Standard and Poor’s affirmed its A-/A-2 foreign currency and A+/A-1 local currency sovereign ratings for Malaysia, with a stable outlook. The rating report said that Malaysia's external liquidity position continue to remain strong, supporting the credit rating. Current account surpluses, registered since 1998, are expected to continue; though more moderate in size. Malaysia's external flexibility is reinforced by its net external creditor position in the public sector. Malaysia’s rating is constrained by a weaker fiscal position relative to most peers. The deficit, at 3.4% of GDP, is considerably above the current median of 1.3% for A- rated sovereigns.
Romania’s central bank will monitor real estate prices as they pose an growing inflationary risk, said governor Mugur Isarescu. “We definitely have an asset bubble in the northern part of the Bucharest “, he said. Property process recently became a subject of interest for the European Central Bank.
Lukoil expects an upgrade from Moody's and Standard & Poor's soon, according to Andrei Gaidamaka, director of investment analysis in the company. Standard and Poor’s puts the long-term rating of Lukoil at BB, with the possibility of an increase. The rating agency will make a final decision in June 2006. In January, 2006, Moody's changed its rating outlook from Ba1 positive to Ba1 stable.
The Inter-American Development Bank's (IDB) financing plans for this year include a series of loans totalling $850 million for Colombia and roughly the same amount each year between 2007 and 2010. "The majority of the payments will be used to improve infrastructure, for institutional fortification and to support decentralization," IDB representative for Colombia, Rodrigo Parot said. "Although the flow of funds backed by the state will continue, we will be looking to support the private sector more decisively," he added. Private sector lending will be raised from 5% to 10% of the bank’s total portfolio.
The World Bank said yesterday that it will lend around $2 billion to China annually, between now and 2010. The funds will be used for poverty alleviation and environmental protection. The World Bank's board of directors endorsed a new Country Partnership Strategy for China for 2006-2010. With t per capita income of about $1,740 and more than 135 million people living on less than $1 a day, China remains a developing country, particularly in its rural areas and in inland provinces.