Business

ECB expected to pump up eurozone support as pandemic persists

Published

4 years ago

June 1, 2020

The European Central Bank could announce Thursday hundreds of billions of euros in new bond-buying to keep fighting the pandemic crisis, analysts predict, as EU governments prepare to wrangle for months over a joint response.

While some policymakers have urged abandoning the ECB’s self-imposed limits on buying government debt to stoke growth and inflation, the meeting is also the first since a ruling by Germany’s Constitutional Court urging restraint of the central bank’s powers.

“At a minimum, we think (governors) will add a further 500 billion euros” ($557 billion) to the 750-billion-euro Pandemic Emergency Purchase Programme (PEPP) decided in March, Capital Economics analyst Andrew Kenningham said.

If the ECB keeps up its present pace of buying government and corporate debt, “the total envelope will be exhausted by early October”, he added.

“The only questions are exactly what changes are announced and when.”

ECB board member Isabel Schnabel reiterated last week that the “size but also the composition and duration” of PEPP could all be increased, with some analysts forecasting an extension from the end of this year to September 2021.

As well as Thursday’s policy moves, eyes will be on June’s quarterly growth and inflation forecasts from ECB staff, as January-March figures were compiled before the virus struck.

Bank president Christine Lagarde last week predicted that the eurozone economy would contract by between eight and 12 percent in 2020, before a hoped-for strong rebound next year.

Inflation collapse

Meanwhile inflation in the 19-nation eurozone collapsed to 0.1 percent year-on-year in May — down from 1.2 percent in February before the pandemic and worlds away from the ECB’s just-below-two-percent target.

The inflation outlook could fall as low as zero across the year, Capital Economics predicted, potentially offering a powerful justification for further measures to support activity and lift price growth towards the bank’s goal.

Governors will meet less than a month after a German Constitutional Court (GCC) ruling that a 2.6-trillion-euro bond-buying scheme launched in 2015 may not have been “proportionate” to its price stability goal and demanding clarification.

If the ECB cannot satisfy the judges, the German Bundesbank, the central bank, may not be able to participate in bond-buying.

While finding a face-saving solution to the immediate legal headache, policymakers must also consider how court challenges might limit their future options.

Bank of France governor Francois Villeroy de Galhau last week said the so-called “capital key” — under which the ECB buys countries’ bonds in line with their stakes in its capital — is an “uncalled-for constraint”.

Free of limits, the central bank might choose to buy more Italian, French or Spanish debt to keep financial conditions on an even keel across the eurozone.

Stimulus debate

But the self-imposed capital key rule was also shaped to dodge just the kind of legal tripwire that has sprung up in Germany.

“While I do not think the ECB will be deterred by the GCC, I also think they do not necessarily want to raise the stakes by blatantly going against its worries,” Oliver Rakau of Capital Economics told AFP.

“An official dropping of the capital key is likely fairly controversial at this stage.”

ECB chiefs will also be aware that long-awaited help on the fiscal front remains far off, as leaders are just getting started debating a 750-billion-euro pandemic recovery fund proposal from the European Commission.

While Germany this month gave up some of its red lines in a deal with France, including on the emotive question of joint debt issued from Brussels, a so-called “frugal four” group including Austria and the Netherlands are fighting a rearguard action.

Short of joint measures, markets’ fears of an eventual breakup of the eurozone could resurface, the ECB warned last week.

But tied into the EU’s always hotly contested budget negotiations and calls for bloc-wide taxes on plastics and big tech to fund borrowing, it will be a challenge for governments to seal the deal even by a January deadline.

Reporting and photos: AFP

Business

Maldives celebrates arrival of 2024’s 1 millionth tourist

Published

4 weeks ago

June 27, 2024

m@ldives

Maldives on Thursday welcomed the one millionth tourist to visit this year.

The one millionth tourist is a Thai named Sutapa Amonwivat, who arrived from Singapore with her husband and two children. This is her second visit to Maldives.

Maldives Marketing and Public Relations Corporation (MMPRC) and the Ministry of Tourism gave a warm welcome to Sutapa at the Velana International Airport (VIA) Thursday afternoon. She was welcomed at the VIA by tourism minister Ibrahim Faisal, MMPRC Managing Director Ibrahim Shiury and senior officials of various relevant agencies.

After welcoming her with traditional offerings, she was presented with various gifts by the ministry, MMPRC, customs, immigration, Maldives Association of Travel Agents and Tour Operators (MATATO) and Trans Maldivian Airways (TMA).

Maldives reached one million tourists in June, three weeks earlier than last year. The number of tourists reached one million on July 16, 2023.

Maldives expects to reach 2 million tourists this year.

Business

New air route connects Chongqing to Maldives

Published

1 month ago

June 25, 2024

m@ldives

Chongqing Airlines on Monday began its inaugural flights to Maldives.

The Chongqing-Male route, scheduled three times a week, is expected to strengthen the bonds between China and the Maldives, opening up exciting new opportunities for tourism and cultural exchange.

The inaugural flight was welcomed upon its arrival at Velana International Airport (VIA) in Maldives, where local officials and tourism representatives expressed their enthusiasm for this new development.

“We warmly welcome our friends from China to our beautiful islands. This new connection strengthens our bonds and opens up new opportunities for tourism,” the tourism ministry said on X.

Maldives currently welcomes four airlines from China, including China Eastern, Beijing Capital Airlines, Xiamen Airlines.

In January, Maldives government urged tourism stakeholders in both Maldives and China to ramp up efforts to restore China’s position as the primary source market for Maldives tourism, a status held before the onset of Covid-19.

China, being the largest source market for Maldives tourism before the pandemic, saw a resumption of tourist arrivals from January 2023 after a three-year hiatus due to the pandemic. In 2023, the Maldives welcomed 187,118 Chinese tourists, marking a significant recovery in numbers. This year, the Maldives has welcomed the most number of tourists from China, with over 107,940 or 11.5 percent of total arrivals by June 12.

Business

CROSSROADS Maldives Introduces Weixin Pay at resorts for seamless guest experience

Published

1 month ago

June 21, 2024

m@ldives

CROSSROADS Maldives has introduced WeChat Pay, widely known as Weixin Pay in China, across its world-class resorts, SAii Lagoon Maldives, Curio Collection by Hilton, and Hard Rock Hotel Maldives. This payment option is made available to enhance the convenience and overall experience for guests from China, making their stay in the Maldives more enjoyable and hassle-free.

Understanding the needs of the diverse guests, CROSSROADS Maldives has integrated WeChat Pay into operations, allowing guests from China to easily and securely conduct transactions using a payment method familiar to them. The introduction of WeChat Pay is a testament to CROSSROADS Maldives’ dedication to enhancing guest satisfaction by offering exceptional experiences at every turn. What is also expected through this initiative is that the guests could benefit from better foreign exchange rates, translating to better savings on their expenditures during their stay.

The option is available for guests in-house conveniently at both resorts as well as across the Marina at CROSSROADS Maldives where a wider variety of unparalleled dining and retail experiences are available for all guests. The day visitors from China will also therefore equally benefit from this new introduction at the Maldives’ premier multi-island integrated leisure destination.

SAii Lagoon Maldives, Curio Collection by Hilton, is a vibrant tropical escape that offers unique and locally inspired experiences. The resort features spacious rooms and villas, a variety of dining options, and an array of recreational activities designed to cater to the desires of modern travellers. Guests can escape to the island’s SAiisational natural beauty, enjoy water sports, and indulge in spa treatments, all while relishing the personalised service that defines Hilton’s Curio Collection.

Hard Rock Hotel Maldives brings the iconic Hard Rock spirit to the tranquil shores of the Maldives. This family-friendly resort offers a perfect blend of relaxation and entertainment, featuring music-inspired experiences, live performances, and the brand’s signature amenities. With luxurious accommodations, diverse dining options, and a plethora of activities for all ages, Hard Rock Hotel Maldives ensures an unforgettable holiday experience for every guest.