Daily Archives: July 7, 2015

Papadopoulos – Greece eurozone exit ‘very unlikely’ – ABC News (Australian Broadcasting Corporation)

Greece eurozone exit ‘very unlikely’ – ABC News (Australian Broadcasting Corporation).

OECD iLibrary: Statistics / Household Debt

This household leverage ratio measures the indebtedness of households in relation with their income, that is their spending and saving capacity. High leverage ratios are often interpreted as a sign of financial vulnerability though not only debt and liabilities but also assets should be considered in such an assessment. High indebtedness levels generally increase the financing costs of the borrower, deteriorate balance sheet positions and may restrict access to new financing.

The household debt-to-GDI ratio shows the debt of households and non-profit institutions serving households (NPISHs), as a percentage of their Gross Disposable Income (GDI).

via OECD iLibrary: Statistics / OECD Factbook / 2013 / Household Debt.

In depth: The Greek crisis | The Economist

In depth: The Greek crisis | The Economist.

The Greek crisis: Two paradoxes | The Economist

What makes this problem so difficult to solve is that there are paradoxes at the heart of each side’s position. On the creditors’ side, they do not want to see Greek debt relief until reforms have been carried out. This is partly to establish an example for other nations and partly because of the difficulty of selling such a deal to their own voters. But the harder they push the Greeks, the more likely it is that the latter will be forced out of the euro, in which case default will occur anyway. And the EU would be obliged to offer some kind of aid to Greece if it fell out of the euro, on humanitarian and geopolitical grounds. So the harder the EU pushes, the more they end up with the result they don’t want; paradox 1.

On the Greek side, default would eliminate the debt burden and offer the potential, via devaluation, for a return to growth. But if all the competitiveness gains of a return to the drachma were thrown away in higher inflation, then the Greeks would be barely any better off; the risk is they end up as Argentina without the soyabeans. To make euro exit a success, they would need to undertake the kind of structural reforms and fiscal prudence that they are resisting as the price of staying in the euro; paradox number two.

via The Greek crisis: Two paradoxes | The Economist.

Private debt in Europe – Debtors’ prison | The Economist

High household debt helps explain why the Netherlands, along with Italy and Spain, remained in recession in the second quarter of 2013 even as the euro area in general embarked on recovery. Dutch GDP this year will be 2% lower than in 2011 and more than 3% below its previous peak, in 2008. Though this loss of output is dwarfed by that suffered in southern Europe, it illustrates the malign effect of high debt when house prices fall—recent declines have been close to those in Spain. That has pushed a quarter of Dutch homeowners into “negative equity”: their houses are worth less than their mortgages.

via Debtors’ prison | The Economist.

Private debt sector | Deloitte Luxembourg | Financial Services

Deloitte offers a centralised team using state of the art technology for legal, tax and accounting setup and day-to-day administration: CDO Suite™ – The market-leading portfolio administration and compliance solution.

CDO Suite™ was designed for the portfolio management industry. The system brings the diverse perspectives of an agent, trustee, administrator, collateral manager and fund together in a single tool. The system’s flexibility allows users to monitor portfolio collateral and cash activity, from cash reconciliation to hypothetical trades, collateral administration to portfolio reporting.

via Private debt sector | Deloitte Luxembourg | Financial Services.