Equinix, DBS ‘ data center provider, responded to CNA’s questions by stating that it was aware of a” technical issue” at one of its data centers, but it has since been fixed. It further stated that it was speaking with the affected customers and looking into the event. The MonetaryContinue Reading
shabby picturesPakistan’s Khunjerab is a high-altitude desert that is both clean and cool. Some of the highest peaks in the world can be found in this rough landscape, which is surrounded by towering mountains, immaculate glaciers, and snowy meadows.
A very proper road that runs through it connects China to Gwadar slot on Pakistan’s south-west coast.
Since it was first used for trade and travel, the Silk Road has played a crucial role in Beijing’s Belt and Road Initiative ( BRI ) over the past ten years.
President Xi Jinping’s vision to rebuild the ancient way heralded the development of transport links across South Asia, in the process developing poorer nations and helping Beijing win friends abroad. It was described as” one of the most ambitious infrastructure projects ever conceived.”
The West has long been watchful of Beijing’s actions because it believes that these purchases will enable China to build a network of slots for its army to use in Africa, the South China Sea, and the Arabian Sea. China has refuted this.
More than 145 nations, representing nearly 75 % of the world’s population and more than half of its GDP, have joined the BRI as of today.
The China Pakistan Economic Corridor ( CPEC )-$ 60 billion(£ 49 billion ) is the largest project to date. Its initial funding was set aside for the construction of roads, railways, and pipelines through this isolated and difficult region of Pakistan.
In the end, it was intended to eliminate the need for extensive sea routes around South and South East Asia by connecting to oil and gas pipelines from northern Asia and the Middle East straight into eastern China.
China made a lot of perception by expanding this part of Pakistan. It provided a gate to Afghanistan and the rare earths that might be buried there, as well as the chance to secure the porous borders with its own restless Xinjiang region, and it could serve as counterweight to long-time rival India.
Although progress has been made, problem, difficulties, and other problems, such as economic and security concerns, have plagued CPEC, like so many other BRI tasks. The Gwadar interface, which was intended to serve as a premier service, is still deserted and shows no signs of arriving or departing cargo.
Ten years after Xi Jinping unveiled the Belt and Road Initiative, this is the next in a series of articles that examine Chinese investment worldwide.
A large portion of that has to do with Pakistan’s personal financial issues. It was plagued by higher inflation, reduced growth, and a weak dollar earlier this year and was on the verge of default. Authorities were struggling to pay for the goods required to build CPEC system while material workers were being laid off and companies were closing because businesses couldn’t afford raw materials or power.
In the end, a$ 3 billion bailout program was approved by the International Monetary Fund ( IMF ) in July. However, Pakistan also owes$ 100 billion in additional debt, with China owing one-third of it.
And Pakistan is not the only nation that is in this situation.
Since the BRI’s origination, China has grown to be the biggest bank and a key source of investment for many developing nations, and as this relationship develops, many South Asian neighbors of Pakistan are now at odds with one another.
According to Constantino Xavier, a brother in international policy and safety studies at the Centre for Social and Economic Progress in Delhi, Nepal, Sri Lanka, and Bangladesh saw the BRI after 2013 as an opportunity to expand options and draw much-needed exports and opportunities to modernize their markets.
Now, however, the grass appears less natural. In Sri Lanka, China has turned unsustainable infrastructure investments into long-term leases that threaten independence, and in Bangladesh, it is becoming clear that China’s promised grants are actually expensive loans.
In the end, Beijing is attempting to save its own institutions. According to Carmen Reinhart, a former World Bank chief economist and one of the survey’s artists, that is why it has entered the difficult enterprise of global loan financing.
China is secretive about the amount and terms of its loans and often pardons debt. When more than one global provider is involved, experts claim that makes it challenging to reorganize debt.
What can happen in situations like Sri Lanka, which experienced significant societal upheaval and social upheaval after running out of international resources, is that nations enter a period of trying to pay back attention, restricting the economic growth that may help them pay off the debt in the first place. Individuals start losing their jobs, inflation spikes, and essential goods like food and fuel become unaffordable when the money stops coming in.
China has extended payment dates and offered emergency money.
However, experts claim that this is untrue despite criticism that it is using” debt trap diplomacy ,” a term popularized by the Trump administration and in which debtor nations offer significant assets as collateral.
They continue by saying that because China’s banks are dangerously exposed to internally indebted real estate companies, these unusual money have no benefit for the country.
China frequently contributes to these nations’ financial woes, but its loans are undoubtedly not the only problem, according to Ana Hirogashi, an analyst at the study test Aid Data. She adds that transparency regarding the funding is a problem, but like in Sri Lanka, Beijing later enters the picture.
As part of an effort to rebuild its debts and open the door for the acceptance of the IMF’s$ 2.9 billion loan deal, Sri Lanka has reached agreements with bondholders China and India.
The next question is: Why has China allied itself with nations with like subpar financial foundations? For instance, analysts point out that rather than investing in Gwadar, China may include expanded Karachi slot if it really wanted to develop Pakistan.
” Opportunism and politicians are present in Chinese investments. Meia Nouwens, head of the China Programme at the International Institute for Strategic Studies ( IISS ), says that bilateral political ties with the recipient countries’ governments could be strengthened.
” China uses this as an example to support its own claim that it is the Global South’s head, supporting developing nations and being aware of and responsive to their wants.”
In comparison to commercial lenders, China’s talks are renowned for having fewer problems and finishing in less time. Additionally, multilateral organizations like the World Bank and International Monetary Fund ( IMF) take their time and frequently include environmental and social riders in their aid pledges.
According to Ms. Hirogashi,” many leaders in the Global South are dealing with poll cycles and need tasks to be finished quickly with little plan conditions.”
Analysts note that despite both successes and failures, some developing countries’ financial prospects, including those in South Asia, will continue to improve thanks to infrastructure that was otherwise not built.
” China’s BRI has accelerated South Asian growth and development, compel India and other nations to get better and quicker ways to deliver choices.” Beyond China and India, there are now several more players in the region, such as Japan or the European Union, making it an open area for geo-economic competition, according to Mr. Xavier.
For example, the G7 unveiled a strategy to increase infrastructure investment in low – and middle-income nations last month. The India-Middle East-European Economic Corridor ( IMEC ), which aims to establish a trade corridor between India and several Gulf nations as well as other Middle Eastern and European nations, was also announced this month in conjunction with the G20 summit. President Joe Biden stated that there would be more like passageways in the future, and the US is involved.
According to Mr. Xavier, China has” entrenched, native economic and political professional across South Asian places.”
However, as China’s economy slows down, another change in the international order might get imminent.
Countries in the region are then rebalancing towards India, Japan, the United States, European Union, and additional traditional companions as China shifts its development model towards domestic consumption and there is less money available to be deployed to South Asia. This is evident in Sri Lanka, where China hasn’t done much since the nation’s economic proxy, according to Mr. Xavier.
A” cash wall” of renminbi information was displayed this week at the department of one of the heavily indebted Chinese real estate developer Evergrande’s local creditors as depositors flocked to withdraw their funds in what may be the early stages of an ongoing bank run problems in China.
Since October 7, hundreds of people have gathered at the Bank of Cangzhou’s headquarters in Hebei province to withdraw their payments, according to images and videos posted on social media. & nbsp,
The mini-run occurred after online users circulated a message claiming that if Evergrande went bankrupt, lots of Chinese banks would have to write off their debts. Evergrande owes Cangzhou Bank about 3.4 billion renminbi( US$ 466 million ), according to the social media post. Asia Times was unable to independently verify the number in time for publication.
As of October 6, the Bank of Cangzhou reported that its excellent funding to Evergrande and its members amounted to just 340 million renminbi, or one-tenth of the amount claimed in the broadly shared social media post. It claimed that it had enough land and properties as collateral to pay off any costs related to Evergrande.
According to the statement,” the overall risk is manageable and won’t significantly affect the company’s operations, supervision, or asset quality.”
However, according to Chinese media reports, the company’s statement and” money wall” have so far been ineffective in calming down lenders. In China,” money rooms” are frequently observed at corporate events like the distribution of yearly bonuses.
However, concerns about accountability are growing. Authorities in Cangzhou claimed to have detained a number of individuals for allegedly disseminating speculations about the impending bankruptcies of the Bank.
As the Hong Kong High Court will hear a bankruptcy case brought by Evergrande’s offshore creditors on October 30th, earlier hopes that the company you avoid debt are waning. & nbsp,
The State Council stated in a recommendation on October 11 that it will assist industrial commercial banks and remote financial institutions in getting rid of bad assets and loans while also replenishing their money through various channels in order to allay concerns that the continuous home problems may endanger China’s financial stability.
According to a joint statement from the People’s Bank of China( PBoC ), the former China Banking and Insurance Regulatory Commission, and the financial management office of the local government in Suning, Cangzhou, consumers should make informed decisions and avoid being influenced by rumors and losing their interest income. & nbsp,
According to the statement, the Bank of Cangzhou had 245.6 billion yuan in total assets as of the end of September, a gross income of 1.21 billion, and the most recent tax payment of 600 million Yuans. It stated that the bank has a stable and healthy financial position. In addition, & nbsp,
According to the speech, China’s payment insurance scheme, which ensures that a depositor may be compensated up to 500, 000 yuan in the event that their bank files for bankruptcy, also provides good protection for the bank.
A Hunan-based author claims in an article that while all banks in China contribute to loan insurance, the country safeguards the security of people’s deposits through legislation. The nation’s record, which is the highest amount of funds at this time, is used to guarantee deposit insurance.
He advises people to deposit their money in state-owned businesses rather than exclusive banks if they still lack confidence in them. & nbsp,
The Bank of Cangzhou may fail due to stories more than Evergrande’s unpaid bills, which a Henan-based blogger who writes under the Ku Ge pen name contends is an unimportant matter. He points out that if all of the lenders abruptly withdrew their funds, perhaps a large institution like the Industrial and Commercial Bank of China do fail.
The decline of any Chinese estate developer may earn as bad resources in institutions, according to Chinese observer Shi Shan in a YouTube video that was posted on October 13. He asserted that while big banks currently have enough cash on hand, smaller ones might need to ask lenders to wait for payments. & nbsp,
Hui Ka-yuan, the president of Evergrande, was reportedly” subject to necessary procedures in accordance with the law due to suspicion of unlawful crimes” as of September 28 according to a registration to the Hong Kong stock exchange.
Hui was reportedly being watched by officers earlier, according to Bloomberg. Foreign commentators claimed that if Hui is punished, it will likely be because Evergrande’s wealth control system is unable to pay back its investors. & nbsp,
However, the situation appears to be much more complex. & nbsp,
Financial regulators were worried about Hui’s” professional” marriage from his family Ding Yumei, according to a report by The 21st Century Business Herald on September 28.
According to the review, Evergrande had paid its shareholders dividends totaling about 90 billion yuan over the previous several years, with the couple receiving the majority of it through their offshore companies with British Virgin Islands and Cayman Islands registrations. It stated that following the child’s divorce, Ding then has control over this money.
A corporate leadership expert was cited in the statement as saying,” Hui had said in a high-profile speech in 2021 that he could gain everything but would not permit his employees to” lie toned”( in the delivery of properties to owners ). However, he was really saying and doing different things.
According to reports, the pair got divorced next year. Ding had left Hong Kong in late July and was no longer listed as Hui’s family in Evergrande ‘ issuing from August of this year. She is in possession of a French card.
Beijing ordered Evergrande to create property delivery its major commercial priority when its debt crisis became visible in 2021. In order to pay back Evergrande’s debts, Hui was also compelled to sell his opulent sailboat, mansion, and aircraft. & nbsp,
However, the company also had net current responsibilities of 687.7 billion yuan at the end of next year, along with a total debt of 2.44 trillion. Falling house prices this year have more hurt it. & nbsp,
According to Chinese media reports, Evergrande also has 1.62 million empty rooms, which have an impact on more than 5 million individuals. & nbsp,
Study: As chairperson probed, Evergrande was seen as more likely to fail.
@ jeffpao3 Follow Jeff Pao on Twitter at & nbsp.
shabby PicturesThe first part of Kenya’s Chinese-built rail was inaugurated in 2017 with little fanfare, but two years later, construction on the tracks came to a halt in the middle of the nation, and the master plan to connect it to other landlocked nations in East Africa appears to have failed.
This indicates that the project is not currently bringing in as much money as was anticipated, leaving Kenya with servicing loans totaling about$ 4.7 billion($ 3.9 billion ), mostly borrowed from Chinese banks.
However, it is difficult to believe that Kenya’s Standard Gauge Railway ( SGR ) is not successful when passengers disembark from a crowded train of about 12 carriages during the final service of the day at the Syokimau railway terminus in Nairobi.
They have traveled nonstop from Mombasa, a port city that is 470 kilometers( 290 miles ) away on the Indian Ocean.
Pauline Echesa, a 53-year-old passenger, told me,” It’s great.” She claims that the four and a half hour trip gives her the opportunity to observe animals along the way as the rail passes through national parks.
A 30-year-old passenger claimed that although the seats weren’t particularly secure, the trip saved her money when compared to other ways to travel up from the coast.
The passenger side of the company is undoubtedly doing well and is totally booked, but it is unable to repay the loans on its own and was not intended to do so.
The consignment part of the company is responsible for carrying the pots that arrive at Mombasa slot inland. They were supposed to travel to the Democratic Republic of the Congo, Rwanda, and Uganda.
The issue is that they are only able to travel as far as Naivasha, a African village on the SGR that is 120 kilometers from Nairobi but still far from the Ugandan borders. The majority of the transport trains therefore depart empty for Mombasa, greatly depleting their earnings.
Kipchumba Murkomen, the director of the Kenyan Transport Cabinet, told the BBC that continuing the venture would be more fruitful for us. However, the financial aspect is really our problem.
During the approaching Belt and Road Summit in China, he claims, the government will look into financing options for the remaining rail section.
The massive Belt and Road Initiative ( BRI ), which China launched in 2013, has spread throughout the world and significantly altered Africa’s infrastructure landscape.
But as China cuts back on cash and African nations deal with rising debt that, in some cases, poses a threat to the stability of their economies, its future is now up for debate.
The Council on Foreign Relations, an American think-tank, contends that some BRI assets have involved ambiguous selling procedures and required the use of Chinese companies, which have led to inflated prices that have, in some cases, caused project cancellations and political reaction.
According to Nigeria’s former Deputy Central Bank Governor, Kingsley Moghalu, internal problems that have had an impact on the Chinese market have even resulted in significantly reduced cash.
According to him, funding levels across the continent have not exceeded$ 2 billion in recent years, down from between$ 10 billion and$ 20 billion a decade ago.
One of those who has suffered is Kenya’s SGR.
However, Mr. Murkomen asserts that Kenya has a variety of choices:” We have private sector people in China who have said they are willing to put their own resources in place as long as we can discuss how they’ll deduct their money.”
He explains that there might be a grace period during which the nation was first pay off the loans used to fund the finished rail sections.
Many people in the nation, who have already been suffering from tax hikes implemented by President William Ruto since he took office a year ago, may not appreciate an entrance that the government is looking for more money.
Kenyans worry that loan payments are putting a lot of strain on the nation’s market. According to government data from the end of June 2022, China was Kenya’s third-largest physical creditor, accounting for 19.4 % of the loan.
According to Kenyan economist Ken Gichinga, the nation’s debt profile is currently quite high. He explains that Kenya will need to pay back a$ 2 billion Eurobond in June.
Additionally, there is a perception that not all of the funds were used to construct the rail, according to Mr. Gichinga.
Both their own people and critics worldwide are concerned about the transparency of the agreements that nations like Kenya have made with China.
Loan terms are often made public, according to the assessment by the Council on Foreign Relations, and Chinese banks are not under any pressure to cover lending rates or share information” because China refused to join the Paris Club of big standard creditors.”
It comes to the conclusion that” greatly outweighed its benefits” were the challenges facing both the US and the recipient nations.
Kenya’s railway needs to go international in order to reap the advantages that were anticipated at its inception.
Mr. Gichinga contends that” Uganda actually needs to also be ashore.”
But that goal seems weak.
Two routes into landlocked nations from the coast were intended for the classic East Africa Transport Master Plan, which was first put forth by the East African Community about 20 years ago. The northern corridor from Kenya and the central corridor, from Tanzania, were the two routes. Finally, it was connected to DR Congo and South Sudan.
But, Uganda might choose to direct its firm toward Tanzania. Due to the electrification of the column, its rail project has cost significantly less to construct and offers higher speeds.
Former African President John Magufuli reneged on the agreement his predecessor had made with China to construct the railway and rather chose to obtain funding from Turkey and Portugal to fund the first phase of the project.
Additionally, it appears that Tanzania will link to Rwanda, Burundi, and DR Congo, with China joining the project later.
According to Mr. Moghalu, nations on the globe” should be individuals of their own future ,” just like Tanzania.
African nations need to mentally reposition themselves so they don’t feel like they were mistreated by their previous spouses, the West, and should instead be pleased to China.
Recently, American nations have been attempting to combat BRI, including US President Joe Biden’s Build Back Better World Initiative, which was established in 2021 in partnership with G7 economy. However, it is generally acknowledged that China still has more to offer in terms of long-term growth.
For the commuters between Nairobi and Mombasa, for investments in the future of the nation are unquestionably useful.
Ms. Echesa told the BBC,” Let’s make sacrifices to pay the debt and obtain more for like jobs.”
The Kenyan state will try to persuade China and its bankers that the SGR rail will be successful once it reaches the frontier and above.
More on the relationship between China and Africa:
BEIJING: In the second-largest economy in the world, China’s consumer prices dropped and factory gate prices decreased significantly faster than anticipated in September. Both indicators continued to show consistent deflationary pressures. According to data from the National Bureau of Statistics( NBS ) that was released on Friday( Oct 13 ),Continue Reading
SINGAPORE: For the second time this year and in line with market expectations, the Monetary Authority of Singapore ( MAS ) maintained its exchange rate-based monetary policy unchanged on Friday( Oct 13 ).
The Singapore central bank stated in its half-yearly monetary policy statement that it would” maintain the prevailing rate of appreciation” of its Singapore dollar nominal effective exchange rate ( S$ NEER ) policy band.
The length of the policy group and the stage at which it is focused remain unchanged.
All 15 experts surveyed by Reuters had predicted that MAS would delay changing its policy during this scheduled evaluation.
MAS predicted that Singapore’s economic growth would gradually increase over the course of 2024, but it foresaw a weaker-than-anticipated treatment given the uncertain state of the world economy.
Core prices, a crucial indicator of consumer value for MAS, has slowed and is anticipated to significantly decrease over the course of the following year.
” In light of this, it is determined that the current appreciating path of the S$ NEER policy band is sufficiently tight. To prevent imported inflation and reduce regional cost pressures, which will ensure medium-term price stability, a prolonged appreciation of the policy band is required, according to the statement.
MAS stated that it will keep a close eye on both domestic and international economic advances.
MAS manages monetary policy by allowing the local dollar to rise or fall against the currencies of its primary trading partners within an undisclosed band, known as the Singapore dollar nominal effective exchange rate ( S$ NEER ), in contrast to the majority of central banks that do so through the interest rate.
By altering the hill, midpoint, and length of the policy band, it modifies its policy.
Online program: a” backbone” for the underprivileged
12 October 2023 at 7:12 PUBLISHED
The 10, 000 ringgit digital wallet scheme’s proponents dismissed criticism of the policy by financial experts on Wednesday, claiming that the cash handout had decrease disparity and give the poor a much-needed financial lifeline.
The team, led by Jutipong Phummul, petitioned the government to proceed with the implementation of the digital budget program, which was promoted in parliament as a component of an economic policy to revitalize the economy.
Somkid Chukong, the lieutenant secretary-general for political affairs for the prime minister, approved the request.
The decision was made following the signing of an open letter by more than 120 academics, researchers, financial experts, and also former governors of the Bank of Thailand pleading with the Pheu Thai Party-led government to review the one-time handout scheme.
They feared that the large handout, which would cost 560 billion baht to cover 56 million people over the age of 16, could cause inflation, weaken fiscal discipline, and cause economic instability.
The critics, according to Mr. Jutipong’s group, are biased against the” pro-democracy” government and have no compassion for the underprivileged.
It stated that the government should think about filing a lawsuit against those who encouraged people to withdraw funds from specific banks in light of rumors that it might be able to get loans from those banks to finance the plan.
Yesterday, Mr. Somkid reassured the party that the government would carry out the plan. When asked if it faced opposition, he held back because it was the Pheu Thai Party’s idea.
When questioned about allegations that the National Anti-Corruption Commission( NACC) was monitoring the plan for possible legislation corruption, he responded that it does not violate election law.
When asked about the idea that the program may targeted vulnerable groups and low-income people, he said the release should be given to people over 16 regardless of their financial situation.
He claimed that it was challenging to distinguish between the wealthy and the poor, that those who did not want the money could decide not to use it, and that when the system was over, the funds may be given back to the government.
The Digital Wallet Steering committee will regard revising the program that may exclude rich people, according to Deputy Finance Minister Julapun Amornvivat on Tuesday.
The bad news is that these offenders will only be motivated to innovate as they already have by the allure of quick bargains. Scammers are already using new technologies, like artificial intelligence, to produce deepfakes that can be used to have convincing telephone or video conversations.
Fortunately, the government and economic institutions have taken action. In the midst of a wave of SMS hacking schemes, Singaporean businesses announced new steps in January 2022 to increase the security of online banking.
The measures include removing clickable links from SMS or email notifications sent to clients, establishing a South$ 100 or lower threshold for funds exchange transaction notifications, and mandating that new gentle tokens be activated on portable devices at least 12 hours in advance.
Whenever a request to transform these details is made, businesses may also notify the current mobile number or email that has been registered with the lender.
More safeguards included a cooling-off period prior to the implementation of important accounts changes, such as contact information, and more numerous scam education alerts.
Additionally, devoted and well-equipped customer service teams are needed to handle feedback on possible scams cases on a priority basis.
Banks must then, among other things, request additional verification in order to approach major changes to user accounts and other high-risk transactions discovered through fraud surveillance, set the default transaction limit for virtual funds transfers to S$ 5, 000 or lower, and offer an emergency self-service” kill switch” so customers can quickly suspend their accounts if they believe their bank accounts have been compromised.
Members of the public have also been warned by the Singapore Police Force not to download suspicious Android package kit( APK ) files from unauthorized or suspicious websites because doing so could result in malware being installed on their devices. Anti-virus software installation comments have also been made.
It is crucial to regain trust in the industry. In stark contrast to the planned actions by some classmates, Sunac sweetened the reform deal in June to win more bank help. One of the three options offered by Yuzhou Group may have a cut of about 70 % in August,Continue Reading
11 October 2023 at 12:01 PUBLISHED
AYUTTHAYA: To minimize accidents during the introduction of the northern storm surge, aquatic authorities have established a controlled traffic area in the Chao Phraya creek in Ayutthaya.
The Royal Irrigation Department started releasing fluids from the Chao Phraya Dam at 1,600 million cubic meters per second, according to Pheerathorn Naksuk, chairman of the Marine Office in Ayutthaya, on Wednesday, necessitating the control area.
As a result, the river’s businesses burst, flooding river communities with enormous amounts of water.
A controlled marine transportation territory had been established for the Chao Phraya River from Wat Phananchoeng Voraviharn in the Phra Nakhon Si Ayutthaya area to Ang Thong state, as well as the Pasak River, which runs from Wt.
Tugboats were only permitted to transport a maximum of three goods boats. Another motorized boat must be at the back, controlling the ships, when crossing a bridge.
Boats must not be pulled by tugboats that are heavier than permitted. All members of the tower staff and nbsp are required to wear life vests. & nbsp,
