Bank of Japan member calls for ‘swift action’ to ease coronavirus shock

A pedestrian wearing a face mask walks in front of the Bank of Japan headquarters in Tokyo. (AFP)
Short Url
Updated 22 October 2020

Bank of Japan member calls for ‘swift action’ to ease coronavirus shock

  • Japan’s economy suffered its biggest postwar slump in the second quarter

TOKYO: Bank of Japan board member Makoto Sakurai said on Wednesday the central bank must take “swift and appropriate” action if the coronavirus shock delays the country’s economic recovery.

If the pandemic takes longer than expected to contain, more companies could be pushed under, saddling commercial banks with bad loans and threaten Japan’s financial system, he said.

“At present, financial institutions have sufficient capital so there is no big concern over Japan’s banking system. But we need to be prepared to take swift action, with a close eye both on the economy and the banking system,” Sakurai said in a speech to business leaders in Fukui prefecture.

The remarks came ahead of the BOJ’s rate review next week, when the central bank is likely to cut its growth and price forecasts, but leave monetary settings unchanged.

They also underscore a growing concern in the BOJ over the additional pain COVID-19 could inflict on commercial banks, many of which are suffering from years of ultra-low interest rates.

“If Japan’s economic recovery is delayed, that could hurt growth and the banking system. As such, it’s critical for us to act swiftly and appropriately as needed in coordination with the government and other central banks,” Sakurai said.

Japan’s economy suffered its biggest postwar slump in the second quarter. Analysts expect any rebound to be modest as uncertainty over the outlook weigh on consumption and capital spending. Sakurai said while Japan’s economy was likely to gradually recover, it remained in a severe situation.

Inflation may also not accelerate much for some time, as companies cope with a tight labor market with automation rather than wage hikes, he added.


Saudi visa processing centers reopen across the Kingdom

Updated 3 min 59 sec ago

Saudi visa processing centers reopen across the Kingdom

  • Nearly 75% of Visa Application Centers have restarted operations since the disruption caused by COVID-19

RIYADH: Ahead of international travel restarting in Saudi Arabia next year, centers for processing work and travel visa applications have begun to re-open for business across the Kingdom, after the disruption caused by the impact of the coronavirus (COVID-19) pandemic.

“We have seen a gradual rise in the number of our Visa Application Centers (VACs) re-opening globally, including Saudi Arabia, which has been very reassuring for us. Out of 28 governments that we serve in the Kingdom, we have resumed operations for 20 countries as of November 2020,” Sumanth Kapoor, regional head for Saudi Arabia at VFS Global, told Arab News.

VFS Global is the world’s largest visa outsourcing and technology services specialist for governments and diplomatic missions worldwide. Headquartered in Switzerland, the company has 3,430 VACs in 144 countries across five continents, and as of September 2020 it has processed more than 225 million applications.

Kapoor said that while VFS Global’s business has begun to return to normal, it was important to note that the official re-opening of VACs is dependent on approval from both local authorities and the embassy in question.

Furthermore, being able to apply for a visa does not necessarily mean that an applicant will automatically be able to travel to their desired country. “We suggest that all travellers check official government advisories of the destination country and airlines’ requirements, so they are aware of the current status concerning international travel,” he said.

Ahead of all centers reopening, the company earlier this summer launched a new service called Visa At Your Doorstep (VAYD), where a VFS Global executive travels to an applicant’s home to process the visa application documentation and carry out the biometrics.

Kapoor said the VAYD service was an example of how their business has adjusted to the challenges presented by COVID-19. “Health and safety before and during travel will play a much more critical role, and we are observing a gradually changing customer requirement trend towards more personalized, digital and at-your-doorstep services,” he said.

“Although we have reopened around 75 percent of the VACs across the country, the circumstances are new to everybody involved — customers, client governments, local authorities and ourselves,” he added.

On which countries are proving most popular with Saudis for visas, Kapoor said it was difficult to identify specific trends: “Europe has always been a favorite travel destination for Saudis. However, because of the unprecedented events this year, trends within the Kingdom are not as conclusive as previous years.”

While Saudi authorities are planning to reopen international borders at the end of the year, Kapoor said that freedom to travel would still be constrained: “Travel plans also depend on the quarantine rules and flight availability of the destination country.”

VFS Global’s offices overseas have begun accepting applications from those wanting visas to travel to the Kingdom. 

“We have started accepting visa applications for all available categories, with the exception of Tourist Visa. Our centers are accepting applications for biometric enrolment which is a mandatory step for all work visa applicants,” Kapoor said.

Despite disruption to services as a result of COVID-19, Kapoor said its passport processing services had not been significantly affected. “Throughout the recent difficulties, there has not been significant impact on our passport and consular services that we offer to Indian and Philippine citizens in the Kingdom,” he said.

“Our centers offering passport and consular services have remained operational even during the pandemic with all safety and preventative measures in place.”

In addition, the company also conducted special tours around the Kingdom to collect Indian passport renewal applications in various cities and towns, due to the high demand from Indian nationals. These took place in Bisha, Jizan, Madinah and Najran in the western region, as well as in Sakaka, Arar, Hafr Al Batin, Khafji and Wadi Dawasir.


VFS GLOBAL FAQS

To outline the changes implemented as a result of COVID-19, VFS Global has compiled the following frequently asked questions:

1. Do I need to bring a COVID 19-related medical certificate when I visit the Visa Application Center? 

VFS Global does not seek any COVID-19-related medical certificates. Medical certificates may be required for visa applications for some countries as per the official checklist.

2. If the visa I received for a country before lockdown has expired, do I need to apply again? 

Yes, if your visa has expired for any country, or is due to expire soon, you may need to re-apply for a new visa for that particular country. If you are already in a foreign country and your visa is due to expire, go to the relevant visa or immigration authorities of that country for assistance.

3. Can I apply for my visa at my home or office to maintain physical distancing precautions? 

Yes. Choose our Visa At Your Doorstep service for a convenient visa application process from the safety and comfort of your home or office. Available for select destination countries.

4. Do I need to follow health, safety and physical distancing norms at the Visa Application Centers? 

Yes. For your safety and that of our employees, it is important to adhere to the health and safety guidelines issued by local health authorities such as temperature checks, physical distancing and other safety norms.

5. Can I ask for my passport to be delivered to my address?

Yes. You can choose our optional Courier Service to get your passport delivered to your doorstep for any new visa applications submitted at re-opened centers.