China International Machinery Trade Expo

INVITATION

Organizer: Guangzhou International Sourcing Center

Hong Kong China Council for the Promotion of International Trade

Ningbo Chamber Of Commerce

Wenzhou Chamber Of Commerce

Sichuan Chamber Of Commerce

Guzhen Chamber Of Commerce

China Machinery Network

Oversea support: Inter pacific (Brazil) 

                    Marco Polo Holdings Ltd. (US)

India China Trade Centre

Korea Trade-Investment Promotion Agency

Tokai Japan-China Trade Center

Camera Di Commercial Italia Chinese

Undertaker: Guangzhou Honest Exhibition Co., Ltd.

[The Best Trade Platform Based on Huge Market Advantage]

The China International Machinery Trade Expo (CIMTE for short) is a grand international fair held by well-known associations from mainland and Hong Kong. Both the Spring Expo from April 14 to 18 and Fall Expo from October 14th to 18th will be held in Guangzhou International Sourcing Center at the same time and place with the Canton Fair. This Expo intends to promote mechanical development and boost the machinery trade in China by communicating and cooperating with outstanding foreign machinery and relevant equipment manufacturers and merchants. Due to the influential Canton Fair and location advantage of Guangzhou, a bunch of oversea buyers and agents are playing an active role in Guangzhou all the time, making Guangzhou famous for export. Furthermore, the CIMTE will further boost development of machinery industry and provide the best trade platform for Chinese enterprises to export and foreign precision machinery manufacturers to develop Chinese market based on the solid demand on machinery in China.     

[Guarantee both Domestic and Oversea Trades. Seven Reasons to Join the CIMTE]

1. China is the biggest machinery manufacturing and consumption country in the world. South China Region is the world most powerful manufacturing base, where nearly 1 million manufacturers have settled in. Industries there cover heavy industry, equipment manufacturing industry, automobile, mould, hardware, electronic industry, new energy, printing, rubber-plastic, metallurgy, food, chemical and texture. As the most developed province in China, Guangdong Province has launched New Ten Projects requiring a total investment of RMB 2,370 billion. The South China Region will have an unparalleled machinery consumption market because of these projects plus fast urban construction and traffic development.

2. The CIMTE will be held together with the first phase of Canton Fair in the section B of Pazhou Pavilion of the Canton Fair. The location is only 50m away across from Canton Fair’s foreign merchant reception, so it shares about 0.3 million foreign merchants with the Canton Fair.

3. The CIMTE designs a large outdoor machinery display area right next to the section B and Canton Fair’s foreign merchant reception. High profile show of large machineries will catch foreign merchants’ eyes and interest them to place orders.

4. The undertaker will arrange for free shuttle buses to pick up foreign merchants from surrounding specialized markets and star-level hotels and buyers from Dongguan, Huadu, Shenzhen and Hong Kong to the Expo site. At least 100 professional interpreters are ready to work around the Canton Fair site, foreign merchant reception and distribute CIMTE tickets at major subway stations, making their best efforts to attract valuable buyers.  

5. The undertaker’s Buyer Development Sector will arrange for several full-time employees to distribute 0.3 million free invitations to target clients at home and abroad, oversea buyers and merchants, and work together with commercial representatives of consulates for determining oversea high-quality buyers and invite them by call, fax and mail one by one.

6. Advertisings will be released on professional machinery websites and journals, and newspaper will keep on reporting and advertising this Expo. An extensive promotion campaign targeting English Alibaba website, Globalmark, Made-in-China and other well-known machinery websites at home and abroad will be conducted. At the same time, large outdoor advertisings, subway advertisings and airport advertising for the Pazhou Pavilion will be set up. Besides, Expo pamphlets will be put in the hotel rooms for the foreign merchants attending the Canton Fair. 

7. CIMTE lasts for 5 days and inaugurates one day before the Canton Fair so that the enterprises will have more chances to develop clients.

[CIMTE Solution]

1. If you worry about a reliable stand in the Canton Fair, CIMTE will be a perfect choice for you.

2. If you have a stand in the Canton Fair already but is not satisfied with the area for showing your company image and products, you may set up a stand in the CIMTE for your most valuable clients.   

[Introduction and Location Advantage of the Pavilion]

The Guangzhou International Sourcing Center is 180,000m² large and located at the Pazhou parcel, next to the Pazhou CIEF site. The exit A of Pazhou station on No.8 subway line directly leads to the registration office of the Center and Canton Fair’s foreign merchant reception in section B. It is close to the Shangri-La Hotel in the north,

East Xingang Road

in the south, Pazhou Bridge on

Keyun Road

in the east, ensuring the considerable traffic and location advantages.

[Items on Display]

◇ General machinery display area: instruments, devices, filters, fans, generator sets, diesel engines, reducers, Variable speed motor, internal-combustion engines, compressors, industrial boilers, vessels, welding equipment, laser equipment, dryers, breaking plants, separation plants and pumps, valves, transmission parts, bearings, springs, fasteners, sealers, tools, measuring equipment, cutting tools, etc.    

◇ Engineering machinery display area: construction machineries, building machineries, mining equipment, pavement maintenance equipment, special vehicles and their equipment and parts.

◇  Machinery tool and mould display area: metal finishing machineries, numerical control machineries, machining centers, metal forming machineries, machinery parts, moulds, auxiliary parts, etc.

◇ Rubber-plastic, packing and foodstuff machinery display area: injection molding machineries, extruders, packing machineries, bottle blowing machineries, film blowing machineries, rubber machineries and auxiliary equipment, all kinds of prepress machineries, label machineries, flexo printing machineries, screen printers, pad printers, offset machineries, special printers, paper processing machinery and postpress packing equipment and food processing machinery.

◇ Environmental friendly and energy-saving equipment display area: waste disposal equipment, waste gas purifiers, water treatment equipment, noise and vibration reduction equipment, energy device, etc.

◇ Comprehensive display area: electronic equipment, ceramic machineries, agricultural machineries, medical equipment, pharmaceutical equipment, sewing machineries, etc.   

[Stand Prices and Provisions] 10% extra fee will be charged for 2-side standard stand

Stand type	Price (domestic enterprise & Foreign-funded enterprise)	Provisions
Standard	RMB 13,800/stand & USD5,000/stand	Three display boards, a stand board in Chinese and English, a table, two chairs, two light pipe, a wastebasket and a 5A/220V power socket
Indoor bare stand	RMB 1,500/m2  & USD500/m2	At least 36m2, no provision or facility
Outdoor bare stand	RMB 1,100/m2  & USD300/m2	At least 60m2, no provision or facility

[Journal and Advertising]

Cover RMB 38,000                     

Back RMB 28,000      

Inside front cover/title page RMB 18,000    

Inside back cover/inside back RMB 12,000

Flyer design RMB 8,000  

Balloon RMB 18,000/set  

Ticket RMB 18,000/20,000 tickets

[Contact]

Guangzhou Honest Exhibition Co.,Ltd.

Address: A218-222, Section C, Qixing Business Center, No.8,

East Huangcun Road

, Tianhe District, Guangzhou   P.C:510560
TEL: +86 20 2335 4754

FAX:+86 20 3237 3948

CONTACT: Mr. Du Jei

MOBILE: +86 137 2527 1565

Website: www.honestexpo.com/cimte

Email:dujie008@126.com

--Please contact the undertaker for details!

Great feedback from the 5th anniversary celebration of Herostart.com

Gifts, Gifts, and Gifts

During the 5^th anniversary celebration of Herostart.com, we are planning to have a programme to thank you for your supports to Herstart.com from the beginning.Big gifts packages will be delivered to you once you join us as a member of Herostart.com, such as, great exposure for your listings on CIMTE.So,Don't be hesitated,Join us immediately！

Activity Time:  Sep 9th to Oct 31st

Participation qualifications: Members of Herostart.com

Activity Contents:

1, If you are successful registered as a free member of Herostart.com before before Oct 1st,You will have an opportunity to get free showing during CIMTE fair from October 14th to 18th

2, During the activity, if you upgraded to be a premium member of Herostart.com or continuous to be a premium member, you will enjoy 20% discount fee of member service, together with 1 keyword on google searching engine SEO service and spotlight banner on Herostart.com for one month.

3, During the activity, if you upgraded to be a premium member of Herostart.com or continuous to be a premium member, you will enjoy our great discount about 43% lower then the original prices (the original price is :13800RMB / standard booth!) in China International Machinery Trade Expo, also plenty of trade leads we collect from this exhibition will be sent to you via email after show.

Note：

we only accept the documents which delivered to us before the end of September.

Philippines Import increased a lot in July

The largest import category is inputs used by the semiconductor and electronics industry, the country's biggest export sector and a major contributor to the Economy Imports of electronic parts fell 28.6% in July from a year earlier after a 20.7% annual drop in June.

Merchandise exports fell 1.7% in July from a year earlier a third consecutive annual fall although the value of monthly shipments hit a high for 2011.

Socioeconomic Planning Secretary Cayetano Paderanga has said the government's 2011 macroeconomic targets including the 9 to 10 percent export growth estimate and 17 to 18 % imports growth forecast which will be reviewed after second quarter growth slowed more than expected.

Annual growth in the second quarter slowed to 3.4 % from the previous quarter's revised 4.6 % due largely to sluggish exports and weak government spending.

Apart from electronic parts and fuel, the Philippines' other top imports are cereals such as rice, electrical and industrialmachinery steel and metal scraps.

Citic Scurities’ $ 1.7 Billion

HONG KONGCitic Securities Co Ltd China's largest publicly traded brokerage raise $1.7 billion in a Hong Kong , and has priced the deal at the bottom of a revised range.

The deal would be the biggest stock offering to hit Hong Kong's equity market, since the $2.5 billion initial public offering by luxury goods maker Prada in June.

Share sales have virtually ground to a halt the past two months because of volatile market condition, with nearly $4.5 billion in deals last week alone being delayed from companies including Sany Heavy Industry and rival XCMG Construction Machinery Co Ltd.

Citic Securities has enough commitments from cornerstone and anchor investors to fully cover the deal sources said previously easing concerns it could be derailed because of growing market volatility.

Underwriters on the offering recommended the company price the shares at HK$13.30 each, but a final decision needs to be approved by the head office of Citic Securities. The company offered 995.3 million shares, putting the total deal at HK$13.24 billion; The pricing recommendation matches the lower end of a revised range of HK$13.30 - HK$15.20 a share.

Citic Securities is the sole global coordinator of the offering with a group of banks including BOC International, CCB International, Bank of America Merrill Lynch and Credit Agricole's CLSA unit helping to underwrite the deal.

Schweiter Technology Reports Revenue Growth

                     

Schweiter reports revenue growth in local currencies and 11% EBITDA margin .. The issuer is solely responsible for the content of this announcement.

Horgen, August 19, 2011 - Net revenues amounted to CHF 425.0 million in the first half of 2011 (1H 2010: 465.5 million), which represents 3% growth in local currencies. 3A Composites and Ismeca Semiconductor increased their net revenues in local currency, while SSM Textile Machinery managed to hold net revenues almost on a par with the previous year's gratifying result. Orders received reached CHF 480.3 million (1H 2010: 536.6 million). Expressed in local currencies, the figure was as high as in the previous year.

The Group posted EBITDA of CHF 46.3 million (1H 2010: 48.5 million) and EBIT of CHF 31.5 million (1H 2010: 33.7 million). Net earnings amounted to CHF 20.3 million (1H 2010: 23.6 million). The result includes currency losses of around CHF 9 million. Staff adjustments at 3A Composites led to income of just under CHF 4 million arising from a reduction in the actuarially determined staff pension obligations.

In a positive sector environment, SSM Textile Machinery reported new orders amounting to CHF 40.1 million (1H 2010: 47.2 million), resulting in net revenues of CHF 39.3 million (1H 2010: 42.5 million). After currency translation adjustments, this corresponds to a slight decrease of 2%. All regions - in particular India - reported healthy demand. Despite unfavorable exchange rates, margins were held, thanks in part to consistent efforts to cut costs. The operating result (EBIT) amounted to CHF 5.2 million (1H 2010: 7.2 million), which corresponds to a net profit ratio of approximately 13%. The lower result compared to the first half of 2010 was due to the slight decline in revenues and to upward revaluations of material inventories during the year-back period.

Amid buoyant demand, Ismeca Semiconductor reported new orders of CHF 50.9 million (1H 2010: 73.1 million). Around half of the considerable decrease compared with the previous year's record level is due to currency effects. Revenues amounted to CHF 50.8 million (1H 2010: 50.4 million). As Ismeca invoices practically all its revenues in USD, in local currency this equates to a year-on-year increase of 18%. Despite unfavorable exchange rates, the gross margin was held thanks to Ismeca's technological leadership. An operating result of CHF 4.8 million (1H 2010: 6.0 million) was reported, representing an EBIT margin of just over 10%.

source:reuters

Lagarde Set Own Style In IMF

 

WASHINGChristine Lagarde has made two bold decisions, since she is in charge in International Monetary Fund.

In a swift one-two punch, she confronted both European bankers and the region's political leaders and demanding more aggressive action to prevent the euro-zone debt crisis from spilling beyond Greece Portugal and Ireland.

She declared publicly that European banks faced huge exposure to souring sovereign debts and needed more capital which angered Europe's leadership; But also forced them to confront what had only been whispered in private machinery.

Her frankness in speaking uncomfortable truths is putting a distinct stamp on her leadership.

IMF insiders, speaking through a weekend of talks among global finance officials, said Lagarde's candor and clarity are no different in private meetings with government ministers. It is proving important in forcing officials to move faster in finding solutions at a critical turning point for Europe and the world economy.

This contrasts sharply with her predecessor Dominique Strauss-Kahn who resigned suddenly on May 18 after he was charged with sexually assaulting a hotel maid in New York.

Charges against him were dismissed in August after court prosecutors lost faith in his accuser's credibility.

Persuasive and charismatic in private, Strauss-Kahn was verbose and opaque in public. His grasp of economic issues was immense but his style was one of a political operator, pulling strings within the complex international machinery to push his own objectives.

The 55-year-old Lagarde's contrasting approach was bearing fruit by the end of the IMF and World Bank meetings in Washington this weekend.

While many European finance ministers and central bankers may still see Europe's problems largely as a domestic issue, they have stepped up their efforts to find ways of stabilizing the euro zone and recapitalizing its banks.

While Lombardi believes U.S. Treasury Secretary Timothy Geithner is the weekend's winner for keeping up pressure on Europe by recommending ways to rescue their banks, he said Lagarde was able to build on that to push for decisive action.

Lagarde believes her role should be to bridge divisions among nations where the path forward seems almost impossible to find. This approach was evident in her public remarks at the IMF sessions. She combined candor and pragmatism as she tried to narrow differences among countries over steps needed to tackle the crisis.

Bussiness Opportunity In Libya

In August, as rebels fought forces loyal to President Muammar Gaddafi, two representatives of a British business consortium took a "rather long and arduous ferry journey from Malta" to the North African country.

The men traveled to Libya at the invitation of the rebel administration. Britain, along with France and the United States, had given political and military support for the uprising against Gaddafi and sponsored the rebel leadership, the National Transitional Council. This was a chance to close some deals.

The visitors keep coming. In the lobby of the Tibesti Hotel in the rebel stronghold of Benghazi, opportunists mix with diplomats, journalists and aid workers. With NATO's help, the rebels have deposed Gaddafi and now control Tripoli, the capital. Elsewhere fierce fighting continues and Gaddafi remains holed up. The country has yet to pay its workers, write a new constitution or even name a transitional government. But it is a land with deep pockets, and plenty of new friends.

French President Nicolas Sarkozy and British Prime Minister David Cameron received a heroes' welcome last week when they became the first western leaders to visit since Gaddafi's ouster. Interim leader Abdel Jalil said the rebels' allies could expect preferential treatment in return for their help.

It was a clear signal that countries which had not backed the NATO bombing campaign, including Russia, China and Germany, or which were slow to denounce Gaddafi, like Italy, stand to lose out.

But if French and British politicians are tallying up the contracts, business executives are leaving little to chance. Foreign companies withdrew from Libya at the outset of the NATO bombing campaign; sanctions imposed on Gaddafi's regime since February have added to the difficulty of doing business.

Despite this, dozens of executives from France, Britain, Italy and other countries have spent months building ties with potential Libyan partners. In a country fractured by tribe and politics, they say it is relationships that will prove decisive machinery.

The potential profits are huge. While there are pockets of damage to infrastructure and former Gaddafi command centers, the country is in far better shape than Iraq was after the fall of Saddam. At the same time, Libya needs new investment in everything from schools to services. According to the French business federation, Libya should offer around $200 billion in investment opportunities over the next 10 years. With a population of just over 6 million and Africa's largest oil reserves, it has plenty to spend. Up to $170 billion worth of frozen Gaddafi-era assets alone should help pay for reconstruction.

Here's how companies are playing this new front in the latest scramble for Africa.

GET IN QUICK, IF YOU DARE

Western firms, including trading houses Vitol, Trafigura and Gunvor have already been busy. A London-based team for Vitol sold oil products to the rebels in large volumes as early as April, and helped ship their first crude oil cargo. Trafigura expressed interest, although it is not clear if any deals were concluded.

At the same time, some firms remain wary of doing business with the rebels in case they break international sanctions. Though those sanctions are now easing -- Europe and the United Nations have eased theirs -- U.S. firms in particular are hesitant. One engineering executive expressed optimism about the potential in Libya "once things get going" and said he has been attempting to rekindle old relationships. But he, along with another U.S. company official, said sanctions left them unsure about how much they can do. Many told Reuters they are waiting for guidance from Washington.

$1.2 bln HongKong IPO Been Delaied

China's XCMG ConstructionMachinery postpone the $1.2 billion Hong Kong stock offering, The decision came only a few days after bigger rival Sany Heavy Industry pulled its $3.3 billion Hong Kong share offer due to market turmoil.

The original size of the IPO was $1.5 billion. XCMG recently added six more banks to the underwriting team, taking the total number of banks on the deal to 12 according to IFR.

ABC International, BOC International, BoCom International, Essence Securities, Goldman Sachs Group Inc and ICBC International will join BNP Paribas SA China International Credit Corp, Credit Suisse Group AG, HSBC Holdings Plc, Macquarie Group Ltd and Morgan Stanley to arrange the float.

Sany Heavy postpone the planned with $3.3 billion Hong Kong offering. Xiao Nan Guo Restaurants Holdings also decided to call off its $95 million Hong Kong IPO.

$1.2bn electricity bill from Lebane

BEIRUTLebanon's parliament passed a $1.2 billion bill to aim at boosting electricity output after weeks of political discord over how to allocate the funds transparently.

The bill calls for the construction of LNG power plants over the next three years and the upgrading of existing electricity stations;Lebanon has suffered decades of energy problems that have drained billions of dollars in electricity subsidies.  Energy and Water Minister Jibran Bassil who submitted the plan to boost electricity production by 700 MW machinery.
They said the plan lacked transparency and wanted to authorise the cabinet to handle the allocation of funds.
But on Wednesday, consensus was reached with agreement on two amendments to the energy proposal, which obliges Bassil to form an Electricity Regulatory Authority and a new board of directors for Electricite du Liban, the state-owned company that provides power to most of the country.

Photographs find profound in ordinary people

An exhibit of photographs from the 1930s and 1940s and the work of a contemporary artist and filmmaker both show the profound in the everyday lives of ordinary people.

The Danish documentary photographer, contributed to U.S. government photographic projects during the Great Depression after immigrating to the United States and studying photography with Berenice Abbott.
Working with American photographer Walker Evans in the South under the auspices of the USFarm Security Administration; A machine factory in Savannah, Georgia, Salvation Army Musicians in Cleveland, Ohio, a prison chain gang in Georgia.
His photographs documenting government-sponsored relief efforts, and the conditions that required them, make his work particularly timely;The U.S. Census Bureau's latest annual snapshot of living standards shows 22 percent of children live below the poverty line, the largest percentage in nearly two decades.
Aside from the content, the formal qualities of the photographs reflect a kind of modernism: straightforward, and sometimes austere. And their impact was lasting.
Working people and attention to the ordinary are also hallmarks of the work of Kevin Jerome Everson whose films Quality Contro and The Prichard will be shown at the New York Film Festival's Views from the Avant-Garde series on October

Lllionis Solar Farm

The project's developer scaled down plans due to a lack of funding; Underscoring the challenges Midwest states face in bringing solar online The difficulty experienced by even Wanxiang, a company known in the business world for having deep pockets may illustrate just how tough solar
But while the federal stimulus package pumped billions into renewable energy, that money has largely been allocated already, leaving entrepreneurs like Walters scrambling to patch together start-up funding. Like other states, he said, Illinois is at low ebb in available funding.
Located on the banks of the Rock River about 80 miles northwest of Chicago, Rockford is like many small Midwestern cities. A generation ago, it was a blue-collar powerhouse filled with machine shops and factories. Today, many of those workplaces have vanished, taking away thousands of jobs. The city now looks to green industries for help.
In April 2010, Rockford got a boost when Wanxiang, an Elgin, Ill.-based subsidiary of one of China's largest privately owned companies, opened a 40,000 square-foot solar panel factory. And in August 2010, Gov. Quinn announced with great fanfare that the state was giving Wanxiang a $4 million grant to kick-start the development of a 62-megawatt solar farm at the city's airport.
The Wanxiang proposal was an appealing vision. If fulfilled, Wanxiang would provide the city of 152,000 with power for 10,000 homes. The only other major solar farm proposed for the state was a 10-megawatt facility in Chicago owned by Exelon Corp., the parent company of ComEd, a public utility in northern Illinois.

Brazil Farm Industrial Revolution

BRASILIAA quiet industrial revolution is unfolding in the coffee fields of Brazil where a diminishing supply of seasonal workers is forcing farmers to opt for machines they've long eschewed: mechanical harvesters.

Some hundred years after the promise of a prosperity attracted 2 million immigrants to Brazil's coffee plantations, farm hands are abandoning the taxing job of picking and bagging the world's largest coffee crop for year-round full time work in prospering nearby towns.
Neither Martin nor his competitors in the secretive, niche market were willing to provide specific sales figures. But all concurred it was a growing market whose sales this year had benefited from the surge in coffee prices that began in June 2010 when they shot up from around $1.35 per lb. They have hovered since January in a range of $2.30 to $3.10.
The world is relying on large producers like Brazil to grow more coffee. Supplies of superior grades of beans have run short as demand grows and after bad weather and tree renewal dented Colombia's arabica prestigious produce for two seasons.
Importers have been turning to Brazil for substitutes to Colombian produce, and mechanization may help the country keep those customers by cutting production costs. Colombia's hilly terrain mostly rules out using machines.
Meanwhile, pickers have enjoyed pay hikes as producers compete for a shrinking pool of workers. But the higher pay has not staunched the exodus of farm hands seizing new opportunities in fast-growing nearby towns.
Brazil's southeastern coffee belt is roughly equidistant from several of the country's largest cities, a logistical plus attracting manufacturers of electrical and electronic components and auto parts, among others.
A Brazil-wide construction boom that itself is crying out for labor and paying aggressively to recruit, is also soaking up labor where it can find it.
Such rapid wage hikes mean the outlay of up to $400,000 for a harvester is no longer as daunting to producers fighting a losing battle to hold on to manpower and spending up to half the price of each bag of coffee on the cost of picking it.
There are some drawbacks;Machines cannot work on slopes and some farmers whose trees are bunched together may have to sacrifice some rows so machines can pass through the gaps.

IMF says talk of euro zone break-up is "crazy"

WASHINGTON - Talk of the euro zone splintering is "crazy" and European leaders need to quieter their dissonant voices which are destabilizing financial markets and threatening to tip the region back into recession, the International Monetary Fund warned on Tuesday.The European Union should quickly implement its bailout fund for troubled countries and, in the meantime,
the European Central Bank should continue its bond-buying program, it said.The ECB also should stand ready to lower interest rates if the economic conditions deteriorate further, the IMF said in releasing its World Economic Outlook.The sharp comments from the global lender sought to galvanize European leaders around an action plan as finance ministers and central bankers arrive in Washington this week for the annual IMF, World Bank and G20 meetings to assess the global economic outlook.
The IMF repeated its call for a stabilization of Europe's financial system via new capital injections -- first by the private sector and then through public measures if necessary -- to insulate banks from the loss of confidence in the value of their euro zone government debt holdings.The urgency of halting the spreading fears of euro zone collapse on the back of Greece's debt woes was underscored by fresh growth forecasts released by the IMF.Euro zone growth has virtually stalled and is forecast at 1.1 percent for 2012, the IMF said.Moreover, risks are to the downside, and policy missteps could easily
trip up the region, the IMF said. Issuing euro bonds to help out troubled countries would offer no quick fix unless Europe first creates oversight mechanisms, it said.The IMF's message was that Europe has the financial capacity to handle its problems and prevent a slide back into recession if it can exercise sufficient political will.Markets were spooked by suggestions from officials in German Chancellor Angela Merkel's coalition that Greece might default on its debt and leave the euro zone. The Dutch finance ministry also said it was examining Greek default.Carlo Cottarelli, IMF director of fiscal
affairs, warned this "cacophony of voices" sows fear and uncertainty over how Europe is managing the crisis, undermining confidence in the outlook."That is not taken well by markets and this is a problem that needs to be addressed," he said.The IMF dismissed talk that Greece is headed toward a sovereign debt default and an exit from the euro zone."It is a problem that is eminently manageable if the right actions are taken," Jorg Decressin, senior IMF economist. Decressin said.
"And so I still think it's a crazy proposition to think about a break-up of the euro area."IMF officials side-stepped questions over whether Greece has implemented enough of its fiscal austerity program to merit release of the next 8 billion euros of its EU/IMF loan program to prevent debt default, noting that talks are ongoing.But in general, it sounded comfortable with progress by most euro zone periphery countries on deficit reduction, and said the Greece situation should not spur a further crisis.IMF officials declined to comment directly on Standard & Poor's downgrade of Italy's sovereign debt rating to A from A+ on Monday and to raise the possibility of a further cut.Instead they expressed satisfaction that Italy's latest budget plan puts the euro zone's third-largest economy onto a trajectory that lowers its debt and deficit
levels.Its fiscal deficit of 4 percent already compares relatively favorably with other advanced economies, and its budget should bring the level to around 1 percent by 2013, Decressin said.Although that falls short of the balanced budget that Italy projects -- the IMF expects weaker growth -- it would still place Italy's deficit substantially below those of other major economies, he said.As for Italy's total debt-to-GDP ratio, the IMF projects it would start declining in 2013, and by 2016 would be slightly below that of the United States, he said.Additionally, Italy's population already is relatively old
so aging costs are not forecast to increase as fast as in many other advanced economies, and it has already cut pensions.
"So you might wonder what is the problem then, with Italy? And the issue here is the growth rate, which is relatively low," Decressin said.This requires structural reforms to its labor, goods and sevices markets to raise output alongside fiscal consolidation and for the government to implement its austerity plans.As for switching to stimulus in countries b2b marketplace that have stronger deficit-to-GDP profiles, the IMF recommended against that. Germany and Britain should retain their fiscal restraint and only switch course if growth threatens to slow substantially, which is not expected. Currently, Decressin said he sees no reason for them to change fiscal course.
Source:http://www.herostart.com