Tunisia sees IMF deal within three months

Tunisia sees IMF deal within three months
Tunisia is discussing phasing out subsidies and cutting the public wage bill. (AFP)
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Updated 06 May 2021

Tunisia sees IMF deal within three months

Tunisia sees IMF deal within three months
  • Tunisia wants to cut its wage bill to 15 percent of GDP from 17.4 percent
  • The size of any IMF loan is still being discussed

RIYADH: Tunisia expects to agree on a new program with the International Monetary Fund (IMF) within three months, Finance Minister Ali Kooli said, as talks continue on reforms for the country’s troubled economy, Bloomberg reported.

Discussions are continuing on the size of any loan the Washington-based lender may provide, Kooli told Bloomberg.

IMF officials have responded positively to reforms proposed by Tunisia, describing them as “realistic” and “applicable,” he said, without giving specifics on the steps envisaged.

Tunisia is discussing phasing out subsidies and trimming the public wage bill, according to a document obtained by Bloomberg.

Tunisia is considering the gradual removal of subsidies on food, electricity and natural gas by 2024, replacing them with direct cash transfers for the neediest, according to the confidential document written by the government and central bank. This document includes recommendations from lawmakers, the largest trade union, business leaders and civil society.

The country is also mulling a voluntary redundancy campaign that would help cut the government’s wage bill to 15 percent of gross domestic product from 17.4 percent in 2020.

The proposals include completely abolishing LPG subsidies in the second half of 2021, establishing a debt management agency and imposing a new real estate tax, Asharq reported.


OPEC+ has a role in containing inflation, says Saudi oil minister

OPEC+ has a role in containing inflation, says Saudi oil minister
Updated 31 min 16 sec ago

OPEC+ has a role in containing inflation, says Saudi oil minister

OPEC+ has a role in containing inflation, says Saudi oil minister
  • The minister also warned that the increase in oil prices was not clear and could be due to “real supply and demand” or due to “expectations and trajectories that are excessively optimistic”

RIYADH: Saudi Arabia’s Energy Minister, Prince Abdul Aziz bin Salman said the OPEC+ alliance will play a role in “taming and containing” inflationary pressures, just hours after Brent crude surged back above $75 a barrel, Bloomberg reported.
“We also have a role in taming and containing inflation, by making sure that this market doesn’t get out of hand,” he said Wednesday at a conference organized by Bank of America Corp., according to a recording of his remarks obtained by Bloomberg News.
The minister also warned that the increase in oil prices was not clear and could be due to “real supply and demand” or due to “expectations and trajectories that are excessively optimistic,” he said.
He said the group should remain cautious because the oil market wasn’t out of the “doldrums” created by the coronavirus pandemic. He also warned traders against conflating caution with inaction, Bloomberg said.
“We have to be cautious. But caution doesn’t mean we don’t have to do something,” he told the conference. “It means we have to ensure that we don’t make


Bitcoin Fund breaks new ground in Middle East with debut on Nasdaq Dubai

Bitcoin Fund breaks new ground in Middle East with debut on Nasdaq Dubai
Updated 43 min 28 sec ago

Bitcoin Fund breaks new ground in Middle East with debut on Nasdaq Dubai

Bitcoin Fund breaks new ground in Middle East with debut on Nasdaq Dubai
  • The fund has roughly $1.5 billion in assets under management and plans to double that next year

DUBAI: The Bitcoin Fund debuted on the Nasdaq Dubai on Wednesday, becoming the Middle East’s first listed cryptocurrency fund.
The fund, which was listed by Canadian digital asset management firm 3iQ on the Toronto Stock Exchange last year, has roughly $1.5 billion in assets under management and plans to double that next year.
“With the listing of the Bitcoin Fund, it’s going to give people access in the region to this fund on the Dubai exchange in the hours that the Dubai exchange trades at,” Frederick Pye, the chief executive officer of 3iQ, told Reuters.
“If the volumes are significant, we’ll be looking to raise capital to increase the size of the Bitcoin Fund here in Dubai and we will continue to issue shares based on the demand that comes from the region,” Pye said in an interview.
The listing will help satisfy demand for investment diversification in the region, as well as environmental, social and governance (ESG) needs, such as for pension funds and family offices, Pye said.
Dalma Capital, a Dubai-based alternative investment firm, was lead arranger for the Nasdaq Dubai listing. Corporate finance adviser 01 Capital and investment firm Razlin Capital, both based in London, advised on the listing and Pinsent Masons was legal counsel for the listing process.
“Today’s secondary listing of existing units from Canada was met with very strong demand, which has validated the need for an additional offering to satisfy the demand from regional investors,” said Zachary Cefaratti, CEO of Dalma Capital, declining to say when that could be.
Pye acknowledged that China’s recent crackdown on mining cryptocurrencies has hit digital currency prices, but he said the timing of that move would help those who bought into the Dubai listing.
“We’re very excited because when we hit an all-time high, our investors and our clients and our friends will have doubled their money,” Pye added.


Backing grows for new IMF COVID and climate fund

Backing grows for new IMF COVID and climate fund
Updated 51 min 44 sec ago

Backing grows for new IMF COVID and climate fund

Backing grows for new IMF COVID and climate fund
  • The COVID crisis is expected to leave 47 of the 82 vulnerable countries with gross debt already above levels deemed sustainable.

PARIS: Plans for a new IMF “Resilience and Sustainability” fund that would expand its support to dozens more vulnerable countries gained key international backing on Thursday ahead of crucial meetings.
IMF chief Kristalina Georgieva this month proposed the new trust to allow rich countries to channel some of their new IMF reserves to poor and middle-income counterparts ravaged by COVID or climate change.
“This is something we certainly support” said Lars Jensen, a senior economist on the United Nations Development Programme (UNDP) and the author of a new report on how the IMF’s new funding should be directed.
The UNDP estimates the IMF’s Poverty Reduction and Growth Trust (PRGT), which is also expected to play a key role in a voluntary redistribution of new ‘Special Drawing Rights’ (SDRs) money, is only open to 55 of the world’s 82 most debt-vulnerable developing economies.
The Group of Seven (G7) wealthy nations alone will receive $283 billion of the overall $650 billion SDR allocation. All “high-income” countries will get $438 billion, whereas 75 of the poorest countries will get $62 billion among them.
The COVID crisis is expected to leave 47 of the 82 vulnerable countries with gross debt already above levels deemed sustainable.
Additionally, nine of the 10 most climate-change vulnerable countries are also highly debt-vulnerable developing economies.
“As a possible development objective of an SDR channelling to vulnerable countries, it would be natural to target climate due to its global implications,” Jensen said, adding that the fund could even bulked up by leveraging it in borrowing markets.
G7 leaders have already signaled their backing to redistribute $100 billion of the new SDR money. Georgieva has said that China has expressed interest in participating and that she expected other major emerging economies to do the same.
The IMF’s executive board will meet on Friday on the next steps and finance officials from the Group of 20 major economies will discuss the SDR reallocation issue when they meet in Venice in July.
Scott Morris of the Center for Global Development said funding for the proposed new IMF trust was already earmarked in the US Treasury’s recent budget request to Congress, underscoring Washington’s support.
The US Treasury is working closely with the IMF to explore options and design mechanisms for channelling SDRs to vulnerable countries, one US Treasury official told Reuters on condition of anonymity because of the sensitivity of the matter.
“The IMF’s proposed Resilience and Sustainability Trust is one of the options under discussion,” the official said, without elaborating on other options.
Jensen said he hoped the new fund would also give debt-strained countries who have so far resisted restructuring their debt for fear of losing access to borrowing markets, a safety net to take that step.


Arab share of India’s oil imports hits 25-month low

Arab share of India’s oil imports hits 25-month low
Updated 24 June 2021

Arab share of India’s oil imports hits 25-month low

Arab share of India’s oil imports hits 25-month low
  • To replace Middle Eastern oil, refiners hiked imports from Latin America, the United States and the Mediterranean

NEW DELHI: The share of Middle Eastern crude in India’s oil imports fell to a 25-month low in May, tanker data provided by trade sources showed, as refiners tapped alternatives in response to the government’s call to diversify supplies.
India, the world’s third biggest oil importer, in March directed refiners to diversify crude sources after the Organization of the Petroleum Exporting Countries (OPEC) and its allies, led by top exporter Saudi Arabia, ignored New Delhi’s call to ease supply curbs.
Asia’s third-largest economy imported about 4.2 million barrels per day (bpd) of oil in May, just below the previous month but about 31.5 percent higher than a year earlier, the data showed.
The Middle East’s share dropped to 52.7 percent, the lowest since April 2019 and down from 67.9 percent in April, the data showed.
Imports from Saudi Arabia, India’s second-largest supplier after Iraq, slipped by about a quarter from a year earlier, while supplies from the United Arab Emirates, which dropped to No. 7 position from No. 3 in April, fell by 39 percent, the data showed.
This comes after Indian state refiners nominated to lift less oil from Saudi Arabia in May.
Lower purchases of oil from the Middle East dragged OPEC’s share of Indian oil imports to a record low.
To replace Middle Eastern oil, refiners hiked imports from Latin America, the United States and the Mediterranean.
Indian refiners bought higher volumes of gasoline-rich US oil in March, expecting a recovery in local gasoline demand to continue in the months ahead, said Ehsan Ul-Haq, lead analyst for Oil Research and Forecasts at Refinitiv.
Strong demand for light crude saw Nigeria improving its ranking by two notches to become the No. 3 supplier to India in May.
Private Indian refiners Reliance Industries and Nayara Energy, however, boosted purchases of Canadian heavy oil to a record 244,000 bpd, equivalent to about 6 percent of India’s overall imports.
“Indians bought Kazakhstan’s CPC blend and Canadian oil due to attractive discounts in comparison to dated Brent and WTI, respectively,” Ul-Haq said.
Tanker arrival data showed higher imports in contrast to preliminary government data, as cyclones along India’s coast line last month delayed discharge of cargoes.


Dubai jet ski tour named world’s top activity by Tripadvisor

Dubai jet ski tour named world’s top activity by Tripadvisor
Updated 24 June 2021

Dubai jet ski tour named world’s top activity by Tripadvisor

Dubai jet ski tour named world’s top activity by Tripadvisor

DUBAI: A jet ski tour of Dubai has emerged as the world’s top tourism experience according to Tripadvisor.
The company announced its annual list of Travelers’ Choice “Best of the Best Things To Do Awards,” which is based on data from January to April this year.
The jet ski tour which gives travelers panoramic views of Dubai’s iconic buildings and beaches beat competition from a long list of rival activities from around the globe, from white water rafting in New Zealand to paragliding in Turkey.
Tripadvisor noted this year’s list was largely dominated by outdoor and water-based activities, as travelers became more excited about going outside after months of lockdown.
The UAE has been investing heavily in activity-based tourism with Dubai seeing greater competition from other emirates including Abu Dhabi and Ras Al Khaimah which recently revealed 20 new outdoor attractions.