Covid-19: Some banking systems may need help if situation worsens, says IMF

Covid-19: Some banking systems may need help if situation worsens, says IMF

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Some countries’ banking systems might have to be recapitalised or even restructured, if their economies are severely handicapped by prolonged disruption from the outbreak, officials at the said on Tuesday.


Leading regulators and bank chief executives, particularly in the United States, have said lenders are robust enough to withstand the unfolding economic crisis.



Tobias Adrian, the director of the IMF’s monetary and capital markets department, told Reuters in an interview that in a ‘baseline’ scenario that would be a repeat of a 2009-type growth path, banks could withstand the adverse impact. Adrian cautioned, however, that conditions could deteriorate.


“(In a) beyond-severely adverse scenario, then it could be that some banks are undercapitalized and at that point policy makers might have to take further actions such as recapitalizing or restructuring banking systems,” Adrian said.


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Long Island Enterprise News, Occasions, Promotions & Extra

Long Island Enterprise News, Occasions, Promotions & Extra

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Coronavirus: G20 ministers meet by video to tackle supply chain disruptions

Coronavirus: G20 ministers meet by video to tackle supply chain disruptions

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Trade ministers from the Group of 20 major economies convened an extraordinary video conference on Monday to come to grips with the blow to global trade from the pandemic and weigh how to overcome supply chain disruptions.


G20 leaders pledged last week to inject over $5 trillion into the global economy to limit job and income losses. They said they would ensure the flow of goods including vital medical supplies and resolve disruptions caused by border closures by national governments anxious to limit transmissions of the virus.



But they stopped short of calling for an end to export bans that many countries, including G20 members France, Germany and India, have enacted on drugs and medical supplies. Lack of protective gear is putting doctors and nurses at risk.


Many countries rely on China, the source of the outbreak, for

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Covid-19 crisis: Don’t see a recession, recovery from Q2, says Rajiv Kumar

Covid-19 crisis: Don’t see a recession, recovery from Q2, says Rajiv Kumar

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Amid criticism that the Union government’s Rs 1.7-trillion scheme is not enough to deal with the Covid-19 crisis, Vice-Chairman tells Indivjal Dhasmana that since the approach followed to give the package is graded, one can assume that more would be announced if there is requirement. Edited excerpts:


Many experts, including former finance minister P Chidambaram and economist Jean Drèze, are saying that the government’s package is not enough. Do you think that more is needed and it will come?



If you include the package by the Reserve Bank of India (RBI), the total comes to about Rs 4.5 trillion. The two packages have to be taken together because both the fiscal and monetary policies have to work in tandem. The total package constitutes 2 per cent of the country’s gross domestic product (GDP). Finance Minister (Nirmala

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Government ends FY20 divestment programme with Rs 14,700-cr shortfall

Government ends FY20 divestment programme with Rs 14,700-cr shortfall

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The Centre ended the divestment programme for 2019-20 with proceeds of Rs 50,298.6 crore, a shortfall of Rs 14,701 crore, compared with the Revised Estimates of Rs 65,000 crore. The Centre’s divestment plans for February and March, which included a number of offers-for-sales, an initial public offering (IPO) and a Specified Undertaking of Unit Trust of India (SUUTI) sale, were hit first by the markets reacting to economic slowdown, and then to the Covid-19 pandemic.


The last three deals finalised were that of the sale of the government’s 100 per cent stake in NEEPCO and 75 per cent stake in THDC to NTPC, which together fetched the Centre Rs 11,500 crore, and the sale of its 67 per cent stake in Kamarajar Port to Chennai Port Trust.


Caption: CPSE: Central Public Sector Enterprises, RVNL: Rail Vikas Nigam, ETF: Exchange-traded fund, IRCTC: Indian Railway Catering

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Moody’s slashes India’s GDP growth rate to three-decade low of 2.5%

Moody’s slashes India’s GDP growth rate to three-decade low of 2.5%

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Moody’s Investors Service on Friday slashed its estimate of India’s GDP growth rate to almost three-decade low of 2.5 per cent during 2020 calendar year from an earlier estimate of 5.3 per cent on account of the rising economic cost of the pandemic.

Moody’s said, at the 2020 estimated growth rate, a sharp fall in incomes in India is likely, further weighing on domestic demand and the pace of recovery in 2021.


“In India, credit flow into the economy already remains severely hampered because of severe liquidity constraints in the banking and non-banking financial sectors,” it said.

If Moody’s projections come out to be correct, China, from where spread, will overtake India in 2020, as it is projected to grow at 3.3 per cent in the current calendar year. Also, China’s growth rate will be higher than that of India in 2021.

China’s

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