{"id":27843,"date":"2020-01-07T14:56:34","date_gmt":"2020-01-07T12:56:34","guid":{"rendered":"https:\/\/www.bondora.com\/blog\/?p=27843"},"modified":"2020-01-07T14:56:34","modified_gmt":"2020-01-07T12:56:34","slug":"budgets-debt-and-the-european-union","status":"publish","type":"post","link":"https:\/\/goandgrow.eu\/en\/blog\/budgets-debt-and-the-european-union\/","title":{"rendered":"Budgets, debt, and the European Union. Find out the latest."},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">The latest in European economic news<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">While the Finnish government is confident it can balance its budget by 2023, the International Monetary Fund isn\u2019t so optimistic. &#8220;The government plans to make the budget balance by 2023, in large part by boosting employment. But our view of likely growth and employment indicates the government would still have to borrow about 1 percent of GDP in 2023,\u201d <a href=\"https:\/\/www.nasdaq.com\/articles\/imf-doubts-finland-can-balance-its-budget-by-2023-2019-11-19\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">said the IMF<\/a>. Instead of higher economic growth, the IMF forecasts that Finland\u2019s economy will grow by 1.25% in the current year and 1.5% next year, both still below the 1.7% growth of its economy in 2018. In the short-term, the country\u2019s government has avoided a holiday season catastrophe, as it reached an agreement with the nation\u2019s postal service, Posti, to <a href=\"https:\/\/www.reuters.com\/article\/us-finland-strike\/postal-led-strikes-end-in-finland-but-more-to-follow-idUSKBN1Y11DC\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">end a recent strike by 10,000 of its employees<\/a>. The settlement will allow the postal service to get back on track during its busiest time of year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Spain currently sits with a temporary government, and that\u2019s <a href=\"https:\/\/elpais.com\/elpais\/2019\/11\/20\/inenglish\/1574246104_784775.html\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">not ok with the European Commission<\/a>. The governing body pushed Spain to form a stable government so that it could deal with the country\u2019s increasing levels of debt, and submit a budget plan to the EU. With a debt-to-GDP ratio of close to 100%, Spain is in danger of not meeting the commission\u2019s debt rule. The EU is imploring Spain to reduce its public spending, which has been a main contributor in generating such great debt in the country.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Elsewhere, the Estonian government is expected to <a href=\"https:\/\/news.err.ee\/1001622\/estonia-s-contribution-to-eu-budget-to-increase-from-2021\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">raise its contribution to the European Union<\/a> budget by 2021 to \u20ac320 million from its current contribution of \u20ac200 million. The main reason for the boost is to make up for the loss of funds stemming from the exit of Britain leaving the group. Estonia will receive less subsidies in certain economic areas, such as agriculture, as its economy is growing faster than expected.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Bondora portfolio performance<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Overall, Bondora return rates declined slightly compared to the <a href=\"https:\/\/www.goandgrow.eu\/blog\/estonia-signals-promising-economic-growth\/\">previous month<\/a>. Both 2018 and 2019 return rates remain above their respective targets.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As always, performance charts by country are broken down by the number of loan issuances over the given period, with Orange representing &lt;50 loans, Blue 51-200, and White &gt;200.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Yearly Performance<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Returns for the current year only changed by 0.7% to 28.2%. Rates in Estonia were almost unchanged, coming in at 20.1% for 2019. Rate distributions are spread out among origination countries. Estonia has the highest returns for 2017 (8.0%), Spain\u2019s returns are the highest of all countries in 2018 (29.0%), and in the current year Finnish returns exceed all other countries (35.9%).<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/www.goandgrow.eu\/blog\/wp-content\/uploads\/Portfolio-performance-yearly-Dec-2019.png\" alt=\"Portfolio performance yearly - Dec 2019\" class=\"wp-image-28119\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Quarterly Performance<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Rates for Q1 2018 fell slightly below their\ntarget to 12.3%. Rates for all quarters in the most recent two years dropped,\nbut no rate fell more than 1% on the month.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/www.goandgrow.eu\/blog\/wp-content\/uploads\/Portfolio-perf_quarterly_Dec-post.png\" alt=\"\" class=\"wp-image-27862\" \/><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Finland<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">AA rated loans stand at -2.2% for Q2 of 2019,\nhowever this is skewed due to a sample of less than 50 loans. Other rating\ncategories with more loan originations maintained returns above their targets.\nE rated loans were mostly unchanged, coming in at 26.4%. F rated loans\nmaintained the highest return rate of 41.0% in November.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.goandgrow.eu\/blog\/wp-content\/uploads\/Quarterly_Fin_Dec-post-575x1024.png\" alt=\"\" class=\"wp-image-27850\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Estonia<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Returns for Estonian B, C, D, and E rated\nloans all came in above their numbers for October. The biggest gainers were B\nand C rated loans which both came in 0.1% higher in November. E rated\noriginations maintained the highest return rate, at 28.8%.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.goandgrow.eu\/blog\/wp-content\/uploads\/Quarterly_Est_Dec-post-575x1024.png\" alt=\"\" class=\"wp-image-27844\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Spain<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Spanish F rated loans, which comprise the most\noriginations in the country, saw their return rates rise to 36.2%, a gain of\n0.2% in November. HR rated loan return fell the most, but were still well above\ntheir target, coming in at 55.1%.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.goandgrow.eu\/blog\/wp-content\/uploads\/Quartely_Spa_Dec-post-575x1024.png\" alt=\"\" class=\"wp-image-27868\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">*As\nwith any investment, your capital is at risk and the investments are not\nguaranteed. The yield is up to 6.75% p.a. Before deciding to invest, please <a href=\"https:\/\/www.goandgrow.eu\/en\/riskstatement\">review our risk\nstatement<\/a> or consult with a financial advisor if necessary.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The latest in European economic news While the Finnish government is confident it can balance its budget by 2023, the International Monetary Fund isn\u2019t so optimistic. &#8220;The government plans to make the budget balance by 2023, in large part by boosting employment. But our view of likely growth and employment indicates the government would still [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[120],"tags":[],"class_list":["post-27843","post","type-post","status-publish","format-standard","hentry","category-stats-and-data"],"acf":[],"featured_image":null,"categories_names":["Stats &amp; Data"],"category_name":"Stats &amp; Data","_links":{"self":[{"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/posts\/27843","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/comments?post=27843"}],"version-history":[{"count":0,"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/posts\/27843\/revisions"}],"wp:attachment":[{"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/media?parent=27843"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/categories?post=27843"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/tags?post=27843"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}