World Bank position filled
The World Bank on Friday named Cai Jinyong (蔡金勇), a Chinese national who worked for Goldman Sachs, to head its private-sector investment arm, placing a candidate from an emerging market country in a key post at the global development lender. The World Bank said it had picked Cai to be executive vice president and chief executive of the International Finance Corp, which invested US$20 billion in private-sector projects in developing countries last year. He previously served as a managing director at Goldman Sachs Group, and was involved in Goldman’s management globally, IFC said in statement. Emerging market countries have long pushed to have more say in the selection process of the heads of the World Bank and the IMF. Cai’s appointment is the first post to be filled by new World Bank President Jim Yong Kim, since he assumed his position on July 1.
Renault announces job cuts
French automaker Renault said on Friday that a voluntary job cut plan at its struggling South Korean unit Samsung Motors could affect up to 80 percent of its staff, or almost 4,700 workers. Workers would be let go “on a voluntary basis, with severance pay of up to two years pay depending on seniority,” the spokeswoman said. Employees who agree to leave are also to get two years of education fees for children and other allowances. Renault had said earlier in the day in South Korea that it would offer some staff at the company voluntary retirement, but did not say how many might be affected. Renault Samsung Motors has seen its sales wilt under pressure from South Korea’s dominant Hyundai-Kia group.
Kingfisher reveals losses
Cash-strapped Kingfisher Airlines yesterday said quarterly losses more than doubled from a year earlier, fuelling fresh doubts about the future of the private Indian carrier. Net loss widened to 6.60 billion rupees (US$120 million) in the financial quarter to June from a loss of 2.63 billion rupees in the same period last year, as revenues slumped due to reduced operations. Kingfisher — which has never posted a profit since its launch in 2005 -— said it still hoped to “get recapitalized” and added it was “in discussion with several strategic and financial investors to bring in fresh capital”. The company, which is carrying a US$1.4 billion debt-load, did not identify the potential investors.
European crisis fund
Finnish Prime Minister Jyrki Katainen on Friday proposed creating a bank-financed European crisis fund to recapitalize ailing banks, as part of a three-pronged supervision mechanism.
In an interview conducted on Aug. 1 and published on Friday, Katainen proposed a single European banking supervisory authority, a joint banking crisis fund and a common deposit protection fund. “We should be able to build a system where banks cannot shake up entire countries. One solution, in addition to monitoring, could be a European bank crisis fund,” Katainen said. The fund’s resources would be collected from the banks, he said. Katainen said the central problem of the euro crisis was the connection between banks and states, and stressed the link needed to be broken.