Sun, Jun 18, 2017 - Page 14 News List

World Business Quick Take

Agencies

STEEL

Jobs at risk in ILVA buy

A consortium led by global steel giant ArcelorMittal SA on Friday said the Italian authorities had cleared it to buy struggling steel producer ILVA, but thousands of jobs are threatened. The 1.8 billion euro (US$2.02 billion) deal would see ArcelorMittal join forces with Italy’s Marcegaglia to snap up the heavily indebted company, one of the most polluting industrial sites in Europe. ILVA has 14,000 employees, of whom 11,000 work at its site in Tarente. In a statement, ArcelorMittal said it would undertake “to keep at least 10,000 employees for the entire duration of the industrial plan according to the outcome of negotiations with the unions.”

SPAIN

Banks may return only 28%

The nation might only retrieve 28 percent of the multi-billion-euro aid granted to banks, the central bank said on Friday, despite past government pledges that it would not cost “one euro” to the taxpayer. In total, more than a dozen Spanish banks received 76.14 billion euros in capital injections and financial guarantees as the sector struggled under the weight of the worldwide financial crisis and property bubble burst in 2008. The capital injections were implemented via FROB, the state’s bank restructuring fund, which injected 54.35 billion euros. However, 39.5 billion euros might never be paid back, the central bank said.

CANADA

‘Bail-in’ may be extended

The Department of Finance on Friday proposed new rules limiting government support for potential bailouts of the nation’s banks, extending a so-called “bail-in regime” promised last year. The government in April last year introduced in its budget a plan to implement a bail-in regime for Canada’s “systemically important banks,” which would allow authorities to convert securities of a failing lender into common shares to recapitalize the bank and let it remain open and operating. The proposed rules set out key features of the regime, including which type of debt instruments would be subject to the regulations. The government is seeking public comment until July 17.

RUSSIA

Interest rate cut by 0.25%

The central bank on Friday cut its key interest rate by 25 basis points and pledged further cautious monetary policy easing this year against a slightly better economic outlook. It trimmed the key rate to 9 percent from 9.25 percent in its third consecutive cut this year. Presenting the decision, bank Governor Elvira Nabiullina said annual inflation had neared its long-awaited goal of 4 percent as inflationary expectations among households had fallen to an all-time low last month.

OIL

Exxon can drill in Guyana

Guyana has issued an operating license and environmental permit to ExxonMobil, which has said it made “significant” discoveries off the South American nation’s coast. Guyanese Minister of Natural Resources Raphael Trotman said Exxon and partners Hess Guyana Exploration Ltd and CNOOC Nexen can now drill an area believed to contain at least 2 billion barrels of oil. He late on Thursday said that oil extraction is expected to start in 2020 at an initial rate of 100,000 barrels per day. ExxonMobil would receive a royalty of 2 percent on gross earnings and 50 percent of profits.

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