EU trade deficit surges

BRUSSELS: The trade balance of the 12 nations sharing the euro showed a sharply increased deficit in January, sliding to 10.8 billion euros from 700.0 million euros in December. Eurostat had originally calculated the deficit in December at 900.0 million euros. In January, exports rose by 0.4 per cent from December on a seasonally adjusted basis and imports edged up by 0.3 per cent. For 2005 as a whole, the eurozone trade balance recorded a surplus of 23.3 billion euros compared with a surplus of 71.5 billion euros in 2004. — AFP

BoE to freeze rates

LONDON: Bank of England (BoE) policymakers once again voted 8-1 to keep British borrowing costs at 4.50 per cent earlier this month, minutes of their latest meeting showed Wednesday. It was the fourth 8-1 split in a row, after policymaker Stephen Nickell voted for a quarter-point reduction to 4.25 per cent, repeating his call made in February, January and December. The central bank had voted to freeze rates at 4.50 per cent for the seventh month in a row, continuing its wait-and-see policy on the British economy. — AFP

Malaysian exchange

KUALA LUMPUR: For the first time, Malaysia said that market conditions, and not just economic fundamentals, will determine the exchange rate of its currency, the ringgit. The move by Bank Negara Malaysia suggests that it will allow the ringgit to trade more freely and exert less control over the exchange rate — which would probably lead to a stronger currency. — AP

Fake US ‘Supernotes’

MANILA: About $15,000 in counterfeit US currency, popularly known as ‘supernotes’ entered the Philippine banking system last year. These high-quality counterfeit bills, which are harder to detect than most counterfeits, were brought in by Chinese and Taiwanese nationals. Earlier, the US accused North Korea of producing counterfeit US notes and blacklisted a Macau bank. — AFP

Japan cancels funding

JAKARTA: Japan has canceled its offer of a loan worth $725 million to fund a mass rapid transport project in Indonesia’s capital. Japan had offered a low-interest, 30-year loan but with Tokyo deciding the major components of the project. The government preferred to obtain an ‘untied loan’ that would allow it to use more local resources, even though it would cost more. The 14.3-km combined elevated and underground train project is expected to cost $800 million. — AFP

EU seeks more details

BRUSSELS: The EU Commission took a firm line towards France in a row over a merger of two key companies which critics claim is a thinly veiled bid to stop the sale abroad of a major asset. Creating obstacles to cross-border sales, critics say, would be in defiance of the EU’s commitment to a single, open-market economy. — AFP

Protest against FTA

QUITO: Ecuador declared a state of emergency in five provinces after 10 days of protests by indigenous groups against a proposed FTA with the US. President Palacio placed the areas under military control and restricted freedom of movement, association and expression for a period.— AFP

New team at NCC

KATHMANDU: Surendra Bir Malakar has been elected president of Nepal Chamber of Commerce (NCC) unanimously by its members at the 53rd annual general meeting. Suresh Kumar Basnet and Lok Manya Golchha have been elected as first vice-president and second-vice president, respectively. Bhakta Bahadur Malla has been elected as general secretary and Man Bahadur Shrestha as treasurer. Others elected by the members are Mahendra Man Shrestha and Madhusudan Agrawal as secretary and Hikmat Bahadur Mali as deputy treasurer. — HNS