Spain's austerity programme may be eased if the economy continues to contract, the European Union's top economic official said Monday.

Economy commissioner Olli Rehn suggested that Spain could be given more slack to meet the strict budget targets set out by the block to save the eurozone's fourth economy from bankruptcy.

Moody's on Monday downgraded the long-term credit ratings of six large Canadian banks, citing concerns over record high Canadian consumer debt and soaring home prices.

Moody's Investors Service cut the long-term ratings by one notch of the Bank of Montreal, Scotiabank, Caisse centrale Desjardins, Canadian Imperial Bank of Commerce, National Bank of Canada and Toronto-Dominion Bank.

The International Monetary Fund urged Hungary on Monday to shift its economic policy, warning the government's frequent and unpredictable tax policy changes had undermined efforts cut the deficit and attain growth.

"A new policy course is needed to deliver the required medium-term fiscal adjustment in a sustainable way to support growth and confidence...," the IMF said in a statement following a review mission in Budapest.

Bank lending to private households in the euro area contracted again in December as the region's crippling debt crisis continues to put a freeze on demand for credit, data showed on Monday.

Eurozone bank loans to the private sector declined by 0.7 percent in December compared with the same month in 2011 after already shrinking by 0.8 percent the previous month, the European Central Bank said in a statement.

Myanmar on Monday announced a deal with international lenders to cancel nearly $6 billion of its debt, another milestone in the rapid transformation of the former junta-ruled nation.

The former pariah state also cleared its arrears to the World Bank and the Asian Development Bank (ADB) with the help of a bridge loan from Japan, removing another key hurdle for the resumption of international aid.

Iraqi energy officials on Sunday signed an oil exploration deal with a Kuwait-led group, finalizing a deal that was altered to expel a Turkish firm amid worsening ties with Ankara.

A contract was inked with Kuwait Energy and Dragon Oil of the United Arab Emirates to explore a 900-square-kilometer (350-square-mile) block thought to contain oil in south Iraq, near the country's border with Iran.

The International Monetary Fund is gearing up for a huge new challenge to rebuild the economies of the turbulent Arab world, a mission that poses starkly different challenges to its eurozone rescues.

The Arab Spring revolutions of 2010-2011 have opened doors to the IMF's money and expertise as new governments face the need to balance their books and revive sagging growth.

Apple shares extended their losses Friday, ending a miserable week for the California tech giant as it surrendered its position as the world's biggest company based on market value.

Apple ended down 2.36 percent at $439.88, giving it a market capitalization of $413 billion, while oil giant ExxonMobil rose 0.36 percent to $91.68 with a market cap of $418 billion to edge into first place.

Latin American and European leaders open a two-day summit in Chile Saturday to give a fresh impetus to efforts to seal a free trade agreement between their two blocs.

Attending the gathering are some 45 leaders, including German Chancellor Angela Merkel, Spanish Prime Minister Mariano Rajoy, Brazilian President Dilma Rousseff, Cuban leader Raul Castro as well as European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso.

Banca Monte dei Paschi di Siena shareholders gave the green light on Friday to a key capital increase in an important step towards calming concerns raised over the health of the world's oldest bank raised by a derivatives scandal which has sparked a political row in Italy.

After seven hours of intense deliberations, general shareholders in Italy's third-largest bank voted to authorize a capital increase of 4.5 billion euros to help pay back loans, with another 2.0 billion euros on top of that for interest payments, if necessary.