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  • Several key creditors have funded Cuba’s banking system and development in recent years. Cuba’s main source of credit is China. Chinese authorities have promised a $70 million loan for a ­telecommunications cable project. China is also understood to have provided a high proportion of the export finance that led to a record $1.8 billion-worth of Cuban exports in 2006, a figure that increased in 2007.
  • A few incidents from that weekend remain in my mind.
  • In October the credit crunch finally devastated global equity markets as investor panic threatened to bring down all but the very strongest banks. Alex Chambers was pounding the sidewalks of New York just as the crisis entered its most tumultuous period and perhaps its denouement.
  • The association of German Pfandbrief banks, the VDP, was increasingly seen as the grumpy old man of covered bonds before the credit crunch. But since the spotlight has been thrown back on to the safety of securities, the VDP has been fully vindicated.
  • The government guarantee packages established across Europe will have serious implications for covered bonds. Few have followed Germany’s example of using the guarantee’s language to implicitly protect the Pfandbrief market, and while some explicitly include covered bond issues, others explicitly leave them out. Still others have yet to confirm the treatment of covered bonds either way. The speed with which the packages have been put together means that many details are yet to emerge.
  • But Barclays deal reprices agency sector.
  • The government bail out packages unveiled across developed countries last month may have prevented the collapse of a host of banks with more toxic assets than equity.
  • Martín Redrado, president of the Central Bank of Argentina, tells Sudip Roy why the banker should get through the global crisis intact.
  • When it comes to mergers and acquisitions, Turkey’s banking sector remains a land of opportunity. UniCredit analyst Matteo Ferrazzi says: “In central and eastern Europe, opportunities for mergers and acquisitions are few and far between. Most banks are already in solid hands or owned by foreign players. But in Turkey, it is a different case and there are still banks to be privatized.”
  • With CDS prices at unprecedented levels, the crisis shows no sign of abating.
  • The substantial help afforded financial institutions across the globe has failed to support spreads outside the financial sector. Corporate credit was responsible for the widening in both Europe’s iTraxx (Series 10) and the US CDX (Series 11) to 172bp and 225bp respectively – outside the previous wides seen in March. Confirmation that a global recession is on its way was the main factor driving the move.
  • Amendments made to accounting rules by the International Accounting Standards Board (IASB) in mid October could allow banks to write back billions in losses incurred in trading books.