05052016Thu
Last update: Thu, 05 May 2016 04am

Banking & Finance

Business & Finance - Banking & Finance

IMF announces $1.5bn loan for Sri Lanka COLOMBO: The IMF has agreed a $1.5 billion loan for Sri Lanka in support of economic reforms aimed at reversing a two-decade decline in tax revenue and reviving growth, it said Friday.The International Monetary Fund's chief for Sri Lanka, Todd Schneider, said a staff-level agreement was reached to release $1.5 billion over a three-year period in support of the island's reform agenda."This agreement will be subject to completion of prior actions and approval by the IMF's Executive Board, which is expected to consider Sri Lanka's request in early June," he said in a statement.The island has already announced an increase in value added tax (VAT) from 11 to 15 percent from Monday. It has also said it will scale down tax exemptions and promised to simplify revenue collection.The IMF said the Sri Lankan government will seek to raise its tax-to-GDP ratio to 15 percent by 2020 from the current level ...

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Royal Bank of Scotland suffers more losses LONDON: Britain's state-rescued Royal Bank of Scotland on Friday said net losses more than doubled in the first quarter owing to an exceptional payment back to the government.Losses after tax in the first three months of the year stood at £968 million ($1.4 billion, 1.2 billion euros), which compared with a net loss of £459 million in the first quarter of 2015, RBS said in an earnings statement.Pre-tax profits came in at £421 million, up ...

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Fed awards $25.53bn reverse repos NEW YORK: The Federal Reserve on Thursday awarded $25.53 billion of one-day, fixed-rate reverse repurchase agreements to 23 bidders at an interest rate of 0.25 percent, the New York Fed said on its website. On Wednesday, the Fed allotted $31.43 billion in one-day reverse repos to 25 bidders, including Wall Street dealers, money market mutual funds and mortgage finance agencies, also at an interest rate of 0.25 percent. The reverse repurchase agreement program is seen ...

Business & Finance - Banking & Finance

Bank of Italy says draft law could cut credit recovery process to 7-8 months ROME: The Bank of Italy has calculated that a draft law allowing creditors to recover bad debts without involving the court system could drastically reduce the length of time the process requires, a source familiar with the matter said. Italian banks are groaning under 360 billion euros ($407.5 billion) in bad loans, which take years to shift partly due to a slow and inefficient justice system. Prime Minister Matteo Renzi's cabinet is due to meet ...

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Egyptian central bank keeps key interest rates unchanged CAIRO: Egypt's central bank kept its key interest rates unchanged on Thursday in its first decision since it raised rates by 150 basis points last month. The bank's Monetary Policy Committee (MPC) kept the overnight deposit rate at 10.75 percent and the overnight lending rate at 11.75 percent, it said in a statement. Egypt has been struggling to restore economic growth since a mass uprising in 2011 against veteran leader Hosni Mubarak ushered in a ...

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China's central bank considers lower Shanghai mortgage loan targets for banks BEIJING: China's central bank is considering lowering commercial banks' annual loan targets for Shanghai mortgage lending to fit with now-tumbling demand after the city imposed measures to cool its over-heated housing market, three sources told Reuters. The People's Bank of China's (PBOC) Shanghai branch has sent banks a notice querying the amount of mortgage loans granted after the municipal government rolled out cooling measures one month ago, the people knowledgeable about it said on Thursday.The ...

Business & Finance - Banking & Finance

Malaysia's central bank fines troubled state fund 1MDB KUALA LUMPUR: Malaysia's Central Bank said on Wednesday that it has fined troubled state fund 1Malaysia Development Berhad (1MDB) for failing to comply with bank rules. It did not specify the amount that 1MDB had to pay. Bank Negara Malaysia said 1MDB had to repatriate funds remitted abroad after the central bank revoked three permissions it had granted for the fund transfers. The statement said 1MDB failed to submit evidence to justify its inability to ...