IMF agreement does not end Ecuador’s funding concerns

2020 ◽  
Keyword(s):  
Oil Prices ◽  
Environmental Activism ◽  
Economic Conditions ◽  
Sharp Drop ◽  
Content Type ◽  
Consumer Loans ◽  
Economic Shock ◽  
Small Banks ◽  
Oil Gas ◽  
The Way

Significance This Fund-supported programme will help Ecuador address the economic shock caused by the sharp drop in oil prices and the COVID-19 pandemic. It also paves the way for the settlement of a USD17.4bn debt exchange between Ecuador and its creditors. Impacts Strikes will increase as pandemic restrictions ease, with workers demanding protection from mass-firings and income losses. Environmental activism against extractive projects will continue to pose challenges for the oil, gas and mining sectors. Small banks will be highly vulnerable to worsening economic conditions given their exposure to consumer loans and microfinance. Inflows of Venezuelan refugees and migrants will exert renewed pressure on fiscal costs once the sanitary crisis subsides.

UK voters will ignore budget and elect hung parliament

2015 ◽  
Keyword(s):  
International Economic ◽  
United Kingdom ◽  
Oil Prices ◽  
Economic Recovery ◽  
Economic Conditions ◽  
Political Event ◽  
Content Type ◽  
The Past ◽  
The United Kingdom ◽  
Deficit Reduction

Significance The budget will prove to be all but the last political event before the final campaign and the May 7 general election. Although the detail had to be determined in cooperation with the Liberal Democrats, Osborne's package was an unashamed pitch for a Conservative term of office. The crucial contest at the election will be the government's claim to have delivered on economic recovery and deficit reduction over the past five years, versus the Labour Party's assertion that its own preferred route to budgetary stability is better balanced and more socially acceptable. Impacts The link, if any, between the economy and politics is uncertain: the Conservatives won in 1992 (recession) but lost in 1997 (boom). The United Kingdom has experienced a 'voteless recovery' -- a huge move from pessimism to optimism, with no benefit for the Conservatives. Benign international economic conditions (notably the sharp fall in global oil prices) have boosted growth for 2015. This shift could be easily reversed if oil prices were to return to 2012-14 levels. Assumptions that the 'age of austerity' is over and the budget will achieve balance in the next parliament are very premature.

Low oil prices set to accelerate Gulf subsidy reform

2015 ◽  
Keyword(s):  
Oil And Gas ◽  
Credit Rating ◽  
Government Expenditure ◽  
Oil Prices ◽  
Sharp Drop ◽  
Capital Projects ◽  
Content Type ◽  
Near Term ◽  
Rating Downgrades ◽  
Personal Incomes

Significance The sharp drop in oil prices to around 50 dollars, half their average level last year, has forced a serious fiscal rethink among the six Gulf Cooperation Council (GCC) states, who are heavily dependent on oil and gas exports. Following a decade of high oil prices, and a widespread assumption that prices would remain above 100 dollars, government expenditure has become bloated, with generous salaries and subsidies, and ambitious capital projects. Impacts Companies competing for government tenders are likely to face greater scrutiny over costs. Consumer-facing companies will be less seriously affected, given the likely limited impact on personal incomes in the near term. Bahrain and Oman could suffer credit rating downgrades. Stability in other GCC states is unlikely to be affected due to the protection of citizen benefits. Saudi Arabia will provide Bahrain with financial support if the fiscal squeeze weakens stability there.

A new OPEC+ deal would not resolve Russia's problems

2020 ◽  
Keyword(s):  
Saudi Arabia ◽  
Middle East ◽  
Growth And Development ◽  
Oil Prices ◽  
Economic Conditions ◽  
Content Type ◽  
Funding Sources ◽  
Global Demand ◽  
Price Management ◽  
Price War

Significance As the COVID-19 pandemic depressed Chinese and global demand for oil, Russia and Saudi Arabia broke off their three-year price management agreement, sending prices tumbling. Moscow insists it can weather the storm, but low oil prices further complicate the adverse economic conditions stemming from COVID-19. Russia has the funding sources to prop up its budget, but this implies abandoning ambitious plans to invest in growth and development. Impacts The disintegration of OPEC+ would undermine Russia's wider attempts to win political partners in the Middle East. Kazakhstan and Azerbaijan signed up to OPEC+ but are less willing or able to side with Russia in a price war. Rosneft's divestment of its Venezuelan assets shows a greater sensitivity to sanctions risks in a tougher market.

Belarus economic woes may complicate presidential poll

2015 ◽  
Keyword(s):  
Slow Growth ◽  
Oil Prices ◽  
Asia Pacific ◽  
Economic Conditions ◽  
Pacific Region ◽  
Industrial Output ◽  
Asia Pacific Region ◽  
Content Type ◽  
Finance Minister

Significance This year started with a contraction of first-quarter GDP, after two years of very slow growth. Industrial output contracted as well. As world oil prices have dropped, Belarus no longer receives windfall proceeds from exporting distillates produced from cheap Russian crude. The onset of a systemic recession in an election year may prove particularly troublesome for President Alexander Lukashenka. Perhaps in anticipation of the worsening economic conditions, the electoral commission asked legislators to schedule this year's presidential polls on October 11, a month earlier than expected. Impacts To prevent economic failures from swaying voters away from Lukashenka, the authorities will step up suppression of opposition. Minsk may look for increased investment and strengthening of relations in the Asia-Pacific region as a way to boost the economy. According to Russian Deputy Finance Minister Sergei Storchak, Russia is considering a loan to Belarus to help refinance its debts.

Falling oil prices will offset rising US dollar

2015 ◽  
Keyword(s):  
Oil Prices ◽  
Sharp Drop ◽  
Content Type ◽  
Tax Amnesty ◽  
Us Economy ◽  
Large Expansion ◽  
Exploration And Production ◽  
Keystone Xl ◽  
Corporate Profits ◽  
The Impact

Significance Two shocks are hitting the US economy at the same time: a sharp drop in the price of oil and a rise in the value of the dollar. The impact of the drop in oil is different from previous cycles due to the large expansion in US oil production; there will be a benefit to consumers of oil but a drop in capital expenditures on oil exploration and production. The rise in the dollar has already begun to hurt corporate profits, as overseas earnings decline. Impacts Larger automobiles will be favoured by consumers as gasoline remains low, but will be a drag on finances if oil prices rise. Overseas earnings are less likely to be repatriated, leading to more calls for a tax 'amnesty' on such profits. The debate over Keystone XL may intensify, as Canadian producers become more invested in reducing transportation costs.

Russian sell-offs must be both lucrative and fair

2016 ◽  
Keyword(s):  
Economic Development ◽  
Economic Conditions ◽  
Structural Reforms ◽  
Asset Sales ◽  
Short Term ◽  
Russian Government ◽  
Content Type ◽  
The Way

Subject The government's resumption of state asset sales. Significance Economic conditions and the urgent need for budget funds have compelled the Russian government to act on long-delayed privatisation plans. The approved list of assets for sale in 2016-17 includes companies in the oil, mining, transport and banking sectors. The economic development ministry has identified oil majors Rosneft and Bashneft and the diamond firm Alrosa as the most likely to undergo full or partial privatisation in 2016. Impacts The aim of these privatisations is to raise money in the short term, not pave the way for structural reforms. Purchases will be partly financed by capital returning to Russia from offshore jurisdictions. Despite regulation, sales to oligarchs at depressed prices are likely to cause public disquiet.

Prospects for the Middle East in the fourth quarter

2015 ◽  
Keyword(s):  
United States ◽  
Middle East ◽  
Turning Points ◽  
Oil Prices ◽  
The United States ◽  
Fourth Quarter ◽  
Content Type ◽  
Civil Conflicts ◽  
The Way

Subject Prospects for the Middle East in the fourth quarter. Significance The ratification of the nuclear deal in Iran and the United States will pave the way to Iran's diplomatic and economic re-emergence, but will also raise tensions on proxy fronts across the region. Further low oil prices will trouble the region's energy exporters, while civil conflicts in Libya and Syria face turning-points.

scholarly journals Can Small Banks Lead the Way Out of the Crisis in the OECD Area?

2017 ◽  
Vol 4 (1) ◽  
pp. 34-44
Author(s):  
Carsten Martin Syvertsen
Keyword(s):  
Economic Growth ◽  
Great Recession ◽  
Entrepreneurial Orientation ◽  
Global Economy ◽  
Organizational Models ◽  
The Great Recession ◽  
Radical Innovations ◽  
Economic Shock ◽  
Small Banks ◽  
The Way

The economic shock of 2008, and the Great Recession that followed, created uncertainty of the direction of the global economy. With slow economic growth in the OECD area, political unrest and lack of a clear direction from academics there is a need for new organizational models helping executives out of the financial crisis. The article illustrates how small banks can achieve a competitive advantage by focusing on economic growth through radical innovations by using tacit knowledge in a marketing context. Such an entrepreneurial orientation will, in turn, lead to tailoring of services which will, we argue, lead to growth in the banking industry in the OECD area. We claim that small banks are leading the way in the race for innovation and an entrepreneurial orientation.

Russia’s fiscal stimulus and fiscal sustainability

2013 ◽  
pp. 90-108 ◽  
Author(s):  
N. Akindinova ◽  
N. Kondrashov ◽  
A. Cherniavsky
Keyword(s):  
Government Spending ◽  
Public Expenditure ◽  
Oil Prices ◽  
Fiscal Sustainability ◽  
Macroeconomic Model ◽  
Sharp Drop ◽  
Fiscal Stimulus ◽  
Fiscal Multipliers ◽  
Russian Economy ◽  
The Impact

This study examines the impact of public expenditure on economic growth in Russia. Fiscal multipliers for various items of government spending are calculated by means of our macroeconomic model of the Russian economy. Resources for fiscal stimulus and optimization are analyzed. In this study we assess Russia’s fiscal sustainability in conditions of various levels of oil prices. We conclude that fiscal stimulus is ineffective in Russia, while fiscal sustainability in conditions of a sharp drop in oil prices is relatively low.

Co-workers’ perceptions of and reactions to employee’s involuntary demotion

2019 ◽  
Vol 41 (4) ◽  
pp. 740-757 ◽  
Author(s):  
Sophie Hennekam ◽  
Subramaniam Ananthram ◽  
Steve McKenna
Keyword(s):  
Design Methodology ◽  
Emotional Responses ◽  
Emotional Reaction ◽  
Content Type ◽  
Informational Justice ◽  
Behavioural Responses ◽  
Behavioural Reaction ◽  
Three Stages ◽  
Depth Interviews ◽  
The Way

Purpose The purpose of this paper is to investigate how individuals perceive and react to the involuntary demotion of a co-worker in their organisation. Design/methodology/approach The authors draw on 46 semi-structured in-depth interviews (23 dyads) with co-workers of demoted individuals. Findings The findings suggest that an individual’s observation of the demotion of a co-worker has three stages: their perception of fairness, their emotional reaction and their behavioural reaction. The perception of fairness concerned issues of distributive, procedural, interpersonal and informational justice. The emotional responses identified were feelings of disappointment/disillusion, uncertainty, vulnerability and anger. Finally, the behavioural reactions triggered by their emotional responses included expressions of voice, loyalty, exit and adaptation. Originality/value Perceptions of (in)justice perpetrated on others stimulate emotional and behavioural responses, which impacts organisational functioning. Managers should therefore pay attention to the way a demotion is perceived, not only by those directly concerned, but also by co-workers as observers.

Sign in / Sign up

Export Citation Format

Share Document