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Debt write-off implies downgrade, Moody’s says, as governments lose control – O Jornal Económico



Debt write-off implies downgrade, Moody's says, as governments lose control - O Jornal Económico

Rating agency Moody’s argues that a downgrade for countries seeking to write off debt is inevitable, because the decision to restructure is made by a committee of creditors, regardless of the government’s will with respect to individuals.

In an interview with Lusa, Marie Deeron, director of the sovereign risk analysis group at Moody’s, explained that when a country adheres to the Common Debt Management Framework besides the Debt Servicing Suspension Initiative (DSSI), it abandons the decision on which lenders will participate in restructuring, the final word rests with the creditors’ committee.

“Although the Ethiopian government was very clear about its willingness to continue to honor its obligations to private creditors and use the Common Framework only to increase liquidity, when they signed up, they agreed with a paragraph that says that all creditors will be treated equally, which means a loss control, since the decision goes to the creditors’ committee, ”explained Marie Deeron, answering the question whether it is possible to adhere to the Common Framework and not tolerate a drop in the rating.

“The decision is made by a committee of creditors, and while the government may intend to maintain financial commitments to the private sector, it is the committee that decides how to proceed with the restructuring,” said the director of Moody’s, which ceased to exist this month. rating “Ethiopia after delayed meetings with creditors.

“The rating was B2 in March, pending to downgrade and there has been no major change in the meetings since then, so we dropped to Caa1, two notches down because the committee needs time to“ Meet and agree on restructuring, this suggests that the risk of losses for private lenders has increased, ”the analyst explained.

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Regarding the inevitability of a rating downgrade after joining this method of debt restructuring, Marie Deeron said that this will not happen only if the rating is already so low that it already takes into account the likelihood of losses for creditors.

“If the rating is high, it will probably force us to update our opinion on credit quality, but if it is low, it already includes a level of uncertainty about payments to lenders,” he said.

The DSSI is an initiative launched by the G20 last April that guaranteed a moratorium on debt payments from the heavily indebted countries to more developed countries and multilateral financial institutions, with an initial deadline of December 2020, but which has been successively extended until the end of this year.

This initiative only encouraged countries to seek debt relief from the private sector, while the General Framework approved by the G20 in November argues that reaching out to private creditors is mandatory, even if it does not explicitly state what will happen if there is no agreement. between the debtor and the creditor.

Three African countries (Chad, Ethiopia and Zambia) have applied for membership in this Framework, but several analysts believe there will be more countries that will have to join due to their dire financial situation, despite opposition from countries that they will automatically downgrade their rating if they continue to restructure their private debt, which will make it difficult to access the market and finance the development of their economies.

The proposal, presented by the G20 and the Paris Club in November, is the second phase of the DSSI, launched in April and widely criticized for not requiring individuals to participate in the effort, as it will pave the way for debtor countries not to pay creditors and bilateral ( countries and multilateral financial institutions) and continue to service private debt.

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This framework aims to recruit all debt agents, including private and public banks in China, which have become the largest lenders to developing country governments, including Africans.

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Everything has been delivered. 10 Bugatti Centodieci are already in the hands of the owners



Everything has been delivered.  10 Bugatti Centodieci are already in the hands of the owners

OAll Bugatti Centodieci have been delivered, the Molsheim-based brand said on Monday. Cristiano Ronaldo received the number 07 in October this year. and Bugatti has now revealed that the latest unit – #10 – is already in the possession of its owner.

“The Centodieci combines all the values ​​of the Bugatti brand in an extraordinary package: rarity, innovation, heritage, craftsmanship and unrivaled performance. The production batch of 10 units was so in demand by our customers that it was sold before the Centodieci. was even officially presented,” said Christophe Piochon, president of Bugatti.

This latest example is finished in Quartz White with carbon fiber trim on the bottom and matte grilles. The brake calipers are painted in Light Blue Sport, as is the logo on the rear that refers to the EB110, the iconic Bugatti model that inspired this Centodieci. Inside, the predominant color is also blue, as you can see in the images above.

This block is powered by the same block as the other nine instances. The 8.0-liter W16 with four turbines is capable of developing 1600 hp. In terms of performance, this allows the Centodieci to hit 100 km/h in just 2.4 seconds and reach a top speed of 380 km/h.

Recall that each unit costs the owners eight million euros before taxes.

Read also: We already know when the Bugatti Centodieci fell into the hands of Ronaldo.

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The first Dacia hybrid. “The cheapest hybrid family on the market”



The first Dacia hybrid.  "The cheapest hybrid family on the market"

BUT Dacia revealed this Monday that the hybrid engine has been available since March on the Jogger, the Romanian brand’s model known to be available with a seven-seat variant.

The Jogger Hybrid 140, Dacia’s first hybrid, will hit dealerships in March, but customers can expect and order it as early as January.

The price has been revealed by Dacia and since it’s only available in the seven-seater SL Extreme, it starts at €28,800. The brand claims it is “the most affordable hybrid family car on the market.”

Available in six existing colors to celebrate the launch of this hybrid, there will be a slate gray version, as you can see in the images above.

Equipped with a 1.6 liter four-cylinder petrol engine with 90 hp, the Jogger is also powered by two electric motors (a 50 hp engine and a high-voltage starter-generator). The total power is 140 horsepower. The electric transmission is automatic, four-speed, connected to an internal combustion engine, and two speeds are connected to an electric motor. This combined technology was possible, according to Dacia, only due to the lack of clutch.

Combined with the energy recovery levels of the 1.2kWh (230V) battery pack and the efficiency of the automatic transmission, regenerative braking delivers all-electric traction on 80% of urban journeys and saves up to 40% of fuel compared to a combustion engine vehicle.

Read also: Dual-fuel Dacia Jogger Eco-G. We tried 5 seater and LPG…

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See how Tesla tests its electric Semi truck in the worst-case scenarios



Tesla Semi camião elétrico testes

Tesla has finally been able to bring its long-awaited Semi to market. This electric truck promises to revolutionize transportation and bring all the unique characteristics of this type of electric vehicle to this class of vehicles.

Now that the first units have been delivered, there is hope that they will finally be mass-produced and reach more transport companies. With so many promises to be kept, a new video is now emerging showing Tesla testing its Semi truck under worst-case scenarios.

Tesla Semi is already on the market

Like all Tesla electric vehicles, Semi follows the same line of creating a unique design associated with a platform with the most modern technology available. The proof is in what was presented to the public and surprised most people.

To prove the quality of this new proposal, Tesla published in your LinkedIn account new video. In it, he reveals some of the testing he's done to determine the strength and quality of the Semi's design and its (potential) durability.

Tests to prove its durability

It has been revealed that the Tesla electric truck is subjected to numerous tests and its application in the worst scenarios that drivers may face. It doesn't stop at the ruggedness of the Semi's designs, but goes further and focuses on the motors and batteries themselves.

This is the proof that many have been waiting for to ensure that this new proposal is not limited to a lot of autonomy. Its resistance is great and will provide greater durability, further enhancing the Semi's value and performance.

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high quality electric truck

Tesla has already showcased the Semi's quality with a video showing its truck driving roughly 500 miles on just one charge. The big news here is that he managed to make this long journey with a maximum load of about 37 tons.

Now Tesla remains to widely place the Semi on the market. At the moment, only a few companies have access to this new product, with a very long list of pending deliveries, who want to start mass-using this electric truck offering.

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