Bailout
Central Bank of Cyprus supports bailout request
Central bank recognises need for European help to recapitalise Cypriot banks; commits to supporting efforts to finalise the bailout
EC staff to ‘step up’ work on Spanish banks assessment
Olli Rehn calls for staff to speed up assessment of Spanish banking sector; downgrade rumours swirl after official government request for financial assistance from the Eurogroup
ECB denies it rejected Spanish recapitalisation plan
European Central Bank denies it has refused Spanish authorities’ plans to recapitalise a major bank in the country; European Commission discusses direct disbursement to banks from ESM
BoE paper investigates banks’ implicit subsidies
Paper discusses models for attempting to quantify implicit subsidy available to banks via government bailout; estimates range from £30 billion to £120 billion
Bundesbank adamant on Greek reform programme
Monthly statement from Bundesbank says Greek access to aid should not be eased to avoid dampening of incentive to reform; EC’s Barroso sensitive to sacrifices made so far after meeting interim president
IMF paper quantifies structural subsidies for Sifis
Researchers from the International Monetary Fund estimate value of subsidies implied by expectations of government support for Sifis; find a sizeable cost advantage for these institutions
EFSF withholds funds as pressure increases on Greece
EFSF withholds €1 billion of emergency payout to Greece as voters revolt against austerity measures; ECB’s Nowotny warns time is running out
IMF resources set to rise by $430 billion
IMF to receive up to $430 billion in additional funding; fund stresses resources are “not earmarked” for any region in particular
Asmussen offers ECB's take on Irish path to recovery
Jörg Asmussen says Ireland has come a long way but still has work to do; expresses confidence further emergency support from eurozone will not be necessary
Lagarde hopes for progress on IMF resource increase
IMF managing director sets out hopes for Spring Meetings; wants to see increase in resources and emerging market representation reform agreements
Eurogroup boosts emergency funding facility
European finance ministers agree to combine two emergency financing vehicles currently running simultaneously in the eurozone; also add €500 billion to lending capacity
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’
Philippines reveals extent of lending to IMF
Central Bank of the Philippines announces shift in relationship with International Monetary Fund; holdings from the country have been used to support Ireland, Portugal and Greece
Mixed market response as Greece deal is proposed
Regional stock indexes show different impact as eurozone agrees on more bail-out funds for Greece; price of gold edged higher as euro rose after news broke
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
Stock markets react strongly to news about Greek bailouts, says Netherlands Bank paper
Netherlands Bank study says news about Greek bailouts rather than Greek fundamentals have a significant effect on bank stock prices
Bank bail-outs risk instability in emerging market economies: IMF paper
Fund study says emerging markets are at risk of creating further macroeconomic instability by injecting money into financial system
Ireland releases agreement on split of banking oversight responsibilities
Previously confidential memorandum of understanding between department of finance and central bank shows split of responsibilities; document forms part of bail-out programme
IMF concern over ‘critical juncture’ of programme in Greece
IMF rejects criticism of economic programme to date; highlights areas that need attention to ensure recovery
Greece may not opt for debt swap
Greek authorities say they will not agree to private-sector involvement unless 90% of eligible government bonds are included in transaction
IMF bailouts can raise risk of default: Buba paper
Bundesbank study says IMF loans, on average, increase the probability of default in developing countries
Belarus new chief hails from biggest state bank
Nadezhda Yermakova leaves Belarusbank to take over as head of the central bank
Fitch sees default ahead for Greece
Rating agency says Greece will default on its debt after European heads of state agree on €109 billion bailout plan for Greece with private sector involvement and more scope for EFSF assistance
Barroso confirms European finance ministers agree to EFSF fund rise
European Council set to meet in Brussels to discuss economic policy change and the Greek crisis; Barroso reveals finance ministers agree to raise European Financial Stability Facility fund