Around the Bloc: Belarus Plans Currency Redenomination Premium
Authorities say it will not harm the economy in a country that already endures staggeringly high inflation.
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Authorities say it will not harm the economy in a country that already endures staggeringly high inflation.
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President Aliev’s advisor warns VOA radio among those ‘operating illegally’ in country.
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Sergei Pugachev was once known as ‘Putin’s banker’ for his close ties in the Kremlin.
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Thousands gather in Belgrade to voice dissent against the government’s development deal with a consortium of UAE business people.
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The study focuses on aspects related to the manifestation of the financial crisis in the world and its impact on economic growth in our country. Special attention is given to areas of expression on economic development in the country, the state budget and debt markets and employment. Analyzed the prospects for recovery of the Bulgarian economy from the crisis, including prospects of the real and financial sectors.
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This article analyzes the basic concepts of behavior finance and its implied model of the economic agent which differs from the ‘homo economicus’ of traditional finance theory. Systematized are the more realistic assumptions regarding human decision making which stem from research in cognitive psychology and increasingly experimental economics. Outlined are implications for a methodologically more advanced public finance. Possibilities for enhanced economic policy recommendations are derived.
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The report emphasizes on the need of risk assessment in the process of lending in the leght of the requirements of BASEL II. There are considered the methods and approaches for assessment of the market and the credit risk. There is detailed analyzed the theory and prospects for application of the scoring model for assessment of the consumer’s lending risk. There is presented a conceptual project for implementation of the above mentioned model. The model is approbated in the bankingpractice.
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The article examines the essence and main elements of risk on banking, history and evolutionin the standards governing the management of the risk. The legal base regulation risk managementin banking institution goes a long evolution. The authors made the comparative analysis on the basic principles in the development of international standarts Bazel I, Basel II and the new Basel III, and the process of change and upgrade as the general framework and in the implementation of these principles in local practices.
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This article aims at studying financial analysis as a key management tool and how it is used in the valuation of business performance. For this objective, the financial statements and financial reporting published by the firms on their websites were reviewed for information and data. Publications from the trade register and the Bulgarian stock exchange also served as sources of data for this article. Four main groups of financial analysis were provided: comparative, common-size, trend and ratios analyses. The study covers different periods, based on the availability of reliable information. For some firms the analysis was prepared on a quarterly basis, in order to highlight the performance valuation based on a short time period. Some of the firms are listed on Bulgarian stock exchange while others were not. Based on the official Bulgarian classification, some of the firms are very large while others are small. The firms operate in different industries, such as telecommunication, chemicals, tourism and manufacture. The variety of the business types leads to the conclusion, that whatever the size or environment, financial analysis is an important managerial tool, which could facilitate the understanding of the financial state of Bulgarian firms. As a financial management method, using financial analysismight be of help to share holders, stakeholders and potential investors assessing the performance of Bulgarian firms and in making strategic and operational decisions.
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Financial instruments pose a number of problems in economic sciences, especially in ac-countancy which deals with continuous measurements of these instruments in practice. The con-temporary accounting standards accept two basic methods for valuating financial instruments: historical costs and fair value. Historical costs constitute a basis for valuations in all accounting standards, and the application of international standards suggests that historical costs represent the most frequently applied method in preparing financial statements. It implies that financial instru-ments are valuated on the basis of mixed models.The valuation of shares and other financial instruments poses a number of problems in theo-retical and practical accounting. These problems result from the application of the fair value cate-gory in share valuation. This concept makes a distinction between two basic types of shares: those for which prices are determined in active markets and those for which such prices and markets do not exist. The former shares are valuated on the basis of accounting principles and categories. The valuation of the latter ones is based on valuation models and techniques.The results presented in the paper indicate that if balance sheet valuations of shares cannot re-ly on fair value determined by active markets, valuation methods and techniques should make use of the CAPM model based on WIG20 returns and HEV model based on risk-free returns.
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An additional instrument or established access to the capital market funding would increase business opportunities for performance, development, growth, channeling financing for sustainable and long-term economic growth and job creation. Capital market and its level of development or further development opportunities are exposed to different factors. Clear identification of them mobilizes the attention of accurate and useful decisions or actions influencing the expected results, their adoption and implementation, monitoring. With the purpose to identify a set of factors influencing the capital market deve lopment as well as to introduce a model of their short term and long term impact projections, the ARDL model for the US and Lithuanian cases is introduced. The concluding remarks state on different legal and regulatory framework, banking sector and ICT measures exposures to the different stages of the corporate bond market development.
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Organizations face immense challenges in improving their performance and productivity in the present changing and competitive business world. Experts view employee empowerment as an effective tool that fosters organizational performance, employee satisfaction and service quality. The present study intends to identify the influence of employee empowerment on employee satisfaction and service quality, and the impact of employee satisfaction on service quality. Fourteen dimensions and 52 item statements of employee empowerment, service quality and employee satisfaction have been adopted from previous studies to undertake this study. Data have been gathered following a quantitative survey conducted among a diverse group of employees (N = 240) working in 20 different financial institutions including private banks, leasing and insurance companies in Bangladesh. Several statistical techniques consisting of descriptive analysis, Pearson correlations and regression analysis have been applied using SPSS software to analyze collected data. The results of the statistical analysis reveal that employee satisfaction and service quality significantly depend on employee empowerment, and satisfied employees provide better quality service. The findings of this research have explicit implications for both the employees and the organizations. This study suggests that by empowering employees, an organization can increase the level of employee satisfaction that in consequence upturns service quality.
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Small and medium-sized enterprises (SMEs) are currently considered an important driving force of economic growth. Several studies have been developed to analyse this issue and, in particular, to assess the credit risk of SMEs. Most of these applications, however, share the same methodological limitations, such as the manner by which criteria are selected, or the methods used for calculating the weights between them. Based on the integrated use of cognitive mapping techniques and the Interactive Multiple Criteria Decision Making (TODIM) approach, this study aims to create an idiosyncratic decision support system for the identification of multiple criteria and the calculation of their respective weights (i.e. the trade-offs) in the evaluation of SME credit risk. The results show that the model created in this study allows for simple and straightforward credit concession decisions, facilitating the evaluation of SME credit applications through more informed and transparent risk assessments. Practical implications, strengths and weaknesses of the proposed framework are analysed and discussed.
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In this article, construction of a logistic regression scoring model is presented as a statistical tool to determine the likelihood a borrower to fall into a state of failure. The study is done with Bulgarian real data. The main stages of modeling regression equation are described: sampling data modeling;statistical analysis of the data in terms of quality and completeness; selection of an appropriate logistic regression equation; analysis and evaluation of the performance of the selected regression model. The used data include information about citizens who are borrowers in the banking sector in Bulgaria. The data were processed by means of the statistical software IBM SPSS Statistics v19.
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We present an overview of the dynamics of fiscal aggregates in Bulgaria in the period 1998 to 2014. The paper investigates the cyclical dynamics of budget revenue and expenditure and their major components. Using time series of deflated statistical data we calculate the elasticity of individual revenue and expenditure components to GDP growth – both for the overall period and for the post-crisis years. The major conclusion is that the Bulgarian fiscal aggregates are characterized mainly by procyclical dynamics, with the wages and maintenance expenditures being the least sensitive, and investment – the most sensitive to upturns and downturns in growth. These results can feed into fiscal policy and outline the potential to use public investment as an instrument for macroeconomic stabilization in the country.
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The paper considers the role of socially responsible investment funds in the socially responsible investments (SRI) market. On the basis of theoretical considerations and empirical studies, this hypothesis was verified: SRI mutual funds play a key role in shaping and developing the SRI market. A number of objectives were carried out for the research. The first part of the article characterises the SRI market and its participants. This was followed by an examination of the specifics of socially responsible mutual funds. The next part of the article analyses the structure and size of the SRI market and presents the role of SRI funds in this market. Observations formulated on the basis of the studies done for this paper leads to the conclusion that there are no grounds to reject the research hypothesis: SRI funds are key in shaping and developing the SRI market.
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In a case study on Iceland, I carefully analyse a successful strategy for overcoming financial breakdown. The aim of article is to verify whether Iceland’s model could become a panacea for future crises. Various branches of the Icelandic economy are characterised, including the banking sector – the most important sector in a financial crash. Documents were analysed and data from the Hagstofa Islands were used to present essential indicators including GDP, trade balance and the unemployment rate. Source analysis method was then used to determine that the collapse of the financial sector was the main cause of the slump. Indirect causes such as the construction of a steelworks in Reyðarfjörður are also discussed. The events of the crisis are systematised, while the social and political situation are also considered. Changes in conditions of the state after the crash are provided and future forecasts about economic development are discussed. Ultimately, I reject the notion that Iceland’s model for overcoming the financial breakdown is a panacea for future crises. It is only applicable for particular cases.
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The research paper provides a comment of the international experience and financial innovations during the transition from traditional mediation to Prime and ECN Forex brokers, the electronic system Electronic Communication Network (ECN), which eliminates the role of the agents, scalping as an elegant Forex strategy, the use of the leverage and the „golden accounts” as an alternative to the Unallocated Metal Accounts.
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The deposit risk is not classified as a separate risk in the scientific literature. However, it could find a place among other risks. An attempt could be made to characterize the deposit risk as follows: Ability to display unfavorable situation of the credit institution; Occurrence of acute shortage of liquid resources; Inability to carry out operations, planned period in previous, related to the placement resource, i.e. inability to perform any part of the active transactions.
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From a global perspective the main share of incomes generated by insurance companies in the member countries of the European Union comes from insurance intermediaries – brokers and agents. With reference to this, there is a trend of unification of Bulgarian primary and subordinate insurance legislation with that of the EU countries in order to achieve synchronization and improvement of new relationships in the field of insurance. An emphasis should be put on the extremely positive and beneficial effect the European directives have on the Insurance Code in the country. This allows for a precise definition of the processes in the basis of insurance and reinsurance intermediation of brokers and agents. On the other hand, all activities and services beyond the scope of intermediation could also be differentiated clearly.
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