Sector - Risk Management

Risk, reward and reports

Treasurers are being asked to hone in on risk management as well as their more traditional areas of expertise. There are tools that can help ease this increased workload, writes Liz Salecka.

Drugs and NPLs: a view from Moscow

Evgeny Gavrilenkov, chief economist at Troika Dialog, explains why the non-perfoming loan 'crisis' in Russia may not be such a crisis after all, and uses a new poll on drug addiction in Russia to support his intriguing argument.

UBA appoints new executive director

The board of The United Bank for Africa has appointed Alhaji Bello as executive director with supervisory responsibilities for the bank’s interstate transaction business. The appointment is subject to the confirmation of the Central Bank of Nigeria.

Latvian PM to axe government spending

The newly-appointed prime minister of Latvia, Valdis Dombrovskis, says his government is prepared to cut government spending by up to 40% in order to reduce the budget deficit and meet IMF austerity measures.

WSE to launch municipal and corporate bond trading

The Warsaw Stock Exchange is to launch trading in municipal and corporate bonds this year, says the exchange's CEO.

GCC insurance industry picks up speed

As international business continues its steady stream into the Gulf Cooperation Council (GCC) area, growth in the region’s insurance markets is accelerating, writes Kevin Godier.

The six GCC states have experienced breathtaking economic growth in recent years, witnessed by an estimated total of US$1.25tn of public and private projects planned or underway. As the level of insurable assets continues to rise, the world’s largest brokers and underwriters are keenly eyeing the opportunities.
 

Turkey: No longer the sick man of Europe

The once crisis-prone Turkish economy is in relatively good health, compared to its CEE neighbours. An IMF package would help, but the government is in no rush, reports Eva-Luise Schwarz.

Latvia not going the way of Iceland, says central bank governor

The governor of the Bank of Latvia, Ilmārs Rimšēvičs, says he is confident that Latvia is not going the way of Iceland. “The short-term debt of Iceland is twice as high as the total gross external debt of Latvia. Moreover, half of the banks’ short-term debt is in fact long-term”, he told an investor conference in London on November 4.

Dubai real estate: trouble in paradise

The real estate projects in Dubai get ever bigger and more extravagant. But an investigation into corruption and concerns over liquidity are threatening the market’s image. Will Rankin and Julian Evans report.

In September, the doors were opened at the Atlantis Hotel, the latest eye-popping real estate development in Dubai. Guests at the US$1.5bn development can eat at Michelin-starred restaurants, stay in suites that cost up to US$25,000 a night, or ride on water-slides through shark-infested lagoons.

From Strength to Strength - Sponsored Statement

Ansher Holding has expanded from its roots as the first western-style investment bank in Uzbekistan, to become a multinational player, with offices in Singapore, UK, Switzerland, UAE and elsewhere, and a diversified pool of product offerings. The chairman of the board of directors of Ansher Holding, Anvar Rasulev, tells us about the company’s plans.

The return of distressed debt

At the end of September, Seychelles announced it was defaulting on its US$800mn of external debt, in the first sovereign default for two years. Experts agree that more defaults are coming in EMEA sovereign and corporate debt, and some funds are poised to take advantage of distressed debt situations.

On September 30, the tiny archipelago of Seychelles, with a population of just 80,000, suddenly seized the attention of emerging market investors, when the government announced it was defaulting on its US$800mn of external debt.

Riding the MENA wave

Egypt’s reformist government is grappling with the dilemma of fighting inflation while cutting a growing deficit. However, in the capital markets, Egyptian companies are expanding and becoming MENA regional champions. Julian Evans reports from Cairo.

In 2004, after a decade of poor economic performance, President Mubarak appointed a new government, headed up by Ahmed Nazif, the youngest-ever prime minister of Egypt. Nazif brought in a cabinet of liberal reformers – some from the private sector, such as Rasheed Mohamed, minister of trade and industry, who was formerly CEO of Unilever in Egypt; some from multilaterals, such as Youssef Boutros Ghali, formerly of the IMF; and some from academia, such as Mahmood Mohieldin, minister of investment, who was formerly an economics professor at the University of Cairo, where Nazif also formerly worked.

State takes the lead in Kazakh banking sector

Kazakhstan’s beleaguered banking sector is getting back on its feet, thanks to increased activity by state banks, and growing levels of FDI, report Shayla Walmsley and Julian Evans.

“It’s been a fascinating ride – to see Kazakh banks go from CIS darling to whipping boy,” says Ian McCall, a director at Argo Capital Management.
For several years, the Kazakh banking sector enjoyed a reputation as the best banking sector in the former Soviet Union. It was mainly privately-owned, well-regulated and relatively transparent.
The top Kazakh banks took advantage of their great reputation to borrow abroad. And how they borrowed. At the end of Q1 2008, overseas debt represented 45% of the sector’s liabilities. In 2006 alone, Kazakh banks borrowed US$18bn on the external debt market.

Mohammad El-Erian: Save the IMF, Save the World Economy

Mohammad El-Erian is co-CEO of Pimco, the largest bond investor in the world. A former deputy director of the IMF, and world expert on emerging markets, El-Erian here writes exclusively for emeafinance on why a reformed IMF has a critical role to play in saving the global economy from its present crisis.

There is a clear need for a global solution to the present economic crisis. The global solution calls essentially for countries to implement specific measures in a coordinated and simultaneous fashion in the context of a ‘shared responsibility’.

Is Libya really open for business?

For decades Libya was a ‘pariah’ state, shunned by the international community. In 2004 the doors were flung open and foreign investors were enticed in, promises were made, contracts signed, hopes raised. Four years on however it appears that inertia and backtracking by the Gaddafi administration has set in. Was it all too good to be true after all, asks Nicholas Noe.

For some observers, 2007 seemed to offer proof that Libya had indeed finally turned a corner to embrace foreign direct investment and economic openness as its primary, inextricably linked national goals.