-481-1716
Copyright Business Wire 2009
Research and Markets
has announced the addition of the "Profit Foodservice - BRIC (Brazil, Russia, India, China) Industry Guide" report to their offering.
"Profit Foodservice Industry Guide" is an essential resource for top-level data and analysis covering the BRIC (Brazil, Russia, India, China) Profit Foodservice industry. The report includes easily comparable data on market value, volume, segmentation and market share, plus full five year market forecasts. It examines future problems, innovations and potential growth areas within the market.
Scope of the Report
* Contains an executive summary and data on value, volume and segmentation
* Provides textual analysis of the industry's prospects, competitive landscape and profiles of the leading companies
* Compares data from Brazil, Russia, India, and China, alongside individual chapters on each country.
* Includes a five-year forecast of the industry
Highlights
* The BRIC Profit Foodservice market grew by 6.7% between 2003 and 2007 to reach a value of $67.6 billion.
* In 2012, the market is forecast to have a value of $ billion, an increase of 9.4% from 2007.
* India was the fastest growing country with a CAGR of 8.3% over the 2003-2007 period.
Why you should buy this report
* Spot future trends and developments
* Inform your business decisions
* Add weight to presentations and marketing materials
* Save time carrying out entry-level research
Key Topics Covered:
* CHAPTER 1 Introduction
* CHAPTER 2 BRIC PROFIT FOODSERVICE INDUSTRY OUTLOOK
* CHAPTER 3 PROFIT FOODSERVICE IN BRAZIL
* CHAPTER 4 PROFIT FOODSERVICE IN RUSSIA
* CHAPTER 5 PROFIT FOODSERVICE IN INDIA
* CHAPTER 6 PROFIT FOODSERVICE IN CHINA
* CHAPTER 7 Appendix
* List of Tables
* List of Figures
For more information visit
http://www.researchandmarkets.com/research/f7c755/profit_foodservice
Source: Datamonitor
Laura Wood
Senior Manager
press@researchandmarkets.com
Fax from USA: 646-607-1907
Fax from rest of the world: +353-1-481-1716
Copyright Business Wire 2009
GXS Acquires Brazilian B2B Company "Interchange Servicos S.A."
GXS, one of the leading companies providing B2B e-commerce empowerment, announced in a press release that it has acquired one of Brazil's largest domestic providers of electronic data interchange (EDI) services, Interchange Servicos S.A.
The move enhances the market presence of GXS in the Brazilian B2B managed services space, as Interchange Servicos services over 450 large financial customers domestically, over 50 of them among the largest banks in the country.
GXS acquired the business from Banco Real, Citibank Brazil, EDS, an HP company, and Itau Unibanco.
The move enhances the market presence of GXS in the Brazilian B2B managed services space, as Interchange Servicos services over 450 large financial customers domestically, over 50 of them among the largest banks in the country.
GXS acquired the business from Banco Real, Citibank Brazil, EDS, an HP company, and Itau Unibanco.
Saturday, January 3, 2009
Emerging Economies to Defy Financial Meltdown, According to Oxford Economics Report
Developed nations across the world might have been into recession, but emerging market economies, including India, will continue to grow though with clear signs of a slowdown, says a report.
According to the report by global economic research firm Oxford Economics, "The BRIC economies would continue to grow, but there would be a clear downturn. China is now forecast to grow by about 7 per cent in 2009, its lowest since 1990, and India is seen slowing to about 5 per cent."
Growth rate of 5-7 per cent looks significant amid the present scenario when the world GDP is expected to remain very weak in 2010, posting growth of just 0-1 per cent after the decline of 0.4 per cent in 2009, Oxford Economics said.
However, significant decline in major economies across the world, would have an adverse impact on the emerging markets, with even China and India suffering further slowdown as the world trade failed to recover, the report said, adding that "all of the major developed economies would post growth of little better than zero in 2010".
"Despite the aggressive monetary and fiscal easing, the U.S., the Eurozone, Japan and the U.K. are all now seen contracting by around 2 per cent in 2009," the report said.
These declines would certainly add to the threat of deflation, quite possibly prompting an even more aggressive monetary and fiscal policy response, Oxford Economics said and added that this in turn would add significantly to the chances of a period of higher inflation from 2011-12.
However, inflation is considered to be the traditional escape route from excessive debt and would guard against a repeat of the 1930's depression, the report added.
The slowdown in emerging market economies is largely because trade finance has dried up, capital inflows are dwindling and rolling over short-term debt has becomes more difficult.
The emerging countries, already being hit hardest because of slower world trade, are those that have been heavily dependent on exports for growth, such as South Korea, Taiwan and Hungary. The BRIC economies should be less affected given their stronger growth in domestic demand, but even China and India have relaxed policy quite aggressively in order to support their flagging economies.
Besides, the strong U.S. dollar has reversed corporate hedging strategies at the same time as investors are dumping emerging market assets. This has led to much higher emerging market spreads and, in an increasing number of cases, the need for emergency IMF funding, the report said.
The global financial situation remains fragile and there are still risks as stock markets remain volatile and house prices are still in decline in many countries, so the slide into recession will continue, Oxford Economics said.
As the major developed economies are all expected to contract next year and aggregate growth in the emerging markets slowing, the world GDP is seen shrinking 0.4 per cent in 2009, the first drop since the Second World War, the report said.
Meanwhile, the slowdown in world economies and lower commodity prices would result in a rapid decline in inflation.
As oil price is down around 70 per cent from their peak in July last year, inflation in the major economies would continue to fall steeply this year, reinforcing the prospect of further interest rate cuts in the U.K., the Eurozone and in many emerging markets, the report said.
"In the short term, the threat of deflation is now a serious one," it said.
According to the report by global economic research firm Oxford Economics, "The BRIC economies would continue to grow, but there would be a clear downturn. China is now forecast to grow by about 7 per cent in 2009, its lowest since 1990, and India is seen slowing to about 5 per cent."
Growth rate of 5-7 per cent looks significant amid the present scenario when the world GDP is expected to remain very weak in 2010, posting growth of just 0-1 per cent after the decline of 0.4 per cent in 2009, Oxford Economics said.
However, significant decline in major economies across the world, would have an adverse impact on the emerging markets, with even China and India suffering further slowdown as the world trade failed to recover, the report said, adding that "all of the major developed economies would post growth of little better than zero in 2010".
"Despite the aggressive monetary and fiscal easing, the U.S., the Eurozone, Japan and the U.K. are all now seen contracting by around 2 per cent in 2009," the report said.
These declines would certainly add to the threat of deflation, quite possibly prompting an even more aggressive monetary and fiscal policy response, Oxford Economics said and added that this in turn would add significantly to the chances of a period of higher inflation from 2011-12.
However, inflation is considered to be the traditional escape route from excessive debt and would guard against a repeat of the 1930's depression, the report added.
The slowdown in emerging market economies is largely because trade finance has dried up, capital inflows are dwindling and rolling over short-term debt has becomes more difficult.
The emerging countries, already being hit hardest because of slower world trade, are those that have been heavily dependent on exports for growth, such as South Korea, Taiwan and Hungary. The BRIC economies should be less affected given their stronger growth in domestic demand, but even China and India have relaxed policy quite aggressively in order to support their flagging economies.
Besides, the strong U.S. dollar has reversed corporate hedging strategies at the same time as investors are dumping emerging market assets. This has led to much higher emerging market spreads and, in an increasing number of cases, the need for emergency IMF funding, the report said.
The global financial situation remains fragile and there are still risks as stock markets remain volatile and house prices are still in decline in many countries, so the slide into recession will continue, Oxford Economics said.
As the major developed economies are all expected to contract next year and aggregate growth in the emerging markets slowing, the world GDP is seen shrinking 0.4 per cent in 2009, the first drop since the Second World War, the report said.
Meanwhile, the slowdown in world economies and lower commodity prices would result in a rapid decline in inflation.
As oil price is down around 70 per cent from their peak in July last year, inflation in the major economies would continue to fall steeply this year, reinforcing the prospect of further interest rate cuts in the U.K., the Eurozone and in many emerging markets, the report said.
"In the short term, the threat of deflation is now a serious one," it said.
Emerging-Market Stocks Sink in 2008, May Rebound on BRICs Rally
Emerging-market stocks fell the most ever last year and investors are looking for Brazil, Russia, India and China to lead a reversal in 2009.
The global economic slowdown and slump in commodity prices sent the MSCI Emerging Markets Index tumbling 54 percent in 2008, compared with a 38 percent drop in the Standard & Poor’s 500 Index and a 42 percent loss in the MSCI World Index. Developing- nation stocks are trading near their cheapest levels in a decade.
Read more on 2009 BRIC rally
The global economic slowdown and slump in commodity prices sent the MSCI Emerging Markets Index tumbling 54 percent in 2008, compared with a 38 percent drop in the Standard & Poor’s 500 Index and a 42 percent loss in the MSCI World Index. Developing- nation stocks are trading near their cheapest levels in a decade.
Read more on 2009 BRIC rally
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