29th June 2024 – 5th July 2024
Contents
LOCAL NEWS
No news reported.
INTERNATIONAL NEWS
1. European Parliament vote to pass amendment implementing Basel III reforms
Following the adoption by the European Parliament of the Basel III rules in Europe (known as the Capital Requirements Regulation and Directive, CRR and CRD), the final text of Regulation (EU) 2024/1623 of the European Parliament and of the Council of 31 May 2024, amending Regulation (EU) No 575/2013, has been published in the official journal and will enter into force on 9th July 2024.
The new rules, which aim to boost the resilience of banks operating in the Union and strengthen their supervision and risk management by implementing the globally agreed Basel III regulatory reforms, will allow banks to apply preferential treatment to shipping portfolios on specialised lending when calculating risk weights and ultimately their capital requirements. According to ECSA, as a result, the new law enables banks to finance at a competitive price.
According to the final agreement, ships under object finance can be financed with an 80% risk weight (instead of 100% or higher). This risk weight will be applicable until 2032. The European Banking Authority will review the preferential risk weights and will submit a report to the European Commission in 2030 with potential proposals for amending the CRR by 2031.
On the 25th June 2024, Commissioner McGuinness (DG FISMA) stated that, due to foreseen delay of implementation of the Basel standards in the US, the EU may delay partially the rollout of global Basel bank capital standards by one year to 2026.
The legal act delaying the rollout is expected to be published in July.
Related Publications:
- Regulation (EU) 2024/1623 of the European Parliament and of the Council of 31 May 2024
- Wolters Kluwer - Expert comments on European Parliament vote to pass amendment implementing Basel III reforms
- Consilium Press Release - Basel III reforms: new EU rules to increase banks’ resilience to economic shocks
- FInancial Times 18/06 - EU to delay Basel bank trading reforms as US revisits plans
- BNN Bloomberg 11/06 - Europe Poised to Delay Basel Bank Trading Rules by a Year
2. EU Restrictive Measures against Belarus target trade and services
On the 29th June 2024, the EU Council adopted restrictive measures targeting the Belarusian economy, in view of the regime’s involvement in Russia’s war against Ukraine.
These comprehensive measures aim at mirroring several of the restrictive measures already in place against Russia, and will affect various sectors of the Belarusian economy, including the export ban on dual-use/advanced goods and technologies, as well as introducing further export restrictions on goods which could contribute to the enhancement of Belarusian industrial capacities.
Further restrictions are also introduced on exports to Belarus of maritime navigation goods and technologies, and luxury goods.
Regarding imports, it will be prohibited to import directly or indirectly, purchase or transfer namely of gold and diamonds from Belarus, as well as helium, coal and mineral products including crude oil. The latter measure will be complemented by a new export ban on goods and technologies suitable for use in oil refining and the liquefaction of natural gas.
The Council is also prohibiting the provision of certain services to Belarus, its government, public bodies, corporations or agencies and to any natural or legal person acting on behalf or at their direction.
Related Publications:
- Consilium Press Release 29/06 - Belarus new EU restrictive measures target trade, services, transport
- Government SE Press Release 04/07 - EU imposes new sanctions against Belarus
3. US TREASURY REPORT
The US Treasury Report for all actions reported is hereby attached.
Related Article:
Attachment 1: US Treasury Report for week 29/06/2024 – 05/07/2024
4. PIRACY REPORT
The Piracy Report for all actions reported is hereby attached.
Related Article:
Attachment 2: Worldwide Threat to Shipping (WTS) Report, for the period between 05/06/2024 – 03/07/2024
Nothing important to report from Local News, the House of Representatives, IMO and ILO.