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Chinese regulator curbs asset transfer by bond issuers

Italy PM Conte faces pressure to move fast to strengthen majority

Italian Prime Minister Giuseppe Conte is under pressure from his coalition to quickly broaden his majority but has made little progress since narrowly surviving an attempt to sink the government, political sources said.

Argentina s Cordoba province claims victory in debt restructuring

2 Min Read BUENOS AIRES, Jan 11 (Reuters) - The governor of the central Argentine province of Cordoba, Juan Schiaretti, said on Monday an agreement had been reached with creditors to restructure around $1.7 billion in debt as the country battles an enduring recession worsened by COVID-19. The country’s second most important province after Buenos Aires in terms of contribution to GDP has been locked in lengthy negotiations with bondholders including the Ad Hoc group which holds more than 50% of foreign-held debt but had rejected several previous proposals. On Monday night, Schiaretti announced a breakthrough with investors. “We are the first Argentine province that has managed to restructure its debt without entering into default,” he wrote on his Twitter account.

UPDATE 1-Chinese regulator curbs asset transfers to protect bondholders

By Reuters Staff (Adds more details, background; tweaks headline) SHANGHAI, Jan 29 (Reuters) - China’s interbank bond market regulator will restrict moves by bond issuers to transfer assets for free, it said on Friday, in an apparent effort to protect bondholders in the aftermath of a spurt of defaults. In a statement, the National Association of Financial Market Institutional Investors (NAFMII) told bond issuers’ controlling shareholders not to dodge debt obligations through asset transfer or transactions with related parties. The curbs come after several top-rated state-owned companies, including Huachen Automotive Group Holdings Co and Yongcheng Coal & Electricity Holding Group Co, defaulted toward the end of 2020, sending shockwaves across China’s bond market.

UPDATE 2-Brazil posts record 2020 primary budget deficit 10% of GDP

(Adds Treasury Secretary comments) BRASILIA, Jan 28 (Reuters) - Brazil reported a record primary budget deficit of 743.1 billion reais ($138 billion) last year, the Treasury said on Thursday, as crisis-fighting expenditure saw total outgoings surge by a third and the economic slump hit revenues. While the annual deficit was a runaway record, both in nominal terms and as a share of gross domestic product, it was below the government’s last official estimate of 831.8 billion reais and below indications from Treasury officials that it could be just under 800 billion. The Treasury said the deficit last year was a record 10% of GDP. That was less than the 11.5% forecast by the government last month. The 2019 primary deficit was 95 billion reais.

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