Sunday 31st August 2014
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South Africa’s central bank has disagreed with a ratings decision by Moody’s to downgrade Capitec Bank Limited (Capitec) by two notches, and place it on review for a further downgrade. The central bank says it respects the independent opinion of rating agencies but that it does not “agree with the rationale given in taking this step”. Two reasons are given for the rating action: a lower likelihood of sovereign systemic support based on decisions recently taken in relation to African Bank Limited (African Bank), and heightened concerns regarding the risk inherent in Capitec’s consumer lending focus. “With regard to the first point, it is important to reiterate that the approach taken by the SARB to any resolution to address systemic risk will always be based on the circumstances and merits of the particular prevailing situation. Decisions will also be informed, as was the case with African Bank, by principles contained in the Key Attributes for Effective Resolution Regimes proposed by the Financial Stability Board (FSB), which have the objective that a bank should be able to fail without affecting the system,” notes the central bank in an official statement. “This is in keeping with evolving international best practice. In the case of African Bank bond holders and wholesale depositors are taking a 10% haircut, which is generally regarded as being very positive given that the trades following the announcement of African Bank's results were taking place at around 40% of par. Therefore in fact substantial support was provided, not reduced. Moreover, all retail depositors were kept whole and are able to access their accounts fully,” it adds - According to the Hong Kong Monetary Authority (HKMA) credit card receivables increased by 2.1% in the second quarter to HKD112, after a reduction of 6.7% in the previous quarter. The total number of credit card accounts edged up by 0.7% to around 16.8m.The rollover amount, which reflects the amount of borrowing by customers using their credit cards, increased by 2.9% during the quarter to HKD19.2bn. The rollover ratio also rose marginally from 17.0% to 17.1% in the same period. The charge-off amount increased to HKD569mduring the quarter from HKD528m in the previous quarter. Correspondingly, the quarterly charge-off ratio rose to 0.51% from 0.46% in the previous quarter. The amount of rescheduled receivables transferred outside the surveyed institutions’ credit card portfolios reduced to HKD94m from HK$109m in the previous quarter. The delinquent amount increased to HKD249m at end-June from HKD239m at end-March. However, the delinquency ratio remained the same at 0.22% because of an increase in total card receivables. The combined delinquent and rescheduled ratio (after taking into account the transfer of rescheduled receivables mentioned above) edged up to 0.29% from 0.28% during the same period - Harkand has been awarded a contract to support Apache with inspection, repair and maintenance work (IRM) as well as light construction (LC) across their assets in the North Sea, following completion of a competitive tender exercise. The award includes the provision of vessels, ROV and diving services for a three-year period, plus two one-year options. The firm will also support offshore marine construction contractor EMAS AMC who have been awarded a separate contract for pipe lay and heavy construction as part of the same tender process. Harkand Europe managing director, David Kerr, said: “This contract is an important step in strengthening our close working relationship and growing our North Sea business with Apache.

Creditor's steering committee formed for BTA Bank

Monday, 06 February 2012
Creditor's steering committee formed for BTA Bank Kazakhstan's BTA Bank says that following the meetings arranged over the past two weeks with holders of the bank’s senior, OID and subordinated Notes, its recovery units and participants in the RCTFF, a steering committee has now been formed to represent the interests of its various creditor stakeholders. http://www.ftseglobalmarkets.com/

Kazakhstan's BTA Bank says that following the meetings arranged over the past two weeks with holders of the bank’s senior, OID and subordinated Notes, its recovery units and participants in the RCTFF, a steering committee has now been formed to represent the interests of its various creditor stakeholders.

The steering committee comprises a diversified and representative group of the bank’s public and private sector creditors and includes certain funds and accounts managed or advised by Ashmore Investment Management Limited, the Asian Development Bank, the DE Shaw Group, FFTW UK Limited – a BNP Paribas investment partner, Gramercy Funds Management LLC, JP Morgan Securities Ltd, Nomura International plc and VR Capital Group Ltd.

A seat on the steering committee is also reserved for the Swedish Export Credits Guarantee Board (EKN, which has been participating on a preliminary basis for the purposes of forming the steering committee) and a seat is also reserved for a representative of participants in the RCTFF.

Members of the steering committee collectively hold the Bank’s Senior Notes, OID Notes, Subordinated Notes and Recovery Units. A meeting of the steering committe and its legal advisors is expected to take place on February 8th.

Anvar Saidenov, BTA's chairman says, “We welcome the establishment of the steering committee, which is an important step forward in the bank's restructuring plans. [We recognise] the importance of building a broad consensus for the restructuring process and is pleased by the diversity of creditors and believes that the steering committee will be effective given their representation and restructuring experience. While much work remains to be done we believe that, with goodwill and constructive engagement on all sides, the Steering Committee can help us to arrive at the best solution for the Bank and all its stakeholders.”

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