European Union leaders have agreed to provide Ukraine with an interest-free loan worth $105 billion over the next two years. The decision, announced by European Council President António Costa, aims to support Ukraine’s defense and budget needs without relying on frozen Russian assets. The financing will instead be raised from capital markets and secured against the EU budget, according to reports from Reuters and Al Jazeera.

Ukrainian President Volodymyr Zelensky expressed gratitude to the EU, noting that the funds will help cover Kyiv’s budget deficit and strengthen its defense capabilities amid the ongoing conflict with Russia. The agreement was reached after lengthy late-night negotiations on December 18, marking a significant show of unity among EU leaders.

By opting for market-based financing, the EU temporarily steps away from the contentious plan to use seized Russian assets to fund Ukraine’s war effort. Analysts say the move could ease internal divisions within the bloc while ensuring continued financial backing for Ukraine through 2027.

The interim government’s initiative to reopen six state-owned sugar mills—closed during the previous Awami League administration—has stalled a year after its announcement. Despite forming a 13-member task force and submitting funding requests to the Finance Ministry, no budget allocation has been approved. The mills in Shyampur, Setabganj, Rangpur, Panchagarh, Pabna, and Kushtia remain idle, deepening frustration among workers, officials, and sugarcane farmers.

According to officials, the Bangladesh Sugar and Food Industries Corporation (BSFIC) sought over Tk 63 crore for two mills, but the Finance Ministry did not respond, citing lack of prior consent. Meanwhile, the Kushtia Sugar Mill is being considered for transfer to the Bangladesh Economic Zones Authority (BEZA), sparking institutional disagreement. BSFIC has formally objected to the move, while BEZA argues the site is ideal for agro-processing investment.

The prolonged closure has reduced national sugar output and inflated prices, while unresolved debts and unpaid government dues continue to strain the sector. Without funding clarity, the reopening timeline remains uncertain.

European Commission President Ursula von der Leyen has called on the European Union to reduce its economic overdependence and strengthen its global competitiveness through a wider network of free trade agreements. Speaking in Brussels ahead of the European Council summit, she emphasized the strategic importance of finalizing the proposed trade deal with South America’s Mercosur bloc, describing it as a gateway to a market of 700 million consumers.

However, the Mercosur agreement has sharply divided EU member states. France and Italy, led by Emmanuel Macron and Giorgia Meloni, oppose the deal over concerns about environmental standards, agricultural safeguards, and regulatory clarity. Germany and Spain, in contrast, argue the pact would boost exports and diversify trade ties at a time of weak growth. Farmers’ unions across Europe have also voiced strong resistance, fearing cheap imports could undermine domestic producers.

Thousands of farmers were expected to protest in Brussels as leaders met, underscoring the political sensitivity surrounding the deal. The outcome of the summit may determine whether the EU can balance trade expansion with internal protectionist pressures.

India is fast-tracking a series of free trade agreements (FTAs) as it faces mounting pressure from the United States’ steep import tariffs and growing global trade instability. The move follows Washington’s decision in August to impose a 50% import duty on Indian textiles, auto parts, metals, and labor-intensive goods—measures that have significantly weakened India’s export competitiveness.

Trade analysts say New Delhi is using FTAs as a strategic tool to offset the long-term effects of unpredictable US tariffs. India currently has 15 active FTAs, six under priority negotiation, and more than 50 new deals under discussion with partners including the European Union, New Zealand, Chile, and Oman. Analysts note that once completed, India will have trade agreements with nearly all major economies except China.

However, experts caution that India’s rapid pivot toward multiple trade alliances could expose its diplomatic imbalance and erode its traditional defensive trade posture, potentially creating vulnerabilities for its future economic interests.

Following heavy rainfall on December 16, Iran’s Hormuz Island in the Persian Gulf witnessed its soil and coastal waters turning a striking blood-red hue. Videos of the phenomenon quickly went viral, with many comparing it to ancient descriptions of “blood rain.” The island’s iron-rich and hematite-laden terrain mixed with rainwater, creating a vivid red runoff that flowed into the sea.

Scientists, including researchers from NASA’s Earth Observatory, explained that the event was entirely natural. Hormuz Island’s geology consists of salt, gypsum, anhydrite, and other evaporitic rocks that react with rainfall to produce the intense coloration. Locally, the red soil is known as “Golak,” and the island’s multicolored landscape has earned it the nickname “Rainbow Island.”

The rare visual spectacle has sparked global curiosity, highlighting both the island’s unique mineral composition and the dynamic interplay between weather and geology. Environmental observers suggest the event could boost eco-tourism interest in the region while underscoring the importance of studying mineral-rich coastal ecosystems.

Bangladesh Bureau of Statistics (BBS) has reported that 98.9% of households in the country now use mobile phones, reflecting the deep penetration of mobile technology across both rural and urban areas. The data comes from the first-quarter report of the 2025–26 ICT Use and Application Survey, conducted between July and September 2025, covering over 61,000 households nationwide.

According to the survey, 72.4% of households use smartphones, a slight decline from 72.8% in the previous fiscal year. Individual mobile phone usage, however, rose to 80.6% from 78.9% last year. Internet usage also increased modestly, reaching 48.9% of the population. Gender disparities persist: 80.9% of men and 78.8% of women use mobile phones, but ownership rates remain lower among women (52.8%) than men (63.2%).

Urban households show higher smartphone adoption (80.8%) compared to rural ones (68.8%). BBS noted that such data will help policymakers assess progress toward Sustainable Development Goals and design targeted ICT development programs.

A 5.1-magnitude earthquake struck about 18 kilometers from Hualien in eastern Taiwan on Thursday, according to the island’s Central Weather Administration. The quake occurred at a depth of approximately 31.6 kilometers. Initial reports from Reuters indicated no immediate casualties or significant property damage. Buildings in Taipei and nearby areas briefly swayed as the tremor was felt across the region.

Authorities are monitoring the situation closely, though no emergency alerts have been issued. Taiwan, located at the junction of two tectonic plates, experiences frequent seismic activity. The island has a history of powerful earthquakes, including a 2016 quake in southern Taiwan that killed more than 100 people and a devastating 7.3-magnitude quake in 1999 that claimed over 2,000 lives.

Experts note that while Thursday’s quake was moderate, it serves as a reminder of Taiwan’s ongoing vulnerability to seismic hazards and the importance of continued preparedness and infrastructure resilience.

Bangladesh received $2 billion in remittances during the first 17 days of December 2025, marking a 14% increase compared to the same period last year, according to Bangladesh Bank spokesperson Arif Hossain Khan. The central bank’s data shows that expatriate income continues to rise steadily, reflecting stronger inflows through formal banking channels.

In November 2025, remittances totaled $2.889 billion, up 31.37% from $2.199 billion in November 2024, making it the highest monthly inflow in six months. From July to December 17 of the current fiscal year, Bangladesh received $15.04 billion in remittances, compared with $12.89 billion during the same period last year—a 16.7% year-on-year growth.

Economists attribute the surge to improved exchange rate management and incentives for remittance senders. The continued rise in remittance inflows is expected to support Bangladesh’s foreign exchange reserves and help stabilize the local currency amid global economic uncertainty.

Global gold prices surged again this week, nearing record highs as investors turned to the precious metal amid a weakening U.S. dollar and falling Treasury yields. In Dubai, 24-carat gold rose to 524.50 dirhams per gram on Thursday, just below the year’s peak of 525.25 dirhams recorded in October. Prices for other purities also climbed, with 22-carat gold at 485.75 dirhams and 18-carat at 399.25 dirhams.

Analysts attribute the rise to concerns over the U.S. Federal Reserve’s independence and fears of political interference, which have heightened uncertainty in financial markets. Hani Abuagla, senior market analyst at XTB MENA, noted that geopolitical tensions across Europe, the Middle East, and Asia are further driving demand for gold as a safe-haven asset.

Experts describe 2025 as a pivotal year for gold, with inflation trends, economic slowdowns, and potential restrictive policies likely to sustain upward pressure on prices. Investors are expected to closely monitor central bank actions and global risk developments in the coming months.

The National Board of Revenue (NBR) of Bangladesh has introduced a new sub-module called 'Truck Movement' under the ASYCUDA World System to digitally monitor the movement of goods-laden trucks entering from India. The system electronically records each truck’s entry, duration of stay, and return of empty vehicles, replacing the previous manual process that was time-consuming and prone to errors. A pilot program began on December 15 at the Benapole Customs House in Jashore.

According to the NBR, the automated system will ensure real-time tracking and reporting of cross-border truck movements, improving efficiency in data management and minimizing revenue leakage. Officials believe the initiative will strengthen transparency and accountability in customs operations while enhancing border security. The NBR emphasized that accurate data will also help improve customs supervision and tax collection.

The revenue authority plans to expand the 'Truck Movement' module to all land ports across the country soon. Experts expect the system to modernize import operations, streamline border trade, and support Bangladesh’s broader digital governance goals.

The SME Foundation of Bangladesh announced that 138 individuals, including 72 men and 66 women, have successfully become entrepreneurs through its Business Incubation Center. The participants received training, mentorship, and business advisory support, along with opportunities to showcase their products at national and international trade fairs in the UK, China, Sri Lanka, and Nepal. A certificate distribution ceremony was held on December 18, 2025, in Dhaka, with senior officials from the SME Foundation and Startup Bangladesh in attendance.

Chairperson Md. Musfiqur Rahman emphasized that the incubation center provides essential business knowledge, workspace, networking, and technical assistance to new entrepreneurs. The initiative aligns with the government’s National Industrial Policy 2022 and the SDG 2030 agenda. According to the Bangladesh Bureau of Statistics, SMEs contribute about 30% to the national economy and employ over 30 million people.

The program is expected to further strengthen Bangladesh’s SME ecosystem, enhance women’s participation, and support sustainable economic development through innovation and capacity building.

China has introduced a value-added tax (VAT) on condoms and other contraceptives for the first time in three decades, as part of a broader effort to modernize its tax system and address the country’s persistently low birth rate. The new VAT law, passed in 2024, ends a long-standing exemption dating back to 1993. At the same time, Beijing has launched a national childcare subsidy program worth 90 billion yuan ($12.7 billion) and expanded maternity coverage under the national health insurance scheme.

The policy shift comes as China’s birth rate stood at just 6.77 per 1,000 people in 2024, despite incentives such as cash bonuses, IVF discounts, and extended paid leave for new couples. Social media users have mocked the condom tax, calling it a desperate attempt to boost fertility. Experts argue the measure is largely symbolic and unlikely to influence reproductive decisions, though it signals the government’s preference for pro-natalist behavior.

Sociologists warn that restricting access to contraception could disproportionately affect women, particularly those from disadvantaged backgrounds, while raising concerns about intrusive local monitoring of women’s reproductive cycles.

Saudi Arabia has announced the abolition of expatriate worker fees (Iqama) for employees in licensed industrial establishments, a move approved by the Council of Ministers chaired by Crown Prince and Prime Minister Mohammed bin Salman. The decision, based on recommendations from the Council of Economic and Development Affairs (CEDA), aims to strengthen national factories, ensure sustainability, and enhance global competitiveness under the Vision 2030 diversification plan.

Industry and Mineral Resources Minister Bandar Al-Khorayef said the measure will reduce operational costs, facilitate production expansion, and accelerate the adoption of automation, artificial intelligence, and advanced manufacturing technologies. Between 2019 and 2024, Saudi Arabia’s industrial sector saw factories rise from 8,822 to over 12,000, investments grow 35% to 1.22 trillion riyals, and employment increase 74% to 847,000 workers.

Officials expect the policy to further energize the sector and attract international investment. The government aims to triple industrial GDP to 895 billion riyals by 2035, reinforcing Saudi Arabia’s position as a regional manufacturing hub.

China is advancing plans to build the world’s largest hydropower project on the Yarlung Tsangpo River in Tibet, a $168 billion undertaking that could generate around 300 billion kilowatt-hours of electricity annually—three times the output of the Three Gorges Dam. President Xi Jinping has called for the project to be pursued with force and efficiency, framing it as a cornerstone of China’s renewable energy ambitions.

Experts describe the project as an unprecedented engineering feat involving tunnels and reservoirs stretching up to 150 kilometers through the Himalayas. However, India and Bangladesh, both downstream nations, fear severe ecological and hydrological impacts, including altered river flows, flooding, and displacement. Indian analysts have dubbed it a potential “water bomb,” citing its proximity to disputed borders.

While Beijing insists the project follows decades of research, limited transparency has fueled speculation about its environmental and geopolitical risks. Analysts warn that the dam could reshape regional water politics, potentially intensifying Sino-Indian tensions and affecting millions dependent on the Brahmaputra basin.

Bangladesh Bank Governor Ahsan H. Mansur stated that bank owners alone cannot be blamed for institutional collapse, emphasizing that officials also share responsibility. Speaking at an Economic Reporters Forum discussion in Dhaka, he outlined ongoing reforms, including plans to merge five banks to strengthen the sector. Mansur assured depositors that their funds remain safe under deposit insurance coverage and projected foreign reserves to reach $34–35 billion by fiscal year-end without borrowing from international lenders.

The governor acknowledged persistent challenges such as capital shortfalls and a non-performing loan (NPL) rate now estimated at 36%. He pledged transparency in disclosing accurate financial data. Mutual Trust Bank’s CEO Syed Mahbubur Rahman noted that commercial banks had been forced into long-term investments due to a weak capital market, while CPD’s Executive Director Fahmida Khatun warned that political interference and poor governance had eroded the sector’s integrity.

Experts urged continued implementation of the Bank Resolution Act and full autonomy for Bangladesh Bank to restore confidence and ensure sustainable recovery ahead of the upcoming national elections.