Realized Japanese investment pledges tallied at P169.7 billion so far, DTI says

December 19, 2023 | 8:24 pm

THE Department of Trade and Industry (DTI) said on Tuesday that actual investments generated from the 34 Japanese letters of intent signed in February have amounted to P169.7 billion so far.

“Further, these investments indicate that about 9,700 jobs have been created for the country based on reports,” the department said in a statement.

President Ferdinand R. Marcos, Jr. visited Tokyo in February and secured 34 letters of intent and agreements amounting to P757.1 billion.

“These investment leads are expected to deliver benefits such as job creation, technology transfer, industry development, and export growth to the economy,” the DTI said.

Additionally, P14.5 billion worth of investment pledges were made at a recent business event organized by the DTI in Tokyo while Mr. Marcos was there over the weekend, according to initial estimates.

The newly signed agreements and pledge updates are expected to generate a total of 15,750 jobs.

The latest visit brings total investment commitments from Japanese investors to P771.6 billion since February.

“These investments are anticipated to create around 40,200 jobs, highlighting the steadfast efforts of the Philippine government to attract foreign investment,” the DTI said.

According to Trade Secretary Alfredo E. Pascual, the new investment pledges are in electronics, automotive parts and electric vehicles, business process management and software development, retail, infrastructure design, cement, light industry, and shipbuilding. — Justine Irish D. Tabile

WTO asks G20 to roll back trade restrictions

December 19, 2023 | 8:24 pm

WORLD Trade Organization (WTO) Director General Ngozi Okonjo-Iweala said G20 economies need to unwind recent and longstanding restrictions in the face of still-weak trade growth.

In its 30^th Trade Monitoring Report, WTO said that G20 economies introduced more trade-restrictive measures between mid-May and mid-October.

“During the review period, trade-facilitating measures were estimated at $318.8 billion (down from $691.9 billion in its report in July) and trade-restrictive ones at $246 billion (up from $88 billion),” WTO said in a statement.

The members of G20 are Argentina, Australia, Brazil, Canada, China, the European Union, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, the Russian Federation, Saudi Arabia, South Africa, Türkiye, the UK, and the US.

Newly introduced trade restrictions by G20 economies also exceeded the monthly average of 9.8 during the period, while longstanding G20 import restrictions in force showed no sign of being rolled back, the WTO said.

The WTO estimates that as of mid-October, $2.29 trillion worth of traded goods, equivalent to 11.8% of the G20 imports, were affected by restrictions implemented since 2009.

It added that there were still 75 export restrictions on food, feed and fertilizers in place globally.

“Export restrictions have become more prominent since 2020, with a series of measures introduced first in the context of coronavirus 2019 (COVID-19) and more recently of the war in Ukraine and the food security crisis,” WTO said.

The WTO said that COVID-19-related measures further decelerated during the review period as 82.9% of G20 COVID-19 trade restrictions had been repealed, leaving only 11 export restrictions in place with the impact on trade at $15.1 billion.

Asked to comment, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that restrictions have had a negative impact on Philippine exports, particularly of semiconductor products.

“This is because the US would like to increase its capacity on electronics and reduce reliance especially on China amid the trade war and geopolitical tensions,” Mr. Ricafort said.

The Philippine Statistics Authority (PSA) reported that electronics products posted the sharpest decline by value in October.

In October, electronics exports declined 28.9% year on year to $3.62 billion.

Mr. Ricafort said such restrictions were an offshoot of the US-China trade war, with economies possibly seeking to slow growth in an effort to bring inflation back under control.

“Some level of protectionism increased over the past five years especially since the Trump Administration to create more US jobs that had been lost to lower-cost countries,” he said.

“Reciprocal and similar protectionist inclinations were seen since then to protect some developed-country jobs and industries, as aggravated by the pandemic,” he added.

However, he said restrictions are likely to have tapered down due to major free trade agreements (FTAs).

“These protectionist tendencies remained overshadowed by the large FTAs, especially in the Regional Comprehensive Economic Partnership, which is the world’s largest FTA,” he added.

Aside from seeking more FTAs, Mr. Ricafort said that the government should also help exporters diversify their export markets.

“There is a need to further diversify export markets to further hedge and reduce dependence on traditional large export markets,” he said.

In October, the Philippines exported $6.36 billion, down 17.5% year on year. It imported $10.54 billion, down 4.4%. Some members of the G20 were the Philippines’ top export and import partners in October, according to the PSA.

The US was the top export destination, accounting for $1.02 billion or 16% of Philippine exports.

Rounding out the top five trading partners for the month were Japan ($902.65 million or 14.2%), China ($880.37 million or 13.8%), Hong Kong ($759.02 million or 11.9%) and South Korea ($317.38 million or 5%).

Meanwhile, the largest source of imported goods in October was China, accounting for $2.6 billion or 24.7% of the total.

Other top sources of imports were Indonesia ($917.53 million or 8.7%), Japan ($834.89 million or 7.9%), South Korea ($785.81 million or 7.5%), and the US ($711.77 million or 6.8%). — Justine Irish D. Tabile

Apparel named top item for Christmas gifting — study

December 19, 2023 | 8:23 pm

Malls-christmas decors — PHILIPPINE STAR/MIGUEL DE GUZMAN

MORE THAN 70% of respondents said they plan to buy apparel as Christmas gifts this year, according to a study conducted by market research and survey software firm Milieu Insight.

In a survey conducted between Nov. 28 and Dec. 1, Milieu found that 75% of 500 respondents in the Philippines cited apparel as their choice for gifting, while 49% cited toys and hobby products, while 43% said they plan to give groceries, food and beverages.

Singapore and Thai respondents also returned similar results, with apparel, groceries, food and beverages as their top choices for Christmas gifts.

“Christmas in the Philippines is not just a day; it’s a season that starts early. A staggering 9 out of 10 Filipinos are fully immersed in the holiday spirit, with Christmas decorations adorning malls as early as September,” Milieu said in a statement.

“This enthusiasm sets the tone for a festive atmosphere that lasts for months, making the Philippines a true Christmas wonderland,” it added.

Over 50% of the respondents from the Philippines said they plan to shop for gifts this season, against 46% of Thais and 31% of Singaporeans.

“The variation in preparedness highlights cultural differences in approaching the holiday season,” Milieu said.

Around 90% of Filipinos said that they personally celebrate Christmas as opposed to 47% and 51% of Thais and Singaporeans, respectively.

“82% of Filipinos are the most excited for Christmas as compared to Singaporeans (62%) and Thais (53%),” the research firm said.

Meanwhile, the study showed that 32% of Philippine respondents are planning to buy more gifts this year compared to last year, while 31% said they will be buying less. — Justine Irish D. Tabile

Well-milled rice averages P54.15/kg in early Dec.

December 19, 2023 | 8:22 pm

THE national average retail price for well-milled rice in early December was P54.15 per kilogram (kg), according to the Philippine Statistics Authority (PSA).

Rice prices increased 2.32% during the Dec. 1 to 5 period, which the PSA calls the first phase of December, compared with prices between Nov. 15 and 17.

The highest retail price was P57.75 per kg in Zamboanga Peninsula, while the lowest was in Ilocos Region, where rice retailed for P50.06 per kg.

The PSA reported that regular-milled rice averaged P48.84 per kg in the first phase of December, up 2.99% compared to the second phase of November.

The highest price for regular-milled rice was recorded in the Bangsamoro Autonomous Region in Muslim Mindanao or BARMM with an average of P52.66 per kg.

At the low end was the Western Visayas, where regular-milled rice averaged P43.79 per kg. — Adrian H. Halili

Labor department focused on raising job quality as unemployment eases

December 19, 2023 | 8:22 pm

THE Department of Labor and Employment (DoLE) on Tuesday said its efforts are currently focused on improving job quality, and pledged not to be complacent in the face of easing unemployment.

Preliminary results of the Philippine Statistics Authority’s Labor Force Survey for October show an 18-year low jobless rate of 4.2%.

“We are not complacent… The challenge to provide higher-quality jobs remains,” Labor Secretary Bienvenido E. Laguesma told reporters in a briefing.

The underemployment rate — a measure of job quality — was at 11.7% in October, up from 10.7% in September. A year earlier the underemployment rate was 14.2%.

Mr. Laguesma said enhancing job quality involves ensuring fair wages and job tenure. “When we say ‘quality job,’ it includes more remunerative compensation and long-lasting employment,” he said.

He added that by making compensation and tenure more competitive, fewer workers would be compelled to seek employment overseas, reducing the social cost to workers who have had to leave their families behind.

At the same briefing, Assistant Secretary Paul Vincent W. Añover said that the department is looking at working with the industry and education sectors to enhance job quality and training.

“The numbers are good, but we will continue to emphasize the government-industry-education linkage and partnership to ensure the quality of training,” he said.

Mr. Laguesma said that updated training schemes for the workforce will help in mitigating the displacement resulting from emerging technologies such as Artificial Intelligence (AI).

“When there are changes in technological processes, there is a corresponding work displacement,” he said. “There are ongoing training initiatives so that those affected by the inevitable entry of AI can be equipped with new skills.”

Mr. Añover noted that President Ferdinand R. Marcos, Jr.’s recent overseas visits resulted in pledges for 305,000 “quality jobs.” He added that the IT-business process management (IT-BPM) industry continues to grow with 150,000 current job vacancies.

Apart from IT-BPM, the construction, health and wellness, and tourism industries are expected to provide additional employment opportunities, he said.

Mr. Laguesma noted that out of 16 regions, 14 have announced regional wage hikes. Eleven boards have also ordered adjustments in the monthly pay of domestic workers, he added. — Jomel R. Paguian

Vatican approves blessings for same-sex couples

December 19, 2023 | 6:22 pm

Vatican-Saint Peter’s Basilica -silhouette — SAINT PETER’S BASILICA is silhouetted in this photo taken at the Vatican, Dec. 16, 2023. — REUTERS

VATICAN CITY — The Vatican said on Monday in a landmark ruling approved by Pope Francis that Roman Catholic priests can administer blessings to same-sex couples as long as they are not part of regular Church rituals or liturgies.

A document from the Vatican’s doctrinal office, which effectively reversed a declaration the same body had issued in 2021, said such blessings would not legitimize irregular situations but be a sign that God welcomes all.

It should in no way be confused with the sacrament of heterosexual marriage, it added.

It said priests should decide on a case-by-case basis and “should not prevent or prohibit the Church’s closeness to people in every situation in which they might seek God’s help through a simple blessing.”

The pope hinted that an official change was in the works in October in response to questions put forward by five conservative cardinals at the start of a synod of bishops at the Vatican.

While the response in October was more nuanced, Monday’s eight-page document, whose subtitle is “On the Pastoral Meaning of Blessings,” spelled out specific situations. An 11-point section was titled “Blessings of Couples in Irregular Situations and of Couples of the Same sex.”

The Church teaches that same-sex attraction is not sinful but homosexual acts are. Since his election in 2013, Pope Francis has tried to make the more than 1.35-billion-member Church more welcoming to LGBT people without changing moral doctrine.

Father James Martin, a prominent American Jesuit priest who ministers to the LGBT community, called the document “a major step forward in the church’s ministry” to them.

In a post on X, formerly known as Twitter, Mr. Martin said the document “recognizes the deep desire in many Catholic same-sex couples for God’s presence in their loving relationships,” adding that “along with many priests, I will now be delighted to bless my friends in same-sex unions.”

Francis DeBernardo, executive director of New Ways Ministry, a group that advocates for LGBT rights in the Church, said the document’s importance “cannot be overstated.” He praised the document’s wording that people seeking blessings should not be subjected to “an exhaustive moral analysis.”

Martin Hardwick and Andrew Gibb of Manchester, England, who are married and have been together 41 years, said the move was long overdue.

“You know if Jesus said love was love, then love is love, isn’t it?” Mr. Hardwick said.

“It’s about time,” Mr. Gibb added.

‘AN INVITATION TO SCHISM’
Monday’s ruling is bound to be opposed by conservatives, who already criticised the pope when he made his initial comments on the subject in October.

Ulrich L. Lehner, a professor of theology at the University of Notre Dame in the United States, said the new guidance from the doctrinal office “invites misunderstanding and will sow confusion.”

Voicing concern that some bishops would use it as a pretext to do what is explicitly forbidden, the professor added, “it is, and I hate to say it, an invitation to schism.”

The document, whose Latin title is Fiducia Supplicans (Supplicating Trust), said the form of the blessing “should not be fixed ritually by ecclesial authorities to avoid producing confusion with the blessing proper to the Sacrament of Marriage.”

It said it can be applied to those who “do not claim a legitimation of their own status, but who beg that all that is true, good, and humanly valid in their lives and their relationships be enriched, healed, and elevated by the presence of the Holy Spirit.”

“Ultimately, a blessing offers people a means to increase their trust in God,” it said, adding that it “must be nurtured, not hindered.”

The document said the blessing should not be linked to or timed with a civil marriage ceremony and be performed with none of the “clothing, gestures, or words that are proper to a wedding.”

Places for such blessings, it said, might be “in other contexts, such as a visit to a shrine, a meeting with a priest, a prayer recited in a group, or during a pilgrimage.”

The ruling was signed by Cardinal Victor Manuel Fernandez, the head of the head of the Vatican’s Dicastery for the Doctrine of the Faith and approved by the pope in a private audience with Cardinal Fernandez and another doctrinal office official on Monday. — Reuters

Iceland volcano erupts near town after weeks of intense quake activity

December 19, 2023 | 6:22 pm

OSLO — A volcano erupted late on Monday in southwest Iceland, spewing lava and smoke across a wide area after weeks of intense earthquake activity, the country’s Meteorological Office said, threatening a nearby town.

Fearing a significant eruption on the Reykjanes peninsula, authorities last month evacuated the nearly 4,000 inhabitants of the fishing town of Grindavik and closed the nearby Blue Lagoon geothermal spa.

“Warning: Eruption has started north of Grindavik by Hagafell,” the Met Office said on its website, noting that the eruption began only a few kilometers from the town and cracks in the ground stretched toward the village located about 40 km (25 miles) south-west of Iceland’s capital city Reykjavik.

Reykjavik’s nearby Keflavik International Airport remained open, albeit with numerous delays listed for both arrivals and departures.

Images and livestreams of the eruption shown by Reuters and others showed molten rock spewing spectacularly from fissures in the ground, their bright-yellow and orange colors set in sharp contrast against the dark night sky.

“Seismic activity together with measurements from GPS devices indicate that the magma is moving to the southwest and the eruption may continue in the direction of Grindavik,” the Met Office said.

The crack in the earth’s surface was around 3.5 km long and had grown rapidly, it added.

Some 100 to 200 cubic meters (3,530 to 7,060 cubic feet) of lava emerged per second, several times more than in previous eruptions in the area, the Met Office said.

Local police said they had raised their alert level as a result of the outbreak and the country’s civil defense warned the public not to approach the area while emergency personnel assessed the situation.

Located between the Eurasian and the North American tectonic plates, among the largest on the planet, Iceland is a seismic and volcanic hot spot as the two plates move in opposite directions.

But eruptions are still hard to predict. In mid-November, Grindavik inhabitants were whisked from their homes in the middle of the night as the ground shook, roads cracked and buildings suffered structural damage.

Seismologists believed at the time an eruption was imminent, but the geological activity later eased.

The Reykjanes peninsula in recent years saw several eruptions in unpopulated areas.

In March 2021, lava fountains erupted from a fissure in the ground measuring between 500 to 750 meters (1,640 to 2,460 feet) long in the region’s Fagradalsfjall volcanic system.

Volcanic activity in the area continued for six months that year, prompting thousands of Icelanders and tourists to visit the scene. In August 2022, a three-week eruption happened in the same area, followed by another in July of this year. — Reuters

US-led Red Sea patrol force to respond to Houthi rebels’ attacks

December 19, 2023 | 6:21 pm

GAZA/MANAMA/JERUSALEM — Several countries have agreed to jointly carry out patrols in the southern Red Sea and Gulf of Aden to try to safeguard commercial shipping against attacks by Yemen’s Houthi rebels, who say they are supporting Palestinians under siege by Israel in the Gaza Strip.

US Defense Secretary Lloyd Austin, on a visit to Bahrain, identified several countries taking part in an international force. It was unclear whether those countries are willing to do what US warships have done in recent days — shoot down Houthi missiles and drones and rush to the aid of commercial ships under attack.

“This is an international challenge that demands collective action. Therefore today I am announcing the establishment of Operation Prosperity Guardian, an important new multinational security initiative,” Mr. Austin said in a statement on Tuesday.

It identified participating nations led by the United States as including among others Bahrain, Britain, Canada, France, Italy, Netherlands, Norway, Seychelles and Spain.

The Iran-backed Houthis have waded into the Israel-Hamas conflict by attacking vessels in vital shipping lanes and even firing drones and missiles at Israel, more than 1,000 miles from their seat of power in the Yemeni capital of Sanaa.

Houthis attacked two commercial shipping vessels in the southern Red Sea on Monday, the US Central Command (CENTCOM) said in a statement. The chemical/oil tanker motor vessel Swan Atlantic was attacked by a drone and an anti-ship ballistic missile, it said. At about the same time in a separate incident, the bulk cargo ship MSC Clara reported an explosion in the water near its location, CENTCOM said.

There were no injuries reported by either vessel.

Houthi spokesperson Yahya Sarea on Monday identified the same vessels as being attacked and said drones were used because the crews failed to respond to calls from the group.

The Houthis have threatened to target all ships heading to Israel, regardless of their nationality, and warned international shipping companies against dealing with Israeli ports.

Mohammed al-Bukhaiti, a member of the Houthi politburo, told Al Jazeera on Monday his group would be able to confront any US-led coalition that could deploy to the Red Sea.

US Secretary of State Antony Blinken, in a call with Saudi Arabian Foreign Minister Prince Faisal bin Farhan on Monday, condemned the Houthi’s attacks on commercial vessels, the State Department said.

Meanwhile, Israel’s assault continued in Gaza where it has vowed to annihilate Hamas, the Islamist movement that like the Houthis is aligned with Iran.

A World Health Organization (WHO) official said on Monday that the Kamal Adwan hospital in northern Gaza that Israeli troops raided last week is no longer functioning and patients including babies have been evacuated.

“We cannot afford to lose any hospitals,” said Richard Peeperkorn, WHO representative for Gaza.

Peeperkorn also said about 4,000 displaced people taking refuge in the grounds of the Nasser medical complex in the southern Gaza city of Khan Younis were at risk as Israel pursues military operations there.

Early on Tuesday residents in areas of Khan Younis reported fierce gun battles between Palestinian fighters and Israeli forces. Israeli tanks and planes bombed areas near the city centre, residents said.

The Gaza health ministry said on Monday that 19,453 Palestinians had been killed and 52,286 wounded in the Israeli assault on the Hamas-ruled enclave in more than two months of warfare.

Israeli Prime Minister Benjamin Netanyahu has vowed to achieve total victory over Hamas, whose fighters killed 1,200 people and took 240 hostages in a surprise Oct. 7 raid into Israel, according to Israeli tallies.

Israel’s intensifying retaliation against Hamas has increased concern among governments and international organizations over the Gaza civilian death toll, hunger and homelessness.

Father-of-four Raed, 45, who has moved his family twice, said Gazans were exhausted trying to stay alive.

“Money has lost its value, most of the items are not available. We rose from our beds after surviving a night of bombardment to tour the streets searching for food, we got tired,” he said in the Rafah area. “We want peace, truce, ceasefire, whatever they call it, but please stop the war.”

While in Israel on Monday, US defense secretary Mr. Austin said Washington’s support for Israel was “unshakable” but he urged its ally to do more to protect civilians.

HAMAS RELEASES HOSTAGE VIDEO
Three elderly Israeli hostages, identified by Israel as 79-year-old Chaim Peri, 80-year-old Yoram Metzger and 84-year-old Amiram Cooper, were seen in a video released by Hamas on Monday.

The three men, all with beards, are seen sitting next to each other in the video, which Hamas posted to Telegram.

Sitting in the middle, Mr. Peri speaks to the camera, saying he and other elderly hostages who have health issues are “suffering greatly in very harsh conditions.”

He pleaded for Israel to secure their unconditional release.

Israel and Hamas agreed to a week-long ceasefire at the end of November, mediated by Qatar and Egypt, that included the release of more than 100 hostages in Gaza in exchange for 240 Palestinian women and teenagers from Israeli jails.

The heads of the US CIA and Israel’s Mossad and Qatar’s prime minister were expected to meet and discuss the possible release of more hostages, US officials said on Monday. — Reuters

Greece to give migrants 3-year permits to tackle labor shortage in key sectors

December 19, 2023 | 6:21 pm

ATHENS — Greek lawmakers prepared to vote late on Monday on a bill allowing migrants to obtain a three-year residency and work permit, a step to tackle labor shortages in key sectors of an economy recovering from a debt crisis.

Greece has been a gateway to the European Union for thousands of migrants and asylum seekers from the Middle East, Asia and Eastern Europe. Many of them have ended up working illegally, in sectors such as construction, farming and tourism.

After emerging from three international bailouts in 2018, Greece, like other European peers, was also hit by an exodus of workers from the labor force during the 2020-21 COVID pandemic, many of whom have never returned.

The conservative government, which was re-elected in June and has toughened Greece’s policy to curb migration by hiring more border guards and increasing patrols, estimates that roughly 300,000 undocumented migrants now live in the country.

“We don’t want invisible people,” State Minister Akis Skertsos told ANT1 television on Monday, adding that the permit would help attract workers for jobs that unemployed Greeks have appeared unwilling to do and safeguard public order.

According to the conservative government’s bill, migrants and asylum-seekers who have been living in the country for at least three years, have no criminal record and have been offered a job, can apply by December 2024 for the new residency permit.

Prime Minister Kyriakos Mitsotakis party controls 158 seats in the 300-seat parliament and therefore the bill, which also creates the post of national coordinator on migrant returns, was expected to be approved on Monday evening.

An estimated 30,000 people — many of them from Albania, Georgia, Pakistan and Philippines — are likely to apply for the new type of permit, migration ministry officials have said. — Reuters

Iran petrol stations hit by cyberattack, oil minister says

December 19, 2023 | 6:18 pm

oil-gas-pump — PHILIPPINE STAR/KRIZ JOHN ROSALES

DUBAI — Iran’s Oil Minister Javad Owji on Monday confirmed that a nationwide disruption to petrol stations was caused by a cyberattack.

A hacking group that Iran accuses of having links to Israel claimed it carried out the attack which disrupted services at petrol stations across the country on Monday, Iranian state TV and Israeli local media reported.

Owji had earlier told Iranian state TV that services had been disrupted at about 70% of Iran’s petrol stations and that outside interference was a possible cause. He later said 1,650 petrol stations were operational. The ministry supervises 3,800 petrol stations.

Iran’s state TV news said a group called Gonjeshke Darande or “Predatory Sparrow” had claimed it was behind the disruption. Israeli local media outlets also reported the claim.

“This cyberattack was carried out in a controlled manner to avoid potential damage to emergency services,” the group said in a statement on Telegram.

The digital strike was “in response to the aggression of the Islamic Republic and its proxies in the region”, it added.

Asked about the cyber attacks, Israeli government spokesperson Tal Heinrich told a press briefing on Monday: “We have nothing to say about Iran’s claims.”

Iran’s civil defense agency, which is responsible for cybersecurity, said it was still considering all possible causes for the disruptions as it investigated.

Iranian state media added that the hacker group had in the past claimed cyberattacks against Iranian petrol stations, rail networks and steel factories.

Last year, Predatory Sparrow posted video showing an explosion inside one of those steel factories which it said was caused by a hack.

In an interview with Reuters five days after the Oct. 7 attack in Israel, a representative of the group said they targeted Iran for its support of Hamas, adding they were preparing for future attacks and “keeping some ‘buttons’ on hold.”

They added “in the event that we detect any kind offensive action in any realm from any proxy against our country we will attack and cause permanent and unimaginable damage to any target we see fit via Air, Sea, Land and Cyber,” the group said at the time. “When we will start, the gates of hell will open.”

A major cyberattack in Iran in 2021 also disrupted the sale of fuel, causing long queues at stations across the country where pump prices are heavily subsidized. Iran had said Israel and the United States were the likely culprits behind those attacks.

Monday’s disruption began early and was especially acute in Tehran, forcing many petrol stations to operate manually, Iranian media reported.

Reza Navar, a spokesperson for Iran’s petrol stations association told the semi-official Fars news agency that there was no fuel supply shortage but called on drivers to not go to petrol stations.

“A software problem with the fuel system has been confirmed in some stations across the country and experts are currently fixing the issue,” Navar said.

The oil ministry earlier told state TV that the disruption was not linked to plans to increase the price of fuel, a policy that caused widespread protests in 2019 and led to violent repression.

State TV said petrol stations were seeking to provide fuel manually adding that over 50% of the stations were providing services and trials to get more back online were underway.

Israel’s Cyber Unit on Monday said Iran and Hezbollah were behind an attempted cyberattack on a hospital in northern Israel about three weeks ago. It said the attack was thwarted but hackers were able to retrieve “some of the sensitive information stored in the hospital’s information systems”. — Reuters

IMF governors approve 50% increase in lending resources with no shareholding changes

December 19, 2023 | 5:22 pm

IMF — A participant stands near a logo of the International Monetary Fund at the annual meeting in Nusa Dua, Bali, Indonesia, Oct. 12, 2018. — REUTERS/JOHANNES P. CHRISTO/FILE PHOTO

WASHINGTON — The International Monetary Fund’s governing body has approved a 50% increase in quota resources to be contributed by member countries in proportion to their current IMF shareholding, bringing total quotas to $960 billion, the IMF said on Monday.

Governors representing nearly 93% of the total voting power of the fund voted for the 50% increase the IMF’s executive board recommended last month, exceeding the 85% required. The voting deadline ended on Friday.

The quota increase, which follows years of extensive discussions among members, will become effective by Nov. 15, 2024 once member countries agree to their respective quota changes, which requires legislative approval in many cases.

The decision largely follows a U.S.-backed plan that would enhance IMF lending resources but delay any IMF shareholding increases for China, India, Brazil and other fast-growing emerging market economies.

But the governors asked the IMF to develop possible approaches for a new quota formula by June 2025, in line with the executive board’s recommendation.

The 50% increase in quota funding — equivalent to about $320 billion at current exchange rates — will not increase the fund’s overall lending firepower of about $1 trillion, but would shift the composition to about 70% more permanent resources while reducing reliance on borrowed resources, the IMF said.

IMF Managing Director Kristalina Georgieva called the decision “a strong vote of confidence for the work of the Fund. It will reduce the reliance of the Fund on borrowed resources, restore the primary role of quotas in our lending capacity and reinforce the role of the IMF at the center of the Global Financial Safety Net,” she said.

Georgieva said the move would strengthen the IMF’s capacity to help “safeguard global financial stability and respond to members’ potential needs in an uncertain and shock-prone world.”

Currently, the IMF relies on bilateral borrowing arrangements and pledges to a crisis lending fund called the New Arrangements to Borrow.

The executive board will discuss proposals for reducing the crisis lending fund in early 2024. Zuzana Murgasova, deputy director of the IMF’s finance department, told Reuters that work on the guidance for a further quota realignment would begin very soon, but declined to provide further details since the discussions were confidential.

“What is really important is that the membership has recognized that this is an urgent priority, and the work will start very soon,” she said.

Murgasova said the governors’ votes were also confidential, and declined to say which country or countries did not approve the quota increase. — Reuters

US court approves order for Binance to pay $2.7 billion to CFTC

December 19, 2023 | 5:20 pm

WASHINGTON — A United States court entered an order against crypto exchange Binance and its former CEO, Changpeng Zhao, approving billions of dollars in fines for money laundering following a case brought by the U.S. Commodity Futures Trading Commission, the agency said on Monday.

Zhao will pay $150 million and Binance will pay $2.7 billion to the CFTC as a result, the agency said in a statement.

The U.S. District Court for the Northern District of Illinois approved the previously announced settlement and entered a consent order of permanent injunction, civil monetary penalty, and equitable relief against Zhao and Binance, the CFTC said in its statement. The settlement was reached in late November.

The court imposed a $150 million civil monetary penalty personally against Zhao, and required Binance to disgorge $1.35 billion of ill-gotten transaction fees and pay a $1.35 billion penalty to the CFTC, according to the agency.

In November, Zhao stepped down and pleaded guilty to breaking U.S. anti-money laundering laws as part of a settlement resolving a years-long probe into the world’s largest crypto exchange.

At the time, Binance said the resolutions acknowledged the company’s responsibility “for historical, criminal compliance violations, and allow our company to turn the page.”

Binance broke U.S. anti-money laundering and sanctions laws and failed to report more than 100,000 suspicious transactions with organizations the U.S. described as terrorist groups, authorities have said.

The exchange also failed to report transactions with websites devoted to selling child sexual abuse material and was one of the largest recipients of ransomware proceeds, they added. — Reuters