Latest news with #financialrisk
Reuters
5 hours ago
- Business
- Reuters
Portugal's government to audit central bank contract over reported risks
LISBON, July 23 (Reuters) - Portugal's Finance Ministry has requested an audit of a contract signed in May by the central bank, whose governor's term ended on Saturday, for the construction of its new headquarters that has raised concerns about financial and legal risks. The announcement by the ministry late on Tuesday follows a report by news site Observador that the 192-million-euro ($225-million) promissory contract had been signed despite due diligence warnings of "high-risk contingencies," including significant potential cost overruns and licensing problems. The central bank declined to comment on the audit on Wednesday. The Observador said it told them it used national and international best practices for rigorous control of the contract's legality and financial terms. Following the report, the junior ruling coalition partner, the conservative CDS-PP, late on Tuesday summoned Bank of Portugal Governor Mario Centeno to explain the situation before a parliamentary committee that will take place in September after the summer recess. It also asked the central bank to send the contract and due diligence studies to the committee. The centre-right government is expected at a cabinet meeting on Thursday to decide whether to reappoint or replace Centeno, a Socialist who was appointed in 2020 by a previous centre-left administration. Centeno was criticised by the political right for moving from his role as finance minister to the central bank in 2020. His detractors said the move undermined the institution's independence. The Finance Ministry said it was requesting the audit, to be carried out by its General Financial Inspectorate, "in defence of the institution (central bank) and in full respect for its independence". ($1 = 0.8524 euros)
Yahoo
4 days ago
- Business
- Yahoo
Think the US Is Bad? People in These 9 Countries Have Way More Debt
In the U.S. it's more common than not to carry a boatload of debt. As of the third quarter of 2024, Americans owed $17.57 trillion in total debt — up 2.4% year over year, according to Experian data. Even spread over hundreds of millions of people, it's a lot of debt: $58,215.12 for the average household, according to a new study by QuickLoan Pte Ltd. Check Out: Read Next: But the U.S. isn't the only country with a serious debt issue among its citizens. The study analyzed household debt data across multiple countries to find which nations live most on credit and where debt-to-income ratios pose the greatest financial risks. The U.S. came in 10th, based on loan-to-income ratio, as it has a loan-to-income ratio of 112.21%. Below are the nine countries where the burden of household debt is even greater. 9. Netherlands Average household debt: $53,430.77 Average yearly net salary: $45,433.20 Loan-to-income ratio: 117.60% Learn More: 8. New Zealand Average household debt: $43,987.51 Average yearly net salary: $36,810.84 Loan-to-income ratio: 119.50% 7. Luxembourg Average household debt: $87,235.44 Average yearly net salary: $72,789.24 Loan-to-income ratio: 119.85% 6. Sweden Average household debt: $45,796.27 Average yearly net salary: $37,528.32 Loan-to-income ratio:122.03% 5. Denmark Average household debt: $59,926.00 Average yearly net salary: $47,495.64 Loan-to-income ratio: 126.17% 4. Switzerland Average household debt: $124,785.99 Average yearly net salary: $86,807.04 Loan-to-income ratio: 143.75% 3. Canada Average household debt: $54,572.63 Average yearly net salary: $34,609.56 Loan-to-income ratio: 157.68% 2. Australia Average household debt: $70,348.47 Average yearly net salary: $43,060.44 Loan-to-income ratio: 163.37% 1. Norway Average household debt: $74,629.74 Average yearly net salary: $43,955.28 Loan-to-income ratio: 169.79% More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard Clever Ways To Save Money That Actually Work in 2025 These Cars May Seem Expensive, but They Rarely Need Repairs This article originally appeared on Think the US Is Bad? People in These 9 Countries Have Way More Debt Sign in to access your portfolio
Bloomberg
6 days ago
- Business
- Bloomberg
Senator Warren Asks Ratings Firms How They Assess Private Credit Risk
Senator Elizabeth Warren asked US Treasury Secretary Scott Bessent and various ratings agencies for more information on risks posed by the $1.7 trillion private-credit industry. In the letter to ratings firms including S&P Global Inc., Moody's Ratings and Fitch Ratings, the Massachusetts Democrat expressed concern that some companies may be 'inflating' ratings of private debt instruments, which could pose risks to the larger financial system.
Yahoo
08-07-2025
- Business
- Yahoo
Homes project poses financial risk to council
Funding a 1,650-home development project is still "the biggest financial risk" to a Surrey council as it tries to fill an ever-growing gap in its budget, the authority's chief financial officer says. The Wayside Urban Village (WUV) scheme, led by Guildford Borough Council, could see hundreds of new homes, community buildings, employment space and improved infrastructure built. The £453m project was given outline planning permission in October 2021, but has seen its potential deficit rise from £50m in May 2024, and will have increased with inflation since then. Officers have now outlined various options to plug the funding black hole, with a full decision to be made by the end of July. The sale of council assets is predicted to bring in £20m, while the intended new leisure contract for the Spectrum, Lido and Ash Manor is also hoped to generate funds for WUV. The council's chief financial officer Richard Bates told the Local Democracy Reporting Service the project is "clearly the biggest risk" and still going to be a large financial risk for the council for probably the next 10 years. "We're still going to have to borrow another £180m to get us from A to B," said Mr Bates. He explained the project still has to deal with ongoing inflation, soaring construction costs as well as land and house prices. But he added: "We've got to the stage where we have enough things to take to the council that will help us mitigate the risk of the project as it currently stands." The aim is to squash the deficit to zero before local government reorganisation takes into effect and Guildford council is merged into a mega authority in 2026-27. If Guildford does not cover the gap, there will be an annual impact on the new council's budget and it could have to cut services. Follow BBC Surrey on Facebook, on X. Send your story ideas to southeasttoday@ or WhatsApp us on 08081 002250. New air quality strategy approved by council Leisure operator plan to invest £10m in facilities Views sought on major housing proposal Views sought on housing in Guildford Red flags missed over council overspend - report Guildford Borough Council Local Democracy Reporting Service Sign in to access your portfolio
BBC News
08-07-2025
- Business
- BBC News
Guildford homes project 'poses financial risk' to borough council
Funding a 1,650-home development project is still "the biggest financial risk" to a Surrey council as it tries to fill an ever-growing gap in its budget, the authority's chief financial officer says. The Wayside Urban Village (WUV) scheme, led by Guildford Borough Council, could see hundreds of new homes, community buildings, employment space and improved infrastructure £453m project was given outline planning permission in October 2021, but has seen its potential deficit rise from £50m in May 2024, and will have increased with inflation since have now outlined various options to plug the funding black hole, with a full decision to be made by the end of July. The sale of council assets is predicted to bring in £20m, while the intended new leisure contract for the Spectrum, Lido and Ash Manor is also hoped to generate funds for council's chief financial officer Richard Bates told the Local Democracy Reporting Service the project is "clearly the biggest risk" and still going to be a large financial risk for the council for probably the next 10 years."We're still going to have to borrow another £180m to get us from A to B," said Mr Bates. He explained the project still has to deal with ongoing inflation, soaring construction costs as well as land and house he added: "We've got to the stage where we have enough things to take to the council that will help us mitigate the risk of the project as it currently stands."The aim is to squash the deficit to zero before local government reorganisation takes into effect and Guildford council is merged into a mega authority in 2026-27. If Guildford does not cover the gap, there will be an annual impact on the new council's budget and it could have to cut services.
