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The present case is about the refinancing of Cimpor, a highly profitable Portuguese cement group that encounters a set of obstacles in its debt restructuring. The case is intended to be used in a Corporate Finance class and is divided in three distinct parts: a case A which presents a detailed description of the internal and external events that increased Cimpor’s refinancing risk, a case B which informs the audience of the outcome of the refinancing process, and a Teaching Note with suggested questions and answers to be used in class. Key words

This report provides an overview of the municipal debt market as it exists and has evolved over the past ten years. It provides an assessment of trends and patterns from both bank and bond sources covering all types of municipal governments. The overall objective of the work is to assess the regulatory environment pertaining to municipal borrowing in the country and to generate recommendations to improve this in a manner which expands municipal access to private debt finance while ensuring that risk is appropriately allocated and properly priced. More particularly, this report: 1) outlines the need and rationale for expanding access to credit finance on part of municipalities in India; 2) provides an overview of the existing municipal debt market; 3) provides an overview of the chief characteristics of the regulatory environment pertaining to municipal borrowing in India, places the existing regulatory system in international context, and outlines a suggested overall direction for reform; and 4) provides specific recommendations to improve the regulatory regimes over which the state and union governments have respective control.

Bank loans can become non-performing because of problems with the borrower s financial health, problems with the design or implementation of lender protection features, or both. In ascertaining how to deal with a problem loan, it is important to distinguish between a borrower s ability to pay and willingness to pay, Making this distinction is not always easy and requires effort. This manual was written as a guide for lending institution staff dealing with non-performing loans (NPLs) extended to corporations and small and medium enterprises (SMEs). It deals with both ad hoc and systemic financial distress and delves into how borrower problems may have arisen in the first place. It provides guidance to lending institutions staff responsible for handling individual problem loans and to senior managers responsible for organizing portfolio-wide asset resolution.

The pace of economic activity is gradually returning to pre-crisis levels. After a roller-coaster of sharp drops, vigorous rebounds and mild contractions, Gross Domestic Product (GDP) was up 4.8 percent in the last quarter of 2010 on a seasonally-adjusted annualized (SAAR) basis, closer to pre-crisis, normal levels. For 2010 as a whole, GDP expanded by 7.8 percent from 2009. Growth was broad-based, with significant contributions from external and domestic demands. Thailand's economy is one of the most energy intensive in the region because of the large (and growing) share of energy-intensive manufacturing in the economy and high proportion of cargo transported by trucks. Thailand can reduce its vulnerability to oil price shocks by raising fuel standards, improving tax incentives for conservation and relying more on rail for cargo transport.

Portability of social benefits across professions and countries is an increasing concern for individuals and policy makers. Lacking or incomplete transfers of acquired social rights are feared to negatively impact individual labor market decisions as well as capacity to address social risks with consequences for economic and social outcomes. The paper gives a fresh and provocative look on the international perspective of the topic that has so far been dominated by social policy lawyers working within the framework of bilateral agreements; the input by economists has been very limited. It offers an analytical framework for portability analysis that suggests separating the risk pooling, (implicit or actual) pre-funding and redistributive elements in the benefit design and explores the proposed alternative approach for pensions and health care benefits. This promising approach may serve both as a substitute and complement to bi- and multilateral agreements.

Current international financing (primarily ODA) for environmental services in developing countries is very roughly estimated to be upwards of $21 billion annually (not including climate change financing), but additional resources on the order of tens, if not hundreds, of billions of dollars are needed. In 2009, environmental ODA was estimated at $18 billion with a few billion more delivered through philanthropic and market-based financing channels. Although there are only a few studies of the additional financing needed, and those are relatively narrow in scope, the estimates that are available clearly indicate that significantly higher levels of finance still need to be reached. Additionally, the impacts of environmental finance on environmental sustainability and development objectives are poorly understood. Systematic reviews of previous experience, and standardized monitoring in the future, would support the countries and projects monitored, while also providing important lessons for the broader development and environment communities.

The law and related implementing regulations that constitute the regulatory framework affecting the capital markets in Indonesia are largely consistent with the International Organization of Securities Commissions (IOSCO) Objectives and Principles of Securities Regulation. Nevertheless this assessment finds that legislative reforms and other actions that are in the process of being implemented to clarify and expand the security regulator's authority and to cure certain self-acknowledged gaps should be accelerated. Further, the assessment concludes that attention must be paid to assure that implementation of the regulatory framework results in a system that reliably detects, deters, and sanctions securities violations and reliably identifies and prevents or mitigates prudential concerns. This may require legal reforms beyond those necessary to reform the specific capital markets law, as discussed more extensively by the separate legal assessor. How significant such further reform will be to enforcement effectiveness will depend in part on the manner in which regulatory enforcement powers and authorities are augmented and enhanced under the capital markets law revision. Capital markets operations are heavily dependent on legal certainty, and in particular reliable application of contract, company, insolvency, and other legal protections.

The capital markets in Salvador are small and relatively underdeveloped, and have played a very limited role in the economy. On average, institutional investors invest less than 10 percent of their total assets in capital market instruments. In 2009, there were only five new issuances of corporate bonds and three in the case of equity. Banks and pension funds are the main institutional investors. The current market architecture and the natural monopoly it grants to the exchange hamper market development and prevent the modernization of the regulatory framework. There is an urgent need to overhaul of the regulatory framework to promote sound market development in the short-to-medium term. The regulatory framework should guarantee a level playing field between bonds and bank deposits, which should be reflected in the investment guidelines for institutional investors. The exchange should reposition itself to become more competitive and strategic at the local and regional level. The investment funds law should be finally approved to broaden and diversify the investor base. The importance of this reform is paramount as the current reliance on just two main institutional investors (banks and pension funds), with investment limitations (35 percent each per issue), creates a major limitation for new issuances. In the medium -to long- run, it is recommended to explore gradually integrating the individual markets at the regional level. This paper is divided into following four parts: part one gives current market situation; part two gives regulatory and supervisory framework; part three gives recommendations; and part four is reference section.

This paper is focused on climate-related investment in developing countries. It provides the reader with an overview of climate-related activities, clarifies the terminology and discusses the sources of finance and public support. Section 1 gives an overview of current investment in climate-related activities. Section 2 defines a typology of private sector investment according to stage of technology development and type of project/investment. Section 3 outlines the risks faced by a private investor in emerging markets, how these risks are typically mitigated, and discusses how barriers to low carbon investment can exacerbate these risks. Section 4 discusses the different types of support relevant for the private sector and, building on the experience of the EBRD and IFC, the leverage associated with the different project types and support sources. Case studies of innovative use of concessional finance are also provided. Section 5, using the two main available sources of information, assesses the level of investment that will be required for a 2 degrees celsius pathway and concludes with a description of the support mechanisms that will be needed to mobilize private flows. An annex provides a list of interesting initiatives being implemented by other intergovernmental organizations and agencies that also speak to improving private sector engagement in the climate investment space.

India's economic performance in FY2009/10 shows that the recovery from the slowdown during the global financial crisis is well underway. India's Gross domestic Product (GDP) growth in FY2009/10 has beaten expectations by reaching 7.4 percent compared with 6.7 percent in the previous year. In particular, agricultural sector growth was better than feared with a slightly positive growth rate despite the worst monsoon shortfall in three decades. Strong growth in the fourth quarter pushed annual GDP growth to 7.4 percent in 2009-10. Fourth quarter growth reached 8.6 percent (y-o-y), the highest quarterly growth rate since the end of FY2007/08. The industrial sector's robust recovery beat expectations. Growth in the last quarter of fiscal year FY2009/10 was an unexpectedly high 13.3 percent resulting in over 12 percent growth in the second half of year, nearly double the 6 percent growth witnessed in the first half. Higher inflation mars the bright picture, but there are clear indications of moderation. Inflation as measured by the wholesale price index (WPI) averaged 10 percent during February-May 2010. India's recovery after the slowdown seems well underway. Growth is projected to climb to 8-9 percent in the next two years. These growth rates are achievable without a renewed build-up of inflationary pressure as long as agricultural growth returns to trend, infrastructure constraints are alleviated, and international prices remain stable. Over the next year, sources of growth will shift from fiscal stimulus to manufacturing and, possibly a recovering agriculture.

Repo markets are an essential component of liquid Government debt markets, acting as a transmission belt between money and debt markets, as well as serving to conduct key functions for the efficient operation of debt markets. These include, among others, credit risk management, funding debt portfolios, playing the yield curve, and covering short positions and settlement fails. The hybrid nature of a repo between a collateralized loan and a full transfer of ownership makes it a very versatile instrument for a broad range of market participants with very different business models. However, this is at the same time the reason for its complexity. This note addresses the legal, structural, accounting, tax, regulatory and infrastructure factors that are decisive for repo market development. The legal and infrastructure factors that underpin repo markets functionality are evolving ones and may be different depending on the country. The perspective adopted in this note intends to provide a balanced account of both the conceptual issues in each topic and relevant country cases, with the objective of providing policy makers with analytical tools to address their country specific context.

The chief purpose of this handbook is to provide government lawyers with a framework to evaluate the quality of a country's investment legislation (if it exists) and how the legislation relates to its investment policy and investment incentives. More specifically, it deals with creating new and reforming existing investment legislation in developing and transition economies in furtherance of the World Bank Group's (WBG's) mandate to promote private investment - domestic and foreign - in those economies. Handbook appendices contain drafting guidelines and checklist of issues that foreign direct investment (FDI) laws should include and that countries can use when drafting investment legislation. The report is structured as follows: chapter one defines key terms about investment law reform in an effort to clarify terminology and concepts and show how they are related. Chapter two examines how widespread investment codes are and explains their utility and limitations. Chapter three provides recommendations on the structure of investment legislation and the key provisions to be included such as definitions, investors' guarantees, incentives, framework for investment promotion, and transitional provisions. Chapter four discusses the fundamental issue of investor entry, in particular the conditions under which foreign investors can invest including sectoral restrictions, limitations on foreign ownership, authorization and screening, minimum investment, and performance requirements. Chapter five discusses key investor guarantees including fair and equitable treatment, national treatment, most-favored-nation (MFN) treatment, protection against expropriation, guaranteed convertibility and repatriation of profits, and settlement of disputes. Chapter six looks at the issue of investment incentives, (fiscal incentives in particular) and their effectiveness. Chapter seven summarizes key aspects of investment promotion to guide legal drafters, should policymakers want the investment code to set out the basic framework of investment promotion. Chapter eight presents the various phases of investment law reform projects, from the government's request for assistance with legislation to the delivery of a project plan. Chapter nine identifies some of the challenges in preparing an investment code and the support that governments may need until the law is promulgated. Chapter ten discusses the monitoring and evaluation (M and E) of investment law reforms, including the key indicators involved in a desk review and medium- and large-scale projects.

The Indonesian economic quarterly reports on and synthesizes the past three month s key developments in Indonesia s economy. It places them in a longer-term and global context, and assesses their implications for the outlook for Indonesia s economic and social welfare. Its coverage ranges from the macro economy to financial markets to indicators of human welfare and development. Indonesia s economy appears to be broadly backed on track. Economic activity has been picking up, inflation has remained moderate, financial markets have risen, and the newly reelected government, having established the strong fundamentals that supported Indonesia through the global crisis, appears to be now gearing up for new investments in Indonesia s physical infrastructure, human services and institutions of state. Indonesia seems well-positioned to get back on its pre-crisis growth trajectory, with the possibility of further acceleration and more inclusive growth. The sustainability of the global recovery is still not entirely clear and portfolio flows into emerging markets, which have surged in the last nine months, may as easily be reversed as policy makers elsewhere move to unwind the large monetary and fiscal stimulus efforts initiated over the last year.

This paper argues that global imbalances in current account positions are a natural consequence of globalization of financial markets and of demographic trends, particularly in Europe and in East Asia. Those societies are aging rapidly, with declining numbers of young adults. On both counts savings should be high and investment weak, resulting in excess saving. With globalization of capital markets, this excess saving will naturally seek secure investment opportunities abroad. The U.S. economy, where demographic trends are markedly different (due in part to immigration of young adults), offers a good combination of yield, liquidity, and security for this excess savings, which in time will be liquidated to finance consumption in old age. Thus the large 'imbalance' does not obviously reflect disequilibria in the world economy, but rather a current phase of intertemporal trade.

Securities settlement systems should have a well-founded, clear and transparent legal basis in the relevant jurisdiction. The laws, regulations, rules and procedures governing the operations and activities of Thailand Securities Depositories (TSD) are public and accessible to participants. In particular, participants receive comprehensive documentation covering the rules, requirements, procedures and instructions of TSD. This documentation is available on request and is accessible on the TSD website. The public authorities' regulations are also available to the general public on the websites of the Ministry of Commerce (MoC), the Securities and Exchange Commission (SEC) and the Bank of Thailand (BOT). It is recommended to implement adequate legal measures that ensure the netting arrangement is legally protected even in the event of the insolvency of a participant.

The subprime mortgage crisis ranks among the most serious economic events affecting the United States since the great depression of the 1930s. This study analyzes key issues raised by the crisis at three levels: (i) issues directly and specifically relating to subprime mortgage lending; (ii) issues relating to the securitization of subprime mortgages; and (iii) issues affecting financial markets and institutions. These issues are fundamental to risk bearing, sharing, and transfer in financial markets and institutions around the world. Many of the issues raised by the U.S. subprime crisis also apply to high-risk loan markets in developing countries. The framework applied in the paper analyzes subprime mortgage lending as a major financial market innovation. Although conditions were conducive for subprime lending to arise as a financial innovation, financial innovations are necessarily risky undertakings, all the more so when they create new classes of risky loans and securities. The lessons learned from the crisis can thus be usefully applied to issues of the growth and development of emerging economies, as well as pointing the way to the design of new and efficient policies for subprime lending in the developed economies.

У тезах запропоновані напрями удосконалення боргової політики в Україні. Directions of improvement of the debt policy in Ukraine are offered in the theses

Although the link between improved infrastructure services and economic growth is uncertain, it is clear that reforms aimed at creating competition and regulating natural monopolies establish an environment conducive to private sector participation, incentives for companies to strive for efficiency savings that can ultimately be passed on to consumers, and greater provision of services (such as faster roll-out of infrastructure or innovative solutions to service delivery for customers not connected to an existing network). In determining the form that infrastructure restructuring might undertake or the design of a regulatory agency, policymakers can generally benefit from a review of the experiences of other countries. A key element of any decision making process should be a review of how the various types of reform will affect the efficiency of the sector and whether they will increase private financing of its significant investment needs.

To understand the fiscal position of a country, contingent liabilities and other sources of fiscal risk need to be considered. The authors develop a framework to assess and manage fiscal risk in Bulgaria. Bulgaria's Currency Board Arrangement has effectively imposed fiscal discipline, but leaves only limited room to accommodate potential fiscal shocks. Through risks embedded in the portfolio of government contingent and direct liabilities, significant fiscal pressures could arise in the future. Major sources of risk include environmental liabilities and investment requirements, collection capacities of the social protection institutions, and further engagement in off-budget programs, such as government guarantees. To limit the Government's exposure to risks, yet accommodate investment needs crucial to growth and development, Bulgaria must find an optimal strategy for liability management, fiscal reserves, and risk mitigation. Priorities for dealing with existing risks and limiting further accumulation of risks include: 1) Mitigating currency and interest rate risks in the government liability structure. 2) Implementing proposed institutional and finance reform of the country's pension and health care systems. 3) Building adequate contingency reserves. 4) Introducing risk-sharing arrangements. 5) Prioritizing and placing strict limits on the amounts of new guaranteed obligations. 6) Developing government capacity to analyze and manage risks. 7) Fully integrating fiscal risk management with other policy considerations in fiscal management, as part of an integrated asset and liability management strategy.