Banque de France chief points to default risks
PARIS (AFP) – France’s central bank chief warned yesterday that the eurozone risks having to finance all of Greece’s economy if it forces a modification of Athens’s debt and the country is declared in default. France has been a leading backer of the European Central Bank, which has opposed calls by Germany for pushing private investors to accept delayed payment on Greek government bonds as part of a second bailout for the troubled eurozone member. “If a solution can be found that avoids the risk of a default, that would be acceptable to us,” said Banque de France Governor Christian Noyer. “If one can’t be found and you touch the debt anyway and provoke a default or a ‘credit event,’ then you better be prepared to finance the entire Greek economy,” he added. A credit event is considered to be a modification of initial borrowing conditions and usually triggers downgrades if not a default rating by credit agencies. said on its website yesterday. That compares with a peak of 130.2 billion euros in July. Spanish banks have been using ECB funds as contagion from the sovereign debt crisis pushes up borrowing costs for the government and companies. Francisco Gonzalez, chairman of Banco Bilbao Vizcaya Argentaria SA, Spain’s second-largest lender, said yesterday Spain “continues to be a cause for concern” for the bank’s creditors.
(Bloomberg) will begin building the Ford B-Max model beginning next year in Craiova, Romania, Nenzen said. The company will also begin producing fuel-efficient 1-liter EcoBoost engines in 2012 as the company invests more than 675 million euros in Romania. (Bloomberg) cling of nuclear fuel, and new nuclear facilities in Bulgaria. Bulgaria has an established nuclear program dating back 35 years. Nuclear energy accounts for a third of the nation’s electricity generation. (AP) stabilize over the next six to 12 months, although the pace of recovery in the banks’ stand-alone credit strengths will vary widely across the region,” the report said. The banking industries of Azerbaijan and Uzbekistan were also upgraded to a “stable” outlook, Moody’s said. “Overall, for the stronger performing banking systems, we expect that healthy credit growth and earnings generation will be underpinned by broad-based economic expansion for some – Turkey and Poland in particular – and by an exportdriven recovery for others,” the report said. The remaining banking industries in the region “face significant challenges that will constrain the pace of their recovery,” it said.