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Beijing warns Evergrande could go bankrupt if not dealt with high debt problem – Executive Digest

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Beijing warns Evergrande could go bankrupt if not dealt with high debt problem - Executive Digest

The Chinese authorities today called on officials of the Evergrande group to demand that they “actively” resolve the company’s cash flow problems, the bankruptcy of which would have serious consequences for the Asian economy.

Evergrande, one of China’s largest private groups, employs 200,000 people and creates 3.8 million jobs in China.

Real estate is its main activity, and its founder Xu Jiayin is the fifth richest person in the country, according to the research arm of Hurun.

However, the group is heavily indebted after the increase in the number of acquisitions: 5.655 billion yuan (about 743 billion euros) in January 2021, the date of publication of the annual report.

Concerned about the solvency in the medium term, the financial rating agency Moody’s in early August downgraded the “rating” from “B2” to “Caa1”, one of the lowest. Fitch and Standard and Poor’s (S&P) did the same.

According to a statement from the central bank, the central bank and China’s banking and insurance regulator (CBIRC) urged the group to “actively address” the debt problem and “maintain the financial stability and stability of the real estate market.”

The group’s financial health is a concern in the markets, with contractors and suppliers complaining of late payments.

In addition to the real estate sector, the Evergrande Group also owns a football club: Guangzhou FC (formerly Guangzhou Evergrande) headquartered in Guangzhou.

The group also has a presence in the mineral water and food markets under the Evergrande Spring brand and invests in tourism, insurance, healthcare and electric vehicles.

The company announced last week that it was “in discussions” with investors to sell some of its assets.

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Economy

ERSE bans the cost of the Iberian contract mechanism from being included in electricity bills until April 26 – ECO

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ERSE bans the cost of the Iberian contract mechanism from being included in electricity bills until April 26 - ECO





ERSE bans the cost of the Iberian contract mechanism from being included in electricity bills until April 26 – ECO































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Economy

Kazakhstan is preparing to supply oil to Azerbaijan instead of Russia – Oil

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Kazakhstan is preparing to supply oil to Azerbaijan instead of Russia - Oil

In the international oil market, a new adjustment of black gold routes may occur. Kazakhstan is preparing to export its oil via Azerbaijan’s largest oil pipeline to circumvent Russia’s threat to close the Black Sea port of Novorossiysk.

After a Russian court threatened to cut off an oil route through which Kazakhstan exports black gold to the world, Astana is preparing to ship its oil from Azerbaijan’s largest oil pipeline as early as September, sources close to the case say, citing Reuters.

For about two decades, Kazakh oil, which accounts for 1% of the world’s oil reserves, was transported through the CPC (Caspian Pipeline Consortium) pipeline, which was sent to the Russian port of Novorossiysk on the Black Sea, from where the oil was shipped. the rest of the world.

However, in July a Russian court threatened to shut down the CPC pipeline to Kazakhstan, prompting the Astana government and foreign companies operating in the country’s oil sector to reach out to other possible partners to ensure that if Russia ceases to act as a bridge between Kazakhstan’s oil and the world There may be other transportation options.

Thus, one of the sources assured Reuters that the Kazakh oil company Kazmunaigas (KMG) is negotiating with the Azerbaijani side to export 1.5 million tons of oil per year through the Azerbaijani pipeline, which transports raw materials to the port of Ceyhan. , Turkey. The contract is to be signed in August, and oil on this route is to start in September.

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However, these agreements may not be enough to ensure that the world receives the same number of barrels of oil from Kazakhstan as before Russia’s possible production cuts.

According to the British agency, this partnership will bring 30,000 barrels of oil per day to countries buying Kazakh oil, which is very small compared to the 1.4 million barrels per day currently transported by CPC.

In addition, two other sources report that Astana is in talks to have another 3.5 million tons of crude oil annually exported via another pipeline to the port of Supsa in the Black Sea region from Georgia starting next year. In a Reuters report, KMG representatives declined to comment on the issue.

Kazakhstan can make a difference in the uncertain future

By seeking to sign these agreements, Kazakhstan can not only ensure its own economic viability, but also ensure that the imbalance between supply and demand for oil on the international market does not worsen.

Oil consumption is expected to rise to 2.1 million barrels a day this year, up 300,000 barrels from the previous forecast, according to International Energy Agency data released this Thursday.

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Economy

Caixa Geral de Depósitos may close 23 branches this month – Executive Digest

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The union of workers of the CGD group companies, STEC, has published information received from the administration of Caixa Geral de Depósitos (CGD), announcing that the bank intends to further cut costs and close 23 more branches during August, with more frequency in the Lisbon and Porto areas .

The union warns that with this closure there will be an “inevitable congestion” of other branches in these areas, pointing out that even now they are having difficulty responding to services and recalling that from 2012 to 2022 they left CGD more than 3,300 workers and 300 branches were closed in Portugal.

STEC points to the government’s statement that it “cannot abdicate its responsibility for territorial integrity” and that “it is essential that the state defines the strategic direction that the bank must take, namely its responsibilities in terms of the public interest “. … and the needs of the population, guaranteeing them a service of proximity and quality.”

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