Category: News Desk

Mozambique Denies IMF Allegations of Loan Concealment


Mozambique objected to the International Monetary Fund’s (IMF’s) accusation that officials concealed additional loans from Russia VTB Bank and Credit Suisse for defense spending, according to Reuters. The IMF cancelled a trip to Mozambique on Friday in wake of the alleged undeclared loans, but Finance Minister, Adriano Maleiane, stated that the accusation is misguided and stems from confusion. Mozambique borrowed $286 million from the IMF to help the country through a turbulent world economy.

Donations Stalling: World Bank Urges Follow Through on Gaza Aid


Gaza has struggled socially and economically almost from its inception, but this has been particularly true following Israel’s war against the region in 2014. Following the devastation, a number of Arab nations led the way in pledging aid to the region for reconstruction. Qatar, the United Arab Emirates (UAE), and many other Arab nations appeared poised to assist the region without the need for intervention by organizations like the World Bank or International Monetary Fund (IMF).

Interest Rate Update: Mortgages, Junk Bonds Reach Lows


Interest rates for home loans, junk bonds, and several other financial products have fallen while the Federal Reserve hints at expanding the monetary base further.  Even as several economic indicators show a slight resurgence, mortgages declined alongside Treasuries due, in part, to a slump in home buying.

Political Killings Continue in Burundi as Tensions Worsen


Phocas Bakaza of the ruling CNDD-FDD party in Burundi was killed in the latest incident of political violence that has persisted for over a year, according to Reuters. Over 400 people have been murdered since President Pierre Nkurunziza’s unconstitutional third-term re-election in July 2015. Nkurunziza supporters contended that the president could run for a third-term based on a court ruling, but critics and opposition party members have rejected such a claim.

Falling Profitability Hurting U.S. Small Businesses


A decline in business profitability is causing pain among small business owners, who are growing more pessimistic about their economic future.  Small business profitability slumped in the first quarter of 2016, with expectations of weaker earnings for the near future, according to a new study by the National Federation of International Businesses.

“Earnings trends worsened 1 point to a negative 22 percent reporting quarter on quarter profit improvements. Far more owners are reporting profits lower quarter to quarter than higher,” said the report.

Education for Women: World Bank to Invest $2.5 Billion


The World Bank and the International Monetary Fund are conducting their spring meeting this week in Washington. Announcements of major new initiatives are always expected after these meetings, but one has many people around the world very excited. This week, the World Bank announced its plan to invest $2.5 billion in girls’ and young women’s education.

Argentinian Former President Faces Heat from Conservative Government


Former President Cristina Fernández de Kirchner was called to testify before the central bank this week for allegedly manipulating the Argentine peso during her tenure. Kirchner fiercely denied the allegations and has called the investigation a political attack against her legacy.

British Manufacturing Weakens while Home Prices Move Higher


The United Kingdom is seeing a weaker manufacturing sector, pressuring workers’ wages even as house prices continue to skyrocket and basic goods and services see accelerating inflation.

The UAE and UK Sign Economic Treaty Ending Double Taxation


The United Arab Emirates (UAE), and the United Kingdom (UK) signed an agreement on Wednesday designed to end double taxation between the citizens of the two nations. The UAE’s Minister of State for Financial Affairs, Obaid Humaid Al Tayer, and the UK’s Commercial Secretary to the Treasury, Lord O’Neill of Gatley, signed the treaty, which is intended to enhance the economic and trade ties between the countries and to protect both companies and individual citizens from the threat of double taxation.

Nigerian President Seeks China’s Help as Economy Tumbles


Nigerian President Muhammadu Buhari has planned a four-day trip to China this week to secure infrastructure loans and foster closer ties, according to The Wall Street Journal. Nigeria’s economy has suffered from factors, such as lower crude prices and a slow-down in Chinese demand. Presidential spokesman Femi Adesina stated that 18 months would pass before the West African nation will see a recovery.