Connect with us

Business

European Banks Get Reality Check

Published

on

Banking regulators said last Thursday that European banks need to raise nearly €115 billion by June as pressure mounts for political leaders to come up with a workable plan to resolve the debt crisis.

Among the 31 banks on the European Banking Authority’s list, six are from Germany — Europe’s largest economy. But Spain’s Banco Santander faces the biggest shortfall of €15.3 billion, CNN reports.

Spanish banks came under scrutiny in July, when the EBA carried out stress tests of 90 institutions. Of the eight that failed, five were in Spain. At that time, the EBA said the banks needed €2.5 billion to survive.

While the latest EBA report was not the result of stress tests per se, it is still a big reality check for banks across Europe.

Aside from Greece, Spain faces the biggest overall shortfall, of €26.2 billion, followed by Italy (€15.4 billion) and Germany (€13.1 billion).

And Belgian bank Dexia, which received a €90 billion bailout in October, needs to raise €6.3 billion.

Banks have been at the epicenter of the crisis as sovereign debt problems deepen and spread.

“It’s really no surprise,” said Keith Springer, president of Springer Financial Advisors. “We know they’re undercapitalized.” He also estimates the capital requirements may be closer to the trillion mark.

Banks must submit their plans, which could include retaining profits and cutting bonuses, to the EBA by Jan. 20.

It’s been a tough two years for Europe as the crisis took hold and spread like the plague.

In the past month alone, three countries have gotten new leaders, including Italy, where borrowing costs skyrocketed. Meanwhile, leaders continued to do a lot of talk with very little action.

0:00 / 1:29 Countdown is on to save euro

There’s a lot riding on the European Union two-day summit, which concludes Friday. On Monday, French President Nicolas Sarkozy and German Chancellor Angela Merkel said they had agreed to a fiscal pact that would help avert another crisis.

But the pact would most likely require treaty changes for at least the 17 eurozone nations, though Merkel said she’d like all 27 EU members to consider changes as well.

“It all comes down to Germany,” said Springer.

The pressure is on. Earlier this week, Standard & Poor’s put 15 of the 17 eurozone nations on notice that they may face a possible downgrade.

The ratings agency also warned the European Financial Stability Facility, which is partially backed by those countries, that it could also be downgraded, as well as the European Union as a whole.

S&P also warned several large eurozone banks, including some on the EBA list, that they could be downgraded.

French bank BNP Paribas, along with Germany’s Deutsche Bank and Commerzbank made both lists.

In all, the EBA reviewed 71 banks in 20 countries.

Continue Reading

Maritime

Trade Modernisation: Customs’ CG Tours Huawei, Port In China

Published

on

The Comptroller-General  of the Nigeria Customs Service (NCS), Adewale Adeniyi, recently led his team to the Headquarters of Huawei, a famous information and communications technology company in Shenzhen, China, where he discussed opportunities embedded in Nigeria Customs Service Trade Modernisation Project.
This was disclosed in a press release made available to our correspondent in Lagos by the National Public Relations Officer (NPRO) of the Service, CSC Maidawa yesterday.
According to the release, the CGC’s visit to Huawei Headquarters was part of his official visit to the People’s Republic of China for the 6th Global AEO Conference that took place in the city of Shenzhen between Wednesday, 8th May, Friday, 10 May, 2024.
Stating the purpose of his visit to the company’s office on behalf of his team, CGC Adeniyi said, “We are also delighted to associate with the Global Leader Technology Services through the Team of Trade Modernisation.”
It would be recalled that the Service had, during the Huawei Connect 2023 held in Shanghai in October, 2023, expressed readiness to deploy some of the company’s latest products for use in its trade modernisation project.
The CGC, who urged Huawei’s company leadership to sustain their digitalisation services to NCS, also sought their support to collaborate with the Nigeria Customs Service to maintain their transformative journey with the company.
On his part, Xujing Xu, the Huawei Company’s Vice President of Smart Transportation, welcomed the delegation of the NCS led by Adeniyi and the Management Team of the Trade Modernisation Project (TMP) Limited, led by Chairman Saleh Ahmadu.
He expressed confidence that their collaboration will benefit all parties involved, noting that “the foundational work for this transformation is already underway”.
The TMP Chairman, Saleh Ahmadu, during his address, said Huawei is living up to expectations to deliver its mandate under the auspices of Trade Modernisation Project Limited.
He appreciated the support accorded to him by the CGC and his management team towards the success of the NCS Trade Modernisation Project.
In his bid to upscale the level of NCS modernisation, the Comptroller-General of Customs, alongside members of the Trade Modernisation Project led by Chairman Saleh Ahmadu, visited Lantan Port to witness the level of automation and technological solutions provided by Huawei and other tech partners.

In a related development, a training programme on Trends and Digital Solutions for Customs officials and the TMP team was organised by Huawei the same day, which focused on equipping officials with the necessary skills to navigate the digital landscape of modern trade.

Continue Reading

Business

NERC Declares Most Discos Insolvent 

Published

on

Most of the lectricity Distribution Companies (DisCos) in Nigeria have been said to be technically insolvent and unable to not only pay for invoices sent to them from the electricity market, but also invest in network expansion projects.
Speaking at the 8th Africa Energy Market Place 2024 in Abuja, Chairman of the Nigerian Electricity Regulatory Commission (NERC), Engr. Sanusi Garba, said the poor financial state of the DisCos makes it difficult for them to raise the needed capital to invest.
Garba noted that the challenges facing the sector were a culmination of past inactions and missteps by those saddled with the responsibilities of managing the sector, both at policy and operational levels.
According to him, “Today when you look at distribution companies, they are clearly and technically insolvent, and you also want them to raise capital in terms of debt or equity. It’s a herculean task.
“I also want to mention that implementing the power sector reform requires powerful political will to implement decisions that impact the wider public”.
On his part, the Minister of Power, Chief Adebayo Adelabu, said the government was working to get the distribution companies solvent and effective by unbundling their operations along state boundaries.
Adelabu insisted that the areas covered by the current DisCos are too large for them to deliver effective services to consumers.

Continue Reading

Business

PH To Get Two CNG Refuelling Stations, Vehicle Conversion Parks

Published

on

Rivers State Capital, Port Harcourt, is set to have two Compressed Natural Gas (CNG) refuelling stations as well as two Vehicle Conversion Parks.
The Chief Executive Officer, FEMADEC Energy Limited, Fola Akinola, revealed this at the South-South/South-East Stakeholders Engagement Meeting on Presidential Initiative on CNG held in Port Harcourt, Weekend
Akinola, who stated that modalities have been concluded on the project, stressed the need for investment by stakeholders as a way of driving home the initiative of the Federal Government to ease the gas plight of its citizens.
Akinola said, “CNG is an old technology. We want to tell you that you have the opportunity to convert your vehicle from fuel to CNG. The stations will be launched in Port Harcourt and we are launching a refueling unit alongside. Rivers State is going to have a micro refuelling unit at Stadium Road and in GRA.
“For those that want to invest in CNG refuelling units, it is available. Even those who have fuel station facilities can as well invest in this”.
Earlier, the Programme Director, Presidential Initiative on Compressed Natural Gas, Michael Oluwagbemi, noted that Rivers State was the heart of oil and gas Region, insisting that the initiative was for the good of the nation as a whole.
“The initiative of the government is critical to our national development and to the well-being of the people. Rivers State is the heart of the oil and gas region”, he stated.
Oluwagbemi, however, expressed regret that over the last five to six decades, these resources have continued to waste.
“Nigeria is the second largest waste of oil and gas. We exploit it and waste it, then continue to suffer poverty. The President has set us on natural gas features and set up the nation on the path of growth. The use of gas ensures we have energy savings. Mind you, the price of Natural gas is controlled by the government.
“What the President is asking is to do more with the blessings God has given us. If we are able to move three million vehicles in the next three years, we are going to end the era of environmental degradation”, he said.
The Programme Director further said, “We will stop subsidising poverty, importing unemployment and exporting jobs.

By: Lady Godknows Ogbulu

Continue Reading

Trending