GlobalSource Partners | Country Insights

China is attempting to reduce risk in the financial system. This includes controlling monetary policy and interest rates. However, the substantial participation of shadow banking in total capital flows – ranging from heavily regulated to lightly regulated forms – means that Beijing has a limited ...

Lockdown watch (6)

PHILIPPINES · In Brief · 14 May 2021

Metro Manila and 4 nearby provinces (NCR+) will revert to general community quarantine (GCQ) tomorrow, May 15, although “heightened restrictions” will apply. The decision to follow only incremental lifting of restrictions reflects on the one hand, the continued downtrend in covid19 cases over the...

Minfin doesn’t rule out buyback of floating-rate OFZs

RUSSIA ECONOMICS · In Brief · 13 May 2021

Today deputy Finance Ministry Mr Maximov said that the government is considering the launching of special tools to manage structure of sovereign debt. In particular, he mentioned that the current amount of floating-rate OFZs in circulation looks excessive and it would be reasonable to decrease it...

An eventful day in yesterday's Covid CPI testimony, and Administrative Reform to be analyzed in committee

BRAZIL POLITICS · Report · 13 May 2021

The COVID Parliamentary Committee of Inquiry (CPI) in the Senate had one of its most eventful days yet yesterday. During former Secretary of Government Communication Fábio Wajngarten’s testimony, Senator Renan Calheiros, rapporteur of the CPI, asked that he be arrested. However, the president of ...

Russia struggles with inflation

RUSSIA / FSU POLITICS · In Brief · 13 May 2021

On May 13 the PM laid into businesses for driving inflation up due to excessive profits. He said the government might have to take measures to cap prices. He accused business of avarice. The recovery is in jeopardy and the Kremlin is worried about the impact of inflation on the fall 2021 election...

Putin's Ukrainian ally charged with high treason

RUSSIA / FSU POLITICS · In Brief · 13 May 2021

On May 11 Viktor Medvedchuk was charged with treason along with Taras Kozak. Both men are politicians for a political party called Opposition Platform for Life. Medvedchuk has been subject to sanctions by his own government since February 2021 on suspicion of funding terrorism. Medvedchuk's home ...

Claim of Unconstitutionality of New Education Bill

ECUADOR · In Brief · 12 May 2021

The Constitutional Court received yesterday a claim of unconstitutionality of the new education bill. The claim brilliantly explains the legal violations this bill exhibits and also provides a complete and fair explanation of its negative fiscal and economic implications. This claim was submitted...

Strategic regime moderation

VENEZUELA · Report · 12 May 2021

Maduro’s government has signaled a major shift in stance and strategy in the last several weeks. Most importantly, it agreed to a legal process for renewing the five-member board of the National Electoral Council that resulted in the designation of two opposition-aligned members. Maduro has al...

Media focus on Covid CPI testimony, and the Lower House to vote on important bills

BRAZIL POLITICS · Report · 12 May 2021

The media should closely cover the president of the Brazilian Health Regulatory Agency (Anvisa) Antônio Barra Torres’ testimony in the COVID Parliamentary Committee of Inquiry (CPI) today. The focus will be on his differences with President Bolsonaro, especially when it comes to vaccines, chloro...

Russia considering tax reform

RUSSIA / FSU POLITICS · In Brief · 12 May 2021

On May 11 the Duma passed a bill ending Russia's bilateral tax treaty with the Netherlands. Attempts to negotiate a new tax agreement had come to nought. Yandex and X5 Retail Group are both based in the Netherlands. It looks as though in January 2022 these companies will have to pay tax in both j...

Russia's oil reserves might run out in 2080

RUSSIA / FSU POLITICS · In Brief · 12 May 2021

On May 11 the Ministry of Natural Resources said that the country's oil reserves will last until 2080. However, gas will last until 2124. There might be more hyrdocarbons than this but they have not been found.Prospecting in the Arctic could lead to more finds. Rosneft is exploring there. A USD 1...

Erratic control

VENEZUELA · Report · 11 May 2021

Inflation sped up sharply in April, to 27 percent month-on-month from 11 percent in March. It was driven up primarily by sharp dollar strengthening in bolivar terms (+36 percent) despite slow public spending and money supply. We think that dollar prices were responding to the March surge in publi...

CPI-inflation up sharply, exceeds analyst expectations in April

HUNGARY · In Brief · 11 May 2021

This morning, April CPI-inflation was reported at 0.8% mom, 5.1% yoy, the latter sharply up from 3.7% yoy in March. The headline rate was pushed up very substantially by rising fuel prices, which went up by 39.2% yoy in April after +17.7% yoy, despite a 1.2% mom decrease in the month, i.e. essent...

Environmental licensing bill set for a vote in the Lower House, and more testimony in the Covid CPI in the Senate

BRAZIL POLITICS · Report · 11 May 2021

Today, the Lower House votes on a bill that deals with environmental licensing, which is especially important for the infrastructure sector. The bill defines the rules businesses must follow when conducting environmental projects, for example, deadlines, environmental impact studies, analysis pr...

China’s Credit Guarantee Funds and risk

CHINA ADVISORY · Report · 11 May 2021

China is pursuing two contradictory goals simultaneously. One calls for throttling back credit to risky parts of the financial system. The second is the creation of a default mechanism for ailing companies that in some cases includes state assistance. The policies are designed to continue to inje...