G20 finance chiefs back tax deal

G20 finance chiefs back tax deal
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Updated 14 October 2021

G20 finance chiefs back tax deal

G20 finance chiefs back tax deal
  • The G20 finance leaders also pledged to work to address shortages of tools to fight the COVID-19 pandemic in low- and middle-income countries in coming months

Finance leaders from the G20 major economies on Wednesday endorsed a global deal to revamp corporate taxation and pledged to sustain fiscal support for their economies while keeping a close eye on inflation.


The G20 finance ministers and central bank governors also said in a communique issued after a meeting in Washington that the International Monetary Fund should establish a new trust fund to channel a $650 billion issuance of IMF monetary reserves to a broader range of vulnerable countries.


The finance leaders noted in their statement that economic recovery "remains highly divergent across and within countries" and is vulnerable to new variants of COVID-19 and an uneven pace of vaccinations.


"We will continue to sustain the recovery, avoiding any premature withdrawal of support measures, while preserving financial stability and long-term fiscal sustainability, and safeguarding against downside risks and negative spillovers," the G20 finance leaders said in the statement.

Given rising inflation pressures driven by supply chain bottlenecks and shortages as economies struggle to normalize, the leaders said that central banks are "monitoring current price dynamics closely."


"They will act as needed to meet their mandates, including price stability, while looking through inflation pressures where they are transitory and remaining committed to clear communication of policy stances," the G20 communique said.


Bank of Italy Governor Ignazio Visco told a news conference that G20 finance leaders still view elevated inflation in many advanced countries as caused by transitory factors that will fade, such as supply bottlenecks, semiconductor shortages, shipping delays and weather problems.

"But again, these may take months before fading away, so we have to be prepared and communicating very well, how we see the issues. And this is why we are discussing, debating it in the central bank community and in the ECB," Visco said.


The G20 finance leaders also pledged to work to address shortages of tools to fight the COVID-19 pandemic in low- and middle-income countries in coming months, including vaccines, therapeutics and diagnostics.


The G20 finance leaders are meeting in Washington on the sidelines of the IMF and World Bank annual meetings, which come just days after 136 countries agreed to adopt a 15 percent minimum corporate tax and partially reallocate taxing rights for large profitable multinational companies to countries where they sell products and services.


The G20 leaders endorsed the OECD tax agreement and called for swift development of so-called "model rules" to guide countries' implementation of the deal and "ensure that the new rules will come into effect at a global level in 2023."

The G20 also agreed to support an IMF proposal to create a new "Resilience and Sustainability Trust" to allow part of the $650 billion in Special Drawing Rights currency reserves allocated to IMF member countries to be channeled to aid low-income countries, "vulnerable" middle-income countries and other small developing states.


"The new RST should preserve the reserve asset characteristics of the SDRs channeled through the Trust," the finance leaders said, adding that they were open to considering options to channel SDRs to multilateral development banks.


"We call for additional IMF members to consider signing voluntary SDR trading arrangements to enhance market capacity," they said.


Ryanair not sure it will hit 12.5% 2030 sustainable fuel target

Ryanair not sure it will hit 12.5% 2030 sustainable fuel target
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Updated 15 sec ago

Ryanair not sure it will hit 12.5% 2030 sustainable fuel target

Ryanair not sure it will hit 12.5% 2030 sustainable fuel target
  • O'Leary said he was concerned that increasing use of sustainable aviation fuels could have an upward impact on food prices

Ryanair is not sure it will reach its "very ambitious target" of powering 12.5 percent of its flights with sustainable aviation fuels by 2030, Group Chief Executive Michael O'Leary told CNBC television on Thursday.


But he said Ryanair, Europe's largest low-cost airline, was confident of reaching at least 10 percent and called for the European Union to set a similar target.


"The European Union has set a target of 5 percent of sustainable aviation fuel by 2030," O'Leary told the television station. "We think we can do better than that – I think we'll get to 10 percent."


"Whether we can get to 12.5 percent, I'm not sure, but I know if we don't invest in the research and that technology now, we certainly won't get there," O'Leary said, referring to a target Ryanair set in April.


O'Leary said he was concerned that increasing use of sustainable aviation fuels could have an upward impact on food prices.


FII is now a US-registered international organization: CEO

FII is now a US-registered international organization: CEO
Updated 16 min 38 sec ago

FII is now a US-registered international organization: CEO

FII is now a US-registered international organization: CEO

The head of the Future Investment Initiative Institute (FII) has said that the nonprofit foundation is now an international organization which is registered in the United States.

Speaking in a press conference in Riyadh today, Richard Attias added there are plans to build offices in Asia soon.

The chief executive officer pointed out that to build credibility, the organization must have sponsors. While they are a part of the organization now, he remarked that it was not easy to attract the likes of HSBC and Zoom.

The FII's chief operating officer Rakan Tarabzoni also said the foundation is now independent from the PIF and is focusing on promoting thinking and investments in startups among other areas.


Egypt's non-oil exports rose to $2.56 billion in September

Egypt's non-oil exports rose to $2.56 billion in September
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Updated 33 min 40 sec ago

Egypt's non-oil exports rose to $2.56 billion in September

Egypt's non-oil exports rose to $2.56 billion in September
  • This reflects the efforts made by the government to support the production and export sectors during the pandemic

Egypt's non-oil exports saw a significant annual increase during September, recording a 16 percent rise as it reached $2.56 billion compared to $2.12 billion in September 2020.

Nevin Gamea, the Egyptian Minister of Trade and Industry, said the country's imports witnessed a noticeable decline of 7 percent during the month of September, reaching $4.9 billion, compared to $5.29 billion in the same month of last year. 

This contributed to a 24 percent decrease in the trade balance deficit as it stood at $2.3 billion last month, compared to $3.8 billion during September the year prior. 

Gamea explained the positive developments achieved during September come as a continuation of the expanding Egyptian merchandise exports since the beginning of this year — growing by 25 percent during the first nine months of 2021 compared to the same period last year. 

This reflects the efforts made by the government to support the production and export sectors during the pandemic, which contributed to the preservation of the export markets.

She pointed out that Egyptian exports to the European Union increased to $739 million in September, compared to $463 million during the same period last year.

Exports to the United States experienced a 52 percent rise to reach $205 million, compared to $135 million during the same period last year. Exports to African countries — excluding Arab countries — rose by 31 percent as well.

Gamea noted that exports of the printing, packaging, paper, literary and artistic works sector and the engineering and electronic goods sector had the highest growth rates at 76 percent and 34 percent respectively when compared to the same period in 2020.

The markets that received the highest levels of Egyptian exports in September included the US, Saudi Arabia and Italy while imports to Egypt were largely from China, the US and Germany.


Kuwait has begun increasing oil production: KUNA

Kuwait has begun increasing oil production: KUNA
Updated 39 min 31 sec ago

Kuwait has begun increasing oil production: KUNA

Kuwait has begun increasing oil production: KUNA

 Kuwait has begun to increase its crude production in accordance with an agreement reached by the Organisation of Petroleum Exporting Countries and its allies, a group known as OPEC+, Oil Minister Mohammad al-Fares said on Thursday.


The minister, cited by the state news agency KUNA, said Kuwait's plans to increase output includes production from the shared zone with Saudi Arabia.

Separately the foreign minister added that the Arab League supports holding elections in Libya on time on December 24 and that all foreign forces should leave the country as stipulated by UN resolutions.


Egypt aims to boost renewable energies to over 42% by 2035: Electricity minister

Egypt aims to boost renewable energies to over 42% by 2035: Electricity minister
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Updated 54 min 5 sec ago

Egypt aims to boost renewable energies to over 42% by 2035: Electricity minister

Egypt aims to boost renewable energies to over 42% by 2035: Electricity minister
  • The minister indicated that Egypt is the largest holder of electrical capacities in the MENA region

Egypt will aim to increase the share of renewable energies to over 42 percent by 2035, after the country reached 2022’s target for boosting renewables to 20 percent early this year. 

The minister of electricity and renewable energy, Mohamed Shaker, noted that Egypt has allocated 7,650 square kilometres of unused lands to new and renewable energy projects, during a meeting with CEO of Lekela Power, Chris Antonopoulos. 

The minister indicated that Egypt is the largest holder of electrical capacities in the MENA region and has the capacity to produce up to 90 gigawatts of wind and solar capacity, citing Wind Atlas. 

The meeting was held to support and enhance cooperation between Egypt’s electricity sector and the company, which boasts high expertise in the field of wind energy power plants.