The UAE Government has announced a $20 billion bond program to fund a number of its financial commitments. The bond is an unsecured fixed rate paper yielding 4% per annum with a five-year maturity. The first tranche of $10 billion of the issue was entirely subscribed by the UAE central bank. Many think that this step gives a smooth breeze on the economic development of the country.
In a statement UAE administration said “This issuance will provide Dubai Government with the necessary liquidity to substitute the liquidity that has dried up globally in the last 12 months and accordingly meet all upcoming financial obligations. This program will secure the necessary funding for Dubai to meet its financial obligations and continue its development program.”
Japan’s Finance Minister Shoichi Nakagawa said Tuesday he would resign. The declaration comes a day after he denied being drunk at a G7 (Group of Seven) meeting in Rome where he appeared incoherent and indistinct his speech.
Nakagawa denied that he was drunk when he addressed the Japanese press on Saturday. He instead blamed his awkward and at times unfathomable performance on an overdose of cold drug. In spite of his refutations, those who have witnesses footage of the press conference, repetitive all day on Japanese TV, agree he had the glassy eyes and covered with sweat complexion of a man who had take pleasure in a few glasses of Chianti too many courtesy of his Italian hosts. The 55 years old Nakagawa said reporters in Tokyo.
“It is true that I didn’t conduct myself properly, and I feel I must set the record straight,”
He apologized for his manner and he said to journalists,
“I have resigned. I decided that it would be better for the country if I quit.”
Mr Nakagawa’s leaving is seen as a major blow to Mr Aso’s government in an election year. The prime minister was already facing dropping support of him. Prime Minister Taro Aso had accepted his resignation. Kyodo news agency said Kaoru Yosano was expected to take on his portfolio.
On Friday 6th, US regulator closes two more banks in Georgia and California. This brings the total of eight US bank failures in this year.
“It became a receiver of Culver City, California-based Alliance Bank and entered into an agreement with California Bank & Trust of San Diego to assume all the deposits.” said the Federal Deposit Insurance Corporation.
The California Department of Financial closed Alliance Bank, which has five offices. The bank had $1.14 billion in assets and $951 million in deposits. However, FDIC estimated the cost to the Deposit Insurance Fund will be $206 million. Regulators said on Friday that FirstBank Financial Services Inc also failed. Regulators said that FirstBank Financial Services had assets of about $337 million and $279 million in deposits at the end of 2008. The estimated cost to the Deposit Insurance Fund will be $111 million.
The news is good for the Australian people as Australian administration has announced it will give a second economic stimulus package to help counter the effects of the recent global economic crisis. According to plan the Nation Building and Jobs Plan package will provide around $15 billion for school infrastructure. It will also provide more than $12 billion in tax and cash bonuses to low and middle income families. Officials said the package follows a cut to interest rates by 1% point; taking rates to 3.25%.The administration will pay for ceiling insulation to over 2.5 million homes in order to save families about $200 per year on energy bills.
This scheme is expected to create jobs for insulation installers. It will be available for 2.2 million owner-occupied homes and some other 500,000 rental properties. October 2008, the Australian administration released a $10.4 billion economic security strategy. It provided nearly about $9 billion in one-off cash payments to families and pensioners. People hope that the new step will help to develop their daily life.
The news is shocking for Pakistan as it may loose USD 1.5 billion financial aid from the US as a Congressional bill. It was set to debate the 10 years package but it has lapsed. According to the Pakistani daily Dawn the Biden-Lugar Bill, which would have provided as much as USD 1.5 billion to Pakistan over a period of 10 years expired in 2008 along with the term of the US Congress which was to debate it. Dawn published the report recently. Pakistani Urdu-language daily Jang said the bill must now be reintroduced by the Senate.
On the other hand, Pakistan’s US envoy Hussain Haqqani said to private television channel Geo that the bill had not been sidelined and remained an integral component of future Pak-US relations. Additionally, he underlined that the lapsing of the bill was a technicality of the transition of power within the US and the bill would soon be reintroduced by the US Senate.
The Pak Government is upset because the aid through the Biden-Luger bill is dreadfully needed to improve Pakistan’s faltering economy. Pak economy has been roughly hit by the unrest in the Islamic nation. As soon as taking office, the Obama government has indicated that America will hold Pakistan responsible for security in the disputed border region with Afghanistan. However, Pak authority try to manage the aid get again.