Pakistan is seeking an additional $1.4 billion loan from China as it grapples with a severe financial crisis. This request highlights the country's reliance on external financial support to stabilize its economy amidst rising inflation and dwindling foreign reserves. The loan aims to help meet urgent fiscal needs and maintain essential services during a challenging economic period.

Pakistan Requests China To Raise Limit Of Trade Facility To $5.7 Billion

Pakistan Seeks Additional $1.4 Billion Loan From China Amid Ongoing Financial Crisis

Afghanistan is grappling with a severe humanitarian crisis. According to the UN, 23.7 million people, nearly three-quarters of the population, require humanitarian assistance this year. Food insecurity is a major concern, with un estimates suggesting 15.8 million Afghans face emergency or crisis levels of hunger.

UN seeks $3.6 billion budget to address Afghan needs

Wuhan is suffering under a financial crisis. The government is failing to recover debts from companies. Will the city recover from the spiraling economy? Molly Gambhir reports.

Gravitas: Wuhan cash-strapped, calls in debts from companies

The imposition of fines and stalling of various projects have increased economic mistrust between Pakistan and China, at a time when the former nation is facing a financial crisis. &nbsp;A Pakistan civil court had imposed a USD 2.48 million fine on China National Petroleum Corporation after it was alleged of violating the contract signed with Petroleum Exploration (Pvt) Ltd. &nbsp;

The fine was imposed after various projects under the CPEC, like the Karachi Circular Railway (KCR) and Main Line1 (ML-I) - the railway line between Karachi and Peshawar were stalled and now have turned into financial liabilities. &nbsp;

According to reports, there have been unresolved differences between the two governments, because of which many projects have been stalled.&nbsp;

Media reports suggest that investments have been slowed by China in large infrastructure projects as these projects have been projects are vulnerable to local politics and there has been a delay in returns on investments. &nbsp;

ALSO READ | <a href="https://www.wionews.com/south-asia/former-pakistan-pm-warns-of-military-takeover-amid-economic-and-political-turmoil-585703">'Military takeover' likely in Pakistan? Former PM Abbasi has given this warning</a>

The difference between the two nations, which is not new, has been kept hidden from the world. As per reports, the two countries' economic co-operation has suffered due to terror attacks on Chinese interests.&nbsp;

The financial crisis of Pakistan has decreased its capacity to deliver financial obligations in various projects. Meanwhile, China has faced accusations of carrying out dubious practices in Pakistan, which include signing fraudulent deals with Independent Power Producers (IPP) and getting tax exemptions.&nbsp;

Beijing has time and again refused to renegotiate the power purchase agreements which are worth $3 billion on the pretext that its commercial banks cannot revise the clauses mentioned in the agreement which was earlier signed with the Pakistani government. &nbsp;

According to a report published in Pakistan, Islamabad was being overcharged by Chinese contractors by $3 billion on two CPEC power plants. Concerns were also raised that the deals overly favoured China or were too expensive and badly negotiated.&nbsp;

WATCH | Pakistan: Explosions kills at least 16 in Swat valley counter-terror office

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The people of Pakistan feel that the loans sanctioned by China for dubious projects will not help the local economy as Chinese companies and employees are handed over China-funded projects with high-interest loans.

Pakistan is believed to have fallen into the debt trap of China and its economy has been in a deep mess. Because of its increasing dependence on China, Pakistan has been in massive debt, and its cash reserves are dwindling.&nbsp;

As per reports, Pakistan owes $30 billion which is one-third of its external public debt to Chinese commercial banks and China.&nbsp;

Between July 2021 and March 2022, more than 80 per cent of the bilateral debt service of Pakistan went to China. However, the debt-riddled nation has failed to repay the loan and has asked China for debt relief.&nbsp;

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The imposition of fines and stalling of various projects have increased economic mistrust between Pakistan and China, at a time when the former nation is facing a financial crisis.

The imposition of fines and stalling of various projects have increased economic mistrust between Pakistan and China, at a time when the former nation is facing a financial crisis. A Pakistan civil court had imposed a USD 2.48 million fine on China National Petroleum Corporation after it was alleged of violating the contract signed with Petroleum Exploration (Pvt) Ltd. The fine was imposed after various projects under the CPEC, like the Karachi Circular Railway (KCR) and Main Line1 (ML-I) - the railway line between Karachi and Peshawar were stalled and now have turned into financial liabilities. According to reports, there have been unresolved differences between the two governments, because of which many projects have been stalled. Media reports suggest that investments have been slowed by China in large infrastructure projects as these projects have been projects are vulnerable to local politics and there has been a delay in returns on investments. ALSO READ | 'Military takeover' likely in Pakistan? Former PM Abbasi has given this warning The difference between the two nations, which is not new, has been kept hidden from the world. As per reports, the two countries' economic co-operation has suffered due to terror attacks on Chinese interests. The financial crisis of Pakistan has decreased its capacity to deliver financial obligations in various projects. Meanwhile, China has faced accusations of carrying out dubious practices in Pakistan, which include signing fraudulent deals with Independent Power Producers (IPP) and getting tax exemptions. Beijing has time and again refused to renegotiate the power purchase agreements which are worth $3 billion on the pretext that its commercial banks cannot revise the clauses mentioned in the agreement which was earlier signed with the Pakistani government. According to a report published in Pakistan, Islamabad was being overcharged by Chinese contractors by $3 billion on two CPEC power plants. Concerns were also raised that the deals overly favoured China or were too expensive and badly negotiated. WATCH | Pakistan: Explosions kills at least 16 in Swat valley counter-terror office The people of Pakistan feel that the loans sanctioned by China for dubious projects will not help the local economy as Chinese companies and employees are handed over China-funded projects with high-interest loans. Pakistan is believed to have fallen into the debt trap of China and its economy has been in a deep mess. Because of its increasing dependence on China, Pakistan has been in massive debt, and its cash reserves are dwindling. As per reports, Pakistan owes $30 billion which is one-third of its external public debt to Chinese commercial banks and China. Between July 2021 and March 2022, more than 80 per cent of the bilateral debt service of Pakistan went to China. However, the debt-riddled nation has failed to repay the loan and has asked China for debt relief. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE

Economic partnership between Pakistan and China stalled: Report

Amid Pakistan's failure to enforce minimum wage laws at a time when the South Asian country is reeling under the high inflation, an estimated 80 per cent of unskilled workers are not receiving the minimum wage, Pakistan-based The Express Tribune reported.

According to Pakistan Institute of Labour Education and Research (PILER) Executive Director Karamat Ali in an interview with The Express Tribune, 80 per cent of unskilled workers do not receive the minimum wage, and historically high inflation has made people's suffering worse.

The level of inflation in March was 35.4 per cent, which had a major impact on purchasing power. An estimated 80 per cent of unskilled workers are not receiving the minimum wage of Rs25,000 ($89.25) per month, which was awarded ten months ago.

ALSO READ | <a href="https://www.wionews.com/south-asia/pakistan-imran-khan-says-former-army-chief-bajwa-asked-him-to-dissolve-provincial-assemblies-585616">Pakistan: Imran Khan says former army chief Bajwa asked him to dissolve provincial assemblies</a>

Furthermore, a recent World Bank report found that 83 per cent of households in Pakistan are not receiving the minimum $2 a day needed to sustain basic needs, PILER said according to The Express Tribune.

While the Punjab government recently announced an increase in the minimum wage to Rs32,000 ($114.24) a month, Ali said there is no mechanism to ensure the implementation of the government order or to check which industrial and commercial houses are paying their employees what.

He predicted that each worker should receive at least Rs50,000 ($178.49) per month to cover the costs of necessities including food, clean drinking water, education, and healthcare.

Ali continued by saying that the ongoing economic crisis has caused a rise in unemployment in Pakistan, with estimates putting the number of jobless at five million. In Pakistan, the rising rate of unemployment and denial of basic rights is now causing people to become violent, and there is also a surge in the rise of street crime and theft.

WATCH | Pakistan raises bogey of all-out war with India

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Moreover, the lack of minimum wages in Pakistan has led to poor living conditions for the majority of workers.

Amid escalating economic hardships, people are literally at pains to bear the brunt of frequent hikes in petrol and power tariffs and inflation on the whole, Pakistan vernacular media reported.&nbsp;

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Amid Pakistan's failure to enforce minimum wage laws at a time when the South Asian country is reeling under the high inflation, an estimated 80 per cent of unskilled workers are not receiving the minimum wage, Pakistan-based The Express Tribune reported.

Amid Pakistan's failure to enforce minimum wage laws at a time when the South Asian country is reeling under the high inflation, an estimated 80 per cent of unskilled workers are not receiving the minimum wage, Pakistan-based The Express Tribune reported. According to Pakistan Institute of Labour Education and Research (PILER) Executive Director Karamat Ali in an interview with The Express Tribune, 80 per cent of unskilled workers do not receive the minimum wage, and historically high inflation has made people's suffering worse. The level of inflation in March was 35.4 per cent, which had a major impact on purchasing power. An estimated 80 per cent of unskilled workers are not receiving the minimum wage of Rs25,000 ($89.25) per month, which was awarded ten months ago. ALSO READ | Pakistan: Imran Khan says former army chief Bajwa asked him to dissolve provincial assemblies Furthermore, a recent World Bank report found that 83 per cent of households in Pakistan are not receiving the minimum $2 a day needed to sustain basic needs, PILER said according to The Express Tribune. While the Punjab government recently announced an increase in the minimum wage to Rs32,000 ($114.24) a month, Ali said there is no mechanism to ensure the implementation of the government order or to check which industrial and commercial houses are paying their employees what. He predicted that each worker should receive at least Rs50,000 ($178.49) per month to cover the costs of necessities including food, clean drinking water, education, and healthcare. Ali continued by saying that the ongoing economic crisis has caused a rise in unemployment in Pakistan, with estimates putting the number of jobless at five million. In Pakistan, the rising rate of unemployment and denial of basic rights is now causing people to become violent, and there is also a surge in the rise of street crime and theft. WATCH | Pakistan raises bogey of all-out war with India Moreover, the lack of minimum wages in Pakistan has led to poor living conditions for the majority of workers. Amid escalating economic hardships, people are literally at pains to bear the brunt of frequent hikes in petrol and power tariffs and inflation on the whole, Pakistan vernacular media reported. You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE

Pakistan facing dire living conditions, 80pc workers denied minimum wage

A month after its collapse, the troubles seem to be far from over for swiss banking giant credit Suisse. An investment company has told a London court during a trial that credit Suisse has "Learnt nothing" from the 2008 financial crisis.

Credit Suisse's legal trouble continues

Slaying elevated inflation and combating a financial crisis - that's the challenge keeping the US Federal Reserve and other central bankers on their toes. Both these issues are not new.

Slaying elevated inflation and combating a financial crisis - that's the challenge keeping the US Federal Reserve and other central bankers on their toes. Both these issues are not new. But what happens when they need to be addressed at the same time? Is there a playbook that central banks can turn to? Former Federal Reserve Chair Paul Volcker slayed inflation, and Ben Bernanke saved the banks, but can current Chief Jerome Powell do both? Well, that is the need of the hour. The current banking crisis threatens financial stability, while inflation threatens to push ahead. And that is not restricted to the confines of the US but risks spreading beyond its borders. At first glance, the Fed under Powell's leadership and other major central banks continued this week with the same policy they have had in place for the past year, which is to raise interest rates to bring down inflation. In reality, however, everything is different now that a series of bank failures has sent tremors through global financial markets. Threats to financial stability were not even on the radar of central bankers until recently. To hear Powell and his colleagues tell it, avoiding another round of inflation like the one experienced in the 1970s is still job one. But the signal is shifting that is warranting a policy similar to what Ben Bernanke used during and after the global financial crisis. Bernanke fought off the 2008 crisis by adopting unprecedented methods, including doling out free cash to banks. Turning for the worse? After Silicon Valley Bank failed and Credit Suisse was taken over by a shotgun marriage, the Fed only raised interest rates by half as much as was anticipated. The European Central Bank and the Swiss National Bank hiked as expected, but they refrained from providing any forward guidance. The recent wild swings in market bets on policy show that investors, too, are having a hard time figuring this out. After SVB's failure, they shifted from pricing in an aggressive Fed that hikes several more times to pricing in a "we're all doomed" scenario of imminent rate cuts. Analysts say the core dilemma for policymakers is that prescriptions for controlling prices and boosting banks point in opposite directions. ALSO READ | US Fed delivers 25 points rate hike amid global banking turmoil According to Ethan Harris, Head of Global Economics Research at Bank of America, "the market is acting as if we're in the midst of a pretty serious crisis." "It's putting a very high weight on an adverse scenario where you have a big financial event and a very bad economy," added BofA's Harris, who was the former head of research at Lehman Brothers before its collapse in 2008. WATCH | Silicon Valley Bank's bankruptcy faces challenges × To get inflation down, central banks jack up rates. They give money to struggling lenders and lower the cost of borrowing to avert crises. And the danger is that they end up with the worst of both worlds: a full-blown crisis that triggers a recession. Then central banks would be forced to abandon the fight against inflation before it was over. Anna Wong, Chief US economist at Bloomberg, drawing on a study of American banking crises over the last 140 years, said, "the tension between fighting inflation versus preserving financial stability is now more stark than any time in the Fed's history." The current crisis would have to take a significant turn for the worse," she says referring that tighter credit would take a decent-sized bite out of inflation. And if that doesn’t happen, "markets will have to revise up their estimates for the Fed’s policy path." So, what remains to be seen is, have the predictions now turned for the worse, or the better? A softer tone or an aggressive one will define the path the world's largest economy takes. WATCH WION LIVE HERE:

Analysis: Can the US Fed save banks and fight inflation at the same time?

After the collapse of 3 American banks, Switzerland's Credit Suisse has landed in trouble. The bank's shares have plunged to a record low. How does the affect you? Mohammed Saleh explains.

Gravitas: Credit Suisse in trouble | Is another financial crisis coming?

Pakistan's Finance Minister Ishaq Dar on Friday called Pakistan as the sole country established in the name of Islam and said that Allah is responsible for the country's prosperity and development in the wake of the current financial crisis.

Speaking at Green Line Express Train service's inaugural ceremony, Pakistan Muslim League-Nawaz (PML-N) senior leader said that he believes that Pakistan will surely progress as the country has been created in the name of Islam.

&nbsp;"If Allah can create Pakistan then He can also protect, develop, and make it prosper," said Dar. &nbsp;"They are trying their best to improve Pakistan's condition under Prime Minister Shehbaz Sharif's leadership," added the finance minister.

ALSO READ | <a href="https://www.wionews.com/south-asia/watch-imran-khans-party-uses-pm-modis-old-clip-to-target-pak-govt-funny-part-is-553230">WATCH| Imran Khan's party uses PM Modi's old clip to target Pak govt, funny part is....</a>

Dar said that several problems were inherited by the incumbent government from the previous government which was led by Imran Khan, and added that the government has been working day and night to resolve the crisis.&nbsp;

"The team is trying to improve the situation ahead of the elections," he said. He added that the nation is still suffering because of the "drama" which started five years ago and stated that the economy was strong during the tenure of former prime minister Nawaz Sharif from 2013-2017.&nbsp;

The finance minister called the Pakistan Stock Exchange as South Asia's best-performing capital market and stated that it ranked fifth in the world during the era of Nawaz Sharif and the world institutions' sights were set on it.

Dar added that the nation is paying the price for the "Panama drama", the PML-N government's ouster and similar issues which the country has faced in the last five years.&nbsp;

WATCH |&nbsp;WION Dispatch: Pakistan left with only three-weeks of forex cover

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&nbsp;"Pakistan was on the growth track during Nawaz's tenure, but it was derailed. People can see the destruction the country suffered in the last five years, and they know who has delivered in the past," the minister added.

Pakistan, which is dealing with an acute balance of payments crisis, is desperate to get external financing, as less than three weeks' worth of import cover is left in its foreign exchange reserves, which witnessed a decline from USD 923 million to USD 3.68 billion.&nbsp;

(With inputs from agencies)

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Pakistan's Finance Minister Ishaq Dar on Friday called Pakistan as the sole country established in the name of Islam and said that Allah is responsible for the country's prosperity and development in the wake of the current financial crisis.

Pakistan's Finance Minister Ishaq Dar on Friday called Pakistan as the sole country established in the name of Islam and said that Allah is responsible for the country's prosperity and development in the wake of the current financial crisis. Speaking at Green Line Express Train service's inaugural ceremony, Pakistan Muslim League-Nawaz (PML-N) senior leader said that he believes that Pakistan will surely progress as the country has been created in the name of Islam. "If Allah can create Pakistan then He can also protect, develop, and make it prosper," said Dar. "They are trying their best to improve Pakistan's condition under Prime Minister Shehbaz Sharif's leadership," added the finance minister. ALSO READ | WATCH| Imran Khan's party uses PM Modi's old clip to target Pak govt, funny part is.... Dar said that several problems were inherited by the incumbent government from the previous government which was led by Imran Khan, and added that the government has been working day and night to resolve the crisis. "The team is trying to improve the situation ahead of the elections," he said. He added that the nation is still suffering because of the "drama" which started five years ago and stated that the economy was strong during the tenure of former prime minister Nawaz Sharif from 2013-2017. The finance minister called the Pakistan Stock Exchange as South Asia's best-performing capital market and stated that it ranked fifth in the world during the era of Nawaz Sharif and the world institutions' sights were set on it. Dar added that the nation is paying the price for the "Panama drama", the PML-N government's ouster and similar issues which the country has faced in the last five years. WATCH | WION Dispatch: Pakistan left with only three-weeks of forex cover "Pakistan was on the growth track during Nawaz's tenure, but it was derailed. People can see the destruction the country suffered in the last five years, and they know who has delivered in the past," the minister added. Pakistan, which is dealing with an acute balance of payments crisis, is desperate to get external financing, as less than three weeks' worth of import cover is left in its foreign exchange reserves, which witnessed a decline from USD 923 million to USD 3.68 billion. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE

Allah responsible for prosperity and development of Pakistan, says Finance Minister Dar

Soon after Bangladesh won its independence in 1971, a key US policy maker Henry Kissinger has famously said that the country will become a basket case. While, Bangladesh has proven Kissinger wrong by its steady success, another South Asian nation has become a basket case here. Yes, you are right we are talking about Pakistan.

Economic crisis worsens in Pakistan, Forex reserves fall to $5.8 billion

South Korea's semiconductor production in November fell by the most since the global financial crisis. Chip production shrank for a fourth straight month.

World Business Watch: South Korea's chip output falls most since the global financial crisis

India's central bank chief has warned that the next financial crisis will possibly come from private cryptocurrencies. Adding that he also holds the view that cryptocurrencies should be banned or prohibited.

World Business Watch: Next financial crisis may come from private cryptocurrencies, says CBI chief

While the Pakistani establishment is busy refuting corruption allegations, the country stares at an approaching economic calamity. Molly Gambhir tells you more.

Gravitas: Pakistan's facing a financial crisis

Visa Inc. on Sunday announced it was severing its ties with now-bankrupt cryptocurrency&nbsp;exchange FTX.&nbsp;

“The situation with FTX is unfortunate and we are monitoring developments closely," said a Visa spokesperson.&nbsp;

“We have terminated our global agreements with FTX and their US debit card program is being wound down by their issuer," added the company.&nbsp;

Visa, the world's largest payments processor terminating the deal was a no-brainer, given FTX has gone under and the company's board looks entirely out of its depth to handle the situation.&nbsp;

<a href="https://www.wionews.com/business-economy/binance-halts-ftxs-ftt-token-deposits-urges-rivals-to-follow-533755" target="_blank">Read more: Binance halts FTX's FTT token deposits, urges other crypto exchanges to follow</a>

However, the termination of the deal comes barely a month after Visa and FTX announced an expanded partnership&nbsp;under which plans were in motion to introduce&nbsp;account-linked Visa debit cards in 40 new countries.

As reported by WION,&nbsp;FTX filed for bankruptcy last Friday after traders rushed to remove $6 billion off the platform in only 72 hours.&nbsp;

<a href="https://www.wionews.com/videos/us-founder-of-crypto-trading-firm-ftx-was-democrats-second-biggest-donor-533788">WATCH |&nbsp;US: Founder of crypto trading firm FTX was Democrats second biggest donor</a>

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One by one, companies across the board are ditching FTX.&nbsp; Last week, Binance chief executive Changpeng Zhao announced that his company no longer accepted&nbsp;deposits of FTX's FTT token on its platform.&nbsp;

FTX, the second largest crypto exchange was considered too big to fall by many. However, its fall has triggered panic across the sector with the big players now batting for regulations to win back the investors' confidence.

"We're in a new industry, we've seen in the past week, things go crazy in the industry. We do need some regulations, we do need to do this properly, we do need to do this in a stable way," said Zhao while speaking at the G20 leaders' summit in Bali.&nbsp;

<a href="https://www.wionews.com/world/we-need-regulations-says-binance-ceo-after-rival-exchange-ftx-goes-under-533895">Read more:&nbsp;'We need regulations', says Binance CEO after rival exchange FTX goes under</a>

FTX was once&nbsp;valued at $32 billion. Its collapse bears striking similarities to the downfall of Lehman Brothers in 2008 which led to a wider financial crisis across the world.&nbsp;

(With inputs from agencies)

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Visa Inc. on Sunday announced it was severing its ties with now-bankrupt cryptocurrency exchange FTX. “The situation with FTX is unfortunate and we are monitoring developments closely," said a Visa spokesperson.

Visa Inc. on Sunday announced it was severing its ties with now-bankrupt cryptocurrency exchange FTX. “The situation with FTX is unfortunate and we are monitoring developments closely," said a Visa spokesperson. “We have terminated our global agreements with FTX and their US debit card program is being wound down by their issuer," added the company. Visa, the world's largest payments processor terminating the deal was a no-brainer, given FTX has gone under and the company's board looks entirely out of its depth to handle the situation. Read more: Binance halts FTX's FTT token deposits, urges other crypto exchanges to follow However, the termination of the deal comes barely a month after Visa and FTX announced an expanded partnership under which plans were in motion to introduce account-linked Visa debit cards in 40 new countries. As reported by WION, FTX filed for bankruptcy last Friday after traders rushed to remove $6 billion off the platform in only 72 hours. WATCH | US: Founder of crypto trading firm FTX was Democrats second biggest donor × One by one, companies across the board are ditching FTX. Last week, Binance chief executive Changpeng Zhao announced that his company no longer accepted deposits of FTX's FTT token on its platform. FTX, the second largest crypto exchange was considered too big to fall by many. However, its fall has triggered panic across the sector with the big players now batting for regulations to win back the investors' confidence. "We're in a new industry, we've seen in the past week, things go crazy in the industry. We do need some regulations, we do need to do this properly, we do need to do this in a stable way," said Zhao while speaking at the G20 leaders' summit in Bali. Read more: 'We need regulations', says Binance CEO after rival exchange FTX goes under FTX was once valued at $32 billion. Its collapse bears striking similarities to the downfall of Lehman Brothers in 2008 which led to a wider financial crisis across the world. (With inputs from agencies) WATCH WION LIVE HERE:

Visa severs ties with troubled cypto exchange FTX, calls situation 'unfortunate'

The Switzerland-based investment banking company Credit Suisse said on Monday that it will pay $495 million to settle a dispute concerning mortgage-backed securities. &nbsp;

The dispute dates back to the financial crisis in 2008 when mortgages and loans were given to individuals who had insufficient income or a history of defaulting on loans. The market ended up losing millions of dollars in bad debt as several people around the world defaulted on their loans.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/world/uk-finance-minister-jeremy-hunt-scraps-almost-all-government-tax-cut-plans-526127" hreflang="en">UK Finance Minister Jeremy Hunt scraps almost all government tax cut plans</a>

In 2013, a lawsuit was filed in New Jersey regarding Credit Suisse’s role in the crisis and the bank has now agreed to&nbsp;conclude the proceedings with a&nbsp;"one-time payment... to fully resolve claims".&nbsp;

According to AFP, the bank was accused of not having a proper measure of the risks that it took on mortgage-based securities and the $495 million will be paid as compensation for the involvement.&nbsp;

Credit Suisse has released a statement stating that the settlement will allow them "to resolve the only remaining RMBS (residential mortgage-backed securities) matter involving claims by a regulator and the largest of its remaining exposures on its legacy RMBS docket".&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/world/uk-hong-kong-pro-democracy-protester-dragged-and-beaten-up-in-manchester-chinese-consulate-probe-on-526022" hreflang="en">Watch | Hong Kong pro-democracy protester dragged and beaten up in&nbsp;Manchester Chinese consulate, probe on</a>

The settlement, which was approved by the New Jersey Attorney General, was welcome news for investors as the share prices of the company rose at the Swiss Stock Exchange.&nbsp;

Credit Suisse joined a long list of financial institutions around the world that faced fines for their roles in the 2008 financial crash. Both Deutsche Bank and Barclays agreed to pay more than $2 billion to settle their cases with the authorities while the Bank of America ended up paying $17 billion.&nbsp;

The Switzerland-based investment banking company Credit Suisse said on Monday that it will pay $495 million to settle a dispute concerning mortgage-backed securities.

The Switzerland-based investment banking company Credit Suisse said on Monday that it will pay $495 million to settle a dispute concerning mortgage-backed securities. The dispute dates back to the financial crisis in 2008 when mortgages and loans were given to individuals who had insufficient income or a history of defaulting on loans. The market ended up losing millions of dollars in bad debt as several people around the world defaulted on their loans. Also read | UK Finance Minister Jeremy Hunt scraps almost all government tax cut plans In 2013, a lawsuit was filed in New Jersey regarding Credit Suisse’s role in the crisis and the bank has now agreed to conclude the proceedings with a "one-time payment... to fully resolve claims". According to AFP, the bank was accused of not having a proper measure of the risks that it took on mortgage-based securities and the $495 million will be paid as compensation for the involvement. Credit Suisse has released a statement stating that the settlement will allow them "to resolve the only remaining RMBS (residential mortgage-backed securities) matter involving claims by a regulator and the largest of its remaining exposures on its legacy RMBS docket". Also read | Watch | Hong Kong pro-democracy protester dragged and beaten up in Manchester Chinese consulate, probe on The settlement, which was approved by the New Jersey Attorney General, was welcome news for investors as the share prices of the company rose at the Swiss Stock Exchange. Credit Suisse joined a long list of financial institutions around the world that faced fines for their roles in the 2008 financial crash. Both Deutsche Bank and Barclays agreed to pay more than $2 billion to settle their cases with the authorities while the Bank of America ended up paying $17 billion.

Credit Suisse to pay $495 million to settle case concerning 2008 financial crisis

Ukraine has reclaimed the key logistics hub of Leyman. In response, Russia launched a drone attack on Zelensky's hometown. Interestingly, thousands of mobilised Russian troops have also been sent back home. Why? Priyanka Sharma explains in detail.

Gravitas: Why has Russia sent thousands of mobilised men back home?

Despite resumption of IMF program, Pakistan is still reeling under dollar liquidity crunch while floods have aggravated the situation. In New York at the UNGA, WION's correspondent Anas Malik spoke to Pakistan's finance minister on the country's financial stability.

Exclusive: Pak finance minister speaks on trade with India, says will look into options

India's consumer inflation was 6.7% last month and the month before it was 7% which reflects that inflation appears to be cooling down. The Reserve Bank of India states that it may have peaked in April already, if so, the worst is behind us.

Has India escaped the global financial gloom?

Pakistan marked Independence day on August 14 amid a spiraling financial crisis. In 75 years, the country has failed to live up to its founding vision of creating a modern Islamic state. Palki Sharma tells you what went wrong with Pakistan.

Gravitas: Pakistan marks Independence day amid financial crisis

Sri Lanka continues to plunge deeper into the ongoing economic crisis. As per reports, Colombo's consumer price index has reached 60% and food inflation has surged to 90%.

Record inflation continues to haunt Lankan households; Colombo consumer price index breaches 60%

In China, a major financial crisis is unfolding. Chinese citizens in 86 cities are boycotting mortgage payments towards their homes. Chinese censors are erasing documents about this boycott. Palki Sharma tells you why.

Gravitas: Chinese citizens boycott mortgages in 86 cities

A deep financial crisis have left Sri Lanka struggling to pay for import of food, medicine and fuel. Protesters have currently occupied Presidential palace and have askes Gotabaya to step down from the post of President. Here, at The Full Context, we decode how Sri Lanka got to this point and what lies ahead.

The Full Context: How unprecedented economic crunch pushed Sri Lanka over the edge?

Sri Lankan President Gotabaya Rajapaksa has pleaded at the World Economic Forum for international assistance to help the country deal with its worst economic crisis.

Sri Lanka: President Rajapaksa pleads for international assistance amid financial woes

Sri Lanka has defaulted on its debt for the first time in its history as the country struggles with its worst financial crisis in more than 70 years. The governor of Sri Lanka's central bank said the country was now in a "pre-emptive default".

Sri Lanka defaults on its debt for the first time in history

Sri Lanka defaults on its debt for first time in history

In the middle of a worsening financial crisis, a major political turmoil now looms over the ruling coalition in Pakistan. The fate of PML-N led coalition headed by Prime Minister Shehbaz Sharif hangs in the balance and the next few days will be very crucial for him as well as his government.

Pakistan: Economic turmoil brews political chaos, fate of Shehbaz govt hangs in balance

Sri Lankan government is struggling to contain the outrage across the country after Sri Lanka's entire cabinet resigned from their posts. President Gotabaya Rajapaksa has now begun an outreach to form a new cabinet.

Sri Lankan President Gotabaya Rajapaksa urges assistance in resolving financial crisis

The ongoing financial crisis in Sri Lanka has forced the Gotabaya Rajapaksa govt to seek an IMF bailout. India has also extended a $1 billion line of credit to Sri Lanka to ensure a steady supply of essential commodities. Palki Sharma gets you a report.

Gravitas: India extends $1 billion line of credit to Sri Lanka

Before Lebanon's devastating financial&nbsp;crisis&nbsp;struck, Faraj Faraj thought university could set him on a path out of a cramped family home in a poor area of Beirut and towards financial independence.

Instead, like increasing numbers of Lebanon's young people, soaring costs forced the 19-year-old to drop out of studying just over a year ago, before he had finished secondary school.

"I don't have family who can help me complete my&nbsp;education, and there's no work," he said, adding that even though he was at a state school, the cost of transport had become hard to bear.

U.N. research published in January showed that 30% of those aged 15-24 in Lebanon had dropped out of&nbsp;education. More young people are skipping meals and cutting back on health care, the survey showed.

Also read |&nbsp;<a href="https://www.wionews.com/world/lebanon-hands-over-337-ancient-artifacts-to-iraq-451135">Lebanon hands over 337 ancient artifacts to Iraq</a>

Faraj, his parents, two unemployed brothers and two younger sisters who are still in school sleep between two rooms in a small apartment in Beirut's Borj Hammoud, a neighbourhood with narrow, crowded streets that was damaged by a massive explosion at the city's port in 2020.

The coronavirus pandemic and the port blast, which still scars Beirut's seafront, deepened what the World Bank has described as one of the worst economic collapses since the mid-19th century.

Though an elite earning salaries in dollars still throngs bars and cafes in upscale neighbourhoods, poverty has risen to 80% and many struggle to afford meals and medicines.

"In the past we could buy things, even though there were difficulties," said Faraj. "Now with the&nbsp;crisis&nbsp;affecting us more, it's just food and drink."

BRAIN DRAIN

Faraj is training to become a hairdresser in a programme supported by U.N. children's agency UNICEF, which aims to help young&nbsp;Lebanese&nbsp;facing soaring unemployment and wages of around $2 per day for those who can find work.

"Once a young person drops out of school at the age of 13, 14, 15, it's really difficult to get them back into school, and so they enter into a very precarious job market with a serious lack of&nbsp;education&nbsp;and skills," said Alexandre Schein, head of UNICEF's youth section in Lebanon.

Also read |&nbsp;<a href="https://www.wionews.com/world/morning-news-brief-lebanon-gets-hit-in-proxy-war-india-to-produce-vaccines-and-more-425450">Morning news brief: Lebanon gets hit in proxy war, India to produce vaccines and more</a>

"The implications are that the skills that are required to rebuild Lebanon and get it out of the&nbsp;crisis&nbsp;won't exist in the country."

U.N. and government data also shows a drop in spending on&nbsp;education&nbsp;and in school enrolment for children under 15, as well as a rise in child labour.

Some families have shifted from private to state schools, but those struggled to provide distance learning when the pandemic broke out and were hit by stoppages and strikes over teachers' low wages after reopening.

Many school and university teaching staff have left their jobs or the country, joining an accelerating brain drain.

Watch |&nbsp;Lebanon's middle class squeezed by economic crisis

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/lebanons-middle-class-squeezed-by-economic-crisis-447044/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

The problems are tied to the country's wider political and economic&nbsp;crisis,&nbsp;Education&nbsp;Minister Abbas el-Halabi said.

"Lebanese&nbsp;youth are gradually losing faith in continuing to live in Lebanon," he told Reuters.

"It's true that we've seen dropping out or&nbsp;abandonment or a distancing from schools. There are many families who no longer consider&nbsp;education&nbsp;important, but there is also great interest from some&nbsp;Lebanese, since this is the only weapon that they can give their children."

Before Lebanon's devastating financial crisis struck, Faraj Faraj thought university could set him on a path out of a cramped family home in a poor area of Beirut and towards financial independence.

Before Lebanon's devastating financial crisis struck, Faraj Faraj thought university could set him on a path out of a cramped family home in a poor area of Beirut and towards financial independence. Instead, like increasing numbers of Lebanon's young people, soaring costs forced the 19-year-old to drop out of studying just over a year ago, before he had finished secondary school. "I don't have family who can help me complete my education, and there's no work," he said, adding that even though he was at a state school, the cost of transport had become hard to bear. U.N. research published in January showed that 30% of those aged 15-24 in Lebanon had dropped out of education. More young people are skipping meals and cutting back on health care, the survey showed. Also read | Lebanon hands over 337 ancient artifacts to Iraq Faraj, his parents, two unemployed brothers and two younger sisters who are still in school sleep between two rooms in a small apartment in Beirut's Borj Hammoud, a neighbourhood with narrow, crowded streets that was damaged by a massive explosion at the city's port in 2020. The coronavirus pandemic and the port blast, which still scars Beirut's seafront, deepened what the World Bank has described as one of the worst economic collapses since the mid-19th century. Though an elite earning salaries in dollars still throngs bars and cafes in upscale neighbourhoods, poverty has risen to 80% and many struggle to afford meals and medicines. "In the past we could buy things, even though there were difficulties," said Faraj. "Now with the crisis affecting us more, it's just food and drink." BRAIN DRAIN Faraj is training to become a hairdresser in a programme supported by U.N. children's agency UNICEF, which aims to help young Lebanese facing soaring unemployment and wages of around $2 per day for those who can find work. "Once a young person drops out of school at the age of 13, 14, 15, it's really difficult to get them back into school, and so they enter into a very precarious job market with a serious lack of education and skills," said Alexandre Schein, head of UNICEF's youth section in Lebanon. Also read | Morning news brief: Lebanon gets hit in proxy war, India to produce vaccines and more "The implications are that the skills that are required to rebuild Lebanon and get it out of the crisis won't exist in the country." U.N. and government data also shows a drop in spending on education and in school enrolment for children under 15, as well as a rise in child labour. Some families have shifted from private to state schools, but those struggled to provide distance learning when the pandemic broke out and were hit by stoppages and strikes over teachers' low wages after reopening. Many school and university teaching staff have left their jobs or the country, joining an accelerating brain drain. Watch | Lebanon's middle class squeezed by economic crisis The problems are tied to the country's wider political and economic crisis, Education Minister Abbas el-Halabi said. "Lebanese youth are gradually losing faith in continuing to live in Lebanon," he told Reuters. "It's true that we've seen dropping out or abandonment or a distancing from schools. There are many families who no longer consider education important, but there is also great interest from some Lebanese, since this is the only weapon that they can give their children."

Lebanese youths abandon education as crisis struck

Sri Lanka's ruling SLPP party holds a massive rally ahead of local polls amid public ire over inflation and organic fertiliser policy. The government has announced nearly $1.3 billion relief package even as the country struggles with economic woes. W. A. Wijewardena, Former Deputy Governor of Sri Lanka Central Bank decodes country's situation.

Focusing only on debt repayment is insufficient, says Wijewardena, Former Deputy Governor of SLCB

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