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PRELIMS FACTS 30-06-2018

FACT # 1

Financial Action Task Force

 

Why in news? The Financial Action Task Force (FATF) has officially placed Pakistan on its Grey List of countries involved in providing monetary assistance to terrorism and related causes for failing to curb terror financing on its soil.

 

Financial Action Task Force:

  • FATF is an inter-governmental body established in 1989 by the ministers of its member jurisdictions.
  • Its objectives are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terror financing and other related threats to the integrity of the international financial system.
  • The FATF is therefore a “policy-making body” which works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas.
  • The FATF currently comprises 35 member jurisdictions and 2 regional organisations, representing most major financial centres in all parts of the globe.
  • FATF Secretariat is housed at headquarters of OECD in Paris, France.
  • Being on the “grey list” means that accessing funds from international markets would become tougher.
  • In the aftermath of FATF decision, Pakistan may suffer a risk downgrade by multilateral lenders like IMF, World Bank, ADB, EU and also a reduction in risk rating by Moodys, S&P and Fitch.
  • The FATF grey list currently features Iran and North Korea.

FACT # 2

India-Us “2+2” Dialogue

 

Why in news? The inaugural India-US “2+2” dialogue between the foreign and defence ministers of the two countries has been postponed for a second time.

 

India-US “2+2” dialogue:

  • India-US “2+2” dialogue was agreed during the visit of Prime Minister Narendra Modi to Washington in June last year.
  • The “2+2” defence and foreign ministers’ meet was to replace the Strategic and Commercial Dialogue between the foreign and commerce ministers of the two countries held under the previous Obama administration.
  • It aims to share perspectives on strengthening their strategic and security ties and exchange views on a range of bilateral, regional and global issues of mutual interest.
  • It would focus on strengthening strategic, security, and defence cooperation as the US and India jointly confront global challenges.
  • The two countries would look at ways to insulate their strategic partnership from recent irritants over US trade protectionism, and new sanctions on Russia that could imperil an Indian missile deal with Moscow.

FACT # 3

Global Real Estate Transparency Index

 

Why in news? India was ranked 35th among 100 countries in recently released Global Real Estate Transparency Index (GRETI).

 

Global Real Estate Transparency Index:

  • The Global Real Estate Transparency Index is based on a combination of quantitative market data and survey results across 100 markets.
  • 186 individual measures are divided into 14 topic areas, which are then grouped and weighted into six broad sub-indices:
    • Performance Measurement 28.5%
    • Market Fundamentals 16.5%
    • Governance of Listed Vehicles 10%
    • Regulatory and Legal 25%
    • Transaction Process 15%
    • Sustainability 5%
  • The Index scores markets on a scale of 1 to 5 (with 1.00 being the highest possible score).
  • Depending on their overall performance, markets are assigned to one of five transparency tiers.
    • Highly Transparent
    • Transparent
    • Semi-Transparent
    • Low Transparency
    • Opaque
  • The report that comes out every two years.

 

2018 Global Real Estate Transparency Index Report highlights:

  • India has moved up just one spot in the global real estate transparency index from 36 in 2016 to 35 in 2018.
  • This happened despite the implementation of the Real Estate (Regulation And Development) Act or RERA.
  • RERA was implemented in May 2016 to bring accountability and transparency into the sector.
  • However, unlike a few states such as Maharashtra and Karnataka, several states have been slow in its implementation.
  • India is thus yet to figure among the transparent markets, despite the regulatory changes and the possibility of a Real Estate Investment Trust (REIT) listing.
  • The countries in the top 30 ranks have been defined as transparent markets, while those in the top 10 are categorized as highly transparent.
  • The UK, Australia, the US, France and Canada are the top five countries.
  • India is one of the 10 countries that have registered maximum improvement in transparency in real estate over the last two years.
  • Since 2014, India has moved up by five spots from 40th in the global real estate transparency index.

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