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Credit Suisse in problem

Credit Suisse is taking “decisive measures” to boost its liquidity and for this purpose will borrow up to 50 billion Swiss francs from the Swiss National Bank (SNB), the bank’s management announced. It was also pointed out that this loan is fully secured by prime property values. In addition, the bank offered to issue documents for a cash payment of up to three billion francs.


The announced measures came after Switzerland’s financial watchdog pledged help for Credit Suisse to preserve liquidity as the bank’s share price fell 30 percent on Wednesday (March 15th). In this way, Credit Suisse became the first globally systematically relevant bank to receive such assistance after the great financial crisis.

Just hours after it was announced that Credit Suisse would lend money, the value of the bank’s shares rose again. It first jumped to almost 33 percent, and then stabilized at plus 18 percent.


Bank of wealthy clients

Credit Suisse is a global Swiss bank and one of the largest banks in the world. She is particularly known for doing business with very wealthy clients. The bank was founded in the 19th century and plays a major role in the Swiss economy, but also in the global financial system. In recent years, however, she has lost quite a bit of her reputation due to various scandals and losses.

In addition, Credit Suisse is currently in the midst of an extensive restructuring costing billions and including the elimination of 9,000 jobs. In the future, the bank wants to focus primarily on doing business with millionaires and billionaires and no longer intends to engage in venture investment banking.

The Swiss National Bank and the financial market supervision agency Finma previously announced in a joint statement that Credit Suisse meets all requirements for systemically relevant banks in terms of capital and liquidity. It is also pointed out that so far there are no indications that the problems of the American banks could also affect the Swiss ones.

The drop in value has caused concern around the world

The collapse of several regional US banks in recent days has caused uncertainty in the banking sector. This particularly affected Credit Suisse, which was already volatile.

Investors also began to pull back as a major Saudi shareholder, the Saudi National Bank, announced on Wednesday (March 15th) that it could not make additional financing available to the Swiss bank. Credit Suisse posted a loss of 7.3 billion francs last year, and customers withdrew 123 billion francs worth of deposits during that period.

The dramatic drop in the value of the shares of that bank, which is the second largest in Switzerland, also caused a drop in the securities of other European banks. The Stoxx Europe 600 Banks banking sector index fell 6.9 percent. In Germany, the shares of Commerzbank lost 8.7 percent – but today those values ​​have recovered again.

Financial supervisory agencies around the world, governments and other financial institutions try to assess the risks. Some governments behind the scenes asked Switzerland to take the necessary measures – which it then did. “FINMA and the SNB are following the development in detail and are in close contact with the Ministry of Finance to ensure financial stability,” the two institutions said in a statement.

What was going on Credit Suisse before this meltdown?

Credit Suisse has been struggling for years.

It was widely seen as the weakest link among Europe’s large banks, according to Kenningham.

The company has been plagued by a series of missteps and compliance failures in recent years that cost it billions and led to several overhauls of top management. And over the past decade, the Swiss bank has been hit with fines and penalties related to tax evasion, misplaced bets and other issues.

In 2014, Credit Suisse pleaded guilty to federal charges that it illegally allowed some U.S. clients to evade their taxes. The bank paid a total of $2.6 billion to the federal government and New York financial regulators as part of the settlement.

The bank’s reputation was damaged by an accounting scandal at Luckin Coffee. Credit Suisse acted as an underwriter when the company went public on the Nasdaq in 2019. The Chinese firm was pulled off the US exchange after it fraudulently inflated sales.

In 2020, Credit Suisse CEO Tidjane Thiam resigned after two high-profile spying scandals involving top bank officials.

A year later, the collapse of the US hedge fund Archegos Capital cost Credit Suisse $5.5 billion and damaged the bank. An independent external investigation later found that Credit Suisse allowed Archegos Capital to take “voracious” and “potentially catastrophic” risks that culminated in the US hedge fund’s spectacular collapse.

In 2022, the bank was hit by social media speculation that it was on the brink of collapse, leading customers to withdraw billions of dollars. That has made profitability a near impossibility for the bank, which has been hemorrhaging money for years.

And last month, Credit Suisse’s stock plunged to record lows after it posted its biggest annual loss since the financial crisis in 2008 and a report surfaced that regulators were reviewing comments the lender’s chairman made about the health of its finances.

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More people are falling behind on car payments


Despite the low unemployment rate and stable economy in the United States, the number of delinquent car loans has been on the rise. In fact, according to a Moody’s Analytics analysis, the percentage of auto loans that were more than 30 days behind on payments hit its highest level since 2010. This is a concerning trend, especially since the past few years have been financially beneficial for consumers.


Why are More Americans Struggling with Car Loan Payments?

One of the biggest factors that contribute to the rise in car loan delinquencies is the current state of inflation. The prices of everyday goods and services are on the rise, which can make it difficult for people to keep up with their financial obligations. For car owners, this inflation has caused a significant increase in the prices of vehicles, making them more difficult to afford.

Many consumers took out large loans to buy these cars, which means that they have less breathing room when it comes to keeping up with payments. This can put them in a difficult position if they face a financial emergency or unexpected expense.






Who is Most Affected by Car Loan Delinquencies?

People with low credit scores are the most vulnerable when it comes to car loan delinquencies. According to Moody’s Analytics, approximately 9.3% of auto loans that were extended to people with low credit scores were more than 30 days behind on payments at the end of last year. This highlights the importance of having a good credit score, as it can make it easier for people to access credit and avoid falling behind on their financial obligations.

What are the Consequences of Car Loan Delinquencies?

Falling behind on car loan payments can have a number of consequences, both financial and non-financial. For example, it can lead to additional fees and interest charges, which can make it even more difficult for people to catch up on their payments. Additionally, it can hurt people’s credit scores, which can make it harder for them to access credit in the future.

In some cases, delinquency can lead to repossession, which can be a devastating blow for people who rely on their vehicles to get to work or take care of their families. This can put them in a difficult position, as they may struggle to find alternative transportation options that are affordable and reliable.

What Can Consumers Do to Avoid Car Loan Delinquencies?

The best way to avoid falling behind on car loan payments is to be proactive and plan ahead. This means being realistic about what people can afford and budgeting accordingly. It also means paying attention to interest rates and terms before signing any loan agreements, so that people can be sure that they understand what they are agreeing to.

Additionally, it’s important for people to have an emergency fund that they can rely on if they face unexpected expenses or financial hardships. This can help them avoid falling behind on payments and protect their credit score.


The rise in car loan delinquencies is a concerning trend that highlights the importance of financial responsibility and planning. With inflation on the rise and car prices increasing, it’s more important than ever for consumers to be mindful of their finances and make smart decisions when it comes to borrowing and budgeting. By being proactive and planning ahead, consumers can avoid falling behind on car loan payments and protect their financial wellbeing.

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Open balkan labor market

Employment barriers


Barriers to employment in the region are falling. With 62 votes for, no against and no abstentions, the Assembly ratified the Open Balkans laws. This will mean the abolition of work permits and a free labor market for Macedonia, Serbia and Albania.

Those who want to work in a private company in one of these countries will be issued a special identification number. Citizens will be able to get it through the web portal for electronic services, and with that there will be practically no need to get a work permit, which until now had to wait up to 3 months, a bunch of other documents and administrative costs, the national coordinator for Open Balkans tells Sitel.

“By filling in some personal data and verifying your identity through that software, the e-services website will be able to retrieve your identification number. Then with that number you will register in the electronic services system of Serbia and after certain procedures of the company that employs you, that company will register you for pension and health and on that basis will pay you a salary based on the work done” – Marjan Zabrchanec, national coordinator for Open Balkans.

The new tools should be available on the site by the end of March. Zabrcanec says that there has already been interest from foreigners to work with us.

“I have information that larger companies that are located in cross-border areas, around Kumanovo or Struga, already have specific information about the employment of citizens from Serbia and Albania in domestic companies. Of course, there will be cases in the opposite direction as well.” – Marjan Zabrchanec, national coordinator for Open Balkans.

This measure was supposed to function last fall, but the implementation got stuck in the Parliament, where the committee discussion was postponed for months.

At today’s session, the agreement with Frontex signed between Macedonia and the EU in October last year was also ratified. This makes it possible, at the request of the country, to deploy Frontex police officers at critical points on the border, together with our police officers, and there will be an opportunity to use all Frontex equipment.

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Benefits from globalization

The Advantages and Disadvantages of Globalization: A Comprehensive Guide


Globalization has become a buzzword in recent years, but what exactly does it mean and what are the benefits and challenges associated with it? This article aims to provide a comprehensive guide to the topic of globalization, including its definition, advantages, and disadvantages.

What is Globalization?

Globalization refers to the increasing interconnectedness and interdependence of the world’s economies, societies, and cultures. It is a process that has been driven by advances in technology, transportation, and communication, and has led to a more integrated global marketplace.

Advantages of Globalization

One of the main advantages of globalization is increased trade and investment. With the removal of barriers to trade, businesses and individuals can trade goods and services with people from other countries, leading to increased economic growth and job creation.

Another advantage is the ability for businesses to tap into new markets. By expanding into new markets, businesses can increase their customer base and reach new audiences. This can help them to increase their profits and grow their business.

Additionally, globalization has led to increased cultural exchange and understanding. With greater access to information and the ability to communicate with people from all over the world, people are exposed to different cultures and ways of life, leading to increased understanding and tolerance.

Disadvantages of Globalization

Despite its many benefits, globalization also has its downsides. One of the main disadvantages is that it can lead to job loss as companies move their operations to countries where labor is cheaper. This can be particularly harmful to workers in developed countries, who may find it difficult to find new employment.

Another disadvantage is the negative impact that globalization can have on the environment. With increased trade and travel, there is a greater demand for resources and a greater impact on the environment. This can lead to environmental degradation and climate change.

Furthermore, globalization can also lead to the exploitation of workers in developing countries. Companies may pay low wages and ignore labor laws, leading to poor working conditions for workers.


Globalization is a complex issue with both advantages and disadvantages. While it has led to increased trade and investment, job loss, environmental degradation, and worker exploitation are all potential downsides. As such, it is important for governments and businesses to work together to address these challenges and ensure that the benefits of globalization are shared by all.

In conclusion, while globalization has brought many benefits, it is important to carefully consider its impact and to work towards creating a more sustainable and equitable global economy.

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Oil price cap

Industrialized countries in the Group of Seven are imposing a price cap on refined Russian oil products such as diesel and kerosene, as part of a coalition that includes Australia and a tentative agreement from the European Union.

The cap follows similar price limits put on Russian oil exports, with the goal of reducing the financial resources Russian President Vladimir Putin has to wage the nearly year-long war in Ukraine.

“Today’s agreement builds on the price cap on Russian crude oil exports that we set in December and helps advance our goals of limiting Russia’s key revenue generator in funding its illegal war while promoting stable global energy markets,” U.S. Treasury Secretary  Yellen said in a statement.

On Friday, EU governments tentatively agreed to set a $100-per-barrel price cap on sales of Russian diesel to coincide with an EU embargo on the fuel. Diplomats representing the 27 EU governments set the cap on Russian diesel fuel, jet fuel and gasoline ahead of a ban taking effect Sunday. It aims to reduce Russia’s income while keeping its diesel flowing to non-Western countries to avoid a global shortage that would send prices and inflation higher.

Details about the cap were provided by a G-7 statement and diplomats from three different EU member nations, who agreed to discuss the cap on the condition of anonymity.

The $100-per-barrel cap applies to Russian diesel and other fuels that sell for more than the crude oil used to make them. Officials agreed on a $45-per-barrel limit on Russian oil products that sell for less than the price of crude.

The deal follows a similar G-7 agreement to limit the price of Russian crude oil to $60 a barrel. All the price ceilings are enforced by a requirement for the world’s largely Western-based shippers and insurers to abide by sanctions and handle oil products only priced at or below the limits.




Russia has said it will not sell to countries obeying the oil cap, but because its oil is selling for less than $60 per barrel, it has kept flowing to the global market. The price caps encourage non-Western customers that have not banned Russian oil to press for discounts, while outright evasion — though possible — carries additional costs such as organizing off-the-books tankers.

The ambassadors of the 27 EU nations put forward the decision, and national governments have until early Saturday to react with a written objection. No changes to the deal were expected.

Europe has been steadily reducing its diesel supplies from Russia from around half of all imports. Diesel is key for the economy because it is used to power cars, trucks carrying goods, farm equipment and factory machinery. Prices have spiked since Russia invaded Ukraine on rebounding demand and limited refinery capacity in some places.

If the price cap works as intended and Russian diesel keeps flowing, fuel prices should not skyrocket, analysts say. Europe could get alternate supplies of diesel from the U.S., India and the Middle East, while Russia could seek new customers outside Europe.

However, the impact of the cap will be unpredictable as shippers reroute flows of the fuel to new destinations, and longer sea journeys could strain tanker capacity.

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The mining industry is fast paced and becoming increasingly regulated. Established ways of working are being challenged and organisations are having to adapt. With over 11 years experience, our team vast experiences enables us to advise our clients on practical and relevant solutions during every stage of your business lifecycle.

The industry is a competitive and cyclical environment that face many challenges ranging from adapting to new accounting standards, developments and varying taxation regimes, addressing corporate governance requirements, understanding and capitalizing on the trend of market consolidation and creating sector specific strategies to remain competitive and agile in a sector that has an attractive long-term future.   

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Our client had previously focussed on making B2C sales in Macedonia only, through their bricks and mortar shop and their own website. They wanted to break into the EU market, to achieve this they signed up with a major marketplace platform to assist them.  The intention was to make deliveries to EU customers from Macedonia stockpile and also utilise the marketplace’s collection of warehouses on the continent (holding its stock before delivery, to speed up the time-to-customer).


As our client sold food products, our first role was a review confirming their commodity code and to determine it they had ‘Macedonia origin’. The importance of this is to determine whether duties are be payable when the product arrived in the EU, and if they were due, could they be avoided because Macedonia is not part of Schengen zone. We also reviewed the VAT treatment in the EU member states they intended to target first (as while in Macedonia many food products are 5%, that is not the case in other countries). Having concluded that duties would apply, our client was able to accurately cost their sales and then calculate a customer price accordingly. We assisted in mapping where those import VAT and duty costs would hit as for some sales, e.g. packages under €150 it could be avoided by use of an Import One Stop Shop (IOSS) registration. We also informed the client of the VAT registration requirements and reporting obligations related to the use of EU warehouses and the fact that when selling via marketplaces it will sometimes they need to account for the VAT due and not the seller.


Software companies

While many of the accounting and tax issues faced by software companies are common in other industries as well, there are certain areas in which software companies must be well-versed in order to establish and maintain credibility with investors and lenders and minimize exposure to taxes. These areas (arranged roughly chronologically over the life cycle of the typical software company) include:

Choice of entity type – Software companies often start out as a flow-through entity (S-corp or LLC) in order to enjoy the flow-through of tax losses and credits, avoid the potential for double taxation, and provide maximum flexibility in an exit transaction, but later find it more advantageous to convert to C-corp status (perhaps to accommodate a significant venture capital or foreign investor).  Other times, software companies find it advantageous to move in the opposite direction (from C-corp status to flow-through status). Great care must be taken in the initial choice of entity type, as well as any subsequent change (since significant adverse tax consequences can result).

Debt and equity transactions – Rapidly growing software companies often have various types of owners, including founders, key employees, angel investors, and institutional venture capital funds, and multiple types of debt and equity, including senior debt, convertible debt, common stock, and potentially multiple series of preferred stock with differing rights and preferences.  In general, amounts associated with debt (other than principal repayment) will result in a tax deduction, while any amounts associated with equity (including costs incurred to raise the equity) do not result in a tax deduction.

Stock-based compensation – Software companies often use restricted stock, stock options and other forms of equity-based compensation to attract and retain key talent.  It is important to understand the financial accounting and tax ramifications of such, both from the perspective of the company and the employee.  The company will generally want to try to minimize any charge to financial statement earnings, while enjoying an income tax deduction for any amount included in income by the employee.  From the employee’s perspective, it is important to avoid having a W-2 income inclusion at a time when there may be no cash involved with which to pay the resulting tax, and to try to structure for long-term capital gains treatment (rather than having ordinary income).

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