IMF urges Ottawa to cut back on mortgage insurance through CMHC

Ottawa should consider phasing out insuring home mortgage through Canada Mortgage and Housing Corp., the International Monetary Fund said Wednesday.[np_storybar title=”According to the IMF, Canada has the most overvalued housing market in the world” link=”https://business.financialpost.com/2013/11/27/according-to-the-imf-canada-has-the-most-overvalued-housing-market-in-the-world/”%5D [/np_storybar]The advice is contained in the IMF’s latest economic report card on Canada, which projects modest economic growth of 2.25% for the country next year.Such a recommendation, surprising from an international financial organization, appears to side with Finance Minister Jim Flaherty, who has recently questioned whether the federal government should be in the business of insuring higher-risk mortgages at all.Some analysts have credited the system for providing much needed confidence in Canada’s housing sector during the 2008-09 crisis, which many believe was sparked by a crisis in the U.S. mortgage market.The IMF concedes that the current system has its advantages for stability. But it says it also exposes the government, or taxpayers, to financial system risks and might distort the market as a whole in favour of mortgages over more productive uses of capital.[np_storybar title=”Homeowners feel the pinch of rising prices, mortgage rates” link=”https://business.financialpost.com/2013/11/27/canadian-homeowners-are-feeling-the-pinch-of-rising-prices-mortgage-rates/”%5DRBC’s latest research on how much income is needed to maintain a home shows that affordability deteriorated over the summer, the second consecutive drop. Find out more [/np_storybar]“We think banks lend too much to mortgages and too little to small and medium enterprises,” Roberto Cardarelli, the IMF mission chief for Canada, told reporters in a briefing in Toronto.“We suspect the fact that banks may benefit from government-backed insurance on mortgages (…) it sort of makes it easier for banks to do mortgages than other kinds of lending which presumably, we think, is going to be more useful for the real economy.”The Washington-based financial institutions said further measures should be considered to “encourage appropriate risk retention by private sector and increase the market share of private mortgage insurers.”It cautioned, however, that if any structural changes are made, they should be gradual to avoid unintended consequences.The IMF report, released Wednesday morning, forecasts that Canada’s economy as a whole will start benefiting next year from a pickup in the U.S. economy, leading to greater demand for Canadian exports and renewed business investment.Read more on the IMF’s forecast for Canada: Bank of Canada can afford to put off rate hike until 2015 read more

UN chief condemns attack on school in Yemen that killed at least

According to a statement issued by his spokesperson, the Secretary-General expressed “dismay” that civilians, including children, continue to bear the brunt of increased fighting and military operations in Yemen.Mr. Ban called for a swift investigation of this tragic event in the Sa’ada governorate and urges the parties to the ongoing conflict to take all necessary measures to prevent further violations of international humanitarian law and human rights and do everything in their power to protect civilians and civilian infrastructure, the statement said.“The Secretary-General reiterates that there is no military solution to the crisis in Yemen,” the statement said.The UN chief also called upon the parties to renew — without delay and in good faith — their engagement with his Special Envoy for Yemen, Ismail Ould Cheikh Ahmed, in pursuit of a negotiated solution, the statement said.The UN Children’s Fund (UNICEF) also issued a statement on the killing of children in a religious school that also injured 21 others.“The children killed, aged between six and 14 years, were studying in a school in the Juma’a Bin Fadil village in Haydan,” the statement said, adding that the surviving children were being treated in a hospital in Sa’ada.With violence across the country intensifying over the past week, the number of children killed and injured by airstrikes, street fighting and landmines has grown sharply, the statement noted.“UNICEF calls on all parties to the conflict in Yemen to respect and abide by their obligations under international law,” including the obligation to only target combatants and limit harm to civilians and civilian infrastructure, the statement said.Following nearly 16 months of conflict in Yemen, the cessation of hostilities was declared on 10 April. While peace talks between a Yemeni Government delegation and a delegation of the General People’s Congress and Ansar Allah have since continued, serious violations have occurred in Marib, al Jawf, Taiz and in the border areas with Saudi Arabia.On 6 August, the UN special envoy announced a one-month break for the talks, during which “the focus will be on working with each side separately to crystalize precise technical details.” read more

Jose Manuel Sierra Paris HC agree twoyear deal

Paris handballparis hcsierraValladolid Jose Manuel Sierra will be playing in Paris Handball next season, after the deal has been confirmed by the French club. The now former Valladolid goalkeeper signed a two-year deal, and reportedly the money paid to Valladolid by the French are in worth of 120,000 EUR, although this has been an unofficial amount. ← Previous Story Ana Radovic joins KIF Vejen Next Story → Laszlo Nagy remains in Barcelona, Veszprem offered “too little”

Shotgun and drugs found during garda searches over Johnson murder

first_imgTWO PEOPLE HAVE been arrested by gardaí carrying out searches connected to the murder of Dean Johnson.During the course of the searches a sawn off shotgun, ammunition and a quantity of drugs were recovered.As part of the investigation into the murder of Johnson on 24 August 2013 at Neilstown Road, Clondalkin Dublin 22, gardaí at Lucan, carried out the searches.They were assisted by various local and national garda units while undertaking the searches in the areas of Ronanstown, Clondalkin, Cabra and Kilcock today.Two men in their 20s were arrested. They are detained under the provisions of Section 30 of the Offences Against the State Act 1939-98 and at Lucan and Ronanstown Garda Stations.Read: Gardaí want to speak to passengers of Friday’s route 25 Nitelink>last_img read more