The Federal Reserve downgraded its view of the U.S. labour market and economy on Wednesday in a policy statement that suggested the central bank may have to wait until at least the third quarter to begin raising interest rates. The Fed's statement put in place a meeting-by-meeting approach on the timing of its first rate hike since June 2006, making such a decision solely dependent on incoming economic data. The data, however, have been getting worse. Just hours before the Fed's statement, the U.S. government reported that first-quarter gross domestic product came in much weaker than expected. The central bank acknowledged that growth had slowed in the winter months, a dimmer assessment of the economy than its view in March. And while it said the poor performance was in part due to transitory factors, it pointed to soft patches across the economy, in a sign it may have to hold off hiking rates until at least September. "The committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labour market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term," the Fed said in its statement, following a two-day meeting of its policy-setting committee. U.S. Treasury yields added to earlier gains and short-term interest-rate futures contracts dropped slightly after the Fed statement before paring the losses. Futures traders continue to bet the Fed will wait until December to raise rates, and give an October rate rise just a 46 percent chance, according to CME FedWatch. The Fed's guidance on Wednesday differed little from its last meeting. But unlike its March policy statement, this time the central bank did not effectively rule out hiking rates at its next meeting. That still makes a June move a possibility, though the data would have to sharply improve in the next two months for that to happen. 'A Little Dovish'The economy grew at an anaemic 0.2 percent annual rate in the first quarter, the Commerce Department reported early on Wednesday, well below economists' expectations for 1.0 percent growth and the fourth quarter's 2.2 percent expansion. In its statement, the Fed said the pace of job gains had moderated, a downgrade of its view last month and a reflection of the poor March employment data. It also noted that the underutilisation of labour resources was little changed - it had used the term "improved" in its March statement. "On net it seems to be a little dovish given the weaker-than-expected activity we have seen," said Gennadiy Goldberg of TD Securities. The Fed's view of inflation changed only slightly, as it hinted at the recent stabilization of oil prices and a levelling off of the U.S. dollar by saying "inflation continued to run below" its longer-term objective. At its last meeting the Fed had described inflation as having "declined." "We all know the Fed would love to start normalizing rates, but the simple fact is, the data does not warrant that action right now," said Wayne Kaufman, chief market analyst at Phoenix Financial Services in New York. There were no dissents in the Fed's policy statement on Wednesday. After the release of the statement, the Fed held a conference call with reporters to test a new conference call system that increases its flexibility to explain an interest rate hike in months when one of its quarterly press conferences is not already scheduled. (Reuters)
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The rupee's stability reflects the strength of the Indian economy and the currency should be able to withstand possible international events such as a rate hike by the US Federal Reserve, Indian Finance Minister Arun Jaitley said on Thursday. "By and large the strength of the Indian economy is also reflected in the fact that (the) rupee has remained relatively within the stable range, and we do believe that the rupee will find its real value and real strength in the international currency market," he said at a seminar in Washington. He noted that even when several currencies had faced a serious challenge, the rupee was relatively more stable against the dollar and rose against most other currencies. He said the depth and size of the Indian market meant its ability to withstand such shocks was far stronger. "I wouldn't call it threats or risks if we continue with our own internal ability to carry on with our own reform process," he said. "And as long as we continue that, I think our ability to absorb various international possible scenarios would be reasonably high." Goods And Services TaxThe implementation of the landmark goods and services tax (GST) regime proposed from April 1 next year would increase India's GDP by one to two per cent, Jaitley said. "This (GST) has the potential to push India's GDP by one to two per cent," he said, adding that the landmark constitutional amendment would immediately convert India into a one big uniform market. The new tax regime is scheduled to be rolled out from April 1, 2016 after the necessary constitutional amendment in the next session of the Parliament. In Washington to attend the annual Spring meeting of the International Monetary Fund and the World Bank, Jaitley was speaking at the Peterson Institute for International Economics. In his effort to address the concerns of the US corporate sector related to taxation, Jaitley said his government intends to rationalise the tax regime and make the tax department friendly to the assessor itself. Jaitley said the government is working hard on unaccounted money and assets, undertaking steps which include increasing cashless transaction and bringing the black money back into the system. He assured American corporate sector that there will be no retrospective taxation system in India, but did acknowledge that there are a few issues that his government has inherited from the previous regime and is working to address those. (Agencies)
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Iranian investment banker Ramin Rabii says he shouted in joy when he learned that Tehran and world powers had reached a deal which promises to lift economic sanctions on Iran. Then he called colleagues to discuss the business implications. Rabii, managing director of Turquoise Partners, a Tehran-based investment firm with about $200 million of assets under management, has been grappling for years with the results of the sanctions: unstable growth, high inflation, international banking restrictions and hard currency shortages. The agreement on curbing Iran's nuclear programme, reached on Thursday, will - if confirmed in a final deal by a June 30 deadline - begin to ease those crippling problems for Turquoise and thousands of other Iranian firms. "We've been preparing for this moment for 10 years," Rabii said by telephone, adding that in the months leading up to the deal Turquoise was in touch with hundreds of potential foreign investors about opportunities for them if sanctions were lifted. He said the company now planned to develop its asset management and brokerage businesses, and would hold roadshows for investors in Europe and possibly Dubai.India's Oil ImportsThe breakthrough in the standoff between Iran and the West is likely to help major buyers of Iranian oil like India by lifting curbs on quantity of import and payment restrictions. In 2014-15, US put pressure on India to maintain imports from Iran at 2013-14 level, which led to New Delhi not importing any oil last month. Iran is one of the biggest suppliers of oil to India. The sanctions on Iran have brought a steady decline in oil and natural gas revenue, to $56 billion in the 2013-2014 fiscal year from about $118 billion in the 2011- 2012 fiscal year, according to the International Monetary Fund. India was paying 45 per cent of bills against Iranian oil imports in rupee through a UCO Bank account. For the rest it had to wait for opening of payment channel. The unpaid bills now total $5.9 billion. China, India, South Korea, Japan and Turkey are the largest buyers of crude from Iran, which has the world's fourth-largest oil reserves. Banking SanctionsFrozen out of the international banking system, its foreign trade slashed by the sanctions, Iran looks likely to become the biggest country to rejoin the global economy since post-Communist eastern Europe in the early 1990s. The resulting boom could create tens of billions of dollars worth of business for both local and foreign companies and shift the economic balance in the Gulf, which has so far been heavily weighted towards the rich Gulf Arab oil exporting countries. "Precautionary talks have already started between Iran and some big Western investors" in areas such as oil and autos, said Iranian-born economist Mehrdad Emadi of London's Betamatrix consultancy. "Now there will be accelerating momentum." He predicted annual growth of Iran's $420 billion economy would rise by as much as 2 percentage points to over 5 per cent in the year after a final nuclear deal. It could accelerate further to 7 or 8 per cent in the following 18 months - matching the growth of Asia's "tiger economies" during their boom years. Iran's trade with the European Union, which totalled 7.6 billion euros ($8.3 billion) last year, could balloon 400 per cent by mid-2018, Emadi said. The complex web of financial, shipping, energy and technology sanctions woven by the United States, the European Union and the United Nations is expected to take years to remove, even if a final nuclear agreement is reached and implemented smoothly. As a result Iran's oil exports, cut by the sanctions to about 1.1 million barrels per day from 2.5 million bpd in 2012, may not start rebounding before 2016. American ActsBut the single most damaging sanctions measure, the US Treasury's use of Section 311 of the USA PATRIOT Act to identify Iran as a money laundering area, could be lifted quickly by the Obama administration, analysts believe. This would have a big impact on trade and investment by letting foreign banks deal with Iran without fear of being targeted by US officials. Iran could be re-admitted to the SWIFT global payments system, from which it was expelled in 2012, within three months of a final nuclear deal, Emadi said. Rabii said the boost to Iranian production from easier trade would quickly spur the economy, even if big foreign investment deals took longer to arrange. "Iranian industry is currently operating at about 60 to 70 per cent capacity. Thirty per cent is idle - that's because of the sanctions. Getting this working again is the low-hanging fruit of lifting the sanctions." Benefits Across GulfThe economic benefits would extend across the Gulf, particularly to Dubai, which is a traditional hub for business with Iran and has a large Iranian community. The sanctions slashed Dubai's trade with Iran by more than a third; the emirate could now become a jumping-off point for foreign companies going back into Iran. Airlines and logistics firms around the region also stand to profit. Tarek Sultan, chief executive of Kuwait-listed logistics giant Agility, said Iran was potentially attractive because its isolation had encouraged it to develop indigenous expertise that could allow it to leapfrog other economies. "When the international situation is resolved and restrictions are lifted, we'll be among the first ones in there," Sultan said late last year. Other parts of the Gulf economy may at least temporarily be hurt by the rise of Iran. Gulf Arab stock markets are reforming themselves to attract foreign capital; Saudi Arabia plans to open its bourse to direct foreign investment within months. These markets will now have a major rival for funds in Tehran. Any increase in Iranian oil sales could come at the expense of Saudi Arabia, Opec's biggest producer, which has lifted its output near 10 million bpd. The kingdom already faces a record budget deficit this year because of low oil prices. (Agencies)
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Saying that the thinking by the Reserve Bank of India and government on financial matters were often quite similar, Prime Minister Narendra on Thursday (2 April) asked the Reserve Bank of India to prepare a 20-year road map for financial inclusion and nudged banks to be considerate in giving loans to the poor as also while making recoveries from them, especially farmers. "RBI will be completing 100 years in 2035...it will be appropriate for the central bank to work on the theme of financial inclusion and prepare a road map for achieving it," he said while addressing a function to mark the 80th anniversary of the Reserve Bank of India. The other milestones for achieving financial inclusion could be 150th birth anniversary of Mahatma Gandhi in 2019, 75th year of Independence in 2022, 90th anniversary of RBI in 2025 and 100 years of RBI in 2035, the Prime Minister said. "These are four important dates...we can create a road map for financial inclusion," he said, adding that the financial inclusion should not remain a government programme but should become "an article of faith". Reserve Bank of India Governor Raghuram Rajan said the country's push to finance infrastructure should not override the need for financial stability. Rajan made the comments during a speech on financial inclusion. India is keen to ramp up infrastructure investment to help support economic growth, which will require a big push to fund projects. Finance Minister Arun Jaitley the government would restore the credibility of decision-making, while easing processes and making India's tax structure non-adversarial. The comments, in a speech on financial inclusion in Mumbai, reiterate government promises to make India more business- and investor-friendly. Concerns Over Farmers' SuicidesExpressing concern over farmers' suicides and the plight of the poor people in the country, Prime Minister Modi asked the bankers to be considerate in providing financial assistance to poor. Farmers' plight should, he added, shake up the conscience of the banking sector. "Our farmers commit suicide. The pain of this should not only be restricted to newspapers and TV screens. When farmer dies, does it shake the heart of banking sector? Because of taking loan from money lender, he has to face death," Modi said. The Prime Minister also called upon the bankers to extend credit to resource rich eastern states.(Agencies)
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Gold rallied 2 percent on Wednesday as the dollar retreated after a downbeat U.S. jobs report raised expectations that the Federal Reserve could be more cautious in tightening monetary policy. The dollar fell 0.2 percent against a basket of currencies, after weaker-than-expected ADP private jobs data raised concerns that Friday's impending jobs report could also point to worsening conditions in the labor market. "There is so much discord in the U.S. data that is difficult to find what exactly the next report is going to be. It's the uncertainty that pushes people towards safe-haven assets such as gold," ING Bank senior strategist Hamza Khan said. Spot gold rose 2.2 percent to a session high of $1,208.90 an ounce, and was trading up 1.8 percent at $1,204.90 at 2:12 p.m. EDT (1812 GMT). U.S. gold futures for June delivery settled up 2.1 percent at $1,208.20. A strong reading from the U.S. jobs data on Friday could boost bets the Federal Reserve will hike interest rates sooner rather than later, lifting the opportunity cost of holding non-yielding gold. However, a worse-than-expected report could support views that the Fed will hold off any rate hike until next year. Gold is particularly sensitive to shifts in U.S. interest rates, which also move the dollar, in which the metal is priced. "There's a lot of concern about the employment report that's coming out on Friday, that it might be worse than expected," said Phillip Streible, senior commodities broker at RJO Futures in Chicago. "Because of that, traders are positioning themselves with some safety ahead of the report." The world's largest gold-backed exchange-traded fund, New York-listed SPDR Gold Trust, in March recorded its biggest monthly outflow since December 2013. Buying interest in China, the world's second-largest gold consumer after India, has been relatively soft of late, but dealers reported some interest overnight after prices eased. "Following yesterday's sell off, China was back as a buyer today," MKS said in a note. "We saw gold add a few dollars in Tokyo before Shanghai took over and sent the yellow metal to a session high." Silver rose 1.9 percent to $16.93 an ounce, while platinum was up 2 percent at $1,161.60 an ounce and palladium climbed 1.9 percent to $746.50 an ounce. Silver saw the biggest gain among the precious metals in the last quarter, rising 6 percent, while palladium fell 7.6 percent. Platinum fell just over 5 percent. (Reuters)
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More than 250 companies, including Adani Power, Adani Ports, Essar Oil and GVK Power, on Tuesday appointed women directors to meet the Securities and Exchange Board of India (Sebi) deadline of midnight on March 31 for having at least one female member on their boards. The companies have, however, mostly appointed wives, daugthers or sisters of their promoters or top executives, while some have also replaced their independent directors with their female family members. The numbers can rise further as board meetings were scheduled till late in the night to comply with the norms, which were first announced in February 2014 with an initial deadline of October 1, 2014. It was extended by six months. About 200 companies had made such appointments on Monday amid a rush that began late last week after a stern warning from the regulator. The companies now without a woman director may face penal action under the Sebi regulations, as also under the Companies Act, including monetary fines. While Sebi norms provide for penalty of up to Rs 25 crore, the penalty under the Companies Act can be from Rs 5,000 to Rs 5 lakh. Compliance StatusSources said the stock exchanges were asked by Sebi to submit a compliance status tonight (March 31), while a final update would be provided tomorrow after taking into account late-night filings. Sebi will look into the final compliance status and begin the process for undertaking necessary action against the non-compliant companies. Similar action would be initiated by the Corporate Affairs Ministry for non-compliance to the Companies Act provisions. The companies are required to appoint women directors as per the new Corporate Governance regime ushered in by Sebi last year, which also included various measures with regard to independent directors and top management salaries to safeguard the interest of small investors. The new regime was applicable to all the listed firms earlier. Sebi later exempted smaller companies - those having equity share capital of up to Rs 10 crore and networth not exceeding Rs 25 crore, as also those listed on the SME platforms of the stock exchanges - from the mandatory compliance "for the time being". There are more than 5,000 companies listed on the BSE, while NSE has nearly 1,650 entities on its platform. Till early evening on Tuesday, nearly 200 NSE-listed companies were yet to comply, while the number could be higher at the BSE. However, nearly half the appointments made by the companies were of the persons from within the families of the promoters or top executives. The companies that have decided to appoint women directors as independent members of their boards seem to have preferred bankers and chartered accountants, shows an analysis of the announcements made by listed firms in last few days. A few companies, such as United Breweries Holdings Ltd, have opted for a foreign national to be appointed as a woman director, while many of them have decided to promote a senior management personnel to the board. To meet the deadline, many firms are appointing the same women executives to boards of their various group companies. Some companies have expressed their inability to meet the deadline, citing reasons ranging from a sudden exit of existing women directors to "lack of quorum" in their board meetings to make an appointment. Sebi Chairman U.K. Sinha recently said it was "really shameful" that many companies were not being able to appoint even one woman director. The companies which appointed women members on their boards as independent directors included Adani Power, Adani Ports and SEZ, Golden Tobacco, Prime Capital Market, Linc Pen and Plastics and Kohinoor Foods. Other companies that announced appointments of women directors today were GVK Power, Dhampure Specialty Sugars, Ashoka Buildcon, ABG Infralogistics, Surya Roshni Ltd, Bharati Shipyard, India Home Loan Ltd, Landmark Property, Donear Industries Ltd and Nitesh Estates. On Monday, at least 80 companies announced appointment of women directors as independent board members, while another 110 appointed non-independent female directors. (Agencies)
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The Federal Reserve is "widely expected" to begin raising interest rates this year though the policy path remains uncertain, the central bank's second-in-command said on Monday, appearing to lay the groundwork for a less predictable future. Fed Vice Chair Stanley Fischer said the stronger dollar and weak oil play a role in U.S. policymaking, but he stressed that the central bank is "trying to look through those phenomena." Much of his speech to the Economic Club of New York focussed on the period after rates rise from near zero, which Fischer said could be "June or September or some later date or some date in between." Afterward, he said, the Fed would tighten or even loosen on a meeting-by-meeting basis based on economic data and unexpected geo-political risks. Explicit policy promises, he said, would play less of a role. "Whatever the state of the economy, the federal funds rate will be set at each FOMC meeting," Fischer said of the policy-making Federal Open Market Committee. A smooth series of future rate rises "will almost certainly not be realized because, inevitably, the economy will encounter shocks," he added, stressing that the Fed would be considering moving its key policy rate "up and down" in the future. The Fed last week took another step in preparing the market for its first rate hike since 2006, but its dim economic forecast and dovish comments from Fed Chair Janet Yellen signalled that the central bank would not be prepared to move until later in the year. The news prompted many economists to shift their expectation of a tightening from June to September or later. "It is well expected that the rate will lift off before the end of this year," Fischer said. "We will be moving from an ultra expansionary monetary policy to an extremely expansionary monetary policy." His mostly upbeat remarks cited significant economic progress and a labour market nearing full employment. He did, however, say the rising dollar may offset some benefits of monetary accommodation. The dollar and weak oil are putting downward pressure on already low U.S. inflation, which is staying the Fed's hand at tightening. Fischer said both are "transitory," and stressed "further improvement" in the labour market was also needed to hike rates. Turning to the mechanics of tightening policy, Fischer said he expected the Fed's tools would be adequate, though some, such as its overnight reverse repurchase programme (ON RRPs), contained risks. "For example, a large and persistent programme could have unanticipated and adverse effects on the structure of money markets," Fischer said, explaining that in times of stress, flight to quality demand for the programme could disrupt money flows. (Reuters)
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President Barack Obama's administration is proposing that a new Chinese-led development bank over which Washington has voiced concerns work collaboratively with Western development groups like the World Bank, The Wall Street Journal reported on Sunday. The United States, worried about China's growing diplomatic clout, has been urging countries to think twice about joining the Asian Infrastructure Investment Bank, or AIIB, considered by some as a challenge to the World Bank and the Manila-based Asian Development Bank. Despite US misgivings, Britain said earlier this month it would join the AIIB. France, Germany and Italy quickly followed. Chinese Finance Minister Lou Jiwei said on Sunday that 27 countries had now signed up to participate in the new bank, a $50 billion fund set to begin operations at the end of the year providing project loans to developing countries. The Journal reported that the US Treasury undersecretary for international affairs, Nathan Sheets, said: “The US would welcome new multilateral institutions that strengthen the international financial architecture." He told the Journal that co-financing projects with existing institutions like the World Bank or the Asian Development Bank would help ensure the new bank complements rather than competes with existing institutions. The US Treasury Department had no immediate comment. World Bank President Jim Yong Kim said in a statement on Sunday that his institution was discussing with the AIIB "how we can closely work together. We have every intention of sharing knowledge and co-investing in projects throughout Asia.” The World Bank has welcomed the setting up of the Asian Infrastructure Investment Bank and promised full cooperation. "Any new initiative that will mobilise funding in order to fill infrastructure gap is certainly welcome," World Bank Managing Director Mulyani Indrawati said on Sunday. Indrawati dismissed worries that the AIIB will compete against World Bank or existing regional development banks, saying the global need of infrastructure is huge and the market is large enough. "What's important is whether you are going to be able to match the funding with the need of infrastructure," she told state-run Xinhua news agency. US allies Japan, Australia and South Korea are still absent from the AIIB's list of members. Leaders of the International Monetary Fund and the Asian Development Bank told a conference in Beijing on Sunday they were in talks with or happy to cooperate with the AIIB. (Agencies)
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The Reserve Bank of India has entered a $1.5 billion currency swap agreement with the central bank of Sri Lanka, Prime Minister Narendra Modi said on Friday after meeting Sri Lankan leader Maithripala Sirisena. Sri Lanka rupee has been under pressure since early January and fallen around 1.5 per cent so far this year despite the central bank defended it with selling dollars. "The Reserve Bank of India and the Central Bank of Sri Lanka have agreed to enter into a Currency Swap Agreement of $1.5 billion. This will help keep the Sri Lankan rupee stable," said Modi, who reached Colombo on the last leg of his three-nation tour that included Seychelles and Mauritius. At the current valuation, one Indian rupee is equivalent to 2.12 Sri Lankan Rupee. It has lost almost three per cent value in comparison to the Indian rupee so far in 2015. Modi is the first Indian Prime Minister to come to Sri Lanka on a standalone bilateral visit since 1987. Last month, Sirisena visited India on his first foreign trip as Sri Lankan president. Modi said that economic ties are "a key pillar of relationship between the two countries" and the bilateral trade has grown impressively over the past decade. "Economic ties are a key pillar of our relationship. The progress we have made reflects our shared commitment to stronger economic cooperation," he said. "I am aware of your concerns about trade with India. As I said in Delhi, we will try and address them," the prime minister said. The two sides signed four agreements on visa, customs, youth development and building Rabindranath Tagore memorial in Sri Lanka. The prime minister said his meeting with Sirisena has been very productive. It "gives me confidence and optimism about the future of our relations," Modi said. "The agreement today on cooperation between our customs authorities is a step in that direction. It will simplify trade and reduce non-tariff barriers on both sides," he said. "Our trade has seen impressive growth over the past decade. I am aware of your concerns about trade with India. As I said in Delhi, we will try and address them," he said. Trincomalee Petroleum HubModi said India stands ready to help Trincomalee become a petroleum hub and announced that New Delhi will provide a fresh Line of Credit of up to $318 million for the railways sector in Lanka. "This will be used to procure rolling stock, and to restore and upgrade existing railway track," he said. He lauded the efforts of Sirisena to improve relations with India and assured him of all help from Delhi. "We stand with you in your efforts to build a future that accommodates the aspirations of all sections of society, including the Sri Lankan Tamil community, for a life of equality, justice, peace and dignity in a united Sri Lanka." (Agencies)
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Britain said it has sought to become a founding member of the Asian Infrastructure Investment Bank (AIIB), making it the first Western nation to embrace the China-backed institution, but the United States reacted frostily to the development. The AIIB was launched in Beijing last year to spur investment in Asia in transportation, energy, telecommunications and other infrastructure. Analysts have said it could challenge the Western-dominated World Bank and Asian Development Bank. However, Britain's finance ministry said on Thursday that the AIIB could complement work already done in the region by those organizations. Britain would meet other founding members this month to agree on the principles of the bank's governance and accountability arrangements, the ministry said. Finance minister George Osborne said joining the bank would boost the country's push to foster business and investment ties with countries in the region, chief among them China. "Joining the AIIB at the founding stage will create an unrivalled opportunity for the UK and Asia to invest and grow together," he said in a statement. Britain's announcement was not welcomed in Washington. A spokesman for the White House National Security Council said the United States had concerns about whether the AIIB would have sufficiently high standards on governance and environmental and social safeguards. "It is important to note that countries that become prospective members of the AIIB will be responsible for the standards adopted in the articles of agreement and their implementation," the spokesman said. "This is the UK’s sovereign decision. We hope and expect that the UK will use its voice to push for adoption of high standards," he said. China's Ministry of Finance said it welcomed Britain's decision, and would consult with the AIIB's existing founding members on its proposed entry. "If all goes well, the UK will become a founding member of the AIIB by the end of March," it said in a statement on its website. The articles of agreement of the AIIB, which will include its shareholding and lending strategy, will not be finalised until the end of 2015, Chinese officials have said. Twenty one countries were represented at the announcement of the bank in October - Bangladesh, Brunei, Cambodia, China, India, Kazakhstan, Kuwait, Laos, Malaysia, Mongolia, Myanmar, Nepal, Oman, Pakistan, the Philippines, Qatar, Singapore, Sri Lanka, Thailand, Uzbekistan and Vietnam. Indonesia later said it would join, but Japan, Australia and South Korea, the other notable absentees in the region, have not yet announced any decision. Japan, China's main regional rival, has the highest shareholding in the Asian Development Bank along with the United States, while Australian media said Washington put pressure on Canberra to stay out. Vice Finance Minister Joo Hyung-hwan told reporters on Thursday that South Korea was still in discussions with China and other countries about its possible participation. Sources in the finance ministry said South Korea is undecided because its concerns about governance and operational transparency had not been addressed. One source, who has direct knowledge of the discussions, said one of the concerns for South Korea was that the country would not be given sufficient representation in the bank. "China is reported to be holding 50 percent," the source said. "And if that's the case, there's a likelihood that Korea will end up being a minor member." (Reuters)
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