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Ø       IMF approves US $6.3 million in emergency assistance for the Maldives

The executive board of the International Monetary Fund has approved US$6.3 million in emergency assistance for natural disasters for the Maldives. The amount approved is available immediately to help the government deal with the devastating effect of the tsunami that struck the island on December 26, 2004. Although the loss of life was limited, there was extensive damage to housing and about 5 percent of the population lost their homes. Tourism and fisheries account for 40 percent of GDP and generate most of the Maldives’ foreign earnings. Net losses to the balance of payments are estimated at about US$160 million in 2005, and total reconstruction costs are estimated at almost 50 percent of GDP.

 

Ø       US importers back China textiles

Textile importers and retailers have sued the US government to block a proposed limit on imports from China. Producers have asked for textile quotas because they say Chinese imports will damage the domestic industry. The Commerce Department and four other government agencies are investigating the allegations. But the US Association of Importers of Textiles and Apparel says the case is based on wrong information and violates importers’ rights. According to US-AITA’s executive director, the rules for the government agencies ban petitions such as those from the textile industry.

Ø       G8 seeks boost in oil production

Finance ministers and central bank heads from the world’s eight largest economies have urged oil producers to increase supplies to bring down prices. The G8 officials say the prices are a threat to global economy. In a joint statement after meeting in Washington, the ministers also called on consumer nations to make savings on energy consumption. The G8 ministers exhorted the producers to increase output when they met six months ago and it had no perceptible effect. Prices rose all the same, despite that they have again said that producers should provide adequate supplies to ensure that price is moderate.