Entries for 2020

The Institute of International Finance (IIF), together with ISDA and the FIA, submitted a joint response to the Financial Stability Board (FSB) Consultative Document “Financial resources to support CCP resolution and the treatment of CCP equity in resolution” on July 31, 2020. 
 

COVID-19 has exacerbated El Salvador’s external financing needs. Pressure has intensified amid a widening fiscal deficit, and financing options are narrow. With limited flexibility to unwind stimulus after COVID-19, an IMF program would help ease medium-term financing concerns. 

The August U.S. Regulatory Update covers the 2020 Federal Reserve stress test results, Volcker Rule changes, the Department of Labor’s proposed ESG rule, regulator testimonies on Capitol Hill, and more. 

The August 2020 IIF Global Regulatory Update provides updates on current work streams.

China’s economic recovery in 2Q2020 was mainly driven by manufacturing and construction, thanks to effective pandemic control and policy support. Increases in household income and consumption are needed to make the recovery more sustainable. We expect the economy to grow by 2.2% for the whole year. 

The explosion in Beirut is calling attention to a pervasive culture of negligence, corruption, and complacency among Lebanon's ruling elite. The blast will deepen the contraction in the economy, but may spur badly needed political and economic reforms. If not, the country will continue to sink. 

The Caucasus and Central Asia (CCA) region was hit hard by COVID-19, with energy exporters also enduring the oil price collapse. Exchange rate flexibility, support from the IMF, and low risk of sovereign debt distress will help most CCA countries remain stable through 2021 absent further outbreaks. 

To date, over 40 countries have requested forbearance via the G20 Debt Service Suspension Initiative (DSSI). The DSSI could freeze over $11.5 billion of debt payments due to official bilateral creditors between May and December 2020.