Turning Around Public Water Utilities in Financial Stress
|
|
- Arleen Barrett
- 7 years ago
- Views:
Transcription
1 Turning Around Public Water Utilities in Financial Stress Experience from East Asia by Aldo Baietti Water Week
2 Financial Restructuring Differences Between Public Utilities and Private Enterprises Limited Involvement with Private Bankers - Finance Relationship is Mostly with Local or Central Governments - Few sanctions for default on debt. Certain Remedies of Typical Workout Situations are Not Realistic for Utilities Bankruptcy, Liquidation, Sale of Main Assets Either a financial solution is found or the utility is relegated indefinitely to life support conditions. Financial and Strategic Incentives of Main Actors May Be Quite Different Profit motives are typically not the overriding concern or objective. Lack of true ownership values. Resources May be Denied to a Utility Not Because of Its Own Limitations But Because of the Government s Overall Fiscal Position. The issue of fiscal space has important bearing on the amount of public debt a government can assume to clean up balance sheets or inject fresh capital or initiate expansion. 2
3 Why Utilities Get Into Financial Trouble Utility is Inherently Unviable as a Financially Self Sustaining Operation- Necessity for continued subsidies at operational level. Oversized or Over-Built System, Carrying an Unmanageable Debt Burden but Potentially Operationally Viable Concept of inappropriate costs. Cost Structure and Balance Sheet Position Have Materially Changed (i.e. Currency Shocks, Inflation ) - Inability to effect tariff adjustments in times of economic hardship. Utility is Fundamentally Mismanaged and Subject to Corrupt Practices. Combinations of the Above With No Corrective Intervention Taken from Stakeholders Except Pressure to Reduce Costs. Utility has gone into in a vicious downward spiral. 3
4 The Vicious Financial Spiral Consumers use water inefficiently Investment, maintenance are postponed Customers are ever less willing to pay Managers lose autonomy and incentives Subsidies often fail to materialize Motivation and service deteriorates further Low tariffs, low collection High usage and system losses drive up costs Services deteriorates Utility lives off state subsidies Efficiency keep dropping Utility can t pay wages, recurrent costs or extend system System assets go down the drain Crisis, huge rehabilitation costs 4
5 Elements of Utility Restructuring Policy Reform Institutional Development Performance Management Financial Restructuring Autonomy Ownership Values Economic Regulation Customer Orientation Capacity Building Reorganization & Mgnt Change Incentives Systems Management Systems Connection & UFW Programs Inventory & Receivables Mgnt. Fixed Asset Mgnt. Operating Cost Containment Liquidity Crisis Mgnt. Debt Restructuring Equity Infusion 5
6 The Utility Turnaround A Phased Approach I. Crisis Mgnt II. Recovery III. Stability IV. Expansion Leadership Change Crisis Cash Management Debt Restructuring Current Asset Management Organizational Restructuring Better Utilization of Existing Fixed Assets in Core Areas Tariff Restructuring Equity Infusions Introduce Systems & Mgnt. Improvements Capacity Building Institutional Development Expansion of Coverage to Less Attractive Areas Diversification in Sanitation and Sewerage Major Investments with New Debt 6
7 Cases in East Asia Two Cases of Utilities in Cambodia Under the Urban Water Supply Project Phnom Penh Water Supply Authority (PPWSA). Largest Water Supply Utility in Cambodia Serving Phnom Penh Metropolitan Area. Sihanoukville Water Supply Authority (SWSA). Water supply entity serving provincial capital of Sihanoukville. The Indonesian Rescue Program. Pilot the development of 17 financial Recovery Action plans. 7
8 PPWSA Performance Highlights Indicator 1997 Service Connections 39, ,777 Connections for Poor -0-6,708+ Water Sold (000m3) 14,196 50,442 Total Revenues Net Income R 13.5 b R.742 m R 48.7 b R 8.6 b UFW 65% 16% Average Tariff Accounts Receivable R 895 m3 156 days R965 m3 30 days Operating Ratio 60% 35% Collection Ratio 89% 100% 8
9 PPWSA s Turnaround From Recovery to Expansion Leadership Change. New Management with incentive structure on both profit, collection sharing and reduction of UFW. Organizational Restructuring. Organized as autonomous public enterprise. Customer Orientation. Customer survey and automated billing. Laid off corrupt bill collectors and payment is now only made at PPWSA offices except for poor areas. Public Information campaign on paying bills. Performance Based Asset Utilization. Metered all water connections with heavy fines for illegal connections. Introduced innovative and high technology UFW approaches for reducing pressure Management Systems Development. Implemented fully automated accounting and management information system. Use of integrate long-term projection model for cost recovery scenarios. Tariff Structure. Increased and modified block tariff structure. Capacity Building. Twinning with Brisbane City Enterprises, Regulatory Training at for Govt, Seminars on Water Sector Reform. Expansion to Poor Areas. Pilot to serve poor communities following financial stabilization. Early Repayment of Debt. Is repaying debt early to improve cash flow even further. 9
10 PPWSA s Restructuring Policy Reform Institutional Development Performance Management Financial Restructuring Autonomy Ownership Values Economic Regulation Customer Orientation Capacity Building Reorganization & Mgnt Change Incentives Systems Management Systems Connection & UFW Programs Inventory & Receivables Mgnt. Fixed Asset Mgnt. Operating Cost Containment Liquidity Crisis Mgnt. Debt Restructuring Equity Infusion 10
11 SWSA Performance Highlights Indicator 1997 Service Connections 886 Water Sold (000m3) , Total Revenues Net Income R 431 m R 92 m R 1,394 m R 62 m UFW 24.1% 26.3% Average Tariff Accounts Receivable R 868 m3 130 days R1,505 m3* 104 days Operating Ratio % Collection Ratio 95% 97.6% Equivalent to $.38 11
12 SWSA s Turnaround From Recovery to Expansion Ownership Values. Ministry assumed new ownership role as advocate of financial viability. Organizational Restructuring. Enterprise was ring-fenced with separate accounting. Next phase should consider conversion to autonomous public utility. Tariff Structure. Increased to R1,000 m3 immediately then R1,358 in 2002 and R1,500 in late Capacity Building. Regulatory Training of for Government officials on water sector reform and on governance. Expansion and System s Improvement. Capitalization of Debt. Following revenue stability, determined appropriate amount of debt and terms to be assumed by utility ( based on acceptable debt service coverage ration - 5 year grace, 2%next 10 years, 4% thereafter). 12
13 Success Factors From Cambodia Ownership Values Are Key Financial Autonomy with the Right Performance Incentives Up-Front Tariff Adjustments Appropriate Costs in Re-Capitalization for SWSA 13
14 The PDAM Rescue Program in Indonesia Background: 221 Utilities hard hit by the 1997 crisis facing severe financial difficulty due to: (i) overbuilding of capacity; (ii) reluctance of local governments to set cost recovery tariffs; and (iii) Financing Framework with no accountability. The Pilot Rescue Program: (i) Three-Party Agreement of Agreed Actions to Establish Discipline of Accountability; (ii) Rescheduling of Existing Deb; (iii) Small New Investments to Utilize Capacity; (iv) Quarterly Monitoring with Sanctions: (v) Opportunity for Expansion opportunity. 17 PDAMs went through the pilot activity. At the Heart of the Program: The Financial Recovery Action Plan - Projection Model (FINPRO) that following a diagnostic review allowed for a financial solution to be derived with the agreed actions of the three parties. Monitoring would recast projections based on actual outcomes and reset accountabilities. 14
15 Essential Tool of Financial Restructuring! Major Actions Increase in Connections 20,000 20,000 20,000 20,000 Effective Tariff Increase (%) 70% 65% Tariff Rate Increase Effectivity (M onth #) 4 1 UfW (%) 37% 35% 33% 31% Average Usage/Connection (m3/month) Accounts Receivable (M onths) Staffing Ratio (per 1000 connections) Investm ents - Rp m illion 16,805 22,439 41,385 18,013 Debt Service Payment 5,898 6,145 5,945 38,843 Selected Results N et Incom e (Loss) before D epn & Int- Rp m illion 23,985 (1,620) 78,482 64,644 Net Incom e (Loss) After Tax - Rp m illion 11,753 (317) 36,801 30,848 Debt service coverage ratio Debt/Equity Ratio Average tariff (Rp/m3) 1,371 1,371 2,262 2,262 Break-even tariff (Rp/m3) 1,424 1,597 1,993 2,210 Average monthly bill (Rp) 32,908 32,908 54,298 54,298 Operating Ratio 59% 70% 52% 62% Cash Surplus (Deficit) 1,693 (8,890) 9,290 (6,884) Short-Term Deposits 10,393 1,503 10,793 3,909 Additional Equity Needed W ater Surplus / (Shortage) (M illion m 3)
16 Lessons From Indonesia The Program established a new paradigm for local government accountability. The process highlighted that PDAM actions alone cannot resolve the problems of the sector Debt rescheduling may not be enough for the worst performing cases, but MOF unwilling to shoulder the debt burden on its own balance sheet. Each case is different. Across-the-board forgiveness of debt would send the wrong message. The negotiation process on each case must be respected! Sufficient Capacity is needed at the central level to implement a program more widely. 16
On Corporate Debt Restructuring *
On Corporate Debt Restructuring * Asian Bankers Association 1. One of the major consequences of the current financial crisis is the corporate debt problem being faced by several economies in the region.
More informationFinancial Performance and Financial Statement Projections
Financial Performance and Financial Statement Projections A. Introduction and Approach 1. The Georgian State Electrosystem (GSE), EA of the project, is a 100% state owned Limited Liability Company responsible
More informationBorrowing Money for Your Business
Borrowing Money for Your Business After you have developed a cash flow analysis and determined when your business will make profit, you may decide you need additional funding. Borrowing money is one of
More informationThe U.S. Financial Crisis: Lessons From Sweden
Order Code RS22962 September 29, 2008 The U.S. Financial Crisis: Lessons From Sweden Summary James K. Jackson Specialist in International Trade and Finance Foreign Affairs, Defense, and Trade Division
More informationPreparing for the Resolution of a Troubled Bank. Have Your Toolkit Ready
Preparing for the Resolution of a Troubled Bank Have Your Toolkit Ready Plans are nothing; planning is everything. Outline of Presentation Planning for a bank resolution as part of your overall contingency
More informationBusinesses in Distress:
Businesses in Distress: Turnaround Financing for Distressed Companies Businesses in Distress: Turnaround Financing for Distressed Companies, by John M. Collard, Strategic Management Partners, Inc., published
More informationEighth UNCTAD Debt Management Conference
Eighth UNCTAD Debt Management Conference Geneva, 14-16 November 2011 Debt Resolution Mechanisms: Should there be a Statutory Mechanism for Resolving Debt Crises? by Mr. Hakan Tokaç Deputy Director General
More informationManaging Systemic Banking Crises. David S. Hoelscher Assistant Director Money and Credit Markets Department
Managing Systemic Banking Crises David S. Hoelscher Assistant Director Money and Credit Markets Department 2 Introduction Systemic banking crises of unprecedented scale: Argentina, East Asia, Ecuador,
More informationPerformance Improvement Planning Enhancing Water Services through Performance Agreements
The Water and Sanitation Program is an international partnership for improving water and sanitation sector policies, practices, and capacities to serve poor people May 2009 Field Note Performance Improvement
More informationPrecondition for Rehabilitation An international perspective
Precondition for Rehabilitation An international perspective PricewaterhouseCoopers Corporate Life Cycle Growth Maturity Loss Profit Start-up Decline Transformation Time Turnaround Insolvency 3 Causes
More informationMinimum Solvency Criteria Discussion May 9, 2013. Dennis Balmer Deputy Director, Office of Financial Review. www.healthhelp.ca.gov
Minimum Solvency Criteria Discussion May 9, 203 Dennis Balmer Deputy Director, Office of Financial Review 0 0 Financial Reserves Reserve Requirements Tangible Net Equity (TNE) Working Capital Cash-to-Claims
More informationInfrastructure and Project Financing Asia Pacific Scenario. Ajay Sagar
Infrastructure and Project Financing Asia Pacific Scenario by Ajay Sagar This article was originally published in the June 2006 Global Infrastructure Report of Project Finance International Magazine The
More informationDevelopment of Money Markets
Development of Money Markets Mats Filipsson International Monetary Fund Monetary and Exchange Affairs Department Workshop on Developing Government Bond Markets in APEC Economies Shanghai, November 12 15,
More informationFINANCIAL ANALYSIS. A. Introduction and Methodology
Coastal Towns Environmental Infrastructure Project (RRP BAN 44212) FINANCIAL ANALYSIS A. Introduction and Methodology 1. The Coastal Towns Environmental Infrastructure project finances basic urban service
More informationCITIZENS PROPERTY INSURANCE CORPORATION. INVESTMENT POLICY for. Liquidity Fund (Taxable)
CITIZENS PROPERTY INSURANCE CORPORATION INVESTMENT POLICY for Liquidity Fund (Taxable) INTRODUCTION Citizens is a government entity whose purpose is to provide property and casualty insurance for those
More informationLoan Foreclosure Analysis and Comparison. A Briefing To The Housing Committee March 3, 2008
Loan Foreclosure Analysis and Comparison A Briefing To The Housing Committee March 3, 2008 Purpose To determine the cause of the Subprime mortgage crisis which was triggered by a sharp rise in home foreclosures
More informationMOET NEWSLETTER THE PUBLIC DEBT. The Rise and Reasons for the Public Debt
ISSUE 2 JULY 2009 MOET NEWSLETTER THE PUBLIC DEBT Since the end of the 15 year civil war, Lebanon has been witnessing a soar in its public debt figure. Over the 1993-2009 period, gross public debt increased
More informationGuidelines for Early Revitalization of Business
Guidelines for Early Revitalization of Business Toward establishing new business revitalization system in accordance with the principles of early start and quick accomplishment February, 2003 Ministry
More informationPROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE. Report No.: 40552 Project Name
Public Disclosure Authorized Public Disclosure Authorized PROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE Report No.: 40552 Project Name GPOBA W3 Expanding Piped Water Supply to Surabaya s Urban Poor
More informationToshiba to Execute Toshiba Revitalization Action Plan
December 21, 2015 FOR IMMEDEATE RELEASE Toshiba to Execute Toshiba Revitalization Action Plan Toshiba Corporation ( the Company ) today announced that Toshiba Group will implement a series of management
More informationOUT-OF-COURT RESTRUCTURING GUIDELINES FOR MAURITIUS
These Guidelines have been issued by the Insolvency Service and endorsed by the Bank of Mauritius. OUT-OF-COURT RESTRUCTURING GUIDELINES FOR MAURITIUS 1. INTRODUCTION It is a generally accepted global
More informationDebt Overhang and Capital Regulation
Debt Overhang and Capital Regulation Anat Admati INET in Berlin: Rethinking Economics and Politics The Challenge of Deleveraging and Overhangs of Debt II: The Politics and Economics of Restructuring April
More informationAn outlook on the Spanish economy Official Monetary and Financial Institutions Forum (OMFIF), London
09.02.2016 An outlook on the Spanish economy Official Monetary and Financial Institutions Forum (OMFIF), London Luis M. Linde Governor I would like to thank OMFIF and Mr. David Marsh for the invitation
More informationLampros Vassiliou Allens Arthur Robinson Group Bangkok
Organisation for Economic Co-operation and Development the World Bank Asia Pacific Economic Cooperation and the Australian Treasury with the support of AusAID INSOLVENCY SYSTEMS IN ASIA: AN EFFICIENCY
More informationWhite Paper. LIHTC Apartments Mortgage Risk Why They Do Not Default. By George Vine, CFA
White Paper LIHTC Apartments Mortgage Risk Why They Do Not Default By George Vine, CFA Introduction People generally know that LIHTC mortgages (first mortgages on low income housing tax creditfinanced
More informationCLOSING OF BUSINESS IN INDIA DEVELOPMENTS IN LEGAL & ADMINISTRATIVE FRAMEWORK
CLOSING OF BUSINESS IN INDIA DEVELOPMENTS IN LEGAL & ADMINISTRATIVE FRAMEWORK 1 LEGAL FRAMEWORK Present conceptual and procedural framework Laid out by 3 major legislations Companies Act, 1956 Sick Industrial
More informationDirector s Guide to Credit
Federal Reserve Bank of Atlanta Director s Guide to Credit This guide was created by the Supervision and Regulation Division of the Federal Reserve Bank of Atlanta, 1000 Peachtree Street NE, Atlanta,
More informationGuide to cash flow management
Guide to cash flow management Cash flow management What is cash flow management? For a business to be successful, good cash flow management is crucial. Cash flow is the primary indicator of a business
More informationHow Courts and Governments can facilitate Out of Court Workouts
How Courts and Governments can facilitate Out of Court Workouts March 3, 2011 World Bank Group Investment Climate Restructuring & Insolvency Team Andres F. Martinez Formal and Informal remedies to distress
More informationTabletop Exercises: Allowance for Loan and Lease Losses and Troubled Debt Restructurings
Tabletop Exercises: Allowance for Loan and Lease Losses and Troubled Debt Restructurings Index Measuring Impairment Example 1: Present Value of Expected Future Cash Flows Method (Unsecured Loan)... - 1
More informationFinancial. Management FOR A SMALL BUSINESS
Financial Management FOR A SMALL BUSINESS Welcome 1. Agenda 2. Ground Rules 3. Introductions FINANCIAL MANAGEMENT 2 Objectives Explain the concept of financial management and its importance to a small
More informationEconomic Commentaries
n Economic Commentaries In its Financial Stability Report 214:1, the Riksbank recommended that a requirement for the Liquidity Coverage Ratio (LCR) in Swedish kronor be introduced. The background to this
More informationBORROWER IN DISTRESS: A Survey on the Impact of Private Student Loan Debt
May 2013 BORROWER IN DISTRESS: A Survey on the Impact of Private Student Loan Debt an issue brief by BORROWER IN DISTRESS Executive Summary For most, a college degree is a path to economic security. These
More informationCapital Market Development in Cambodia
Capital Market Development in Cambodia Hanoi, 1 st March 2007 Dr. Hang Chuon Naron Secretary General Ministry of Economy and Finance Contents Overview of Financial Market Present financial system in Cambodia
More informationPRESENTATION. Improving the performance of Public Water Utilities A case study of Bangalore N.C. MUNIYAPPA, Chairman, BWSSB LOCATION MAP OF BANGALORE
Arabian Sea Mumbai KARNATAKA Delhi Chennai Nepal Calcutta Bay of Bengal PRESENTATION Improving the performance of Public Water Utilities A case study of Bangalore By N.C. MUNIYAPPA, Chairman, BWSSB LOCATION
More informationFTC Facts. For Consumers Federal Trade Commission. Having trouble paying your bills? Getting dunning. Knee Deep in Debt. Self-Help
FTC Facts For Consumers Federal Trade Commission For The Consumer November 2003 Knee Deep in Debt www.ftc.gov 1-877-ftc-help Having trouble paying your bills? Getting dunning notices from creditors? Are
More informationLecture 2. Output, interest rates and exchange rates: the Mundell Fleming model.
Lecture 2. Output, interest rates and exchange rates: the Mundell Fleming model. Carlos Llano (P) & Nuria Gallego (TA) References: these slides have been developed based on the ones provided by Beatriz
More informationIntroduction to Health Care Accounting. What Is Financial Management?
Chapter 1 Introduction to Health Care Accounting and Financial Management Do I Really Need to Understand Accounting to Be an Effective Health Care Manager? Today s health care system, with its many types
More informationServices to Companies & Directors. www.kingslandbr.co.uk
Services to Companies & Directors At all stages of the economic cycle companies, businesses and individuals will invariably face difficulties and issues for which specialist advice should be sought. The
More informationRepublic of Tajikistan: Joint Bank-Fund Debt Sustainability Analysis
February 2006 Republic of Tajikistan: Joint Bank-Fund Debt Sustainability Analysis Tajikistan s risk of debt distress is moderate. Under the baseline scenario, all the external debt burden indicators are
More informationTiming of Hiring a Turnaround Management Firm. Turnarounds & Crisis Management Solutions to Complex Business Problems
Solutions to Complex Business Problems Atlanta Chapter, Georgia Society of CPA s October 21, 2010 by Mark D. Kaplan, Principal Restructuring Profit Advisors, LLC 400 Trowgate Lane Atlanta, Georgia 30350
More informationSS.912.FL.4.3. Assignment 8 Steps 1 and 2
FL-V2-012015 Standard 4: Using Credit Code SS.912.FL.4.1 Discuss ways that consumers can compare the cost of credit by using the annual percentage rate (APR), initial fees charged, and fees charged for
More informationWorking the Triangles in Indonesia: Mediating Debt Restructuring Disputes: Part I
LAUNCH OF ADR STANDARDS DOCUMENT The National Alternative Dispute Resolution Advisory Council s document A Framework for ADR Standards was launched in Brisbane on 13 June 2001. The report is the outcome
More informationEntrepreneurship Chapter 10 1
Operations Management Lesson 10.1 Operating Procedures Goals Define the functions of management. Describe types of policies that should be included in an operations manual. Vocabulary manager management
More informationTable of Contents. Interest Expense and Income 185.32 Why do financing accounts borrow from Treasury? 185.33 Why do financing accounts earn interest?
SECTION 185 FEDERAL CREDIT Table of Contents General Information 185.1 Does this section apply to me? 185.2 What background information must I know? 185.3 What special terms must I know? 185.4 Are there
More informationRISK ASSESSMENT FOR SMALL BUSINESS. Terry S. Campbell, Community Development Officer Department of Development & Technology
RISK ASSESSMENT FOR SMALL BUSINESS Terry S. Campbell, Community Development Officer Department of Development & Technology Date: March 25, 2004 1 Counseling Tool Outline - Cover Page - Outline - Introduction
More informationFTC Facts. For Consumers Federal Trade Commission. Having trouble paying your bills? Getting dunning. Knee Deep in Debt. Self-Help
FTC Facts For Consumers Federal Trade Commission For The Consumer December 2005 Knee Deep in Debt www.ftc.gov 1-877-ftc-help Having trouble paying your bills? Getting dunning notices from creditors? Are
More informationScott s Real Estate Investment Trust. Interim Consolidated Financial Statements (Unaudited) March 31, 2009 and 2008
Interim Consolidated Financial Statements March 31, and Interim Consolidated Balance Sheets (in thousands of dollars) Assets March 31, December 31, Income-producing properties (note 3) 172,404 174,135
More informationCN Pension Plan. Managing Pension Risks: How We Work and Why. CIA Pension Seminar - April 16, 2007 Caroline Drouin
CN Pension Plan Managing Pension Risks: How We Work and Why CIA Pension Seminar - April 16, 2007 Caroline Drouin 1 Table of Contents Background 3 CN Pension Plan CN Railroad Railroad Industry Managing
More informationYour Loan has Been Assigned to Special Assets...What Now?
http://www.piworld.com/article/your-printing-company-loan-has-been-assigned-special-assetswhat-now/1 Your Loan has Been Assigned to Special Assets...What Now? By Mark R. Hahn, Managing Director of Brownstein
More informationCentral Bank of Iraq. Press Communiqué
Central Bank of Iraq Press Communiqué New Central Bank policy instruments Summary At its August 26 meeting, the Board of the Central Bank of Iraq (CBI) adopted a new Reserve Requirement regulation and
More informationCredit Risk. Loss on default = D x E x (1-R) Where D is default percentage, E is exposure value and R is recovery rate.
Credit Risk Bank operations involve sanctioning of loans and advances to customers for variety of purposes. These loans may be business loans for short or long term commitments and consumer finance for
More informationBrief History of Square Pharmaceuticals & Liquidity Ratios
Brief History of Square Pharmaceuticals & Liquidity Ratios BRIEF HISTORY Square Pharmaceuticals Ltd. is a renowned company in Bangladesh. It is a flagship company in the pharmaceutical industry which has
More informationThe Hospital Strategy Project in South Africa
8 The Hospital Strategy Project in South Africa Monitor Company, Health Partners International, Center for Health Policy, and National Labor and Economic Development Institute, South Africa This chapter
More informationSubnational Borrowing Framework Lili Liu Lead Economist Economic Policy and Debt Department
International Seminar on Building New Countryside and Promoting Balanced Regional Development for a Harmonious Society Haikou, China 2006 年 8 月 21-26 日 Subnational Borrowing Framework Lili Liu Lead Economist
More informationDYNAMICS OF DEBT MANAGEMENT
DYNAMICS OF DEBT MANAGEMENT Shirish Satish Raibagkar, Professor, Institute of Business Management & Rural Developments MBA Centre, Ahmednagar - 414 111, Maharashtra, India Abstract Countries across the
More informationIMPACT. Taxpayer implications of an Economic Downturn TAX IMPLICATIONS
TAX IMPLICATIONS IMPACT Taxpayer implications of an Economic Downturn By Joseph LiPari, CPA, M.B.A. As the United States continues to be mired in its worst recession in 80 years, we are all well aware
More informationPPIAF Assistance in Afghanistan
August 2012 PPIAF Assistance in Afghanistan Emerging from a decade of war, massive support from various development partners has been pouring in over the last few years to help rebuild Afghanistan. PPIAF
More informationRepaying Student Loans: Tips,
Repaying Your Student Loans: Tips, Options, Solutions Know Your Options and Eligibility Government Collection Powers and Limitations Tools for Keeping Track of Debt and Repayment Taking Action Locate and
More informationMBA Data Analysis Pad John Beasley
1 Marketing Analysis Pad - 1985 Critical Issue: Identify / Define the Problem: Objectives: (Profitability Sales Growth Market Share Risk Diversification Innovation) Company Mission: (Source & Focus for
More informationKnee Deep in Debt. Self-help
Knee Deep in Debt Having trouble paying your bills? Getting dunning notices from creditors? Are your accounts being turned over to debt collectors? Are you worried about losing your home or your car? You're
More informationShared Home Ownership
Shared Home Ownership Frequently Asked Questions Open your mind to the possibility of home ownership with Opening Doors Visit openingdoorswa.com.au Version: February 2016 Home Loans About the Opening Doors
More informationDEBT FUNDING GUIDELINES FOR LOCAL GOVERNMENT
DEBT FUNDING GUIDELINES FOR LOCAL GOVERNMENT The Context Local government financial statements, like those of other sectors of government and the corporate sector, include many items of considerable financial
More information27Forecasting cash flows 27Activity 27.1 open-ended question.
27Forecasting cash flows 27Activity 27.1 open-ended question. Activity 27.2 (page 497): April cash flow 1 Draw up a revised cash-flow forecast for April assuming: cash sales are forecast to be $1,000 higher
More informationMapping and Interlinking Monitoring Activities on Water
Mapping and Interlinking Monitoring Activities on Water Building is easy, Maintaining is not. Asset Management for Irrigation Infrastructure. William J. Cosgrove, World Water Council Paul van Hofwegen
More informationTotal shares at the end of ten years is 100*(1+5%) 10 =162.9.
FCS5510 Sample Homework Problems Unit04 CHAPTER 8 STOCK PROBLEMS 1. An investor buys 100 shares if a $40 stock that pays a annual cash dividend of $2 a share (a 5% dividend yield) and signs up for the
More informationProblem Loan Workout and Debit Restructuring for SME s in Egypt
Problem Loan Workout and Debit Restructuring for SME s in Egypt Course Hours: 24 Course Code: 12167 Objectives The principal objectives of this programme are to provide delegates with a developed understanding
More informationSECTOR ASSESSMENT (SUMMARY): WATER SUPPLY AND OTHER MUNICIPAL INFRASTRUCTURE AND SERVICES 1. 1. Sector Performance, Problems, and Opportunities
Country Partnership Strategy: Kyrgyz Republic, 2013 2017 SECTOR ASSESSMENT (SUMMARY): WATER SUPPLY AND OTHER MUNICIPAL INFRASTRUCTURE AND SERVICES 1 Sector Road Map 1. Sector Performance, Problems, and
More informationAdjusting to a Changing Economic World. Good afternoon, ladies and gentlemen. It s a pleasure to be with you here in Montréal today.
Remarks by David Dodge Governor of the Bank of Canada to the Board of Trade of Metropolitan Montreal Montréal, Quebec 11 February 2004 Adjusting to a Changing Economic World Good afternoon, ladies and
More informationRISK FACTORS AND RISK MANAGEMENT
Bangkok Bank Public Company Limited 044 RISK FACTORS AND RISK MANAGEMENT Bangkok Bank recognizes that effective risk management is fundamental to good banking practice. Accordingly, the Bank has established
More informationThe 1st CFO Summit in the Republic of Serbia Cash Flow Reducing Spending
The 1st CFO Summit in the Republic of Serbia Cash Flow Reducing Spending May 31, 2012 Financially constrained companies are responding to crisis conditions by taking action in the obvious areas Easy-to-Implement
More informationCorporate Debt Restructuring: The Missing Link in Financial Stabilization
Corporate Debt Restructuring: The Missing Link in Financial Stabilization Won-Dong Cho Advisor, IMF Deputy Director General, Ministry of Finance and Economy, Korea Michael Pomerleano Lead Financial Specialist,
More informationWater Supply Authority. Regulatory Accounting Guidelines
Water Supply Authority Regulatory Accounting Guidelines Edition 2 February 2004 Regulatory Accounting Guidelines Edition 2 February 2004 Contents 1 General... 1 1.1 Background and introduction... 1 1.2
More informationWorld Bank SME Questionnaire December 2006
The World Bank Questionnaire on Bank Financing to SMEs This version: December 8, 2006 Bank: Staff interviewed: Interviewers: Date: This questionnaire is focused on credit to small and medium enterprises
More informationFGFOA Webinar Series: During Unusual Times. Presented By:
August 22, 2012 FGFOA Webinar Series: Investing Florida Public Funds During Unusual Times Presented By: Scott Prickett Managing Director, Senior Vice President Glenn Scott - Senior Vice President, Portfolio
More informationBasel Committee on Banking Supervision
Basel Committee on Banking Supervision Liquidity coverage ratio disclosure standards January 2014 (rev. March 2014) This publication is available on the BIS website (www.bis.org). Bank for International
More informationKey Points to Borrowing Money
Key Points to Borrowing Money Borrowing money is one of the most common sources of funding for a small business, but obtaining a loan isn't always easy. Before you approach your banker for a loan, it is
More informationThe Global Banking Crisis: an African banker's response
Sir Patrick Gillam Lecture The Global Banking Crisis: an African banker's response Mallam Sanusi Lamido Sanusi Governor, Central Bank of Nigeria Professor Judith Rees Chair, LSE Suggested hashtag for Twitter
More informationManaging Turnarounds: Phases and Actions in the Turnaround Process
White Paper of Interest Managing Turnarounds: Phases and Actions in the Turnaround Process By John M. Collard There is plenty of trouble in today s economy. We are experiencing the worst downturn since
More informationSECTOR ASSESSMENT (SUMMARY): ENERGY 1. 1. Sector Performance, Problems, and Opportunities
Country Partnership Strategy: Bangladesh, 2011 SECTOR ASSESSMENT (SUMMARY): ENERGY 1 Sector Road Map 1. Sector Performance, Problems, and Opportunities 1. Power generation gap. Bangladesh endures long
More informationA Proactive Tool for Monitoring the Microloan Portfolio. EMN Conference London June 24, 2010
A Proactive Tool for Monitoring the Microloan Portfolio EMN Conference London June 24, 2010 Overview The Challenge and the Solution Monitoring Tool Development Process Implementation Strategy and Policy
More informationRecommendation for a COUNCIL RECOMMENDATION. on the 2015 National Reform Programme of Portugal
EUROPEAN COMMISSION Brussels, 13.5.2015 COM(2015) 271 final Recommendation for a COUNCIL RECOMMENDATION on the 2015 National Reform Programme of Portugal and delivering a Council opinion on the 2015 Stability
More informationFI3300 Corporation Finance
Learning Objectives FI3300 Corporation Finance Spring Semester 2010 Dr. Isabel Tkatch Assistant Professor of Finance Explain the objectives of financial statement analysis and its benefits for creditors,
More informationBoosting SMEs with Better and Innovative Financing Services
ISSN 1816-6075 (Print), 1818-0523 (Online) Journal of System and Management Sciences Vol. 4 (2014) No. 2 Boosting SMEs with Better and Innovative Financing Services Wei Liu 1 1 Department of Integrated
More informationTHE IMPORTANCE OF RISK MANAGEMENT
THE IMPORTANCE OF RISK MANAGEMENT Andrew L. T. Sheng* I have a terribly difficult task, because I have very little to add after such excellent presentations by three wise men, Stanley Fischer, whom I worked
More informationThe 1990 s Financial Crises in Nordic Countries
The 1990 s Financial Crises in Nordic Countries Seppo Honkapohja, Bank of Finland I. Introduction 19 crises in advanced countries since WWII (before the current) 1990 s crises in Finland, Norway and Sweden
More informationFinancial Restructuring. Valerio Ranciaro La Sapienza 12 maggio 2015
Financial Restructuring Valerio Ranciaro La Sapienza 12 maggio 2015 Contents The capital structure The cost of distress Debt: definitions Financial covenants Liquidation vs Restructuring The restructuring
More informationLecture 10: International banking
Lecture 10: International banking The sessions so far have focused on banking in a domestic context. In this lecture we are going to look at the issues which arise from the internationalisation of banking,
More informationARC LOAN PROGRAM. Office of Small Business & Entrepreneurship and SBA
ARC LOAN PROGRAM Office of Small Business & Entrepreneurship and SBA 1 Timeline June 8 th : Regulation, Procedural Guidance and Forms Released Week of June 8 th : Lender Training June 15 th : SBA Begins
More informationDebt Management in Pakistan. Samina Shabir
Debt Management in Pakistan Samina Shabir Introduction Why Debt Management? The current topic is important on account of fact that the growing public debt and resultant rise in debt burden is an issue
More informationConsumer Credit Counseling: Credit Card Issuers' Perspectives *
Consumer Credit Counseling: Credit Card Issuers' Perspectives * Mark Furletti September 2003 Summary: On Friday, May 23, 2003, the Payment Cards Center hosted a workshop led by collections managers from
More informationRaising Capital Part 1: Debt
Giddy Raising Capital: Debt /1 Raising Capital Part 1: Debt Prof. Ian Giddy New York University Corporate Finance CORPORATE FINANCE DECISONS INVESTMENT FINANCING RISK MGT MGT PORTFOLIO CAPITAL M&A DEBT
More informationComments on the Basel Committee on Banking Supervision s Consultative Document: Monitoring indicators for intraday liquidity management
September 14, 2012 Comments on the Basel Committee on Banking Supervision s Consultative Document: Monitoring indicators for intraday liquidity management Japanese Bankers Association We, the Japanese
More informationDeposit Insurance Reserve Fund Strategy
Deposit Insurance Reserve Fund Strategy September 2013 Table of Contents Executive Summary... 2 Introduction... 3 Background... 4 Purpose of the Reserve Fund... 5 Current State... 5 Increasing Size and
More informationRecent measures for refinancing and restructuring Spain s corporate debt: Opportunities and impact on the banking sector
Recent measures for refinancing and restructuring Spain s corporate debt: Opportunities and impact on the banking sector María Romero and Itziar Sola 1 The high level of Spain s private debt, particularly
More informationExplanation of : Key Performance Indicators For
Explanation of : Key Performance Indicators For Contact: Andee Sellman Principal and CEO www.thefinancialfence.com www.onesherpa.com Introduction One of the ways to bring the numbers of a business into
More informationFREQUENTLY ASKED QUESTIONS (FAQ) BANK INDONESIA REGULATION NO
FREQUENTLY ASKED QUESTIONS (FAQ) BANK INDONESIA REGULATION NO. 16/21/PBI/2014 CONCERNING THE IMPLEMENTATION OF PRUDENTIAL PRINCIPLES IN MANAGING EXTERNAL DEBT OF NON-BANK CORPORATION AND CIRCULAR NO. 16/24/DKEM
More informationBasel II, Pillar 3 Disclosure for Sun Life Financial Trust Inc.
Basel II, Pillar 3 Disclosure for Sun Life Financial Trust Inc. Introduction Basel II is an international framework on capital that applies to deposit taking institutions in many countries, including Canada.
More informationCLUB RATIO PRIVATE ANALYSIS AND FINANCIAL OPERATIONS HEALTH OF THE CLUB TRACKING THE FINANCIAL WHY CLUBS MONITOR RATIOS LIQUIDITY RATIOS
FINANCIAL RATIO ANALYSIS AND PRIVATE CLUB OPERATIONS TRACKING THE FINANCIAL HEALTH OF THE CLUB B Y P H I L I P N E W M A N Private clubs are mission driven serving members is the primary goal. Accordingly,
More informationNet Stable Funding Ratio
Net Stable Funding Ratio Aims to establish a minimum acceptable amount of stable funding based on the liquidity characteristics of an institution s assets and activities over a one year horizon. The amount
More information