Browsing all articles tagged with Russian
Jun
1

Banks In The Dark Over $15 Billion of Promised Rosneft M&A business

Banks that assist Russian oil company Rosneft finance its $55 billion buyout of rival have been left waiting for their payback a share in $15 billion in asset sales projected to follow the deal.

State oil company Rosneft’s takeover of this year aimed to generate a major oil group producing more oil than however it also tightened the Russian government’s grip on the country’s energy sector.

The asset sales promised by Rosneft Chief Executive Igor Sechin would offload less-profitable businesses to turn the company into the major oil player the CEO has stated he wants it to be. The delay demonstrate Rosneft has a lot on its plate integrating and that the sales are on the back burner.

Rosneft had dangled the juicy divestment mandates at the banks in exchange for a $29.8 billion loan the largest in Russia’s history on good terms, all the lending banks are waiting. We thought asset sales and refinancing bonds would kick start straight following the closing.

Rosneft’s slow motion is annoying the banks as they would earn fat fees from advising the oil giant on the asset sales this year, which would assist boost M&A revenues in an otherwise arid deal making landscape.

M&A activity across all sectors is losing 7 percent in Europe, Africa and Middle East since January partly due to the impact of the euro zone crisis on business confidence.

Banks that uphold big balance sheets throughout the financial crisis have been hoping to use this muscle to win lucrative M&A advisory business from competitor which had to shrink partly to meet tough European capital rules.

Banks frequently use their balance sheets to offer cheap loans to corporate clients to secure higher margin business such as share or bond issues or M&A work.

Big balance sheets helped Deutsche Bank and Barclays to achieve number 2 and 3 rankings in M&A league tables previous year, challenging US rival Goldman Sachs which had the top slot.

Apr
2

Michael Sarris Cyprus Finance Minister Quits, Capital Controls Partly Eased

Michael Sarris, Cypriot Finance Minister quit on Tuesday following concluding talks with foreign lenders on a bailout that forced the island to hit extraordinary losses on bank depositors in return for aid.

The news came following Cyprus announced a partial relaxation of currency controls, lifting the ceiling for financial transactions that do not require central bank approval, however keeping most other restrictions in place.

Sarris, who was dispatched to Moscow previous month however come back empty handed as Cyprus sought Russian aid following rejecting a European bank levy proposal, stated his main goal of agreeing a deal with lenders had been accomplished.

He stated it was also suitable to quit since he was between several people under scrutiny by a team of investigators seeming into the collapse of the country’s banking system, his resignation was accepted by the government.

He suppose that in order to facilitate the work of investigators the right thing would be to place my resignation at the removal of the president of the republic.

Prior to quitting, he stated it was not clear when the residual capital controls would be lifted.

The island introduced control on money movements when banks reopened on March 28 following a two-week shutdown as the government negotiated a 10 billion euro bailout from the European Union and the International Monetary Fund.

Cyprus’s status as a financial hub has deteriorate in the space of a fortnight following authorities were forced to wind down one bank and slap heavy losses on richer depositors in a second in return for the financial aid.

Mar
25

Cyprus settled A Final Deal With International Lenders To Close Bank, Force Losses

Cyprus settled a final deal with international lenders to pack up its second greatest bank and caused serious losses on uninsured depositors including wealthy Russians, in return for a 10 billion euro  which is equal to $13 billion bailout.

The contract came hours prior to a time limit to prevent a collapse of the banking system in fraught discussions among heads of the European Union and President Nicos Anastasiades, the International Monetary Fund and the European Central Bank.

Rapidly authorized by euro zone finance ministers, the plan will spare the Mediterranean island a financial render down by twisting down the largely state owned admired Bank of Cyprus which is also known as Laiki, and switching deposits lower than 100,000 euros to the Bank of Cyprus to create a good bank.

Deposits over 100,000 euros in both banks, which are not assured under EU law will be frozen and used to determine Laiki’s debts and recapitalized Bank of Cyprus through a deposit/equity exchange.

Jeroen Dijssebloem, Eurogroup chairman said that the attack on uninsured Laiki depositors is expected to lift 4.2 billion euros.

Bank of Cyprus will effectively be shuttered with thousands of job losses. Representative stated senior bondholders in Laiki would be wash out and those in Bank of Cyprus would have to make an input.

An EU presenter stated no across-the-board tariff or tax would be imposed on deposits in Cypriot banks, even though the strike on large account holders in the two major banks is probable to be far superior than originally planned. A first attempt at a deal previous week distorted when the Cypriot parliament discarded a proposed levy on all deposits.

Christos Stylianides, Cyprus government presenter said that they prevent a uncontrollable bankruptcy which would have directed to an exit of Cyprus from the euro zone with unforeseeable consequences.

Wolfgang Schaeuble, German Finance Minister said that the Cypriot officials would not require to vote on the new scheme, as they had previously passed a law setting procedures for bank declaration.

The IMF and EU required that Cyprus lift 5.8 billion euros from its banking sector towards its own financial rescue in return for 10 billion euros in international loans. The head of the EU rescue fund stated Cyprus should obtain the first emergency funds in May.

IMF chief Christine Lagarde stated that the agreement was a credible and comprehensive plan that concentrate on the core problem of the banking system. This contract provides the basis for returning trust in the banking system, which is key to following growth.