Sector and insolvency review winter 2012Sarah Duggan
The latest edition of the Sector and Insolvency Review takes a look at the insolvency market in 2012, comments on the market as a whole since 2009 and provides an insight into our expectations for 2013.
Irish State Finances and Funding Clearer then 6 months agoollie100
Government finances and banks
Irish state's funding outlook clearer
than it was six months ago.
Irish state's funding 85% complete for 2009; net debt has to be the focus in future years thanks to NAMA
• The Irish state has already met 85% of its long-term debt issuance targeted for 2009. That compares with a euro area average of about 60% year-to-date.
• General government debt will of course spike when NAMA is set up, but that will no longer be a meaningful metric. NAMA will contain billions in written-down assets to offset against the government paper issued to the banks. Net debt will rise only to the extent that NAMA fails to realise value over time. Initial banking re-cap burden for the state is lower than many believe as government is no longer the only capital provider
• We estimate that initial re-cap costs for the Irish banking system will amount to €19bn. Net of 'self help' measures, in particular debt buybacks, the government may need to contribute €14.6bn, of which it has already
accounted for €11bn.
• However, if Allied Irish Banks and Bank of Ireland can raise equity from their shareholders or through disposals (e.g. Poland), the ultimate figure will be lower than this. NAMA RWA relief is often overlooked too, although this benefit is illusory as state may have to fund a 'second loss'
• Moving €80bn of loans across to NAMA at a 20% haircut provides a significant risk-weighted asset (RWA) benefit for the banks, which also reduces the initial recap burden on the state.
• However, this 'saving' is offset by an unrealised loss sitting in NAMA of at least €4bn and probably much more. Whether the state has to fund this is dependent on how aggressively NAMA works out its positions, market conditions and the timing/magnitude of any future levy on the banks.
*2012 Fundraising overview
*2013 Funds expected and LP commitment plans
*Buyout and venture deal-making review
*Exits: a round-up of trade sales, secondary buyouts and IPOs
*Views from the industry
Sector and insolvency review winter 2012Sarah Duggan
The latest edition of the Sector and Insolvency Review takes a look at the insolvency market in 2012, comments on the market as a whole since 2009 and provides an insight into our expectations for 2013.
Irish State Finances and Funding Clearer then 6 months agoollie100
Government finances and banks
Irish state's funding outlook clearer
than it was six months ago.
Irish state's funding 85% complete for 2009; net debt has to be the focus in future years thanks to NAMA
• The Irish state has already met 85% of its long-term debt issuance targeted for 2009. That compares with a euro area average of about 60% year-to-date.
• General government debt will of course spike when NAMA is set up, but that will no longer be a meaningful metric. NAMA will contain billions in written-down assets to offset against the government paper issued to the banks. Net debt will rise only to the extent that NAMA fails to realise value over time. Initial banking re-cap burden for the state is lower than many believe as government is no longer the only capital provider
• We estimate that initial re-cap costs for the Irish banking system will amount to €19bn. Net of 'self help' measures, in particular debt buybacks, the government may need to contribute €14.6bn, of which it has already
accounted for €11bn.
• However, if Allied Irish Banks and Bank of Ireland can raise equity from their shareholders or through disposals (e.g. Poland), the ultimate figure will be lower than this. NAMA RWA relief is often overlooked too, although this benefit is illusory as state may have to fund a 'second loss'
• Moving €80bn of loans across to NAMA at a 20% haircut provides a significant risk-weighted asset (RWA) benefit for the banks, which also reduces the initial recap burden on the state.
• However, this 'saving' is offset by an unrealised loss sitting in NAMA of at least €4bn and probably much more. Whether the state has to fund this is dependent on how aggressively NAMA works out its positions, market conditions and the timing/magnitude of any future levy on the banks.
*2012 Fundraising overview
*2013 Funds expected and LP commitment plans
*Buyout and venture deal-making review
*Exits: a round-up of trade sales, secondary buyouts and IPOs
*Views from the industry
Agcapita is Canada's only RRSP and TFSA eligible farmland fund and is part of a family of funds with over $100 million in assets under management. Agcapita believes farmland is a safe investment, that supply is shrinking and that unprecedented demand for "food, feed and fuel" will continue to move crop prices higher over the long-term. Agcapita created the Farmland Investment Partnership to allow investors to add professionally managed farmland to their portfolios.
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
Agcapita is Canada's only RRSP and TFSA eligible farmland fund and is part of a family of funds with over $100 million in assets under management. Agcapita believes farmland is a safe investment, that supply is shrinking and that unprecedented demand for "food, feed and fuel" will continue to move crop prices higher over the long-term. Agcapita created the Farmland Investment Partnership to allow investors to add professionally managed farmland to their portfolios.
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
1. www.davy.ie
Bloomberg: DAVY<GO>
Research: +353 1 6148997
Davy Research
Institutional Equity Sales: +353 1 6792816
January 21, 2009
Research Report: Irish economy
Rossa White
rossa.white@davy.ie +353 1 6148770
Irish government finances
State still has lots of options despite
recent hysteria
Government debt service cost % of tax revenue
40%
Anglo Irish Bank is not on the government's balance sheet
35%
• Anglo Irish Bank is now a commercial semi-state
30%
25%
company. This is crucial from an EU/Maastricht
20%
perspective: it means the bank is not on the Irish
Debt service burden half
15% of what it was in 1980s
government's balance sheet.
10%
5%
• As a result, the gross debt (and by extension the debt to
0%
1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010F
GDP ratio) of the Irish government is unaffected by the
nationalisation of Anglo at this point in time.
• Of course, any future capital injections into Anglo or
other funds required to meet losses with recourse to
borrowing would raise gross government debt.
Potential banking losses are creating government funding
concerns, but the government has bought time and has
plenty of options
• Irish government bonds have fallen in price in recent
months as the market questions whether the state can
meet the ultimate losses from the banking system's
troubled property and business loans.
• Ireland's gilts are now yielding 230 basis points more
than German bunds, and its credit default swaps are
trading even wider than the cash spreads.
• But the government has many options: it built up a
€20bn cash balance (11.5% of GDP) at end-2008 and
issued a €6bn bond on January 8th 2009. The National
Pensions Reserve Fund (NPRF) can be liquidated to raise
a further €15bn and public spending can be cut.
Low initial debt means ability to pay not an imminent issue
• Note that the state started from a good position: the debt
to GDP ratio was 41% at end-2008 (or 32% excluding
the assets of the NPRF). Nominal yields are still low. As a
result, the share of tax revenue required to meet debt
repayments will be way lower than in the 1980s, taking
into account massive deficits in 2009 and 2010.
Please refer to important disclosures at the end of this report.
Davy is regulated by the Financial Regulator and is a member of the Irish Stock
Exchange and London Stock Exchange. Davy is authorised by the Irish Financial
Regulator and regulated by the Financial Services Authority for the conduct of
business in the UK. All prices as of close of previous trading day unless
otherwise indicated. All authors are Research Analysts unless otherwise stated.
For the attention of US clients of Davy Securities, this third-party research
report has been produced by our affiliate, J & E Davy.
2. Research Report: Irish government finances January 21, 2009
Anglo Irish Bank is not on the government's
balance sheet: its nationalisation does not raise
Irish gross debt at this point in time
The nationalisation of Anglo is off- Anglo Irish Bank is now a commercial semi-state company like the
balance sheet: it does not raise Irish Electricity Supply Board (ESB) and Bord Gais. This means that it is not
gross government debt
part of General Government (all arms of the state except commercial
companies with majority state control), which is the crucial variable
from the EU point of view under the Maastricht treaty. So, as it stands
today, the nationalisation of Anglo does not increase the gross General
Government debt of the country and the debt/GDP ratio.
Note that there are lots of EU statistical nuances regarding how Anglo
may affect the government's balance sheet and annual deficit over time.
If, in the future, it was decided by Eurostat (the EU's statistical body)
that it is not (no longer) a commercial entity and was actually part of the
General Government sector, all of Anglo’s liabilities (i.e. deposits and
senior/subordinated debt) would then count towards Ireland’s
government debt – doubling it at a stroke. Under the rules, netting off
its assets would not be allowed as it is gross debt (not net debt) that
counts from a Maastricht perspective.
It is hard to judge at what point the EU could decide that Anglo is no
longer “commercial”. The EU will introduce more rules for this across
Europe in a paper shortly: Northern Rock was the test case. But if Anglo
morphs into a management company for troubled assets, its designation
may well change.
Depending on write-offs and capital injections, Anglo may yet raise
the government's debt level
Capital injections would count as
Even if it stays off the government’s balance sheet, Anglo could of course
expenditure and raise the General
affect either the General Government deficit or the gross debt of the
Government deficit, unless seen by
country in other ways. Capital injections or debt write-offs would raise
the EU as an quot;investmentquot;
the deficit because it would be counted as government expenditure.
There is only one exception: a capital injection seen as an investment
would be considered a financial transaction rather than government
expenditure. Unfortunately, this may not pass the test in Anglo’s case.
Gross debt would also rise if this expenditure (capital injection, funds to
meet losses) has to be borrowed through government bond issuance. But
we could avoid lifting gross debt by tapping the National Pensions
Reserve Fund (NPRF).
Total long-term funding needs (excluding funds for bank
recapitalisation) for 2009 total about €20bn after successful five-
year bond auction
Ireland is going to run a significant fiscal deficit in 2009 and 2010.
From the EU's perspective, it is the General Government deficit that
matters. It is likely to reach at least €21bn both this year and next. A
five-year government bond is also due to be redeemed in April. In total,
therefore, long-term funding needs heading into 2009 totalled about
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3. Research Report: Irish government finances January 21, 2009
€26bn for the calendar year – excluding any funds needed for bank
recapitalisation.
Importantly, the National Treasury Management Agency (NTMA, the
Ireland had the most successful
Irish government's debt manager) successfully raised €6bn in five-year
bond issue in euro area history two
money on January 8th. It was the biggest auction in the history of the
weeks ago
euro area. The yield was low in absolute terms at 4.06%.
The salient point is that almost 25% of the year's long-term funding was
sorted within the first week of the year. That was an important
achievement, considering a failed German bund auction the previous
day and in the context of unprecedented government bond issuance in
the euro area slated for 2009.
Clearly, potential funding needs for the next number of years may
increase depending on future developments or policy decisions made
with regard to the Irish banking system. As some sort of (but by no
means definitive) guide to Irish prospects, Table 1 provides some
sensitivity analysis of the cost of recapitalising banks in Sweden and
Finland after their property crash in the early 1990s.
Table 1: Irish banking crisis costs based on Scandinavian 1990s experience
Finland Sweden Norway
Recapitalisation cost (gross, as % of GDP) 8.6 1.9 2.6
Applied to 2008 Irish nominal GDP (€bn) €16.1 €3.5 €4.9
Source: International Monetary Fund; Davy
Irish government has lots of leeway and many options: solvency
crisis is a low probability event
Fortunately, Ireland's government debt was low coming into this
recession and banking crisis. At the end of 2008, gross government debt
stood at €76.3bn – a debt to GDP ratio of 41%.
But that exaggerates the debt burden at the end of last year. It included
€20bn in cash, financed by commercial paper issuance in the second half
of 2008. That means the government has bought itself a lot of leeway
with its cash cushion heading into 2009. It means that it can easily meet
any funding needs caused by unforeseen events or a sudden crisis.
The government debt repayment The risk of Ireland not being able to meet ongoing debt repayments over
burden will still be much lower the next few years is very low. Note here that the share of tax revenue
than in the 1980s, taking into
accounted for by debt service is far lower than during the crisis period in
account massive deficits in 2009
the late 1980s. In 1985, debt service accounted for 35.2% of tax
and 2010
revenue. But, as we noted above, the starting position is better this time.
The absolute debt level is lower and, moreover, nominal interest rates
(bond yields) are nowhere near as high as they were 25 years ago. This
year the share of tax revenue taken up by government debt service will be
12-15%, rising to at least 17-20% in 2010 (including some leeway for
banking hits).
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4. Research Report: Irish government finances January 21, 2009
Figure 1: Government debt service cost as % of tax revenue
40%
35%
30%
25%
20%
Debt service burden half
15%
of w hat it w as in 1980s
10%
5%
0%
1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010F
Source: Department of Finance; Davy
The Irish government has lots of But the market seems less worried by day-to-day interest repayments and
cash-raising options in the event of more by the ability to raise significant funds in one chunk to meet losses
major short-term requirements,
from the banking system. In this context, the Irish government has
including liquidation of pensions
plenty of options:
fund and deep spending cuts
The most favourable solution is that normal funding continues via
government bond issuance. Note that the absolute level of five-year
Irish bond yields (at 4.45%) are where they were five months ago,
despite the widening spread between Ireland and Germany, due to the
rally in bond markets. If Ireland has to pay a premium over the next
few years, so be it. The government may well attempt to pre-fund
significantly in the first half of 2009 on top of the cash already raised
last year.
Alternatively, the NTMA can make further use of its commercial
paper programme (maturity of up to one year), with capacity to
increase the current €20bn outstanding. Issuer yield levels are
exceptionally low (1.5%), and investor demand remains firm as cash
hoarding predominates.
It can liquidate the NPRF. This contained about €15bn in liquid
assets at the end of 2008 (the rest is private equity/property).
Ultimately, the fund was Ireland's only counter-cyclical policy measure
during the boom years. The government added 1% of GNP per
annum to the NPRF. The fund can easily be used in current
circumstances to relieve any potential funding stress (albeit that it is
likely to be hard to realise €15bn if assets are sold quickly while equity
markets remain weak).
Note that the government has still budgeted for 1% of GNP to be put
into the fund out to 2013. That commitment should be waived
temporarily, providing €1.5bn in extra cash over the next couple of
years.
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5. Research Report: Irish government finances January 21, 2009
Public sector pay cuts can generate significant savings. Given the
economic crisis facing the country, everything must be on the table. If
the pay bill is cut by 10%, it would generate €2bn in savings.
However, it is also necessary to look at the pensions issue.
Ultimately, the tax base was hollowed out in recent years. The system
became too dependent on expenditure/transaction taxes. As a result,
tax revenue has dropped much more quickly than nominal GNP. If
circumstances become much more difficult, taxes could be raised. But
we would not advise this course of action as it would greatly exacerbate
the recession and damage Ireland's competiveness.
Many forget that the country is set to spend at least €8bn (5%+ of
GNP) on capital projects each year until 2013. This year's deficit
would be only 7% of GDP rather than 11.5% if infrastructure projects
were shelved entirely. We would only advocate cutting the
infrastructure programme as a last resort because Ireland's future
productivity and living standards are at stake. But it is another option:
the long term is tomorrow in current financial markets.
Davy Research
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