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Join date : 2008-03-27

PostSubject: WEDNESDAY 8 OCTOBER   WEDNESDAY 8 OCTOBER Icon_minitimeWed Oct 08, 2008 9:55 am

Viet Nam Bailing out of US

Banks move overseas funds to Singapore, HK to avoid US toxicity

Asia Commercial Bank a central bank, said Vietnam’s commercial banks do not have any direct connections with troubled foreign banks.

Vietnamese banks have withdrawn funds from overseas banks to reduce their exposure to the US financial crisis and shifted part of the funds to banks in Singapore and Hong Kong, the government said.

But the government statement did not mention how much money was involved.

Prime Minister Nguyen Tan Dung, in a separate statement, also urged the central bank to pursue flexible policies on interest rates, the currency and foreign reserves to ensure liquidity in the banking industry.

Governments, central banks and regulators globally are scrambling to protect their markets from the financial tsunami sparked by last month’s collapse of investment bank Lehman Brothers.

The impact has been felt mostly in the US and Europe but a number of countries in Asia have sought to assure investors that their banking systems are sound.

The State Bank of Vietnam’s Monetary Policy Department, in a statement published on the government’s website at the weekend, said the Vietnamese banking sector is operating normally and that commercial banks do not have any direct connections with troubled foreign banks. In addition, the businesses of two Vietnam-based banks fully owned by HSBC Holdings and Standard Chartered, foreign banks' branches and all joint venture banks in the country are stable, the statement said.

Limiting crisis impacts

In a statement published by on the central bank’s website Monday, the prime minister asked the central bank to request commercial banks to review their operations to limit the impact of the global financial crisis.

He urged the central bank to pursue a tighter monetary policy but maintain flexibility in management of interest rates, exchange rates and foreign reserves to ensure liquidity of the banking system.

Dung said local commercial banks may implement measures such as restructuring investment portfolios and withdrawing funds to ensure liquidity after examining their deposits and investments in foreign financial institutions.

Banks should also help exporters expand business as a measure to reduce the country's trade deficit, which has ballooned this year owing to the rising cost of imports as inflation surged to double digit levels.

The prime minister requested the central bank to establish regulations to merge troubled local banks, the statement said.

The central bank must also ask commercial banks to reassess thoroughly loans in “high-risk” fields, including real estate and stock investments.

Real estate-related loans by commercial banks account for 9.15 percent of the country's total outstanding loans, online newspaper VnExpress reported last week.

The State Bank of Vietnam's reserves rose to $21.9 billion at the end of September from $20.7 billion three months earlier, Governor Nguyen Van Giau said on September 30. The central bank has 82 percent of these reserves deposited with central banks in the US, UK, France, Germany, the International Monetary Fund and other global financial institutions, Giau said. The rest is held in banks with credit ratings of AAA or AA.

Interbank rates stable

The Vietnam interbank overnight rate, or VNIBOR, was stable at 14 percent and domestic lending rates were also stable, the Monetary Policy Department said.

But the average rate for three-month interbank loans edged up to 17.68 percent Monday from 17.5 percent a week ago on stronger demand.

"Demand for short-term loans is strong while long-term loans are not preferred as borrowers expect lending rates to ease," a dealer in Hanoi said.

The central bank has raised the interest rate it pays to banks for their compulsory reserves against dong deposits from October 1, increasing it to 5 percent from 3.6 percent, to reduce lending rates.

Bonds gain

Five-year bonds advanced on speculation the central bank will lower the base interest rate by the end of this year. The dong remained unchanged.

The yield on the benchmark note fell 16 basis points to 15.83 percent, according to a daily price from 10 banks compiled by Bloomberg. One hundred basis points make a percent.

“Investors are passing on the word that the central bank may cut interest rates by the end of the year as the banking system's liquidity has increased,” said Vu Anh Duc, a senior dealer at the fixed-income department of the Hanoi-based Vietnam Bank for Industry and Trade, known as VietinBank. “Banks have reduced borrowing costs and the central bank also wants to bring bond yields down.”

Source: TN, Agencies
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PostSubject: Re: WEDNESDAY 8 OCTOBER   WEDNESDAY 8 OCTOBER Icon_minitimeWed Oct 08, 2008 10:06 am

Bush Now Least Popular President Since Polling Began

by: Chris Bowers

Tue Oct 07, 2008 at 12:42

Not sure how I missed this yesterday, but with the new Gallup poll, George W. Bush has passed Nixon and Truman, and become the least popular President of all-time. According to the Roper Center,
here is the worst net approval / disapproval result for every President
in the Gallup poll since it began public polling in the late 1930's:
PresidentLow ApprovalHigh DisapprovalHigh Margin
Bush 22570-45
Bush 12960-31

Bush has both the highest overall disapproval, and the lowest
overall net approval / disapproval in any Gallup poll taken, ever. Keep
in mind that this is a poll that has been functioning for more than 71
years. Also, it should be noted that it is possible that President
Taft, who only received 23% of the vote in his 1912 re-election
campaign, was more unpopular than Bush, but there weren't public polls
back then.
The whole thing makes you long after a parliamentary system of
government. That we have been forced to put up with Bush despite his
low disapproval for so long strikes me as a flaw in our electoral
system. WEDNESDAY 8 OCTOBER 935392
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PostSubject: Re: WEDNESDAY 8 OCTOBER   WEDNESDAY 8 OCTOBER Icon_minitimeWed Oct 08, 2008 1:27 pm

WEDNESDAY 8 OCTOBER Languageenglish
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PostSubject: Re: WEDNESDAY 8 OCTOBER   WEDNESDAY 8 OCTOBER Icon_minitime

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