World

Lebanon banks association rejects draft govt financial plan

Lebanon’s banking association on Monday rejected a draft government plan for tackling the country’s financial crisis that proposes a haircut and partial bank bail-in on savers, saying it would cause a long loss of confidence in the financial sector.

A draft of the plan to plug a huge hole in the financial system, seen by Reuters last month, foresees returning just $25 billion out of a total $104 billion in hard currency deposits to savers in US dollars.

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Most of what’s left would be converted to Lebanese pounds at several exchange rates, including one that would wipe out 75 percent of the value of some deposits. It estimates losses in the financial sector at $69 billion and sets a 15-year timeframe for paying back all depositors.

“This hypothetical draft plan indicates it can eliminate the so-called “losses” in order to balance the books. This approach… is a liquidation approach and will lead to a persistent loss of confidence for generations to come,” the Association of Banks in Lebanon (ABL) said in a written statement to Reuters.

The ABL’s approval is not required in order for the government to adopt and begin implementing the plan, but experts say support from the banking sector could contribute to solving the crisis. The ABL said it had no role in drafting the plan and had not seen an official version.

“If true, this reported approach in addressing the losses occurred in the financial sector is not acceptable at all, and will definitely not reverse the spiral downhill of the economy,” it said.

Bail-in

The ABL said it would not endorse a plan that would lead to a “nominal haircut on customers’ deposits” or totally wipe out shareholder equity, but was open to shouldering some losses from Eurobonds restructuring and private sector loans.

Lebanon’s banks have been a major lender to government for decades, helping to finance a wasteful and corrupt state that went into financial meltdown in 2019.

The collapse has resulted in depositors largely being shut out of their savings and the local currency losing more than 90 percent of its value.

Lebanon’s government began talks with the IMF in January as part of efforts to secure a bailout seen as crucial to begin charting a path out of the crisis. A viable financial plan is key to that process. A previous plan drawn up under a government in 2020 was shot down by banks, the central bank and powerful political parties, ending IMF talks at the time.

An IMF spokesperson said last week they could not comment on reports that the fund had rejected aspects of the government’s plan during the talks that began in January.

A Lebanese official source told Reuters the IMF had asked Lebanese officials to “work on parts of the plan.”

As part of efforts to plug the $69 billion hole in the financial system, the draft plan envisions a bail-in of large depositors to the tune of $12 billion, equivalent to 72 percent of shares in the banking sector, thereby reducing shareholders and creditors to less than a third.

The ABL said any bail-in should be assessed on a case-by case basis for each bank and should only come after “we get to a consensual and comprehensive agreement with the government, and after the government fulfills its legal obligation to restore Central Bank solvency.”

The ABL also noted their “strong objection” to a proposal for bank shareholders to maintain majority shares in the sector in exchange for injecting $1 billion in fresh capital.

World

Crown Prince of Abu Dhabi meets with CEOs of leading Norwegian companies

H.H. Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, has met with a group of CEOs from leading Norwegian companies, as part of their participation in the UAE-Norway Investment Forum, held alongside his official visit to the Kingdom of Norway.

During the meeting, H.H. Sheikh Khaled bin Mohamed bin Zayed underscored the UAE leadership’s commitment to strengthening economic cooperation with its international partners.

He highlighted that investment in innovation and knowledge is a cornerstone for achieving sustainable development, noting that enhancing collaboration with Norwegian companies across key sectors will open new avenues for mutual economic growth between the two countries.

The UAE-Norway Investment Forum, taking place in Oslo, aimed to highlight available investment opportunities and strengthen trade relations between the UAE and Norway, fostering shared interests and supporting innovation and knowledge-based economic visions.

-wam

World

At the Indonesia International Book Fair 2024, TRENDS inaugurates 10th global office, releases four books

As part of its Asian research tour, partnership with Aletihad News Center, and
primary sponsorship of the Indonesia International Book Fair 2024, TRENDS
Research & Advisory inaugurated its office in Jakarta, marking its 10th location
worldwide. It also released four books in Indonesian.
The inauguration event was attended by ambassadors of the UAE, Bahrain, and
Jordan to Indonesia, chairpersons of the UAE and Indonesian Publishers’
Associations, the Director of TRENDS’ Jakarta office, and a group of researchers
and academics.
Speaking at the event, Dr. Mohammed Abdullah Al-Ali, CEO of TRENDS
Research & Advisory, stated that TRENDS’ international offices—set to reach 15
by the end of 2024—aim to enhance the Center’s research efforts and deepen its
role in disseminating knowledge, thus serving as a global knowledge bridge.
He emphasized, “At TRENDS, we believe in the importance of cooperation
between think tanks and prioritize this endeavor. We believe the TRENDS office in
Jakarta will enhance the exchange of knowledge and ideas between think tanks in
Asia and the Middle East, opening new horizons for collaboration in various
fields.”

Four books in Indonesian
As part of the Jakarta office’s inaugural activities, four books were released in
Indonesian, including the 11th and 12th books of the Muslim Brotherhood
Encyclopedia and Global Trends in AI and Automation and the Future of
Competition between Man and Machine: An Analytical Forward-looking Vision.

Hostility to Arab states
The 11th book of the Muslim Brotherhood Encyclopedia, The Concept of the State
According to the Muslim Brotherhood, highlights its hostile stance toward Arab
states since its inception. The group views them as an obstacle to its ascent to
power. It opposed the modern principles upon which these states were built,
considering them incompatible with the group’s unique interpretation of Islam,
which it claimed to embody exclusively.

Exclusion of nonconformists
The 12th book, The Muslim Brotherhood: Rejection of Tolerance and Exclusion of
Nonconformists, examines the Muslim Brotherhood’s stance towards
nonconformists, individuals, and entities. The book reveals the group’s binary view
of the world, categorizing others as allies or adversaries. It ties these relationships
to the Brotherhood’s internal power struggles and self-serving interests.

Global Trends in AI
The third book, Global Trends in AI, explores significant developments in AI and
its impact on various aspects of life, including the economy, society, and
governance. It also offers a comprehensive analysis of technological advancements
in AI, its applications across sectors, the ethical and social challenges it presents,
and its future trajectory.

Automation

The fourth book, Automation and the Future of Competition between Man and
Machine: An Analytical Forward-looking Vision, addresses the growing challenges
faced by the human workforce in the face of widespread automation and AI
applications. The book concludes that while automation presents a significant
challenge to the labor market, it simultaneously creates new opportunities. It
emphasizes the importance of preparing for this shift through skills development,
continuous education, and adopting economic and social policies that support the
workforce.

Prominent pavilion and active presence
The TRENDS’ pavilion at the Indonesia International Book Fair has attracted
numerous visitors, including academic researchers and officials, such as the
ambassadors of the UAE, Bahrain, Qatar, Jordan, and Turkey. Additionally,
chairpersons of Arab and Indonesian publishers’ associations, authors, publishers,
and students visited the pavilion. All were impressed with and praised TRENDS’ diverse, valuable publications. They also commended TRENDS’ active
international presence and ability to address global developments with rigorous
analytical research.
Dr. Mohammed Abdullah Al-Ali honored the esteemed guests, including
ambassadors of the UAE and Bahrain to Indonesia, Wedha Startesti Yudha,
Chairperson of the Indonesia International Book Fair Committee, Arys Hilman
Nugraha, Chairman of the Indonesian Publishers Association, and others,
presenting them with TRENDS’ publications and commemorative shields.
Additionally, he awarded TRENDS’ Research Medal to Ni Made Ayu Martini
Indonesian Deputy Minister of Marketing, Tourism and Creative Economy
It is worth noting that during its current Asian research tour, TRENDS announced
the launch of the TRENDS Research Medal, awarded to individuals who make
significant contributions to the development of scientific research and promote collaboration with TRENDS in strengthening a culture of research across various fields.

World

US determined to prevent full-scale war in Middle East, Joe Biden tells UNGA79

US President Joe Biden highlighted the US Administration’s determination to prevent a wider war that engulfs the entire Middle East region, noting that a diplomatic solution “remains the only path to lasting security to allow the residents from both countries to return to their homes on the border safely”.

In remarks he made today before the 79th Session of the United Nations General Assembly (UNGA79), the US President said, “Full-scale war is not in anyone’s interest,” adding that a diplomatic solution is still possible.

He also touched on “the rise of violence against innocent Palestinians on the West Bank”, and the need to “set the conditions for a better future”, which he said featured “a two-state solution, where the world — where Israel enjoys security and peace and full recognition and normalised relations with all its neighbours, where Palestinians live in security, dignity, and self-determination in a state of their own”.

President Biden underscored the ceasefire and hostage deal put forth by Qatar and Egypt, which the UN Security Council endorsed. He said, “Now is the time for the parties to finalise its terms, bring the hostages home,” adding that this would help ease the suffering in Gaza, and end the war.

-WAM