The European Investment Bank will mobilise €40 billion in financing to alleviate constraints caused by the spread of Covid-19, it said, calling on European countries to establish additional guarantees for for small and medium businesses.
The bank said it proposed the measures as the virus puts a “heavy strain on both public health and the economy”. The financing package will go towards bridging loans, credit holidays and other measures “designed to alleviate liquidity and working capital constraints for SMEs and mid-caps”.
“The EIB Group recognises the impact that the coronavirus is already having on the Irish economy, employment and daily life,” its vice president, Andrew McDowell, said.
“Detailed discussions with Irish government, the SBCI and other stakeholders are taking place to ensure that this package of new measures to strengthen resilience to the virus shutdown can rapidly support sectors in Ireland most vulnerable to this unprecedented shock,” he added.
Guarantee schemes to banks will account for €20 billion of the funding, liquidity lines to support SMEs will account for €10 billion and an asset backed security purchase programme to allow banks transfer risk on portfolios of SME loans will account for the remaining €10 billion.
The bank’s president, Werner Hoyer, also called on European member states to establish additional guarantees to ensure that access to finance for small and medium businesses remains open. “This would help reassure markets and citizens at this time of unprecedented uncertainty,” he said. Such funds could be drawn from the European Financial Stability Mechanism, he added.
Mr Hoyer also noted that the bank is already in contact with companies seeking to “fund the search for Covid-19 vaccines and medication”.
The European Investment Bank Group is directly owned by the EU member states. Last year it made €63.3 billion available for projects, including a record €1.08 billion worth of projects in the Republic.
The project which received the largest financing package in the Republic last year was Dublin Airport’s resilience upgrade which got €350 million. A social and affordable housing project received €200 million and one private-sector company that received funding was the Carbery Group, which won a package of €35 million for its investment programme.
Carnival Stock Soars 20% on Saudi Investment and New Liquidity Assessment – Motley Fool
Embattled cruise line operator Carnival (NYSE:CCL) is sailing higher Monday after Saudi Arabia’s sovereign wealth fund disclosed a large stake in the company and analysts suggested it has sufficient liquidity to survive through November even if it’s unable to sail any ships.
The two new developments sent Carnival’s stock soaring almost 20% in morning trading.
Not quite smooth sailing
The Public Investment Fund, Saudi Arabia’s official investment vehicle, disclosed it owns 43.5 million Carnival shares, the equivalent of an 8.2% stake in the cruise line operator. It makes the Saudi government the third largest shareholder. Because the sovereign wealth fund share purchase increased its stake above a 5% threshold, it was required to disclose the holding.
Carnival was also bolstered by the news that even though it’s burning through about $1 billion a month, it has plenty of money to survive its cruise ships being idled in port, even under a worst-case scenario.
However, since Wells Fargo analysts see a more favorable scenario developing with at least some of its ships being able to sail again this summer, it foresees Carnival coming out of the coronavirus pandemic in a much better position than many believed. Wells Fargo does see Carnival’s profits taking a hit, with operating cash flow turning negative to the tune of about $2.2 billion this year versus a $5.7 billion in positive cash flow last year.
Carnival raised $6.25 billion in debt and equity last week to make it through the downturn. It also suspended its dividend and halted stock buybacks to preserve cash.
FIRM CAPITAL MORTGAGE INVESTMENT CORPORATION PROVIDES UPDATE ON APRIL 1ST PAYMENT STATUS OF THE INVESTMENT PORTFOLIO – GlobeNewswire
TORONTO, April 06, 2020 (GLOBE NEWSWIRE) — Firm Capital Mortgage Investment Corporation (the “Corporation”), (TSX: FC) discloses that, with the passing of the April 1st payment due dates on its Investment Portfolio, there have been no material increases in terms of arrears since March 1, 2020.
We would like to assure shareholders that the Corporation has been taking proactive action to mitigate the impact of the COVID-19 situation and that at present, even during these challenging times, loan arrears in the Corporation’s Investment Portfolio are not materially different than as at March 1, 2020, and that new defaults after January 1, 2020 are part of normal business operations and not as a result of the COVID-19 situation:
- Of the 111 pre-authorized payments submitted on April 1, 2020; six payments were returned NSF, of which five were replaced, leaving one outstanding payment relating to an investment representing 0.4% of the Investment Portfolio. Management has been in negotiations to resolve it;
- Three payments were not received, all relating to one borrower on three investments, representing 1.4% of the Investment Portfolio. That same borrower has historically always paid by month end. Management is not concerned given the loan-to-value exposure; and
- Management has been managing and addressing seven loans which are currently under legal workouts initiated before April 1, 2020, with one loan being sold under enforcement proceedings, closing April 30, 2020 with the full repayment of principal and interest.
The Corporation’s Mortgage Banker minimizes risks associated with defaulting mortgages through diligent monitoring of the Investment Portfolio, active communication with borrowers and the implementation of appropriate and timely enforcement procedures on defaulted mortgages. The Mortgage Banker has substantial experience in servicing mortgage loans, including the implementation of enforcement proceedings.
Thank you for your continued support!
ABOUT THE CORPORATION
Where Mortgage Deals Get Done®
The Corporation, through its mortgage banker, Firm Capital Corporation, is a non-bank lender providing residential and commercial short-term bridge and conventional real estate financing, including construction, mezzanine and equity investments. The Corporation’s investment objective is the preservation of shareholders’ equity, while providing shareholders with a stable stream of monthly dividends from investments. The Corporation achieves its investment objectives through investments in selected niche markets that are under-serviced by large lending institutions. The Corporation is a Mortgage Investment Corporation (MIC) as defined in the Income Tax Act (Canada). Accordingly, The Corporation is not taxed on income provided that its taxable income is paid to its shareholders in the form of dividends within 90 days after December 31 each year. Such dividends are generally treated by shareholders as interest income, so that each shareholder is in the same position as if the mortgage investments made by the company had been made directly by the shareholder. Full reports of the financial results of the Corporation for the year are outlined in the audited financial statements and the related management discussion and analysis of Corporation, available on the SEDAR website at www.sedar.com. In addition, supplemental information is available on Corporation’s website at www.firmcapital.com.
The Corporation has provided the above information in response to various enquiries received from shareholders and other stakeholders. Unless otherwise required by applicable securities laws, the Corporation does not intend, nor does the Corporation undertake any obligation, to update or revise any information contained in this press release or to provide any additional information, similar or otherwise, to reflect subsequent periods, information, events or circumstances, or otherwise.
For further information, please contact:
Firm Capital Mortgage Investment Corporation
President & Chief Executive Officer
Airbnb to get $1 bln investment from Silver Lake, Sixth Street Partners – Financial Post
Airbnb said https://news.airbnb.com/silver-lake-sixth-street-partners-invest-1-billion-in-airbnb on Monday investment firms Silver Lake and Sixth Street Partners will invest $1 billion in the U.S. home rental company in a combination of debt and equity.
Reuters reported https://www.reuters.com/article/us-airbnb-debt/airbnb-holds-meeting-with-bankers-to-extend-1-billion-debt-facility-source-idUSKBN21C3O2 in March that Airbnb held a phone meeting with bankers to discuss extending an existing $1 billion debt facility amid a slowdown in demand due to the novel coronavirus, citing a source who had participated in the meeting.
Airbnb lowered its internal valuation by 16% to $26 billion, a source familiar with the matter told Reuters on Thursday.
(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Shinjini Ganguli)
Here's what you should know about wearing cloth face masks – CollingwoodToday
Quebec hatches plans to bolster economy as Legault eyes postpandemic world – The Globe and Mail
Blue Jays: What happens now with Mark Shapiro’s contract? – Jays Journal
Iran anticipates renewed protests amid social media shutdown
Popular Richmond BBQ spot speaks out about coronavirus rumours after man collapses outside restaurant – Vancouver Is Awesome
Real Estate Board of Greater Vancouver reports January housing sales up 42.4 percent
- Health17 hours ago
Coronavirus: Woman explains day-by-day symptoms of COVID-19 – 'literal fire in my lungs' – Express
- Sports15 hours ago
Could North Dakota be an NHL location if 2019-20 season resumes? – Sportsnet.ca
- Health14 hours ago
Halifax and Associates is not registered to sell securities in our province says alert – HalifaxToday.ca
- Tech21 hours ago
Nintendo Switch Deletes ‘Cooking Mama’ After Crypto Mining Controversy on Reddit
- Science21 hours ago
Covid-19 lockdowns have caused the Earth’s crust to stop shaking
- News14 hours ago
11 new deaths and 450 new cases in Ontario over the last day; 240000 Canadians have already applied for CERB; E-Learning starts for Ontario students – Toronto Star
- Art16 hours ago
Forgery, drugs and sex abuse in the Canadian art world exposed in new documentary – Art Newspaper
- News17 hours ago
Coronavirus: What's happening in Canada and around the world on Monday – CBC.ca