1. Heeding to the request from banks, the Reserve Bank of India (RBI) today postponed the implementation of the proposed base rate mechanism by three months.After a meeting with bank chiefs, RBI said the system would come into effect from July 1. Bankers, however, said there was still confusion on calculating the cost of deposits, a key element for working out the rate.According to the formula proposed by RBI, the base rate will be calculated on banks’ cost of deposits, adjustment for the negative carry in respect of the cash reserve ratio and the statutory liquidity ratio, overhead costs and a profit margin.
2. Faced with increasing cases of anti-dumping duties against a host of Chinese goods, China fears that its exports may be hit this year due to rising trade protectionism. China will face rising trade protectionism this year as a result of an increase in its exports as well as high unemployment rates in the United States and the European Union, Sun Zhenyu, the Chinese ambassador to the World Trade Organization (WTO) said. China, however, is committed to pushing forward the stalled Doha round of WTO talks, although it seems "highly unlikely" that the global trade negotiations can be completed this year, Sun who is also a member of the National Committee of the Chinese People's Political Consultative Conference, the country's top political advisory body told China Daily.
3. The board of the Asian Development Bank (ADB) has sanctioned a loan of $300 million (around Rs 1,380 crore) to develop and expand India’s micro, small, and medium enterprises (MSMEs), the second largest source of employment in the country after agriculture. Around 30,000 small units are expected to benefit from the project. The bank’s board of directors approved a sovereign loan of $50 million (around Rs 230 crore) and a partial credit guarantee of up to $250 million (around Rs 1,150 crore) for the Micro, Small and Medium Enterprise (MSME) Development Project.
4. Private Equity (PE) investments in small and medium enterprises (SMEs) in India fell by 68 per cent in 2009 to $580 million (around Rs 2,670 crore) from $1,824 million (around Rs 8,390 crore) in 2008. According to data compiled by Venture Intelligence, a Chennai-based research firm which tracks PE investments, SMEs had attracted PE investments worth $1,454 million (around Rs 6,670 crore) in 2007. The drop in 2009 has been attributed to the slowdown in the global economy, which prompted PE investors to decide not to access capital.
2. Faced with increasing cases of anti-dumping duties against a host of Chinese goods, China fears that its exports may be hit this year due to rising trade protectionism. China will face rising trade protectionism this year as a result of an increase in its exports as well as high unemployment rates in the United States and the European Union, Sun Zhenyu, the Chinese ambassador to the World Trade Organization (WTO) said. China, however, is committed to pushing forward the stalled Doha round of WTO talks, although it seems "highly unlikely" that the global trade negotiations can be completed this year, Sun who is also a member of the National Committee of the Chinese People's Political Consultative Conference, the country's top political advisory body told China Daily.
3. The board of the Asian Development Bank (ADB) has sanctioned a loan of $300 million (around Rs 1,380 crore) to develop and expand India’s micro, small, and medium enterprises (MSMEs), the second largest source of employment in the country after agriculture. Around 30,000 small units are expected to benefit from the project. The bank’s board of directors approved a sovereign loan of $50 million (around Rs 230 crore) and a partial credit guarantee of up to $250 million (around Rs 1,150 crore) for the Micro, Small and Medium Enterprise (MSME) Development Project.
4. Private Equity (PE) investments in small and medium enterprises (SMEs) in India fell by 68 per cent in 2009 to $580 million (around Rs 2,670 crore) from $1,824 million (around Rs 8,390 crore) in 2008. According to data compiled by Venture Intelligence, a Chennai-based research firm which tracks PE investments, SMEs had attracted PE investments worth $1,454 million (around Rs 6,670 crore) in 2007. The drop in 2009 has been attributed to the slowdown in the global economy, which prompted PE investors to decide not to access capital.
