Latest news with #economicreform
LBCI
17 hours ago
- Business
- LBCI
From isolation to investment: Syria's comeback highlights Lebanon's stalled crisis
Report by Joe Farchakh, English adaptation by Yasmine Jaroudi As U.S. sanctions on Syria are lifted, the war-torn country is witnessing a wave of Arab and international investment, including a $7 billion agreement signed with a consortium of leading energy companies. The rapid influx of capital is viewed as a significant endorsement of Syria's newly formed government and its efforts to re-enter the regional economic landscape after more than a decade of isolation. According to LBCI sources, the pace of development projects in Syria is driven by multiple factors. Among them is President Ahmed al-Sharaa's determination, since taking office, to act swiftly to gain both domestic and international trust and to assert his legitimacy as the country's leader despite early skepticism. Government ministers are also reportedly competing internally to launch successful initiatives, while the state has adopted a thoroughly liberal economic policy aimed at reducing the public sector's dominance and encouraging both Syrian and foreign private investment. This surge in foreign investment in Syria comes in stark contrast to Lebanon, which continues to suffer from a lack of investor confidence. Is Lebanon's problem purely political, or does it stem from the absence of a coherent national economic strategy? The current situation draws comparisons to 1992 when the late Prime Minister Rafic Hariri took office during a similarly dire economic period. Back then, Lebanon was dealing with a deep recession, high inflation, soaring unemployment, and a collapsing currency—conditions that echo today's crisis. Hariri responded with a clear vision for economic recovery, launching the ambitious "HORIZON 2000" reconstruction plan. His initiative focused on revitalizing Beirut as the heart of the country, rebuilding its downtown district, and rehabilitating essential infrastructure, including the Beirut port and international airport. The renewed trust in Lebanon that followed helped Hariri attract significant investment from Lebanese, Arab, and international sources in tourism, real estate, finance, and industry. Beirut reemerged as a hub for global conferences and business forums, drawing investors and political leaders alike. Throughout his tenure, Hariri maintained and strengthened Lebanon's Arab and international ties, leveraging those relationships to rebuild the nation's economy. Today, as Lebanon faces one of its worst crises, can the country find its way back by reviving the Hariri model of leadership and economic diplomacy?
Zawya
2 days ago
- Business
- Zawya
International Monetary Fund (IMF) Staff Conclude Article IV Discussions and Reach Staff-Level Agreement on the Third Review of the Extended Credit Facility for Ethiopia
IMF staff and the Ethiopian authorities have reached staff-level agreement on economic policies to conclude the third review of the four-year US$3.4 billion Extended Credit Facility arrangement. Once approved by the IMF Executive Board, Ethiopia will gain access to about US$260 million in financing. Ethiopia's macroeconomic performance has exceeded program expectations, with better-than-forecast results for inflation, export growth, and international reserves. Maintaining reform momentum remains essential for consolidating recent gains, correcting macroeconomics imbalances, restoring external debt sustainability, laying the foundations for high, private sector-led growth, and ensuring the success of Ethiopia's homegrown reform agenda. A staff team from the International Monetary Fund (IMF) led by Mr. Alvaro Piris, visited Addis Ababa from April 3 to 17, 2025, to discuss the 2025 Article IV consultation and the third review under the Extended Credit Facility (ECF). Discussions continued at the Spring Meetings in Washington DC, April 21-28, and subsequently. The ECF arrangement was approved by the IMF Executive Board on July 29, 2024, for a total amount of US$3.4 billion (SDR 2.556 billion). Subject to approval by the IMF Executive Board, the third review will make available about US$260 million (SDR191.7 million), bringing total IMF financial support under the ECF arrangement so far to about US$1,849 million (SDR1,406.4 million). Today, Mr Piris issued the following statement: 'The IMF staff team and the Ethiopian authorities have reached staff-level agreement on the third review of Ethiopia's economic program under the ECF arrangement. The agreement is subject to the approval of IMF management and the Executive Board in the coming weeks. A memorandum of understanding with official creditors is expected to be agreed ahead of the IMF Board's consideration of the third review. 'The authorities' policy actions in the first year of the program have yielded strong results. The transition to a flexible exchange rate regime has proceeded with little disruption. Measures to modernize monetary policy, mobilize domestic revenues, enhance social safety nets, strengthen state-owned enterprises, and anchor financial stability continue to show encouraging results. Macroeconomic indicators have performed better than expected, with substantially better outcomes than forecast for inflation, goods exports, and international reserves. 'Recent policy action should help deepen the FX market and tackle remaining distortions. While real exchange misalignment has been corrected and FX availability has improved from a year ago, the spread between the official and parallel market widened again in early 2025 and high fees and commissions persist. Actions that are being rolled out to enhance transparency, reduce costs, ease restrictions on current account transactions, and strengthen prudential regulation will help to improve the functioning of the FX market. 'Maintaining reform momentum will be key to consolidating gains and securing sustainable high growth. Continued tight monetary and financial conditions will be important for managing inflation and exchange rate expectations. Further revenue mobilization is needed to provide sustainable financing for critical development spending. Reforms to improve the business environment, ensure fair taxation practices, encourage foreign direct investment, and facilitate open dialogue with business will be important to secure private sector investment. Efforts to end the remaining elements of financial repression and develop the capital market will help to mobilize savings and support the efficient allocation of capital. 'The staff team is grateful to the authorities for the excellent policy discussions and their strong commitment to the success of the IMF-supported economic program. The team met with Minister of Finance Ahmed Shide, Governor of the National Bank of Ethiopia Mamo Mihretu, State Minister of Finance Eyob Tekalign, and other senior officials. Staff also had productive discussions with representatives of banks and businesses that are operating in a range of sectors and representatives of civil society.' Distributed by APO Group on behalf of International Monetary Fund (IMF).
News24
2 days ago
- Business
- News24
SA shares enjoy best May since 2013
• For more financial news, go to the News24 Business front page. South Africa's benchmark stock index is heading for its best month in almost a year, with a helping hand from China's most valuable company. The FTSE/JSE Africa All Share Index is up more than 7% in dollar terms in May, on track for its biggest monthly gain since June last year and its best May performance since 2013. It has outperformed emerging-market peers as well as the S&P 500 and the Stoxx Europe 600. The largest contributor to the rally has been tech investor Naspers, which soared after China's Tencent in which it owns a stake, reported a faster-than-anticipated 13% rise in sales. Naspers, which accounts for more than 12% of the index, contributed one fifth of the monthly gain in index points, according to data compiled by Bloomberg. That's almost three times as much as any of the next three stocks, which include two platinum miners and Prosus - which holds Naspers' stake in Tencent. Stars align Whether the rally continues will depend on the South African coalition government's commitment to push through economic reforms, metal prices and the 'sell America' trade that is driving investment to developing nations, said Peter Takaendesa, head of equities at Mergence Investment Managers. 'If a few stars align such as continued fund flows toward emerging markets, and structural reforms in South Africa pick up some pace at the same time with a continued broader recovery in global commodity prices, then our market could continue to push higher,' Takaendesa said. Naspers has climbed more than 5% this month on investor optimism that Tencent will weather the challenging economic outlook in the coming months. The WeChat operator's sales rose to 180.02 billion yuan (R450 billion) in the March quarter, as it benefited from the Chinese tech comeback triggered by DeepSeek. Platinum producers Sibanye Stillwater, Northam Platinum and Impala Platinum, were also among the top performers as the metal rose to a two-year high. Domestic-facing sectors such as retailers and banks, however, underperformed as political uncertainty damped consumer confidence and the outlook for the economy soured, Takaendesa said. South Africa's central bank resumed its easing cycle on Thursday to offer support to the stuttering economy as inflation remains benign. The monetary policy committee cut the benchmark interest rate by 25 basis points to 7.25%, the lowest in more than two years, while downgrading its forecasts for economic growth. The cut will provide support for some sectors such as retailers, Unum Capital analyst Lester Davids said. The All Share Index declined 0.4% in Johannesburg around 15:00 local time.
Free Malaysia Today
2 days ago
- Business
- Free Malaysia Today
Japan to give US$1.1bil to Bangladesh in budget support, says Dhaka
Bangladesh's interim leader, Nobel Peace laureate Muhammad Yunus, met with Japanese Prime Minister Shigeru Ishiba today. (EPA Images pic) DHAKA : Japan will provide US$1.063 billion in support to Bangladesh for budget assistance, railway upgrades and education, Dhaka said today, as interim head Muhammad Yunus visits Tokyo to strengthen ties between the two countries. 'The package includes US$418 million as a development policy loan to Bangladesh to help with economic reforms and climate resilience,' Yunus' press office said in a statement. Another US$641 million will be used to upgrade a railway line, while Japan will also provide US$4.2 million in grants for scholarships for Bangladeshi students. Japan Prime Minister Shigeru Ishiba met with Nobel Peace laureate Yunus today, who took over as interim head of the South Asian country last August, after deadly student-led protests forced then prime minister Sheikh Hasina to flee to India.
LBCI
3 days ago
- Business
- LBCI
Lebanon to hold first official negotiation meeting with IMF delegation on Friday
The Lebanese government is set to hold its first formal negotiation session with the International Monetary Fund (IMF) delegation on Friday as part of renewed efforts to secure support for a comprehensive economic and financial reform program. According to a statement issued by the Finance Ministry's media office, the meeting will take place at the Ministry's headquarters in central Beirut from 2:30 p.m. to 4:30 p.m. The session marks the first official engagement between the Lebanese government and the IMF negotiating team since the Spring Meetings in Washington, following two weeks of technical talks held at the Finance Ministry. Finance Minister Yassine Jaber will lead the Lebanese delegation and include Economy and Trade Minister Amer Bisat, Banque du Liban (BDL) governor Karim Souaid, Director General of Finance Georges Maarawi, and a team of financial experts from the Finance Ministry, along with advisors from the Presidency and the Premiership involved in financial and economic matters. Ernesto Riga, chief of the IMF mission to Lebanon, will head the IMF delegation. The talks are expected to focus on reviving stalled negotiations for a recovery program aimed at stabilizing Lebanon's economy and restoring international confidence as the country faces mounting financial and institutional challenges.
