He declined to comment on whether or not he expected net outflows for the business during 2008.
The bank's governor, Elvira Nabiullina, said the bank expected capital outflows of up to $120bn next year – there have been similar predictions for this year – and that it could spend as much as $85bn in 2015 to defend the rouble, which it floated a month ago.
"Without substantial government intervention," said another FDIC official, bank regulators and Citigroup "project that Citibank will be unable to pay obligations or meet expected deposit outflows next week," according to the report.
This is the first integrated operational explanation of the observed phenomena and provides predictions in the form of simulations of expected catecholamine outflows, across a variety of conditions.
It expects the outflow of manufacturing from high- to low-cost countries to slow over the next two years and the reshoring to double over the previous two years.
As a result, the computation time (CT in seconds), the cash flows to/from the investor during his 3-year engagement (FTE0, FTE1, FTE2 and FTE3 in EUR million), the expected annual cash outflow after his engagement determining the residual value (FTE4 in EUR million), the present value of equity (VEQ in EUR million) and the overall percentage of demand coverage (COV in %) were recorded.
He expects total outflows of about €800m, including conversions into German bunds [bonds] and other such things".
He expects cash outflows this year to be $440 million, including capital expenditures, a cash restructuring charge and interest payments on the company's almost $2 billion in debt.
"We expect cash outflows to quickly reduce the company's liquidity during the next few quarters, perhaps to levels that would force G.M. to consider a financial restructuring, even if it does not file for bankruptcy," S. & P. said.
The first-quarter profit was "enhancing the credibility of management's long-term targets," Matthew Clark, an analyst at Keefe, Bruyette & Woods, wrote in a research note, adding that he expected "the reduced outflows to enhance confidence in the overall franchise".
