Business

AMMAN — Giant multinational payment card services, Visa, will launch its "Visa Everywhere Initiative" (VEI) on June 2 for first time in the Levant region and hosted in Amman.

In a recent interview with The Jordan Times, Mario Makary vice president, Levant cluster country manager of Visa, said, "Hopefully we will have applicants from Lebanon, Jordan, Iraq and Palestine applying throughout the process to compete for the final result."

Mario said that the initiative allows "fintechs, startup and entrepreneurs to compete by show-casing the solutions, products that could be bringing value to solve future payment challenges and commerce challenges.

Successful applicants would have business traction in the market with some sort of funding from external investors, he said. 

"The reason for conducting the VEI in the Levant is due to the market where we have seen a lot of startups, fintech and entrepreneurs."

"Visa is trying to develop solutions that are relevant to the payment eco-system, and in our core believes that we want to help economies to thrive, and help people also to thrive, looking at those players who can come and positively impact how people do commerce, how can we convert more people into digital economy and how can we transform economies to become more inclusive, these were the main kind of drivers for us."

The six categories for this year are emerging spaces, money movers, enablers whether commerce or banking, neo banks and brokerages, and lending, in addition to social, creator, and gaming and the other new categories for 2024 are  sustainable fintechs, and risk, the Visa website said.  

The judges of VEI are subject-matter experts from visa, with different backgrounds from venture capitals, banking sector, regulators, incubators, accelerators with a deep understanding and exposure on the startup and entrepreneur world.

Makary said, "The first winner is going has $30,000 cash price, free of equity, the second winner will have $15,000, and the third winner will have $10,000. These three winners will be chosen by the judges, the fourth winner is gonna be the people's or audience's choice, and the winner will get $10,000 cash prize, free of equity."

After this phase, the first winner will be qualified for the Central Europe, Middle East and Africa (CEMEA) competition which will happen later in July.

"So whoever wins in the CEMEA, and if it happen to be from our Levant applicant is going go to the final global competition which is going happen in San Francisco later in October 2024," he added. 

AMMAN – The Housing Bank held its 51stGeneral Assembly Meeting on April 18th, 2024. During its annual meeting, the General Assembly approved the 2023 financial statements, the distribution of 25% cash dividends of the share nominal value of the year 2023 to the shareholders, the Board of Directors annual report for the year 2023, the Business Plan for 2024, and the 2023 Bank’s auditor’s report.

During the meeting, the General Assembly elected PricewaterhouseCoopers Jordan (PwC) to audit the Bank’s accounts for the year 2024, according to a statement to The Jordan Times. 

The meeting was chaired by the Chairman of the Board of Directors, Abdelelah Khatib with the presence of the shareholders holding 94.770% shares of the Bank’s capital. The meeting, which was held online, was also attended by the General Controller of the Companies Control Department, as well as representatives from the Central Bank of Jordan, the Palestine Monetary Authority, and the 2023 auditing company Deloitte, and the selected auditing company for the year 2024 PWC.

Khatib stated that the year 2023 was of a particular significance as it marked the 50thanniversary of the Housing Bank for Trade and Finance Group. "Since its foundation in 1973, the Group has built a proven track record of impressive successes and milestones that formed the basis of a new era of achievements where the Bank taps into new activities and growthaspects."

The year 2023 was another milestone that was added to this journey, and the Group maintained this growing momentum thanks to the resilient, comprehensive, and up-to-date strategic approach that it adopted leading to an unprecedented growth in revenues, which is considered the highest since the Bank’s establishment, the statement said. 

Khatib added that the Bank prioritises the environmental, social, and governance practices and commits to them in alignment with the best practices and international standards.

Commenting on the financial statements and performance indicators of the Bank for the fiscal year which ended on December 31st, 2023, Khatib valued the Bank’s "extraordinary" results despite the challenges and the regional turmoil resulting from the Israeli War on the Gaza Strip that negatively impacted the economy in Jordan and the region.

Such impacts are still present in vital sectors such as tourism, and transportation. The Bank’s operations were no exception especially the branches that are spanned over Palestine and the Gaza Strip, however, the Bank’s prudent approach toward risk management successfully maintained the Bank’s financial position. This was achieved thanks to the preventive and precautionary actions the Bank opted for through booking extra allocations of expected credit losses in 2023 amounted to more than JOD 35 million, according to the statement. 

Khatib said that the bank's net profits grew by 6.3% compared to the year 2022, to reach JD 140.8 million. The total income increased by 15.9 per cent reaching JD 438 million, compared to JD 378 million achieved during 2022, while the operating profits recorded a strong increase of 18.9 per cent to reach JOD 253.1 million.

He added net credit facilities increased by 4.8 per cent to reach JOD 4.5 billion, and customer deposits increased by 6.2 per cent reaching JOD 5.7 billion. The Bank continued its sustainable growth in the return on assets and the return on shareholder’s equity that reached 1.64 per cent and 10.9 per cent consecutively. The Bank maintained a strong capital base, where the total shareholder’s equity amounted to JD 1.3 billion, while the capital adequacy ratio reached 18.8%, well above the minimum requirements of the Central Bank of Jordan and the Basel Committee.

Khatib highlighted the milestones that characterised the year 2023 including forging an agreement with the European Bank for Reconstruction and Development (EBRD), in collaboration with the European Union, and the Green Climate Fund. The agreement aimed to provide the Bank with the necessary technical support when it comes to risk management and the environmental, social, and governance practices for the Housing Bank to offer an example to follow in this arena.

According to Khatib, the Bank has a comprehensive corporate social responsibility strategy that includes various pillars to serve the community. In 2023, the bank’s social priorities comprise vital sectors namely education, health, environment, sports, and entrepreneurship targeting women, youth, and persons with disabilities. In addition to the social events and initiatives that the Bank organized and launched, it offered a financial support to multiple organizations and initiatives on the national level.

Khatib went on to emphasize the Bank’s anticipatory approach while developing the business plan and budget for the year 2024. It considered the potential outcomes of the current critical and challenging economic situation that businesses witness resulting from the geopolitics developments, the high levels of inflation, and the risks associated with the high interest rates. The Bank adopted such an approach to maintain its advanced positioning in the banking sector, sustainable revenue growth, and market share.

LONDON — Britain will avoid implementing most post-Brexit checks on EU food imports due to start this month so as to prevent major disruption at ports, The Financial Times (FT) reported recently.

The European Union introduced strengthened checks on goods coming from the UK since the country's departure from the bloc entered into force in January 2021.

But London has already delayed implementing some checks and formalities on five occasions amid fears the measures would harm the economy and stoke inflation.

According to a confidential presentation sent by the UK government to port authorities and seen by the FT, the Department for Environment, Food and Rural Affairs said carrying out all the health and safety checks from April 30 could trigger "significant disruption".

The checks will initially only apply to high-risk goods such as meat to ward off the prospect of huge queues of lorries and delays at ports, the newspaper reported.

The government plans to phase in the rest of the controls depending on traffic levels at different ports, the FT quoted the note as saying without providing a precise timeframe.

In January, health certificates became obligatory for some products of animal and plant origin deemed to be of medium risk, including some cheeses, butter, creams, sausages, ham, cut flowers, roots and tubers. The new checks could cost British businesses almost £2 billion ($2.5 billion) and exacerbate inflation that has driven a biting cost-of-living crises for many Britons, insurer Allianz Trade warned last week.

Trade bodies have called for implementation of the checks to be delayed until at least the autumn.

WASHINGTON — The International Monetary Fund (IMF) has raised its outlook for the global economy this year, while maintaining a gloomy forecast over the medium term, according to fresh data published on Tuesday.

The IMF now expects the world economy to grow by 3.2 per cent this year, up 0.1 percentage point from its previous forecast in January, and by a further 3.2 per cent in 2025, according to the latest World Economic Outlook (WEO) report.

Global headline inflation is expected to ease from 5.9 per cent this year to 4.5 per cent in 2025, supported by elevated interest rates in many countries.

"The global economy continues to display remarkable resilience, with growth holding steady and inflation declining," IMF chief economist Pierre-Olivier Gourinchas told reporters on Tuesday. "But many challenges still lie ahead."

"Most indicators continue to point to a soft landing," he said, referring to attempts by many central bankers to bring inflation down to target without fueling unemployment or hampering economic growth.

The WEO's publication comes as global financial leaders gather in Washington this week for a series of semi-annual meetings hosted by the IMF and World Bank. Assistance for the world's most indebted nations and climate change top the agenda for those meetings.

Divergence among advanced economies 

The differences among the world's advanced economies are stark: The IMF now expects growth in the United States to hit 2.7 per cent this year — up 0.6 percentage points from the January forecast — marking an acceleration from the 2.5 per cent growth recorded in 2023. 

Growth in the world's largest economy is then expected to slow to 1.9 per cent in 2025, slightly higher than previously expected.

In contrast, the euro area is now expected to grow by just 0.8 per cent in 2024 — down 0.1 percentage point from January and only slightly above last year's tepid 0.4 per cent expansion — before picking up to 1.5 per cent in 2025.  The outlook for the United Kingdom and Canada this year has also been revised lower, while Japan's 2024 growth forecast was unchanged. 

China unchanged 

The picture is also mixed for emerging market and developing economies. 

China, the world's second-largest economy, is still expected to grow by 4.6 per cent this year, and by 4.1 per cent in 2025 — unchanged from January. 

The growth slowdown is largely down to the easing of a "postpandemic boost to consumption and fiscal stimulus", and ongoing weakness in the property sector, the WEO said.

One of the bright spots this year is India, which the IMF now expects to grow by 6.8 per cent — up 0.3 points from January's forecast — and by 6.5 per cent in 2025.

Although a full per centage point below India's growth figure for 2023, the robust growth expected this year reflects the South Asian economy's "continuing strength in domestic demand and a rising working-age population", the IMF said. 

Russia outlook improved, again 

Russia's growth prospects have been revised sharply higher once more, as it continues to defy expectations of a slump due to its costly ongoing war in Ukraine.

The Russian economy is now expected to expand by 3.2 per cent this year, and by 1.8 per cent in 2025, well above January's forecast. Such unexpected strength is down to four key factors, including Russia's steady oil export volumes, strong corporate investment, "robustness" in private consumption, and impact from government spending, IMF Research Department deputy director Petya Koeva Brooks told reporters. 

This year's forecast for Latin America is slightly higher at 2 per cent, while the outlook for Sub-Saharan Africa is unchanged at 3.8 per cent. The outlook for 2024 growth in the Middle East and Central Asia is slightly lower, at 2.8 per cent, down 0.1 percentage point.

Despite the IMF's more optimistic overall 2024 outlook, the WEO report still finds that medium-term growth is expected to remain "historically weak", due largely to "persistent structural frictions preventing capital and labor from moving to productive firms". It expects growth to hit 3.1 per cent in 2029, well below its pre-pandemic forecast. The IMF report also found that "the pace of convergence toward higher living standards for middle- and lower-income countries has slowed, implying a persistence in global economic disparities".

SINGAPORE — Singapore's economy grew slower than expected in the first quarter, early data showed recently, as a struggling manufacturing sector weighed on tourism spending from events including Taylor Swift's concerts.

The city-state's economic performance is often seen as a barometer of the global environment because of its reliance on international trade.

Gross domestic product expanded 2.7 per cent on-year, the trade ministry said, faster than the previous three months but weaker than the 3 per cent projected in a Bloomberg poll of economists. It grew just 0.1 per cent on-quarter.

The advance estimates are computed largely from data in January and February and are subject to revision when March figures come in.

Manufacturing, a pillar of the trade-reliant economy, rose 0.8 per cent on-year and contracted 2.9 per cent from October-December.

The services sector, which includes accommodation and food, grew 2.9 per cent.

"In all likelihood, the slew of concerts which attracted many international visitors to Singapore's shores, did have a temporal boost to the consumer-facing industries, namely the hospitality and entertainment-related activities," said Selena Ling, chief economist at banking group OCBC.

Swift performed only in Singapore in March for the Southeast Asian leg of her Eras Tour, while Coldplay played in January and the Singapore Airshow, the biggest in Asia, was held in February.

Veteran economist Song Seng Wun said he expected an "upward adjustment" to the overall first quarter growth when the effects of Swift's concerts are fully counted.

There could also be "spillover effects" into March of spending from the Singapore Airshow, added Song, at financial services firm CGS International Singapore.

"The bottom line is that the economy is still recovering post-pandemic," he told AFP.

In a separate announcement, the central bank Monetary Authority of Singapore kept its monetary policy unchanged for a fourth straight time, saying it needed to keep inflation in check.

As the city-state imports most of its needs, it deals with imported inflation by allowing for a stronger Singapore dollar.

LONDON — Europe's stock markets rose Friday after the European Central Bank (ECB)  signalled a likely June interest rate cut, with London boosted by fresh hope that Britain has escaped from recession, as dealers also awaited the start of the US earnings season.

Gold hammered a record pinnacle at $2,400.67 per ounce as dealers flocked to the haven investment to shelter from intensifying Middle East tensions, which also propelled crude oil more than one percent higher.

The dollar climbed versus the euro as dealers digested increasing indications of a June rate reduction from the Frankfurt-based ECB.

Yet, fading hopes for a similar June rate cut from the US Federal Reserve roiled Asian equities, which struggled to build on Wall Street's positive lead.

"Stock markets edged higher in Europe on Friday despite uneven performances across Asia overnight and rising global uncertainty," said ActivTrades analyst Pierre Veyret.

"Despite a few volatility spikes, EU stock investors reacted positively to ECB President Christine Lagarde's speech. The central banker reassured everyone, saying the ECB would stick to its rate-cut plan regardless of the recent hot inflation report in the US."

London stocks fizzed higher on data showing the UK economy grew for a second straight month in February, further fuelling recovery hopes after sliding into a shallow recession in the second half of last year.

'Welcome distraction' 

Attention is now turning to the corporate reporting season, which gets underway in earnest later in the day with banking giants JPMorgan and Citibank among those to log earnings.

Analysts said that while reducing interest rates would be a major boost for equities, investor optimism about company profits was crucial.

"The inception of the US first quarter earnings season brings a welcome distraction from the Fed's struggles in bringing inflation back down to target," said Scope Markets analyst Joshua Mahony.

Tech titans helped drive gains in the Nasdaq and S&P 500 after producer price index data broadly met expectations, tempering worries about inflation following Wednesday's figures showing a third successive upside miss in consumer price inflation.

The CPI figures followed a series of indicators suggesting the world's number one economy remained resilient and the jobs market strong despite interest rates sitting at two-decade highs and inflation still well above the Fed's target.

That has seen investors trim their US rate cut bets from six at the start of the year to two now.

Dimming hopes for rate cuts continued to support the dollar, which surged to another 34-year high above 153 yen, putting Japanese officials in the spotlight after they said they were ready to intervene in markets to support their currency.