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Economy Current Affairs April 3rd Week 2019

 1. RBI grants 12 years to LIC for reducing stake in IDBI Bank

 
Life Insurance Corporation(LIC), the largest insurance company in India, got 12 years from RBI for cut down stake in IDBI Bank.LIC is the lender’s major shareholder, and it has a 51 per cent stake in the Bank. It means that no obligation to sell its stake in the following years or would probably spend higher money to keep its stake in any future fund raising by the bank.
Insurance Regulatory and Development Authority (IRDAI) claimed that LIC can take up to 15 percent stake in any bank,which can stretch up to 30 percent as per the board approval.But the insurance regulator has authorised LIC to hold up to 51 percent in IDBI Bank in 2018.
After 12 years LIC has to decrease stake in IDBI Bank by 10 per cent to 40 per cent.
The development means that LIC would be under no obligation to sell its stake in next few years or so and would probably invest more money to retain its stake in any future fund raising by the bank. 
The e insurance regulator’s rules stipulate that LIC can hold only up to 15 per cent in a bank which can go up to 30 per cent in case of board approval. But the Insurance Regulatory Authority of India (Irdai) allowed LIC to invest up to 51 per cent in IDBI Bank last year. The regulator also did not insist publicly on a deadline for LIC to cut its stake in Corporation BankNSE 0.36 % when it invested more than 10 years ago. The insurer held nearly 26 per cent at one time which has now come down to 3 percent.
 
2. ADB agreed to grant highest-ever USD 3 billion in sovereign loans to India
 
Asian Development Bank (ADB) agreed to provide a total of USD 3.88 billion in sovereign loans to India in 2018, which is the highest ever loan amount since sovereign operations began in the country in 1986.
With this total USD 21.6 billion in loans, granted from ADB’s own resources, which exceeded the target of USD 19.71 billion and up 10 percent from 2017.
ADB committed several projects like a USD 100-million loan to Ostro Kutch Wind, which is a renewable energy company for constructing and operating a 250-megawatt wind power project in Gujarat, also provided USD 30 million in equity and USD 20 millionin debt security to Annapurna Finance, a microfinance company.
In 2018, ADB signed an arrangement with the International Solar Alliance for promoting solar energy deployment across Asia, the Pacific, and South Asia.
ADB continued to deliver climate financing to USD 3.6 billion in 2018 and has a target to double its annual climate financing to USD 6 billion in approvals by 2020.
 
3. UN owes India USD 38 million for peacekeeping operations: UNSG report
 
United Nation Secretary General (UNSG) Antonio Guterres voiced concern that the UN owes India USD 38 million, the highest amount which has to be paid by any country for peacekeeping operations as of March 2019.
Till now, the total amount which has to be paid to troops and police-contributing countries (TCCs/PCCs) with respect to active peacekeeping missions was USD 265 million. Out of this, the UN owes USD 38 million to India, followed by Rwanda (USD 31 million), Pakistan (USD 28 million), Bangladesh (USD 25 million) and Nepal (USD 23 million).
This dues to troops and police-contributing countries could increase to USD 588 million by June 2019 in the worst case scenario.
At the end of 2010, UN had a positive cash balance of USD 412 million but in 2018 it finished with a negative cash balance of USD 323 million – a decline of USD 735 million in last 8 years.
73 member states had paid their full contributions by the end of the first quarter in 2017 and 2018, as compared to 62 members in 2016 and 67 in 2015. In 2019, 74 member states have paid their full contributions.
By the end of 2017/18 peacekeeping fiscal year, outstanding contributions to peacekeeping operation amounted to almost USD 2 billion which is well above the USD 1.3 billion unpaid as on June 30, 2017. The UN Chief ask the General Assembly to increase the Working Capital Fund to USD 350 million effective July 1, 2019, and to create a Peacekeeping Working Capital Fund of USD 250 million and authorize its use to address the liquidity challenges of active peacekeeping operations. This will help in improving the financial health of the world body and deal with the timely payment of dues to troop and police contributing countries.
 
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Economy Current Affairs April 3rd Week 2019

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