China offers $325 bn in fiscal stimulus for ailing economy

Published

6 months ago

October 13, 2024

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China said Saturday it will make $325 billion in fiscal support available to its economy over the next three months, offering help to bolster banks, shore up the property market and free up consumption spending in Beijing’s biggest aid programme since the global financial crisis.

The highly anticipated stimulus came on top of a series of measures announced over the last weeks that have included interest rate cuts and liquidity for banks.

Despite the scale of the package, Finance Minister Lan Fo’an said China had the capacity to dig deeper.

“At present, we are accelerating the use of additional treasury bonds, and ultra-long-term special treasury bonds are also being issued for use,” he said.

“In the next three months, a total of 2.3 trillion yuan of special bond funds can be arranged for use in various places,” he added.

Beijing plans to “issue special government bonds to support large state-owned commercial banks in replenishing core tier-one capital, enhance these banks’ risk resistance and credit lending capabilities, and better serve the development of the real economy”, Lan said.

The debt ceiling of local governments will also be lowered for them to spend more on infrastructure and to help protect jobs.

The figure is slightly more than the two trillion yuan analysts and investors polled by Bloomberg had expected to be announced.

Mortgage help

Beijing has said it is aiming for five percent growth this year — enviable for many Western countries but a far cry from the double-digit expansion that for years drove the Chinese economy.

But the economic uncertainty is also fuelling a vicious cycle that has kept consumption stubbornly low.

Chinese policymakers have unveiled a string of stimulus measures including a suite of rate cuts and a loosening of rules on buying homes, but economists said that more action is needed to pull the economy out of its slump for good.

Earlier on Saturday, China’s top banks said they would cut lower interest rates on existing mortgages from October 25, state media said, following a government call for the action.

“Except for second mortgages in Beijing, Shanghai, Shenzhen and some other regions, the interest rates on other eligible mortgages will be adjusted” to no less than 30 basis points below the prime lending rate, the central bank’s benchmark rate for mortgages, state broadcaster CCTV said.

CCTV reported that major banks including the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, and China Construction Bank had announced that they would make the adjustments “in batches”.

The banks said the tweaks “will be uniformly done… and customers do not need to apply for them”, CCTV reported.

The People’s Bank of China last month requested that commercial banks lower such rates by October 31.

Beijing also last month slashed interest on one-year loans to financial institutions, cut the amount of cash lenders must keep on hand and pushed to lower rates on existing mortgages.

And the central bank this week boosted support for markets by opening up tens of billions of dollars in liquidity for firms to buy stocks.

Beijing said the “swap facility” — worth 500 billion yuan — would encourage “the healthy and stable development of the capital market”.

Nigerian Singer Portable Treats Himself to a Brand-New FORD F150 Truck

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46 minutes ago

April 25, 2025

Ekwutos Blog

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Controversial Nigerian singer Portable has splurged on a brand-new FORD F150 truck, flaunting his latest acquisition on Instagram.

In a video, Portable revealed that he topped up the N20 million given to him by Burna Boy after his victory over Speed Darlington in a celebrity boxing match.

The singer knocked out Speed Darlington in the first round of their highly publicized bout, held at the Balmoral Events Centre on April 19.

Burna Boy’s N20 million reward was a celebratory gesture for Portable’s impressive win. With some additional funds, Portable was able to purchase his sleek new ride.

Photo source: Instagram

Construct speed breakers to stop accidents on Apete-Akufo road – Residents to Makinde

Published

13 hours ago

April 24, 2025

Ekwutos Blog

Governor Seyi Makinde

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Residents of communities along the Apete -Akufo road have appealed to Oyo State governor Seyi Makinde to construct speed breakers and bumps om the road.

The residents noted that this is necessary in order to avoid incessant road accidents on the road.

Our correspondent reports that the road serves over 50 communities within Ido local government area.

Ekwutosblog gathered that the 12.5 kilometers road – which is the first concrete road in the state – was executed by Governor Seyi Makinde.

Many road accidents have occurred along the road since its construction.

The residents of the communities appealed to Makinde to provide speed breakers and bumps to avoid future occurrences of accidents on the road.

The residents in a statement signed by the Deputy Provost, Comfort Estate, Araromi, Professor Onyekachi Ireanus Okoro, said that many accidents have occurred on the road.

Okoro, in the statement made available to Ekwutosblog on Thursday, said that reckless driving habits of commercial motorcyclists, tipper truck drivers and other vehicle operators pose a significant threat to the lives of residents and travellers in the affected communities.

Okoro in the statement titled ‘Urgent call for road safety measures’, insisted that the current situation puts the lives of residents, commuters and pedestrians at risk.

“We, the community, are concerned about the increasing number of accidents on the Apete-Akufo Highway. The reckless driving habits of commercial motorcyclists, tipper truck drivers, and other vehicle operators pose a significant threat to the lives of residents and travelers.

“We kindly request the installation of speed breakers or bumps along this highway to reduce speeding and prevent accidents. This measure will help save lives and prevent unnecessary pain and suffering in our communities.

“The current situation puts the lives of residents, commuters, and pedestrians at risk. Speed control measures can significantly reduce the likelihood of accidents.We are concerned about the impact of accidents on families and the community as a whole.

“We urge the relevant authorities to take immediate action to address this issue. The installation of speed breakers or bumps will be a significant step towards ensuring the safety of all road users.

“We believe that with the implementation of these safety measures, we can reduce the risk of accidents and create a safer environment for everyone. We look forward to a positive response to our request”.

US indicts Nigerian man for $690,000 fraud, lying to obtain American citizenship

Published

17 hours ago

April 24, 2025

Ekwutos Blog

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Oladapo Fadugba, a Nigerian-born United States citizen, risks 27 years imprisonment over his alleged involvement in a $690,000 wire fraud scheme and making false declarations to obtain US citizenship.

This was contained in a statement by the US Attorney for the District of Florida, Gregory Kehoe, on Tuesday.

Kehoe said Fadugba was indicted for multiple charges, including wire fraud, aggravated identity theft, and making false statements during his naturalisation process.

He noted that between October 2020 and July 2023, the suspect allegedly diverted $690,000 in funds belonging to the US Department of Veterans Affairs, which was meant for reimbursement to a major local healthcare provider.

It was also alleged that Fadugba used another person’s identity to facilitate the transfers into different bank accounts under his control.

The statement read in part, “According to the indictment, beginning on October 30, 2020, and ending no later than July 11, 2023, Fadugba had more than $690,000 of Department of Veterans Affairs funds, intended for reimbursement to a large local healthcare provider, transferred to his personal bank accounts.

“Fadugba then wrote cheques to himself or to businesses associated with him, which were subsequently transferred to other bank accounts under his control. It is alleged that he used the identification of another individual to carry out these transfers.

“The indictment further alleges that Fadugba, a naturalized U.S. citizen from Nigeria, made a false statement under oath during his naturalization proceeding. Fadugba allegedly falsely stated he had not committed any crime or offense for which he had not been arrested.

“An indictment is merely a formal charge that the defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.”