Tag Archives: Bank (TRBC level 4)

UPDATE 1-Italian regulator investigates RBM Intesa, Previmedical for health insurance complaints | Instant News


* Probe triggered by more than 1,000 complaints

* Intesa received the RBM Salut earlier this year

* Intesa says standards have been improved, complaints have decreased (Adding Intesa’s statement)

ROME, November 26 (Reuters) – Italy’s antitrust authorities said on Thursday it had opened an investigation into the businesses of the RBM Salute Intesa Sanpaolo and Previmedical for alleged unfair commercial practices in health insurance services.

Regulators said in a statement that they had received more than 1,000 complaints about possible “aggressive commercial practices” by the two groups that had led to customers giving up the service and reimbursement they were entitled to.

Clients say they face requests to provide redundant documentation, delays in obtaining authorization for required care and difficulties in contacting call centers. Some failed to get reimbursed for their health services for no good reason, regulators said.

The regulator said it had carried out inspections at the headquarters of the two companies on Wednesday with the help of the Italian financial police.

Intesa Sanpaolo said the complaint was related to the period before the acquisition of RBM Salute in May 2020.

“Since that date, concrete steps have been taken to align the quality of service provided to customers with the high standards held by the entire Intesa Sanpaolo group,” said Italy’s largest bank.

Intesa said complaints had halved in the first nine months of this year compared to the same period in 2018, with only 0.07% of customers being insured.

Previmedical did not reply to a Reuters email seeking comment. (Reporting by Francesca Piscioneri, additional reporting by Maria Pia Quaglia and Valentina Za in Milan; Editing by Elaine Hardcastle)

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The Apax-led consortium exits auction for Italian Cedacri: source | Instant News


LONDON / MILAN (Reuters) – A consortium of funding to buy Apax and digital services company Reply has quit the auction process for Italian banking software company Cedacri, two sources told Reuters, leaving three bidders vying for control of the 44-year-old business. .

IT consultancy Accenture and Italian IT service provider Engineering, which is backed by Bain Capital, submitted a rival bid for Cedacri ahead of the mid-November deadline and have advanced to the second stage of the auction, said the source, who spoke on condition of anonymity as a matter of concern. personal.

Dublin-based financial software and data provider ION, led by Italian businessman Andrea Pignataro, is the third bidder left in the process, the sources said.

The company, which provides anything from banking solutions, cloud services, big data and advanced analytics to more than 70 banks, is already worth more than 1 billion euros ($ 1.19 billion), representing a multiple of more than 10 times its core revenue. around 100 million euros, the source said.

Cedacri and the bidders declined to comment.

Discussions with Accenture, Engineering and ION are expected to gain momentum in the coming weeks, the sources said, such as when bidders will be able to conduct due diligence on the business, which is based in the northern Italian city of Parma.

Private equity fund Apax has teamed up with Reply to provide industry expertise but its bid has failed to go forward, the sources said.

Cedacri, who is being advised by Deutsche Bank, aims to complete the process before the end of the year but deadlines for final bids have not been set and negotiations may slip through to January, the sources said.

The company, led by boss Corrado Sciolla, is backed by an Italian state-backed FSI fund, with a 27% stake, and by 14 other financial institutions including Unipol and Banca Mediolanum.

Its investors are hoping to take advantage of a whopping valuation for fintech assets and can receive a binding offer that values ​​the company between 1 and 1.5 billion euros, the sources said.

Reporting by Pamela Barbaglia and Elisa Anzolin; Edited by Kirsten Donovan and David Gregorio

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The Apax-led consortium exits auction for Italian Cedacri: source | Instant News


LONDON / MILAN (Reuters) – A consortium of funding to buy Apax and digital services company Reply has quit the auction process for Italian banking software company Cedacri, two sources told Reuters, leaving three bidders vying for control of the 44-year-old business. .

IT consultancy Accenture and Italian IT service provider Engineering, which is backed by Bain Capital, submitted a rival bid for Cedacri ahead of the mid-November deadline and have advanced to the second stage of the auction, said the source, who spoke on condition of anonymity as a matter of concern. personal.

Dublin-based financial software and data provider ION, led by Italian businessman Andrea Pignataro, is the third bidder left in the process, the sources said.

The company, which provides anything from banking solutions, cloud services, big data and advanced analytics to more than 70 banks, is already worth more than 1 billion euros ($ 1.19 billion), representing a multiple of more than 10 times its core revenue. around 100 million euros, the source said.

Cedacri and the bidders declined to comment.

Discussions with Accenture, Engineering and ION are expected to gain momentum in the coming weeks, the sources said, such as when bidders will be able to conduct due diligence on the business, which is based in the northern Italian city of Parma.

Private equity fund Apax has teamed up with Reply to provide industry expertise but its bid has failed to go forward, the sources said.

Cedacri, who is being advised by Deutsche Bank, aims to complete the process before the end of the year but deadlines for final bids have not been set and negotiations may slip through to January, the sources said.

The company, led by boss Corrado Sciolla, is backed by an Italian state-backed FSI fund, with a 27% stake, and by 14 other financial institutions including Unipol and Banca Mediolanum.

Its investors are hoping to take advantage of a whopping valuation for fintech assets and can receive a binding offer that values ​​the company between 1 and 1.5 billion euros, the sources said.

Reporting by Pamela Barbaglia and Elisa Anzolin; Edited by Kirsten Donovan and David Gregorio

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NZ cenbank will tighten its mortgage lending as the outlook for negative interest rates dims | Instant News


WELLINGTON (Reuters) – New Zealand’s central bank said Wednesday it will reimpose mortgage restrictions next year and is working with the government to fix the housing crisis, reinforcing the view that deeper interest-rate cuts into negative territory are now unlikely.

FILE PHOTOS: A security guard stands at the main entrance to the Reserve Bank of New Zealand located in central Wellington, New Zealand, July 3, 2017. Image taken July 3, 2017. REUTERS / David Gray

The government on Tuesday sent a letter to the Reserve Bank of New Zealand (RBNZ) asking it to consider factoring property prices as part of its policy amid widespread concerns about housing affordability.

RBNZ governor Adrian Orr said the central bank would consider the government’s proposal but needed to assess the impact of such changes on its goal of maintaining financial stability.

“We intend to work with the government in a prompt, constructive and open manner in assessing long-term solutions to housing affordability,” Orr told a news conference.

His comments came when the RBNZ announced plans to reimpose mortgage lending restrictions, called loan-to-value (LVR) restrictions, in March next year.

New Zealand bounced back sooner than expected from recession, but house prices have hit new highs prompting a government proposal to the central bank to include house prices in its monetary policy jurisdiction.

The New Zealand dollar surged to its highest level since mid-2018 on Tuesday, as a government letter was seen by markets as reinforcing expectations the central bank will refuse to move towards negative interest rates.

“Given the news flow, the chances are increasing that the RBNZ will not accept a negative OCR …,” ANZ Bank Chief Economist Sharon Zollner said in a note.

When asked about negative rates, Orr said the RBNZ was operationally ready to implement them, if needed.

The RBNZ pumped NZ $ 28 billion into the banking system this month raising concerns that this will further inflame housing prices already heating up due to historically low interest rates.

Orr defended the bank’s move to stimulate the economy, saying housing has been a longstanding issue for policymakers, but the alternative is rising unemployment and more uncertainty as COVID-19 continues to affect the economy globally.

“The economy has proven to be one of the most resilient on planet earth. So it’s a fantastic result, “said Orr.

(This story corrects irrelevant words in the title)

Reporting by Praveen Menon; Edited by Tom Brown and Sam Holmes

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Analysis: Brazil faces a $ 112 billion refinancing gap in early 2021 | Instant News


BRASILIA (Reuters) – Brazil’s debt has swelled to unprecedented levels due to the COVID-19 pandemic and the government faces a $ 112 billion refinancing gap early next year, with April funding needs the highest for one month.

Publicly, at least, Treasury officials in Latin America’s top economies insist there will be no problems getting investors to lend to them. The so-called liquidity cushion can cover at least three months of the loan.

In addition, nearly all of Brazil’s debt is denominated in reais and more than 90% of it is held by domestic investors, many of whom are forced to hold it by banking regulations.

Financial analysts also see little risk of a boycott by lenders, which is likely to trigger a serious crisis and wreak havoc on Brazilian financial markets.

But the likelihood that the Ministry of Finance may have difficulty repaying debts, due to sudden unfavorable political, economic or market conditions, is not zero. And it will likely pay a premium to shift so much debt at once, analysts say.

According to Treasury Department figures, about 605 billion reais ($ 112 billion) of domestic federal debt is due in the first four months of next year. That’s 14.1% of Brazil’s 4.82 trillion reais pile of domestic debt.

The month to watch is April, when the 283 billion reais of debt will need to be extended. That is 6.6% of Brazil’s debt and will be the largest single month of maturity debt on record, according to the Ministry of Finance.

Graph: April 2021 debt rollover – IIF,

Graph: Monthly debt maturity -% of GDP,

“It’s a big number, and if people want to reduce their exposure a little bit for whatever reason, that’s a significant amount,” said Sergi Lanau, deputy chief economist at the Washington-based Institute of International Finance (IIF).

“It’s not a good situation, but it would be much worse if it was foreign debt. We don’t really care about a bunch of maturity. If something goes wrong at that time, then you will be exposed, ”he said.

The IIF analysis shows that the government’s domestic debt maturing in April amounts to 3.7% of GDP, also an all-time high for a month.

Economy Minister Paulo Guedes said he saw “no problem” for the Ministry of Finance to reimburse the debt. About half of the 600 billion reais due early next year may already be covered by cash inflows from central banks and public sector banks, he said.

STEP CURVE

The government’s surprisingly aggressive fiscal response to the pandemic, particularly through direct income transfers to the poor, has driven its deficits and debt to records that are far above most other developing economies.

Brazil’s main deficit, excluding interest payments, is estimated at nearly 12% of GDP this year, with overall debt rising to around 95% of GDP, according to the government.

That has forced the Treasury Department to borrow more, more and more in short dated paper because it’s cheaper and as growing concerns around the fiscal outlook mean investors are reluctant to lend to the government long-term loans.

While reducing average long-maturity debt and posting low official interest rates has brought average interest costs down to a record low, the so-called “roll over risk” for the Treasury has increased sharply.

“The problem is if we can’t sell any bonds. But we don’t need to worry too much, there is money in the system, ”said an interest rate specialist at a hedge fund in Sao Paulo.

“The treasury won’t run out of cash: that’s not the case. But it will continue to pay higher rates and see a steeper curve, “he said.

The difference between long-term and short-term interest rates has widened sharply. Before the pandemic, the difference between the January 2022 and January 2027 futures rates was 180 basis points or less. That tripled to 460 basis points in September, and is now creeping back to that all-time peak.

Chart: Brazil interest rate spread,

The Treasury has failed to sell the full allocation of bonds offered at several auctions in recent weeks, both the fixed rate ‘LTN’ note and the floating rate ‘LTF’ note linked to the central bank’s official Selic rate.

To attract buyers, the Ministry of Finance has to pay a higher premium. It also relies on other sources of financing, including a recent transfer of 325 billion reais from the central bank.

Waldery Rodrigues, special secretary for the economy ministry, said last week that a central bank selling part of its foreign currency reserves to pay debt is “on the menu” for next year, although the decision is in the hands of the central bank.

Reporting by Jamie McGeever; Edited by Tom Brown

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