The America-Eurasia Business Coalition

US-Eurasia Business Council

BREAKING ANALYSIS FOR USA - EUROPE - ASIA

 LATEST BUSINESS NEWS FLASHES FOR US - EUROPE - ASIA

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  • BUSINESS ANALYSIS - USA - EUROPE - ASIA

    The International Monetary Fund (IMF) plays a pivotal role in fostering financial stability and economic cooperation across the globe, with a comprehensive focus on its member countries’ prosperity and well-being. The IMF is actively engaged in a multitude of initiatives that span various regions and financial sectors. 

     

    IMF Executive Board Approves (US) $822 Million Arrangements Under the Extended Fund Facility and the Extended Credit Facility for Honduras and Concludes 2023 Article IV Consultation: This collaborative effort also marks the conclusion of the 2023 Article IV Consultation, further demonstrating the IMF’s commitment to enhancing economic stability and growth.

     

    IMF Executive Board Approves a (US) $822 Million 48-month Arrangement Under the Extended Credit Facility for Burkina Faso: Another noteworthy achievement that underscores the IMF’s dedication to assisting nations in their economic development efforts.

     

    IMF Staff and the Malawian Authorities Reach Staff-Level Agreement on the Second Review of the Staff Monitored Program with Executive Board Involvement and an Extended Credit Facility Arrangement:. This continuous collaboration reflects the IMF’s commitment to assisting countries in achieving their economic objectives.

     

    Ecuador: Financial System Stability Assessment: Additionally, the IMF conducts vital assessments to ensure the stability of financial systems, as exemplified by its recent focus on Ecuador. The IMF’s financial system stability assessment provides invaluable insights into ensuring the soundness and resilience of financial institutions.

     

    The IMF’s multifaceted approach spans across various regions and economic sectors, addressing complex challenges and fostering economic stability and prosperity worldwide. Whether through financial arrangements, assessments, or collaborative agreements, the IMF remains dedicated to its mission of promoting global economic well-being. 




    The Asian Development Bank (ADB) is a driving force behind transformative initiatives that address pressing challenges and advance sustainable development across Asia and the Pacific. They are committed to making a positive impact in the region through a range of strategic efforts.

     

    Climate Change: $303 Million Loan to Boost Flood Resilience in the Philippines: In a pivotal move, ADB has approved a $303 million loan to mitigate flood and climate risks, safeguarding communities, and livelihoods across three major river basins in the Philippines. This initiative exemplifies ADB’s dedication to climate resilience and disaster risk reduction, furthering its commitment to protect people and foster sustainability.

     

    Energy: Four Ways to Harness the Rule of Law for a Just Energy Transition: ADB is at the forefront of assisting developing nations in Asia and the Pacific as they embark on transformative journeys to revamp their energy infrastructure in response to climate change. ADB’s innovative approaches to harnessing the rule of law in facilitating a just energy transition contributes to a greener and more sustainable future.

     

    Transport: Electric Buses to Reduce Air Pollution in Bishkek: ADB is making strides in enhancing transport infrastructure and reducing air pollution in Bishkek, the capital of the Kyrgyz Republic. With a $50.65 million project, ADB is facilitating the procurement of 120 modern, battery-electric buses. This initiative not only improves public transportation but also aligns with ADB’s commitment to environmental sustainability and cleaner urban mobility.

     

    Through these initiatives and a relentless commitment to positive change, ADB continues to be a key player in advancing economic growth, environmental protection, and social progress across the Asia-Pacific region. ADB’s multifaceted approach addresses a wide range of challenges, from climate resilience to clean energy and sustainable transportation, ultimately fostering a more prosperous and resilient future for all.


    The European Bank for Reconstruction and Development (EBRD) was founded in the Cold War era to support the development of Central and Eastern Europe. Today, its mission continues to impact the present, with investments exceeding €180 billion in over 6,800 projects. While often mistaken for a retail bank, the EBRD operates in 38 economies across three continents, offering tailored financial services to businesses. These services encompass loans, equity investments, and guarantees aimed at promoting trade.


    EBRD finances landmark offshore wind farm in Poland: In a ground-breaking move, the EBRD joins forces with international and local commercial lenders to fund Poland’s inaugural offshore wind farm. This milestone project marks a significant leap forward in Poland’s energy sector transformation, emphasising the EBRD’s dedication to clean and renewable energy sources.


    EBRD finances upgrade of Lviv-Rava-Ruska road in Ukraine: Demonstrating flexibility and resource allocation, the EBRD reallocates €182 million from an existing loan to the State Agency for Restoration and Development of Infrastructure of Ukraine. This funding will be used to upgrade a section of the Lviv-Rava-Ruska road. The project’s impact extends beyond infrastructure enhancement, fostering domestic and Ukraine-EU transport links and bolstering accessibility.


    EBRD and Ukraine government to mobilise €600 million for energy security: In collaboration with the Ukrainian government, the EBRD has embarked on a monumental initiative to secure €600 million in new financing for the country’s electricity gas, and hydro firms. This historic agreement was formalised during the Ukraine Recovery Conference in London, underscoring the EBRD’s commitment to bolstering energy security.


    Through these initiatives and a comprehensive approach to development, the EBRD continues to be a driving force for positive change in Central and Eastern Europe, contributing to economic growth, sustainability, and enhanced living standards.



    GLOBAL CENTRAL BANKS PULL OUT ALL STOPS AS CORONAVIRUS PARALYZES ECONOMIES
    GLOBAL CENTRAL BANKS PULL OUT ALL STOPS AS CORONAVIRUS PARALYZES ECONOMIES,
    by Swati Pandey

    SYDNEY (Reuters) - The U.S. Federal Reserve and its global counterparts moved aggressively with sweeping emergency rate cuts and offers of cheap dollars to help combat the coronavirus pandemic that has jolted markets and paralyzed large parts of the world economy. The coordinated response from the Fed to the European Central Bank (ECB) and the Bank of Japan (BOJ) came amid a meltdown in financial markets as investor anxiety deepened over the difficulty of tackling a pathogen that has left thousands dead and put many countries on virtual lockdowns.

    The Fed moved first by cutting its key rate to near zero in a move reminiscent of the steps taken just over a decade ago in the wake of the financial crisis. The U.S. decision triggered emergency policy easing by central banks in New Zealand, Japan and South Korea, with Australia also joining with a liquidity injection in a coordinated move aimed at stabilizing confidence as the pandemic threatened a global recession.

    “The virus is having a profound effect on people across the United States and around the world,” Fed Chair Jerome Powell said in a news conference after cutting short-term rates to a target range of 0% to 0.25%, and announcing at least $700 billion in Treasuries and mortgage-backed securities purchases in coming weeks.
    Later, the Bank of Japan too eased policy in an emergency meeting, ramping up purchases of exchange-traded funds (ETFs) and other risky assets to combat the widening economic fallout from the coronavirus epidemic.
    Neighboring South Korea stepped in as well with a 50 basis point rate cut in a rare inter-meeting review on Monday. “I don’t think we have reached a limit on how deep we can cut interest rates,” BOJ Governor Haruhiko Kuroda said. “If necessary, we can deepen negative rates further,” he added. “We can continue to pump ample liquidity into the market.”

    MARKETS RATTLED

    The measures did little to calm market nerves though, as Asian shares and U.S. stock futures plummeted, underscoring the fears the health crisis might prove much more damaging to the global economy than initially anticipated. France and Spain joined Italy in imposing lockdowns on tens of millions of people, while the United States saw school closings, runs on grocery stores, shuttered restaurants and retailers, and ends to sports events.
    “Market reactions to each surprise monetary policy easing have been sell first and ask questions later,” said Selena Ling, head of treasury research and strategy at OCBC Bank in Singapore.

    “The more unprecedented measures by the Fed and other central banks, the more investors worry if (they) know something we don’t... fear remains the crux of the problem here as market players remain unconvinced that monetary policy easing and liquidity injections will solve an essentially healthcare crisis.” Five other central banks cut pricing on their swap lines to make it easier to provide dollars to their financial institutions, ramping up efforts to loosen gummed up funding markets and calm credit markets. They also agreed to offer three-month credit in U.S. dollars on a regular basis and at a rate cheaper than usual. The move was designed to bring down the price banks and companies pay to access U.S. dollars, which has surged in recent weeks as a coronavirus pandemic spooked investors.

    However, analysts say flooding banks with cash at near-zero rates won’t help fix dislocations in credit markets caused by fear of lending to businesses with mounting losses, which in turn fuels distrust among banks.
    Moreover, analysts at major banks and ratings agencies are predicting a marked downturn in the world economy, and some say a recession is unavoidable.

    “We believe that financial markets stress could ultimately be the proverbial ‘straw that breaks the camel’s back’, and hence, we continue to monitor these very closely,” Fitch Solutions said in a note on Monday, adding its forecasts were subject to “downside risks.” “While we expect to see more major central banks cut interest rates further in a bid to support growth...there are limits to how low they can go.” The People’s Bank of China (PBoC), which has rolled out powerful stimulus measures since the outbreak began in the country’s Hubei province late last year, was a bit of an outlier as it kept its rates steady, though analysts expected a cut later this week.

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