The Government of El Salvador received a visit from the Executive Board of the International Monetary Fund (IMF) to evaluate the economy of the region. The meeting is held as part of the traditional visit that the IMF maintains with member countries in accordance with Article IV of its constitutive agreement.

The President, Nayib Bukele, previously announced that he had completed the payment of 800 million dollars in bonds that were due in January. The IMF mission was headed by Raphael Espinoza and government representatives and representatives from other sectors of the region such as businessmen, academics and unions participated.

The IMF interdisciplinary team will compile information on the region’s economy and finances and prepare a report that will be presented to the authorities of El Salvador.

One of the points under discussion with the IMF, according to the Minister of Finance of El Salvador, Alejandro Zelaya, is “to suppress the current section of pensions from the accounts of the non-financial Public Sector (SPNF).” The debt of the Pension Obligations Trust (FOP) is about 6,089.2 million dollars in series A of Pension Investment Certificates (CIP), which is equivalent to 19.1% of GDP. While the SPNF debt is 24,102.7 million dollars, practically 75.8 % in relation to GDP.

The previous 2022 IMF report highlighted that the emergency caused by the pandemic interrupted ten years of economic growth in the country, but highlighted a quick recovery due to external demand, remittances and emergency management. However, they warned about the risks for the consumer and the financial stability of the country due to the use of Bitcoin.

K. Tovar

Source: Cointelegraph

(Reference image source: Washington Post)

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The expected projections for the world economy in 2023 from JO Morgan Chase & Co. have been published. The main news points to a stabilization of the markets despite the slowdown in economic growth.

US bank analysts estimate a decline in inflation in view of a necessary and forced containment in the increase in interest rates by central banks.

JP Morgan forecasts a positive year in the stocks and bonds arena. “Precisely because markets are so battered, lower equity valuations and higher bond yields, in our view, mean that investors now enjoy the most attractive entry point for a traditional portfolio in more than a decade.”

They estimate a high potential for protection, yield and capital appreciation thanks to basic fixed income.

As for the employment sector, analysts predict that it will be marked by an increase in the demand of workforce, which will impact unemployment.

“More companies are likely to freeze hiring or lay off workers to cut costs,” the document says.

M.Pino

Source: finanzasdigital

(Photo: venturebeat.com, via web)

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Meta Platforms, the parent company of Facebook, confirmed to the United States Securities Market Commission (SEC) the start of a placement of unsecured preferred bonds among institutional investors, in which it represents the company’s first debt issue.

“Meta Platforms began an offering of senior unsecured bonds to persons who were reasonably believed to be qualified institutional buyers“, the multinational said in a statement.

The company indicated that it intends to use the proceeds from the offering for “general corporate purposes”, which may include, but is not limited to, capital expenditures, outstanding share repurchases of its common stock, acquisitions, or investments.

Likewise, Meta highlighted that the timing of pricing and the terms of the bond issuance are subject to market conditions and other factors.

In this sense, knowledgeable sources indicated to Bloomberg that the issue would range between 8,000 and 10,000 million dollars and could be divided into four tranches, with the longest maturities reaching up to 40 years and with a return of between 1.75 and 1.8 percentage points above Treasury bills.

K. Tovar

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Source: El Comercio

La entrada Meta Platforms makes its first bond issue apareció primero en Bitfinance.

The United States Federal Reserve (Fed) opened the door, in its last monetary policy meeting, to a reduction in its balance of assets worth 95,000 million dollars, (equivalent to 87,188 million euros) per month as of summer, according to the recently published minutes of the organization.

During the meeting, no final decision was made, only the options on the table were examined. The central bankers did agree that, given the current situation, the balance sheet reduction should be faster than that which took place between 2017 and 2019.

In this way, most of the meeting participants agreed that it would be convenient to reduce the monthly reinvestments of maturing assets so that the balance sheet shrinks by 60,000 million dollars (55,066 million euros), in the case of Treasury bonds, and 35,000 million (32,122 million euros), in the case of mortgage securitizations.

Central bankers broadly agreed that these limits should come into effect in the next three months, so the start of these reductions could come in June or July.

It is not certain when the final decision will be adopted, but the members of the Fed considered that the process of reducing the balance sheet could take place, at the earliest, at the end of the monetary policy meeting that will take place between May 3 and 4.

In its last meeting, the Fed decided to raise interest rates by 25 basis points, to a target range of between 0.25 % and 0.50 %, while bringing forward several additional hikes during the rest of the year to deal with contain inflation and normalize monetary policy.

Source: dpa

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The president of Deutsche Bank and the Association of German Banks (BdB), Christian Sewing, stated that he expects a prompt reaction from the European Central Bank (ECB) in the face of the new increase in inflation.

“In the midst of all the uncertainties, there is much to be said in favor of putting an end to the net purchase of bonds soon and giving a first signal in the interest rate,” Sewing said in a video conference at his function as head of the BdB.

It is “a signal that is urgently needed now,” stressed the president of the entity that brings together German banks. Sewing said that the sooner the ECB adopts the countermeasures, the better it will be for the development of the German and European economy.

The main objective of the ECB is to keep prices stable in the medium term in the eurozone within the framework of an inflation rate of two percent. Inflation in the 19 countries that make up the eurozone climbed in March 2022 to a record level of 7.5 percent per year.

Also in Germany, Europe’s largest economy, soaring energy prices pushed the annual inflation rate past the seven percent mark in March to 7.3 percent, the highest level on record. since German reunification in 1990.

Higher rates to combat inflation

“Long-term high inflation rates are a poison for the stability of our economy. And this is not only because high rates of currency depreciation worry businesses and consumers alike,” Sewing said.

“It is also about the fact that the cheap money policy has been accompanied by harmful redistributive effects for years,” said the BdB president.

Sewing said that people with lower incomes are the most affected. Higher inflation rates reduce the purchasing power of consumers because they can then get less for a euro.

The banking executive stated that each month the danger of inflation stabilizing at a high level grows. “That is why I can only warn that we continue with the policy of cheap money and that then these redistribution effects with all their social consequences are intensified,” he warned.

The European Central Bank has kept interest rates at extremely low levels for years. The key interest rate in the eurozone is at a record low of zero percent. Commercial banks currently have to pay 0.5 percent interest when they deposit money with the Central Bank. The Governing Council of the ECB will hold its next monetary policy meeting on April 14.

Source: dpa

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The US bank Citigroup has announced its intention to extend the scope of its withdrawal from the Russian market, from which it had already announced its intention to leave the consumer business, as well as the cessation of the search for new businesses or clients in the country.

“In April 2021, we announced our intention to exit our consumer business in the country. We have now decided to expand the scope of that exit process to include other lines of business and continue to reduce our remaining operations and exposure,” confirmed Edward Skyler, Executive Vice President of Global Public Affairs at Citi.

In this sense, the executive has indicated that the entity is working urgently to complete the evaluation of its operations in Russia, although he warned that due to the nature of banking and financial services operations, it will take time to execute the decision.

Citigroup meets its legal obligations

In addition, Citi has decided to stop soliciting new business or clients in Russia, while providing assistance to multinational corporations, many of which are undergoing the complex task of unwinding their operations.

“We will continue to manage our existing regulatory commitments and obligations to depositors, as well as support all of our employees during this very difficult time,” he added.

Citigroup revealed an exposure to Russia of about 10,000 million dollars (9,160 million euros).

Source: dpa

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The United States Department of the Treasury reported, last Friday through a statement, its decision to extend the PDVSA 2020 bondholders’ 5G protection license to Citgo until January 21, 2022.

The 5G license, which was issued in July and expired in October of this year, was to replace it with the 5H license that establishes protection until next year. In the text of the official statement you can read:

“This general license does not authorize any transaction or activity otherwise prohibited by the VSR, or any other part of chapter V of the 31 CFR. (c). As of September 10, 2021, General License No. 5G, dated July 20, 2021, is replaced in its entirety by this General License No. 5H.”

More than 2 years of protection

As will be recalled, in 2019 the US Department of the Treasury issued a protection license to Citgo in order to prevent PDVSA 2020 bondholders from seizing its shares.

From the first protection appeal it was established that the company’s shares cannot be transferred, highlighting: “Transactions related to the sale or transfer of Citgo shares in relation to the PDVSA 2020 bond are prohibited until that date.”

The first time that the Treasury Department issued a protection license, it had an expiration date of October 29, 2019, but since then the US institution has been extending the issuance date, with the intention that the bond debt be paid.

On the other hand, the agency pointed out: that “a possible agreement to renew the bond payments could require additional licenses.”

Currently, Citgo is managed by a temporary board that cancelled all types of relationship with PDVSA, once the US will sanction Venezuela in order to paralyze the cash flow to the Latin American country and increase pressure to achieve the resignation of the President Nicolás Maduro.

Citgo was considered the most important branch of PDVSA abroad, with the capacity to operate three refineries, with more than 3 million employees, and responsible for supplying “fuel to a retail network that encompasses some 30 North American states.” The year 2020 generated profits in the order of “851 million dollars.”

M. Rodríguez

Source: impactovenezuela

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The Innovation Committee of the Financial Superintendence of Colombia (SFC) notified the approval of the first bond issue in the second market using blockchain technology and smart contracts, in order to monitor them in all phases of the process.

Colombia becomes the first Latin American country to start the pilot test of issuance of stock bonds with the use of blockchain technology, throughout the process of issuance, registration and negotiation, which implies an important leap by the SFC before its Latin American peers .

The information was provided by the institution through a statement, where it also explained: “that the issuance of this real bond does not involve all the traditional infrastructure that uses a centralized deposit of securities, but it will have all the phases of an issuance of securities. traditional bonds. That is to say: the inscription of the instrument in the National Registry of Securities and Issuers (RNVE), issuance, placement, registration of payments, negotiation and fulfillment of the operation.”

This test is intended to demonstrate the efficiency of blockchain technology at times where interoperability, immutability and effectiveness are essential in institutions. Therefore, it is expected to verify and verify if the planned times are the most optimal for each and every one of the phases of the process.

Financial entities will participate in the pilot test are: Davivienda banks, the IDB Group and Banco de la República. Davivienda will be responsible for issuing the trial bond, the IDB will be in charge of acting as an investor, while the Banco de la República will be the “observer who will oversee that the process is completed according to the former

The most important challenge of this pilot test is related to the updating of the stock exchange regulations and policies that govern the entire process, because they are directed, for the most part, to an administrative process, preferably written, for which the legal instruments must be developed and adapt to new technology.

M. Rodríguez

Source: es.cointelegraph.com

La entrada Colombia issues bonds with blockchain technology apareció primero en Bitfinance.

MicroStrategy decided to increase the volume of debt bonds to $ 500 million in order to continue acquiring Bitcoin (BTC) and increase cryptocurrency reserves of the company.

The information was released by the CEO of the company, Michael Saylor, noting that the decision was made after having received 1.6 billion dollars in bond orders from institutional investors, who would buy the company’s debt with the aim of receiving a 6.125 % yield in interest on an annual basis.

It is important to remember that the business software company had launched, last Tuesday, June 7, an offer that consisted of senior notes guaranteed for the value of 400 million dollars that would be used to continue increasing the company’s BTC reserves.

MicroStrategy Announces Proposed Private Offering of $400 Million of Senior Secured Notes to acquire additional #bitcoin. $MSTRhttps://t.co/ilhUt1M73j

— Michael Saylor (@michael_saylor) June 7, 2021

The organization owns a total of 92,079 BTC acquired at an average price of $ 24,450 and is currently priced at $ 3.188 million. The cryptocurrency has become its reserve asset and displaced the traditional US dollar.

In a strategic move, MicroStrategy  took advantage of the fall in the price that Bitcoin suffered last month when the asset plummeted below $ 35,000, surpassing it to settle at $ 63,000 that same month. Currently, the price of BTC is around $ 34,700, which suggests that the company is waiting for a new decline to obtain it, establishing about $ 30,000 as the ideal price.

M. Rodríguez

Fuente: bitcoin.es

La entrada MicroStategy increases its debt bonds to 500 million dollars apareció primero en Bitfinance.

The second most important cryptocurrency in the world, ethereum, recently reached a new all-time high due to the important decision made by the European Central Bank (ECB), which involves the digital asset.

Specifically, the digital asset was located at 2,636.72 dollars, which represented an increase in its value of approximately 12 %.

The ECB recently announced that it will sell bonds on the market launched directly on the ethereum blockchain, for about $ 121 million.

This inaugural sale, according to several media, would consist of a launch for the same amount to the market every two years, whose supervision would be under the hands of Goldman Sachs, Banco Santander and Société Générale.

The news of the choice of the ethereum platform for the issuance of European bonds coincided with a price increase for the cryptocurrency ether, native to the network.

K. Tovar

Source: DiarioBitcoin

La entrada Ethereum hits a new all-time high apareció primero en Bitfinance.