#AceFinanceNews – BRITAIN – April 10 – The UK would need longer to recover its triple-A debt rating if Scotland gains independence after a referendum in September, Fitch said on Thursday.
Scottish independence would raise the ratio of the UK’s gross public debt to gross domestic product, Reuters said.
“The UK’s gross debt ratio will need to be lower than its current level and steadily declining before any upgrade back to AAA, a prospect that would be delayed by such a debt shock,” according to the ratings agency.
Telegraph Reported on March 20 – Britain’s public sector net debt will need to fall before the country can regain its top-notch triple-A sovereign debt rating, ratings agency Fitch said on Thursday, a day after finance minister George Osborne’s annual budget http://www.telegraph.co.uk/finance/economics/10712316/UK-not-close-to-regaining-triple-A-rating.html
“The public debt ratio will need to be lower and steadily declining before any upgrade to ‘AAA’. This is unlikely in the near term,” Fitch said in a statement.
Fitch currently rates Britain AA+, one notch below triple-A, with a stable rating.
Government forecasts released showed that Britain’s public sector net debt is expected to rise over the coming years and is not forecast to fall below its current level of around 74.5pc of GDP until the 2018/19 financial year.
It means that only Standard & Poor’s has the UK on the top rating, albeit on “negative outlook”.
#AceFinanceNews – MOSCOW- April 10 – VTB chief Andrei Kostin mentioned “politically motivated” complexities which the Bank of England brings about for the operations of the London-based subsidiary bank VTB Capital.
“Over the recent weeks, we have been experiencing a very strong pressure on the part of the Bank of England with regard to our bank VTB Capital.
This is the only Russian bank with a full license.
Attempts are being made to place demands on us, the demands that are incompatible with the regular supervision practice,” Kostin pointed out in an interview published in the newspaper Izvestia on Thursday.
“We applied to the Central Bank of the Russian Federation (CBRF) in a request to render assistance in talks with the Bank of England, because those demands do not conform to a professional approach. They contain, rather, a large share of political motivation.
All verifications testified to the fact that the bank is reliable and stable and does not bring problems for the UK financial sector.”
The chief of the VTB Group sets hope on the possibility to prove that “this kind of actions with regard to the Russian bank in the UK is not quite compatible with international norms of supervision”.
In response to a question whether VTB plans to seek Russian government’s protection, Kostin said, “We are operating on the territory of another state and in line with UK law which we do not break. I consider that talks through the CBRF will be the most effective.”
#AceFinanceNews – BRITAIN – March 25 – Britain is reviewing an agreement it made with Russian state nuclear firm Rosatom on nuclear cooperation, in reaction to the crisis in Ukraine, according to the Department of Energy and Climate Change (DECC).
Britain last November signed an agreement with Rosatom to help the company prepare potentially to enter the UK market.
The DECC said it had put the agreement under consideration over the Crimea situation. “No decisions have been made on how this work will be taken forward,” Reuters quoted a DECC spokesperson as saying. Rosatom has not commented on the statement.
#AceFinanceNews – UNITED KINGDOM – 22 March – In a dramatic reassessment of UK Student Finance, the government estimates around 45 percent of graduates will be unable to pay back their loans.
The shortfall could cancel out the profits made by the disputed tripling of tuition fees in 2012.
British Universities Minister David Willetts has said that the amount of graduates who will fail to pay back their student loans has greatly exceeded previous estimates.
Before tuition fees were increased threefold in 2012, the government predicted that only 28 percent of loans would ever be paid back.
However, in light of projections for the coming years, the government has reassessed this figure and almost doubled it to 45 percent.
This increase could potentially nullify the 10 billion pounds ($16 billion) in profits made by increasing tuition fees to 9,000 pounds ($15,000) a year in 2012.
If the amount of students unable to pay back their loans grows to 48.6 percent, economists predict the government will start losing more money.
Guardian – Independent – UK News Sources