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IMF/IMFC Warns Russia-Ukraine War Has Humanitarian Consequences

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IMF - Investors King

The new Chair of the International Monetary and Financial Committee (IMFC) issued a statement recognizing that Russia’s war against Ukraine has massive humanitarian consequences and detrimental repercussions for the global economy in Washington, DC on Thursday.

The IMFC called for a speedy resolution through diplomatic channels, including “political dialogue, negotiations, mediation and other peaceful means.”

“The statement shows that there has been a constructive and intense dialog at the IMFC as there is an agreement on all elements related to the important work of the institutions. All IMFC members welcome the Managing Director’s Global Policy Agenda. There was not only consensus on the work of the institution, but also on the critical policies that members will need to take, and I should add that there was a very close engagement and dialog amongst all countries on the substantive work of the institution and its policies. If there has been a time for multilateralism, it is now. And against this truly challenging background, we need the international community to come together, stand strong, and demonstrate our full commitment to cooperation,” said Nadia Calviño in a virtual press briefing co-chaired by IMF’s Managing Director Kristalina Georgieva held in Washington, DC.

A new IMF tool created to service members needing longer maturity for longer term transformation, in particular climate change and pandemics, received significant financial backing. Twelve countries stepped forward to support the Resilience and Sustainability Trust (RST). Now the RST has about $40 billion in commitments which can be credibly moved towards the implementation of the trust’s goals.

“We do face a war in Europe. It is creating all the impacts, including making it possible to have a communique with everybody signing in on it. But the overwhelming majority of the membership sees this crisis as proof that we have to cooperate, compare notes on policies, find ways in which we can act in solidarity and this is why I find it remarkable that we got nearly around $40 billion in commitments the first time we openly ask for support for Resilience and sustainability trust because it is walking this talk, it is a demonstration that we need each other,” said Georgieva.

Georgieva announced yesterday (Wednesday, April 20) in her press briefing on the Global Policy Agenda that the IMF has been engaged very closely with the Ukrainian Ministry of Finance on the estimates they have provided of what would be necessary to retain the functioning of the Ukrainian economy over the next three months. The Ukrainian financial authorities came up with the number of $5 billion a month.

“Five billion is the estimate of Ministry of Finance and more broadly the financial authorities of Ukraine for what is their monthly financial gap for the next couple of months. Our staff has worked on verifying, ascertaining, whether this amount broadly is the right, the right order of magnitude, and they confirm that indeed for the observable future, for the next couple of months, this is an amount that would be necessary to provide for Ukraine’s performing its functions in terms of paying salaries, pensions, paying for social services, for the displaced population and of course, the costs that are coming up on top of the normal payments related to the war,” said Georgieva.

The IMF provided Ukraine with $1.4 billion in emergency financing that is now in the Special Drawing Rights account of Ukraine. The IMF also is starting preliminary discussions for a full-fledged program for Ukraine once the conditions in the country allow it.

Calviño concluded her remarks by emphasizing the role of the IMF in reinforcing existing instruments for financial support to middle-income and vulnerable countries.

“I would like to emphasize that there was a unanimous call on the International Monetary Fund to press ahead and to reinforce existing instruments for financial support in particular to most vulnerable countries. Not only also middle-income countries are going to be accessing some of the newly created instruments. And there was also a unanimous commitment to reinforce the common framework to making it operational and to try to have a clear concrete calendar, clear deliverables, thanks to the strong engagement of some key players,” said Calviño.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Netanyahu Stands Firm as US Halts Bomb Shipment Over Rafah Invasion Warning

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Amidst escalating tensions between Israel and the United States, Israeli Prime Minister Benjamin Netanyahu has adopted a defiant stance following the US decision to halt a shipment of bombs and warned against Israel’s potential invasion of the southern Gaza city of Rafah.

In a bold statement, Netanyahu declared, “If we have to stand alone, we will stand alone,” emphasizing Israel’s resolve to pursue its objectives despite opposition.

The Prime Minister’s comments, delivered via social media and a subsequent interview with American talk show host Dr. Phil, underscore Israel’s determination to address security threats posed by the Gaza Strip, particularly by Hamas militants operating in Rafah.

Netanyahu reiterated the necessity of military action in Rafah to eliminate the remaining Hamas battalions, condemned Hamas’s history of violence and reiterated Israel’s commitment to achieving victory and ensuring the safety of its citizens.

The US administration, led by President Joe Biden, expressed concerns over the potential humanitarian impact of an Israeli invasion of Rafah, prompting the decision to withhold additional offensive weapons shipments to Israel.

Biden’s statement echoed broader international apprehensions about the escalation of violence and civilian casualties in the conflict-stricken region.

However, Netanyahu remained resolute in Israel’s approach, asserting the country’s right to defend itself against security threats. He emphasized Israel’s efforts to minimize civilian casualties and facilitate the evacuation of civilians from Rafah before any military action.

Despite the US’s decision to pause the bomb shipment, Netanyahu affirmed Israel’s commitment to its longstanding alliance with the US. He acknowledged past disagreements between the two nations but expressed optimism about resolving current tensions through dialogue and cooperation.

In response, White House officials reiterated the US’s support for Israel’s security while urging restraint and emphasizing the need to avoid actions that could exacerbate the humanitarian crisis in Gaza.

The administration clarified that the decision to halt the bomb shipment was aimed at preventing potential civilian casualties in Rafah.

The confrontation between Israel and the US underscores the complexity of navigating regional conflicts and balancing strategic interests. As tensions persist, both nations face the challenge of reconciling their respective security imperatives with broader humanitarian concerns, seeking to avert further escalation while addressing the root causes of the conflict in the Middle East.

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EFCC Declares Former Kogi Governor, Yahaya Bello, Wanted Over N80.2 Billion Money Laundering Allegations

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Yahaya Bello

The Economic and Financial Crimes Commission (EFCC) has escalated its pursuit of justice by declaring former Kogi State Governor, Yahaya Bello, wanted over alleged money laundering amounting to N80.2 billion.

In a first-of-its-kind action, the EFCC announced Bello’s wanted status in connection with the alleged embezzlement of funds during his tenure as governor.

The commission, armed with a 19-count criminal charge, accused Bello and his cohorts of conspiring to launder the hefty sum, which was purportedly diverted from state coffers for personal gain.

The declaration of Bello as a wanted fugitive came after a series of failed attempts by the EFCC to effect his arrest.

Despite an ex-parte order from Justice Emeka Nwite of the Federal High Court, Abuja, mandating the EFCC to apprehend and produce Bello in court for arraignment, the former governor managed to evade capture with the reported assistance of his successor, Governor Usman Ododo.

This latest development shows the challenges faced by law enforcement agencies in holding powerful individuals accountable for their actions.

However, it also demonstrates the unwavering commitment of the EFCC to uphold the rule of law and ensure that justice is served, irrespective of the status or influence of the accused.

In response to the EFCC’s declaration, the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, issued a stern warning to Bello, stating that fleeing from the law would not resolve the allegations against him.

Fagbemi urged Bello to honor the EFCC’s invitation and cooperate with the investigation process, saying it is important to uphold the rule of law and respect the authority of law enforcement agencies.

The EFCC’s pursuit of Bello underscores the agency’s mandate to combat corruption and financial crimes, sending a strong message that individuals implicated in corrupt practices will be held accountable for their actions.

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Concerns Mount Over Security as National Identity Card Issuance Shifts to Banks

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NIMC enrolment

Amidst the National Identity Management Commission’s (NIMC) recent announcement that the issuance of the proposed new national identity card will be facilitated through applicants’ respective banks, concerns are escalating regarding the security implications of involving financial institutions in the distribution process.

The federal government, in collaboration with the Central Bank of Nigeria (CBN) and the Nigeria Inter-bank Settlement System (NIBSS), introduced a new identity card with payment functionality, aimed at streamlining access to social and financial services.

However, the decision to utilize banks as distribution channels has sparked apprehension among industry stakeholders.

Mr. Kayode Adegoke, Head of Corporate Communications at NIMC, clarified that applicants would request the card by providing their National Identification Number (NIN) through various channels, including online portals, NIMC offices, or their respective banks.

Adegoke emphasized that the new National ID Card would serve as a single, multipurpose card, encompassing payment functionality, government services, and travel documentation.

Despite NIMC’s assurances, concerns have been raised regarding the necessity and security implications of introducing a new identity card system when an operational one already exists.

Chief Deolu Ogunbanjo, President of the National Association of Telecoms Subscribers, questioned the rationale behind the new General Multipurpose Card (GMPC), citing NIMC’s existing mandate to issue such cards under Act No. 23 of 2007.

Ogunbanjo highlighted the successful implementation of MobileID by NIMC, which has provided identity verification for over 15 million individuals.

He expressed apprehension about integrating the new ID card with existing MobileID systems and raised concerns about data privacy and unauthorized duplication of ID cards.

Moreover, stakeholders are seeking clarification on the responsibilities for card blocking, replacement, and delivery in case of loss or theft, given the involvement of multiple parties, including banks, in the issuance process.

The shift towards utilizing banks for identity card issuance raises fundamental questions about data security, privacy, and the integrity of the identification process.

With financial institutions playing a pivotal role in distributing sensitive government documents, there are valid concerns about potential vulnerabilities and risks associated with this approach.

As the debate surrounding the security implications of the new national identity card continues to intensify, stakeholders are calling for greater transparency, accountability, and collaboration between government agencies and financial institutions to address these concerns effectively.

The paramount importance of safeguarding citizens’ personal information and ensuring the integrity of the identity verification process cannot be overstated, especially in an era of increasing digital interconnectedness and heightened cybersecurity threats.

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