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RBI breather for trade: Higher export credit, more time to pay import bills

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The Reserve Bank of India (RBI) on Friday unleashed a series of relaxations for exporters and importers, including higher export credit, more time to pay for import orders and increased flexibility in repaying loans. The measures are expected to give the sector more time and liquidity to tackle the ongoing coronavirus crisis. But while exporters have lauded the measures as timely, their call for more government support and a detailed package continues.

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The rare intervention in foreign trade norms by the RBI came after the central bank took note of the deepening contraction in global activity and trade, and agreed that the impact on India’s foreign trade is substantial. India’s exports contracted by a record 60.28 per cent in April, following a fall of 34.5 per cent in March as the Covid-19-induced lockdown took its toll on trade with other countries. The latest drop in outbound trade was the most since at least April 1, 1995.


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“The measures would ease exporters’ distress, but the problem is far greater, posing existential crisis for the sector. Exporters would need direct fiscal support for staying alive in business. These measures can be in the form of waiver of electricity-user charges, reduction of levies at the ports, freight support and wage support for workers,” said Engineering Export Promotion Council Chairman Ravi Sehgal.


In a major move, the RBI boosted the coffers of the Export-Import Bank of India by extending a line of credit worth Rs 15,000 crore for a period of 90 days (with a rollover of up to one year) so as to enable it to avail a dollar-swap facility. This is expected to help in leveraging long term and project exports as a “marketing tool” as buyers would be more willing to buy products from the seller, according to the Federation of Indian Export Organisations (FIEO).


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For exporters, the maximum permissible period of pre and post-shipment export credit sanctioned by banks has also been raised. As opposed to the current 12 months, this will now be 15 months, for disbursements made up to July 31 this year.


More needed

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While the measures would usher in an era of very competitive credit rates to help manufacturing and overall economy, they would also ensure that inflation remains within the target range, said Sharad Kumar Saraf, President of FIEO. “But RBI’s assessment of the economic revival during the first half remains bleak, with signs of revival to be only seen during the second half of the financial year. We again urge the government to immediately announce an export package covering all export sectors,” he added.


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In a speech, RBI governor Shaktikanta Das also pointed out that investment demand has stopped as imports of capital goods fell 27 per cent in March, before plunging by 57.5 per cent in April. Domestic production of capital goods declined by 36 per cent in March, spiralling downwards for the 14th straight month, despite the government’s efforts to open up even more sectors to easier foreign direct investment flows last year.

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The RBI also extended the current loan moratorium by another three months. “The RBI should also consider extending this moratorium to NBFCs for their repayment to banks, without which the NBFCs sector is facing acute distress. One-time restructuring of loans to relieve stressed businesses may also be allowed,” the Confederation of Indian Industry said.


Time relief

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Over the past two months, exporters had repeatedly pointed out the issue of massive chunks of export orders getting cancelled or postponed, and the subsequent delay in realization of bills. Now, the RBI has permitted an increase in the period of realization and repatriation of export proceeds to India from nine months to 15 months. This will be valid from the date of export for shipments sent out till July 31, 2021. RBI should continuously monitor the delicate economic situation and make pragmatic announcements after every two months interval.


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For inbound shipments that arrive till the same date, importers will now get 6 more months to complete outward remittances. Currently, importers get 6 months to send remittances. The new facility, however, will not be available for import of gold, diamonds and precious stones or jewellery. The Gems and Jewellery Export Promotion Council said these items needed to be covered since liquidity has hit exporters in the sector and bank loans to jewellers have dried up since the Nirav Modi controversy.

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The RBI has also suggested that the government reassess import duties for various items and crucially pulses. “Among the pressure points, the elevated level of pulses inflation is worrisome, and warrants timely and swift supply management interventions, including a reappraisal of import duties,” Das said.


RBI’s easier terms for trade

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  • Exim Bank to get new line of credit worth 15,000 Cr

  • Pre, post shipment export credit to now be available for 15 months

  • Export proceed can be repatriated within 15 months

  • Importers will be able to complete outward remittance within 12 months

  • Ongoing loan moratorium extended by 3 months

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(Note: This is a Article Automatically Generated Through Syndication, Here is The Original Source

Passionate news enthusiast with a flair for words. Our Editorial Team author brings you the latest updates, in-depth analysis, and engaging stories. Stay informed with their well-researched articles.

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Ontario Sunshine List 2024 Reveals Why People Can’t Afford To Buy A Home

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Ontario’s Sunshine List Reveals Why People Can’t Afford To Buy A Home

Ontario Sunshine List is released every year and it reveals the salaries of public sector workers who take home a salary in excess of $100,000. This year the list features 300,570 names which is 30,000 higher than last year of public sector employees with salaries over $100,000. The Ontario Sunshine list also features five employees working at the Ontario Power Generation who are among the top 10 earners with the province’s highest salary nearing $2 million.

Ontario had passed the Public Sector Salary Disclosure Act in 1996 under the Mike Harris government and the stated aim of the act was to make the government more transparent and accountable. The $100,000 limit was a big deal then.

However the $100,000 in 1996 in relative terms in 2024 will be equivalent to $180,564.97. If you remove 300,570 people on this year’s Ontario Sunshine List for that salary threshold there you drop 279,781 names. In other words there will be many people who will not be able to own a house without help from family or an inheritance.

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In a nutshell it means that employees who take home a six figure salary package will still feel the pinch of Canada’s affordability crisis. The soaring inflation and rising cost of living a $100,000 salary doesn’t guarantee financial security in many parts of the country.

Also, to maintain the $100,000 threshold today, the province should have adjusted it to $55,381.73 in 1996. Ontario has fixed a threshold of $100,000, while the threshold varies in other provinces. Alberta, for example, has set a threshold of $125,888 for government employees and $150,219 for people in public sector bodies.

Not much information is available for the federal government, but a Canadian Taxpayers Federation access-to-information request revealed that 110,593 employees in the federal public service earned $100,000 or more in 2023.

There are a couple of options for Ontario and other governments with non-indexing disclosure requirements. Resetting the threshold to a number that makes more sense today and then continuing to index the threshold going forward seems feasible.

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We also don’t need to reveal the names of all individuals. The government could report aggregated salary ranges by job title rather than disclosing specific names below a second, lower threshold. This would maintain government accountability and transparency by still disclosing who the highest earners are.

As it stands, we have a list that publishes the names and salaries of potentially hundreds of thousands of people who could not afford to buy a house. This doesn’t seem aligned with the original intent of the disclosure act.

Some features of the Ontario Sunshine List 2024 are as follows:

  • The highest paid employee took a pay check of $1.9M
  • Public sector employees were paid salaries in excess of $100K
  • The Ontario Sunset list top position is held by Kenneth Hartwick, CEO of the electricity Crown Corporation with a salary of $1.93 million followed by chief strategy officer Dominique Miniere $1.2 million and chief projects officer Michael Martelli drawing $1 million as salary.
  • Public sector workers were paid counting in Bill 124 compensation
  • 2024 budget revealed that Ontario deficit will triple
  • CEOs of the Hospital for Sick Children and the University Health Network figured in the top 10 list and each drew a salary of $850,000 each while CEO of the provincial transit agency, Metrolinx drew a salary of $838,097.
  • 17 professors or associate professors at the University of Toronto drew a salary in excess of $500,000

Caroline Mulroney, president of the Treasury Board, stated in a release,

“The largest year-over-year increases were in the hospitals, municipalities, and services, and post-secondary sectors, which together represented approximately 80 percent of the growth of the list.”

Also Read: Hims & Hers CEO Andrew Dudum Says Wants to Hire Student Protesters Backlash Underway

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Hims & Hers CEO Andrew Dudum Says Wants to Hire Student Protesters Backlash Underway

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Hims & Hers CEO Andrew Dudum Says Wants Hire Student Protesters Backlash Underway

Andrew Dudum, CEO and founder of Telemedicine Company Hims & Hers is facing flak on the social media after his reported statement that he wants to hire students and protestors who are taking part in the protest in support of Palestinians in Universities across the US.

A number of tech sector founders has also condemned his statements.

Dudum had posted on X,

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“If you’re currently protesting against the genocide of the Palestinian people and for your university’s divestment from Israel, keep going. It’s working. There are plenty of companies and CEOs eager to hire you, regardless of university discipline.”

He also posted a link to a page showing open positions at Hims & Hers.

X users have expressed their disapproval and have even called for a boycott Hims & Hers, and others said they are selling their stock in the company.

Cofounder of Palantir Technologies as well as the managing partner of early stage venture capital firm 8VC Joe Lonsdale responded on X and said

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“Real moral courage doesn’t involve joining a mindless mob, chanting anti   U.S. and other woke pablum, following instructions not to debate or discuss your positions at all yet being indignantly righteous, while large numbers in the mob chant for violence and block Jewish students.”

While Hims & Hers spokesperson said Dudum were not available for comments, old posts by Dudum have been unearthed which puts in context his actions. Days before the horrific attack by Hamas’ terrorist against Israel on October 7, Dudum had posted –

 “In pursuit for peace: Our leaders need to embrace nuance.”

Dudum further explained that he is a Palestinian American and had roots in and family in the West Bank and Gaza and said Hims & Hers’ values are based on a respect for human dignity and life.

Dudum wrote

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“It is upon those values that I believe all leaders and CEOs should use their platform today to call for an immediate cease   fire. To actively recognize Israel’s right to defense and also recognize the means and manner in which they are responding violates international law. I ask us to find nuance, and share our voice today to help save innocent lives.”

Deadly protests have hit U.S. college campuses through last month and protest encampments have sprung across more than 40 colleges nationwide.

Police crackdown is on and there have been more than 1,900 arrests or detainments following a wave of activism at universities across the country.

Hims & Hers is a Telemedicine Company that links consumers with licensed healthcare professionals, enabling access to high-quality care for conditions related to sexual health, mental health, and more. It also offers its own range of products and is in a partnership with Los Angeles-based Hustle & Co. on media relations.

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More Trouble For Microsoft, OpenAI: Eight US Newspaper Publishers File Lawsuit For Copyright Infringement

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More Trouble For Microsoft, OpenAI: Eight US Newspaper Publishers File Lawsuit For Copyright Infringement

Trouble for Microsoft and OpenAI over copyright infringement is not coming to an end, as they face several lawsuits for violating copyrights.

On Tuesday, eight US newspaper publishers sued Microsoft for illegally reusing articles in AI products.

The 98-page long lawsuit further accused the tech companies of attributing erroneous information to the publishers.

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The eight newspapers that have filed the lawsuits include the New York Daily News and the Chicago Tribune.

They allege that OpenAI’s ChatGPT used their copyrighted articles to perfect its language models without permission.

The lawsuit was filed in a New York federal court on Tuesday. The publishers claim that OpenAI’s large language models, GPT-2 and GPT-3, were perfected using datasets containing text from their newspapers.

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The language models are designed to produce text based on human inputs and reproduce copies of the publishers’ works. Microsoft has been indicted for using newspapers for its Bing search index but seldom provided links to the original articles. Four months ago, The New York Times also filed a lawsuit against OpenAI, accusing the tech giant of using data from its past content. It also asked for consent for usage, criticizing the use of full article excerpts in chatbot responses.

The latest lawsuit filed by the eight news outlets also demanded consent and fair value for using their content to perfect the AI language models. The lawsuit alleged that the AI tools literally regurgitate their content without directing users to the content source.

The lawsuit filings stated, “This lawsuit arises from defendants purloining millions of the publishers’ copyrighted articles without permission and without payment to fuel the commercialization of their generative artificial intelligence products, including ChatGPT and (Microsoft’s) Copilot.”

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The eight newspapers that instituted the lawsuits are as follows:

  • The New York Daily News and The Chicago Tribune, both owned by Alden Global Capital
  • The Orlando Sentinel
  • The Sun Sentinel
  • The San Jose Mercury News
  • The Denver Post
  • The Orange County Register
  • The St. Paul Pioneer Press

OpenAI’s Response

OpenAI did not directly respond to the accusations but stated that it takes great care to support the news and media outlets. It also stated it is in continuous partnerships and conversations with various news outlets around the world to explore new opportunities, discuss problems, and seek out solutions.

Microsoft also stated that OpenAI has entered into fruitful partnerships with a number of publishers, which includes The Financial Times, The Associated Press, Spanish conglomerate Prisa Media, and Germany’s Axel Springer.

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