Economy

• Friday, June 12th 2009 - 18:02 UTC

  Bleak prospects for poor countries with global contraction of 3%

  

  The world economy is set to contract this year by more than previously estimated, and poor countries will continue to be hit hard by multiple waves of economic stress, said World Bank Group President Robert B. Zoellick.

• Friday, June 12th 2009 - 17:56 UTC

  Brazil slashes basic interest rate to help reverse recession

  

  The Brazilian Central Bank slashed its Selic benchmark interest rate to a record low of 9.25% seeking to bolster spending and reverse recession in Latinamerica's largest economy. The one percentage point cut was the fourth reduction in as many months as policymakers struggle with the impact of the global economic slowdown.

• Friday, June 12th 2009 - 17:29 UTC

  Chinese imports in May dropped 25% and exports 26%

  

  Chinese exports dropped by a record amount in May as demand for its goods from the US and Europe slumped. Exports fell 26.4% from the same month earlier, more than February's previous record drop and imports declined by 25.2%.

• Friday, June 12th 2009 - 17:23 UTC

  Ecuador celebrates sovereign “defaulted” bonds repurchase

  

  Ecuador announced Thursday it had bought back 91% of its “defaulted” bonds via an international auction with drastic rebates of 65% to 70%. The amount involved in the operation was 3.37 billion US dollars.

• Thursday, June 11th 2009 - 11:10 UTC

  Brazil confirms purchase of 10 billion US dollars in IMF bonds

  

  Brazil will buy 10 billion US dollars of bonds issued by the International Monetary Fund to help the multilateral lender provide financing to countries hurt by the financial crisis, announced Finance Minister Guido Mantega.

• Thursday, June 11th 2009 - 10:05 UTC

  Thomas Cook “completely ring-fenced” against bankruptcy

  

  Germany's Arcandor, which owns 52% of Thomas Cook, filed for bankruptcy protection after the German government rejected a request for loan guarantees.

• Wednesday, June 10th 2009 - 07:55 UTC

  Argentina will consume Uruguayan beef for bicentenary celebration

  

  Argentina will celebrate its bicentenary consuming Uruguayan beef forecasted the president of the powerful farmers’ association Argentine Rural Society, Hugo Biolcati. Production won’t be enough to cover Argentina’s demand next year, “either we bring per capita consumption down from 70 kilos to 50 kilos, or we import beef and it won’t be cheap”.

• Wednesday, June 10th 2009 - 07:34 UTC

  US banks ready to repay bail-out money, but fears of further credit crunch

  

  Ten of the largest US banks will be able to repay 68 billion US dollars in government bail-out money, the US Treasury says, a sign the financial crisis is easing. President Barack Obama welcomed the move but said it was not a sign that “our financial troubles were over”.

• Wednesday, June 10th 2009 - 02:49 UTC

  Brazil in recession, but mild recovery expected at end of 2009

  

  Brazil's economy is showing clear signs of economic recovery though it requires additional fiscal and monetary stimulus to ensure growth this year, said on Tuesday Finance Minister Guido Mantega reacting to the latest data which showed the country had fallen into technical recession.

• Tuesday, June 9th 2009 - 12:50 UTC

  Spain to the rescue of banks with 9 billion Euros emergency fund

  

  The Spanish government plans to set up a 9 billion Euros emergency fund to prop up the country's weakest banks if other measures fail, Finance Minister Elena Salgado said in a Sunday interview with Madrid’s ABC.