bailout
Reports on bailout See all →
The U.S. mulls more Covid-19 bailouts for states
As parts of the U.S. government wrangle over another round of Covid-19 relief, one of the thorniest issues is whether to offer more aid to states and local governments. What has become clear, however, is that the funds already doled out should have easily covered the shortfalls in tax revenue they experienced. If states become overly reliant on federal money, it could undermine their ability to respond to the needs of their own citizens.
The MPS bailout and the future of EU banking
Italian authorities failed to save the historic bank using the European Union’s bail-in rules, so they applied to bail it out. The EU allowed the move, even though it was clear there was no real systemic risk. The turnaround stems from protectionist and anti-competitive attitudes. These will prevail in the ...
The next Greek bailout (or not)
As Brussels and Athens prepare for new negotiations on the Greek debt in 2017, another flawed bailout deal is on the cards. Neither side is ready to act on the knowledge that Greek public finances are still unsustainable. Postponing the day of reckoning through debt monetization might be the most ...
IMF puts itself in a fix as it bends rules to bail out Ukraine
On December 18, 2015, the government of Ukraine announced it had no intention of honoring a $3 billion Eurobond loan owed to Russia that would mature on December 20. Given the cross-default clause written into that bond, under British law, this was a momentous decision. It gave the Kremlin the ...
Germany emerges as power broker in Greek debt crisis
Fears that Greece’s financial problems could spill over into an international context upsetting the markets proved unfounded as European compromise provided Greece with short-term breathing space. But the Greek saga proved that Germany has the strength and power to drive European policy impacting all other EU members. <...
