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ECB gives another shot of stimulus as economy reels

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FRANKFURT (Reuters) – The European Central Bank approved a bigger-than-expected expansion of its stimulus package on Thursday to prop up an economy plunged by the coronavirus pandemic into its worst recession since World War Two.

Just months after a raft of crisis measures, the ECB again expanded its money-printing scheme to cushion a potential fall in output of up to 12% this year, even as governments spend record amounts to preserve jobs while restrictions keep businesses shuttered.

“The euro area economy is experiencing an unprecedented contraction,” ECB President Christine Lagarde said. “There has been an abrupt drop in economic activity as a result of the coronavirus pandemic and the measures taken to contain it.”

The ECB’s move, coming just weeks after Germany’s Constitutional Court tried to curb its powers, was also seen as an act of defiance, with one of the European Union’s most powerful institutions making clear it would not take orders from national courts.

Thursday’s decision extended the ECB’s emergency bond purchase scheme to mid-2021 and increased it by 600 billion euros to 1.35 trillion euros. That should allow the bank to buy up most of the new debt euro zone governments are issuing to overcome the pandemic.

Three sources told Reuters that figure was a compromise after policymakers discussed an expansion of between 500 billion and 750 billion euros.

Markets rallied on the decision, with bond yields on the bloc’s periphery tumbling, suggesting the measures would give a bigger boost to nations such as Italy and Spain, both hit hard by the pandemic and struggling with high debt levels.

Ten-year Italian yields fell by 14 basis points, but perhaps more importantly the gap between Italian and German bonds DE10IT10=RR, a key benchmark, narrowed by 16 basis points.

The ECB’s bond purchases come on top of big German spending plans and an ambitious European Union fiscal package, pointing to the biggest coordinated effort in the euro’s 20-year history.

ECB staff dramatically revised downward their baseline scenario for euro zone output this year to a contraction of 8.7% from the modest 0.8% rise they forecast only in March.

A partial rebound with growth of 5.2% is expected next year but Lagarde said risks were skewed towards an even worse outcome in which GDP could shrink by up to 12.6%.

That could mean the ECB is not finished yet.

“We would expect a decision to increase the Pandemic Emergency Purchase Programme envelope by 500 billion euros to 1.85 trillion euros to be made in September,” Frederik Ducrozet, a strategist at Pictet Wealth Management said.

“We suspect that a fragile recovery will require steady interventions for some time.”

Defiance

Adding to the stimulus measures, the ECB said it would reinvest proceeds from maturing bonds in its pandemic emergency scheme at least until the end of 2022, suggesting that its balance sheet will remain exceptionally large for years to come.

But Lagarde scotched speculation the bank could follow the U.S. Federal Reserve in buying sub-investment grade bonds, saying that option was not even discussed by policymakers.

Addressing the ECB’s stand-off with the German court, Lagarde said she was confident of a “good solution” but stressed that only the European Court of Justice had jurisdiction over the matter, and that it had already cleared the scheme.

“Not having to read too much between the lines, she made clear that the German court ruling would have virtually no impact on ECB policy, as shown by the ECB’s actions today,” Berenberg economist Florian Hense said.

Lagarde welcomed what she called the European Commission’s “ambitious” proposal for a 1.1 trillion euro budget for the bloc for 2021-27 with an extra recovery fund worth 750 billion euros.

Cash-rich Germany, which can borrow at negative rates for up to 20 years, separately unveiled a 130 billion euro ($145.85 billion) stimulus package late on Wednesday.

Reporting and photo: Reuters

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Manhattan Grand Hotel inaugurated in Hulhumalé with 162 rooms and major event facilities

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Manhattan Grand Hotel, a 162-room five-star property in Hulhumalé, was officially inaugurated on Saturday, 7 November 2026, marking the completion of a long-delayed hospitality development originally initiated by State Trading Organisation (STO) more than two decades ago.

The hotel was inaugurated by Minister of Finance and Public Enterprises Hassan Zareer during a ceremony held in Hulhumalé Phase 1. The opening marks a new chapter for the former STO City Hotel project, which remained unfinished for years despite substantial investment and repeated efforts to complete or sell the property.

Located approximately 10 minutes from Velana International Airport, Manhattan Grand Hotel has been developed to accommodate business travellers, transit passengers, leisure visitors and long-stay guests, while providing facilities for meetings, conferences, exhibitions and social events.

The property features 162 rooms and suites across eight accommodation categories, including city-view and sea-view rooms, deluxe accommodation and junior suites. Its facilities include four food and beverage outlets, an outdoor swimming pool, a spa and wellness centre, and a fitness centre.

A central feature of the hotel is its meetings, incentives, conferences and exhibitions (MICE) infrastructure. The property offers three major event halls, measuring approximately 700, 400 and 390 square metres, alongside dedicated meeting rooms and conference facilities. The venues have been developed to accommodate corporate conferences, exhibitions, annual general meetings, weddings, banquets and other large-scale gatherings.

The hotel’s architectural concept draws inspiration from Hukuru Miskiy, the historic Friday Mosque in Malé, incorporating elements of traditional Maldivian craftsmanship into its contemporary design. Marketed under the concept ‘Live the Heritage’, the property aims to combine local cultural influences with modern urban hospitality.

Manhattan Grand Hotel is operated by World of Business Pvt Ltd, with foreign investment from UAE-based Deep Seafood Company. The redevelopment was formalised through an agreement with Housing Development Corporation (HDC) in August 2025, under an arrangement involving 50 per cent foreign investment.

The property’s development history dates back to 2006, when STO approved plans to establish a city hotel in Hulhumalé as part of efforts to generate foreign currency revenue. Construction of the originally proposed 250-room five-star hotel began in 2011, following plans involving the US-based Carlson Hotel Group.

However, the development encountered repeated delays, leaving the building unfinished for more than a decade. STO subsequently explored several options to dispose of or complete the property before arrangements were made with HDC to facilitate its redevelopment.

The revised development also incorporates approximately three and a half floors designated for government-related facilities, including a media village, youth centre, heritage college and medical college.

Ahead of its formal inauguration, Manhattan Grand Hotel had already begun hosting hospitality industry events. The property hosted Food & Hospitality Asia Maldives (FHAM) 2026 from 7 to 9 September, bringing together hospitality suppliers, industry professionals and international exhibitors.

The hotel’s official opening adds a substantial accommodation and events facility to the Greater Malé region, supporting the growing demand for city-based hospitality services, corporate gatherings and accommodation close to the country’s main international airport.

The completion of the former STO City Hotel project also brings an end to one of Hulhumalé’s longest-running unfinished hospitality developments, converting the property into a functioning hotel and events destination.

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BBM’s ‘Studio of Culinary Excellence’ opens at MNU to bridge classroom, industry

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The best way to secure the future is to create it.

Creating that future through specific, purposeful initiatives is what drives people of purpose—and, in turn, moves us all closer to the future we desire.

The Maldives is a compelling case study of a tourism-driven economy. Look around and ask why an event is being staged, what someone is working on, or where a new initiative is leading, and the answer will often point to the hospitality sector. Securing the future, therefore, is inextricably linked to strengthening and advancing that sector.

Here, “strengthening” means making the sector’s contribution more sustainable; ensuring that a greater share of its growth benefits the community; continuing to offer a compelling value proposition to the discerning global traveller; and ensuring that visitor experiences continue to generate an unparalleled reputation and valuable referrals.

To achieve these outcomes in the future, it is essential that current and future generations of the local community engage actively with the industry. Making hospitality appealing and aspirational, enhancing the quality of delivery and service, and building a pipeline of skills and talent into the sector are areas in which initiatives, inspiration, infrastructure and investment should be concentrated.

It is firmly in this context that Mr Ismail Hilmy, Chairman and Managing Director of BBM, initiated the establishment of a modern, exceptionally well-equipped and thoughtfully designed model kitchen, aptly named the Studio of Culinary Excellence. By donating the Studio to MNU, under whose auspices it will serve the Maldivian culinary community, Mr Hilmy is responding directly to the need for deeper community engagement. At the heart of BBM’s framework for industry-outreach initiatives— “Because tomorrows start today”—is Mr Hilmy’s ethos of fostering engagement and vibrancy in the industry.

“For our students, the gap between the classroom and a working resort kitchen has always been the hardest one to close,” said Dr Shehenaaz Adam, Vice Chancellor of the Maldives National University. “The Studio of Culinary Excellence closes that gap. Students can now train on the same equipment and to the same standards they will encounter on their first day in the industry. We are grateful to BBM for a partnership that goes well beyond a donation, and we look forward to the Studio becoming a place where the university and the industry learn from one another.”

The Studio therefore creates an opportunity to develop a pipeline of skills and talent in service of the industry.

“Embedding purpose in our work has been an ongoing endeavour at BBM. It keeps us connected to our stakeholders and builds insight, understanding and trust. Being a meaningful partner to academia as we move into the future gives us a great sense of fulfilment and guides our initiatives under the banner, ‘Because tomorrows start today,’” said AVS Subrahmanyam, Chief Operating Officer of BBM.

But what is the value of physical infrastructure without the corresponding spark of aspiration and ambition?

As Ali Afrah Hassan, Executive Representative at Chairman’s Office – BBM, aptly observed: “The Studio offers students and members of the community hands-on experience with world-class equipment, together with knowledge-sharing masterclasses. Who knows—in the not-too-distant future, a Michelin-starred Maldivian chef may fondly credit some of their inspiration to time spent at the Studio!”

Now that is the mind and heart in sync—working towards a future that is aspirational, ambitious and entirely attainable.

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BBM Hulhumalé Phase 2 opening promotion winner receives Honda Airblade

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Bestbuy Maldives (BBM) has presented a brand-new Honda Airblade motorbike to the winner of a lucky draw held to mark the opening of its newest wholesale outlet in Hulhumalé Phase 2.

The outlet, located at Lot 20286 on Nirolhu Magu, opened on 16 February 2026 as part of BBM’s expansion of its wholesale operations.

To celebrate the opening and thank customers for their continued support, BBM introduced a special lucky draw exclusively for customers who made purchases from the new outlet on its opening day.

Customers who purchased products during the opening were eligible to enter the draw, with a Honda Airblade motorbike offered as the grand prize.

The lucky draw was conducted on 13 August 2026, with Ibrahim Shifaz of Vagthun Vaguthah outlet selected as the winner.

Shifaz was recently presented with the ceremonial key to the Honda Airblade by AVS Subrahmanyam, Chief Operating Officer of Bestbuy Maldives.

The promotion formed part of BBM’s activities surrounding the opening of its Hulhumalé Phase 2 outlet, which provides customers with access to the company’s range of wholesale products from the growing residential and commercial area.

Bestbuy Maldives is a supplier and distributor serving businesses across the Maldives, including customers in the hospitality, food service and retail sectors.

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