2. CONTENTS
ECONOMIC & BUSINESS NEWS GLOBAL UPDATE
Sri Lanka to Issue USD 1Bn International Sovereign Bond Moody’s Downgrade Hits 15 Top Banks
CBSL’s USD 150 mn Development Bond Oversubscribed Asian Banks Make the Lion's Share of Global Profits
Highlights of the Census of Population and Housing World GDP
Sri Lanka Climbs 56 Positions in the Logistics Performance Index 2012 Steps Taken by India to Support Rupee
FINANCIAL SECTOR NEWS ANALYSIS & FORECAST
Commercial Bank Records Highest Growth in ‘Inter-Bank Electronic’ Payments
Fiscal Management Snapshot
Sri Lanka Banking System Assigned Group '8' Banking Industry Country Risk
Foreign Financing
Assessment (BICRA) by Standard & Poor's
Sri Lanka - Selected Economic Indicators
Standard & Poor's Ratings Services' BICRA Scores for the 87 Banking Systems
Response of the CBSL to the Standard and Poor’s Assessment of the Sri Lankan
Banking System
Standard & Poor’s Launches S&P Sri Lanka 20 Index
Service Points Openings
< Research & Development Unit >
4. Sri Lanka to Issue USD 1Bn International Sovereign Bond
The Central Bank of Sri Lanka Previous Issues:
(CBSL), is currently planning
an issuance of an International
Year Amount Period Interest Oversubscribed Distribution
Sovereign Bond of up to USD (USD mn) Rate by
1,000 mn in the international
capital market at an USA - 40%
2007 500 5 years 8.25% More than 03
appropriate maturity. times Europe - 30%
Asia - 30%
For this purpose, after
evaluation of eight proposals USA - 45%
2009 500 5 years 7.40% More than 13
received, CBSL has selected times Europe - 31%
four leading international Asia - 24%
investment banks, namely
Bank of America Merrill Lynch, More than 06 USA - 52.5%
Barclays Capital, Citibank NA, 2010 1,000 10 years 6.25% times Europe - 25.0%
The Hongkong and Shanghai Asia - 22.5%
Banking Corporation Limited
as Joint Lead Managers, Book More than 7.5 USA - 43%
2011 1,000 10 years 6.25% times
runners and Underwriters for Europe - 30%
the proposed Sovereign Bond Asia - 27%
issuance.
< Research & Development Unit >
5. CBSL’s USD 150 mn Development Bond Oversubscribed
CBSL‟s offer of USD 150 mn Sri Lanka Development Bonds (SLDBs)
was oversubscribed by 1.5 times with total bid received amounting
to USD 229.02 mn.
“In view of the high demand by the investors, the Government
decided to accept USD 229.02 mn in 3 year maturity at the market
determined rates of USD 6 month LIBOR + 410 bps (weighted
average margin)” CBSL stated.
*The USD 6 month LIBOR rate as at 25 June - 0.73
< Research & Development Unit >
6. Highlights of the Census of Population and Housing
Population according latest Census which covered the entire country after a lapse of 30
years was reported as 20,277,597.
Average annual population growth rate between 1981 and 2012 stood at 1.0 %, while the
same between the intercensal period of 2001 and 2012 was reported as 0.7%. It can
therefore be concluded that the population of Sri Lanka is still growing but at a lesser rate.
Major share of 28.8 % of the population live in the Western province while only 5.2 % of the
total population live in the Northern Province.
Colombo district reported the highest of 2,323,826 while, Gampaha district reported the
second largest population of 2,298,588.
Kurunegala (1,611,407), Kandy(1,368,216), Kalutara (1,214,880), Ratnapura (1,082,299), and
Galle (1,059,046) districts reported population more than a million in each of them.
Mullaitivu (92,228) district reported the lowest population followed by Mannar(99,063)
district. Only these two districts reported population of less than one hundred thousand.
Colombo district reported the highest population density of 3,438 persons per square
kilometer. The next highest population density of 1,714 persons per square kilometre was
reported from the adjoining Gampaha district.
Lowest population density of 39 persons per square kilometre was recorded in Mullaitivu
Source: Department of Census and Statistics
< Research & Development Unit >
7. Sri Lanka Climbs 56 Positions in the Logistics Performance Index 2012
- Top 10
The World Bank Logistics Performance
Index (LPI) 2012 released recently has
ranked Sri Lanka in 81st position.
Sri Lanka has climbed 56 positions in
the 2012 survey to be ranked 81 out of
155 countries (137 in 2010).
This is the third edition of “Connecting
to Compete: Trade Logistics in the
Global Economy”, produced by the
World Bank once in two years.
Sri Lanka
Source: The World Bank
< Research & Development Unit >
9. Commercial Bank Records Highest Growth in ‘Inter-Bank Electronic’ Payments
Commercial Bank has been recognised as
the „Bank with the Highest Growth‟ in the
„High Volume Bank Category‟ among banks
using the Sri Lanka Inter Bank Payment
System (SLIPS) in 2011-12.
The award, presented by LankaClear (Pvt)
Ltd., acknowledges Commercial Bank as the
most active bank, among the big banks that
conducted over a million transactions in
Inter-Bank Electronic Payments, during the
last financial year.
< Research & Development Unit >
10. Sri Lanka Banking System Assigned Group '8' Banking Industry Country Risk
Assessment (BICRA) by Standard & Poor's
Standard & Poor's Ratings Services assigned Sri Lanka to its,
Banking Industry Country Risk Assessment (BICRA) group '8'
Economic risk score of '8'
Industry risk score of '7„
The BICRA groups summarize the risks that a bank operating within a particular country and banking industry faces relative to
those in other banking industries. They range from group '1' (the lowest risk) to group '10' (the highest risk).
Economic risk score of '8' for Sri Lanka reflects; a "very high risk" assessment of economic resilience and
credit risk in the economy, and a "high risk" assessment of economic imbalances.
Economic resilience (very high risk) reflects:
Sri Lanka's status as a low-income economy, as measured in terms of its per capita GDP, and the inefficiencies in the
economy.
Nevertheless, Sri Lanka's economic growth prospects have improved following the end of the civil war and subsequent shift
in the government's focus toward boosting the economy and diversifying sources of growth.
Cont.…
< Research & Development Unit >
11. Sri Lanka Banking System Assigned Group '8' Banking Industry Country Risk Assessment
(BICRA) by Standard & Poor's (cont…)
Economic imbalance factors (high risk) reflects:
Economic imbalance factors in the recent pickup in growth of private sector credit.
The central bank's recent directive to apply a ceiling to the credit growth of banks should help to partially curb this risk. In S&Ps
view, Sri Lanka's economic imbalances could increase if credit growth continues at the current pace.
Sri Lanka's external position, which S&P considers to be moderately vulnerable, also affects the country's economic imbalance.
S&Ps assessment of Sri Lanka's external position reflects the country's weak external liquidity, and moderately high and
increasing external debt.
Credit risk (very high risk)
Credit risk in Sri Lanka takes into account moderate private sector debt in the context of low income levels, relaxed lending
practices and underwriting standards, as well as a weak payment culture and rule of law.
The use of cash flow analysis for underwriting is limited in Sri Lanka, and some exposures are concentrated. Moreover, risk
management practices are evolving, in S&P‟s view.
Cont.…
< Research & Development Unit >
12. Sri Lanka Banking System Assigned Group '8' Banking Industry Country Risk Assessment
(BICRA) by Standard & Poor's (cont…)
Industry risk score of '7' for Sri Lanka is based on S&Ps opinion that the country faces "very high risk" in its
institutional framework, "high risk" in its competitive dynamics, and "intermediate risk" in its system-wide
funding.
S&P view the banking regulations in Sri Lanka as somewhat weaker than international standards.
Governance and transparency of banks are weak by global standards. Sri Lanka adopted a standardized approach of Basel II
in 2008, with capital requirements higher than global requirements.
The key regulations for banks seem sufficient. However, finance companies are less regulated. Under the existing legislation,
banks in Sri Lanka are subject to on-site examinations by the banking sector regulator at least once every two years. S&P
believe the frequency of on-site supervision may not be sufficient for the regulator to quickly detect risk build-ups.
Moreover, S&P see a potential conflict of interest in the central bank's role. In addition to policy formulation and supervision
of banks, the monetary board of the central bank also oversees Employees' Provident Fund investments. The fund is a large
investor in Sri Lankan banking stocks.
The banking sector's risk appetite is "moderate," in S&Ps view. Loan growth is high. However, banks in Sri Lanka are mostly
engaged in traditional lines of business and most of their earnings come from traditional fund-based businesses.
Sri Lanka's large number of banks relative to the small economy has not led to any significant instability in the competitive
environment. Cont.…
< Research & Development Unit >
13. Sri Lanka Banking System Assigned Group '8' Banking Industry Country Risk Assessment
(BICRA) by Standard & Poor's (cont…)
However, the following factors have led to market distortions:
(1) a significant market share (about 50%) of government-owned banks in the sector;
(2) directed lending requirements toward the agriculture sector; and
(3) differential use of administrative controls; e.g. a recent cap on loan growth is applicable only to banks.
Sri Lanka's large proportion of highly stable core customer deposits support system-wide funding. Such deposits reduce
banks' dependence on external debt.
Nevertheless, S&P believe access to alternative domestic funding sources is limited because the domestic debt capital
market is narrow and shallow.
In S&Ps view, the Sri Lankan government has a "supportive" tendency towards private sector banks. S&P believe that the
government is committed to maintaining financial system stability and market confidence.
Source: Standard & Poor’s
< Research & Development Unit >
14. Standard & Poor's Ratings Services' BICRA Scores for the 87 Banking Systems
About BICRAs
The strengths and weaknesses of an economy and banking industry are critical factors
that underpin the creditworthiness of a country's financial institutions. S&P distill this
analysis into a single Banking Industry Country Risk Assessment (BICRA), "designed
to evaluate and compare global banking systems," as S&P criteria state it. A BICRA is
scored on a scale from '1' to '10', ranging from what we view as the lowest-risk banking
systems (group '1') to the highest-risk (group '10'). The BICRA methodology has two
main analytical components: "economic risk" and "industry risk."
A BICRA analysis for a country covers all of its financial institutions that take deposits,
extend credit, or engage in both activities, whether S&P rate them or not. In addition,
the analysis considers the relationship of the banking industry to the financial system,
and furthermore to its sovereign. For that reason, many of the factors underlying a
sovereign rating are important in determining a BICRA score.
S&P analysis of economic risk of a banking sector takes into account the structure and
stability of the country's economy, including the central government's macroeconomic
policy flexibility; actual or potential economic imbalances; and the credit risk of
economic participants--mainly households and enterprises.
S&P view of industry risk factors in the quality and effectiveness of bank regulation and
the track record of authorities in reducing vulnerability to financial crises, as well as the
competitive environment of a country's banking industry--including the industry's risk
appetite, structure, and performance--and possible distortions in the market. Industry
risk also addresses the range and stability of funding options available to banks,
including the role of the central bank and government.
Part of S&P review involves an evaluation of governments' tendency to support private
banks in countries where S&P assign BICRA scores.
Source: Standard & Poor’s
< Research & Development Unit >
15. Response of the CBSL to the Standard and Poor’s Assessment of the Sri Lankan
Banking System
Table : Key Financial Indicators
Soundness of the Banking System
2007 2008 2009 2010 2011 Mar'12
Sri Lankan banking system is sound and resilient with Annual Growth, %
the performance of the banking industry improving
over past few years. Assets 16.9 7.7 11.7 17.8 19.3 24.4
Deposits 16.5 7.9 18.8 15.9 18.7 21.6
As indicated in the Table, key financial soundness
Loans and advances 18.9 6.6 -2.3 23.7 31.3 35.5
indicators of the banking sector which accounts for
55% of financial system assets, were maintained at Ratio, %
healthy levels. Core Capital Adequacy Ratio 12.6 12.5 14.1 14.3 13.5 13.3
The Key Financial Indicators display a conspicuous Total Capital Adequacy Ratio 14.1 14.5 16.1 16.2 15.2 14.9
improvement in the gross non performing advances Gross Non-performing Ratio 5.2 6.3 8.5 5.4 3.8 3.9
ratio (NPA) from 5.2% in 2007 to 3.8% in 2011 with
Net Non-performing Ratio 2.4 3.4 5.0 3.0 2.1 2.2
absolute volumes of NPA indicating only a relatively
lower growth of 25% in comparison to the overall Provisions Coverage 64.5 60.9 53.0 58.1 57.3 54.3
credit growth of 69%, during this period. Statutory Liquid Assets Ratio 30.4 31.3 39.2 36.6 32.4 31.6
The capital base of the banking sector has increased Interest Margin 4.4 4.4 4.6 4.6 4.2 4.1
nearly two fold since 2007 with the introduction of the Return on Assets (After tax) 1.1 1.1 1.0 1.8 1.7 1.8
Basel capital standards and enhanced minimum
Return on Equity (After tax) 14.0 13.4 11.8 22.2 19.8 21.1
capital requirement for banks. Profitability of the
banking sector, which has continuously increased, Cont.…
has further reinforced the level of capital.
< Research & Development Unit >
16. Response of the CBSL to the Standard and Poor’s Assessment of the Sri Lankan Banking
System (cont…)
These factors have contributed to the improvement in capital adequacy ratios despite the significant growth in assets. It is pertinent to
note that the core capital ratio and total capital ratio of 5% and 10%, respectively, imposed by the Central Bank are more stringent than
the international standards.
Liquidity of the banking system has been well managed with the statutory liquid assets ratio being maintained well above the limit of
20%. The growth in deposits and significant representation of retail deposits, further support liquidity risk mitigation.
Concentration of credit exposure is regulated by the Central Bank with Directions on maximum amount of accommodation, lending to
related parties and banks being advised to impose sector wise exposure limits.
Any concentrations to certain entities have been permitted by the Monetary Board in consideration of national priorities and/or national
interest and the ability of the banks to withstand any potential risk arising from such exposure.
Mandatory lending of at least 10% of the advances portfolio to the agriculture sector was introduced with the intention of enhancing
the food sustainability of the country.
Regulatory framework governing licensed banks
Despite the global financial distresses, the Sri Lankan banking industry stands resilient and the regulations in force are of international
standards. Licensed banks are required to comply with the requirements of the Banking Act and Directions issued on fundamentals.
The compliance of banks with these regulations is monitored strictly on an on-going basis and corrective action initiated.
A mandatory Direction on corporate governance encompassing all aspects of good governance and transparency is already in place.
All these prudential regulations are given effect in line with the Basel Core Principles of effective bank supervision issued by the Bank
for International Settlement, Basel and in text and action they are more stringent than those in many countries in the region as well as
globally.
< Research & Development Unit >
Cont.…
17. Response of the CBSL to the Standard and Poor’s Assessment of the Sri Lankan Banking
System (cont…)
Supervision of banks
The Central Bank has a continuous supervision process which is an uninterrupted monitoring of banks to assess the trends of banks
on an individual and a system-wide basis.
Mandatory deposit insurance
With a view to further strengthening financial stability in the country, the mandatory deposit insurance scheme was introduced in 2010.
There have been no banking failures in Sri Lanka despite the global financial crisis.
Regulation and supervision of licensed finance companies and specialized leasing companies
In addition to banks, all licensed finance companies (LFCs) and specialized leasing companies (SLCs) are also closely monitored and
regulated by the Central Bank.
LFCs and SLCs are subject to on-site examinations at least once in every 2 years and weekly, monthly and quarterly reports are
obtained through a web based data reporting system. Apart from the regular supervisory procedures, spot examinations are
conducted when the Central Bank identifies an issue.
In conclusion, Central Bank of Sri Lanka wishes to assure the public that the Sri Lankan banking system is sound and resilient and is
not prone to high risk as indicated in the statement of Standard and Poor’s.
Source: CBSL
< Research & Development Unit >
18. Standard & Poor’s Launches S&P Sri Lanka 20 Index
S&P Indices announced the launch of the S&P Sri Lanka 20,
which has been jointly developed with the Colombo Stock
Exchange (CSE).
The Index is designed to be representative of the equity market,
yet also be efficient to replicate, with possible application for
index funds and Exchange Traded Funds (ETFs).
The Index includes the largest 20 stocks, by total market
capitalization, listed on the CSE that meet minimum size,
liquidity and financial viability thresholds. The constituents are
weighted by float-adjusted market capitalization, subject to a
single stock cap of 15%, which is employed to enhance portfolio
diversification.
< Research & Development Unit >
19. Service Points Openings
Commercial Bank
219 Alawwa
220 Liberty Plaza Shopping Complex
< Research & Development Unit >
21. Moody’s Downgrade Hits 15 Top Banks
Moody’s
Grading
Fifteen of the biggest global banks were
Aaa1 downgraded on 21 June, by Moody‟s Investors
Aaa2
Aaa3
Service, adding to pressure on their borrowing
Investment Grade
Aa1 costs and questions over their business
Aa2
Aa3 models.
A1
A2 The long-term senior debt ratings of 4 of these
A3
Baa1
firms were downgraded by 1 notch, the ratings
Baa2 of 10 firms were downgraded by 2 notches and
Baa3
Ba1 1 firm was downgraded by 3 notches.
Ba2
Ba3
B1
B2
B3
Caa1
Caa2
Caa3
Ca1
Ca2
Ca3
C1
C2
C3
< Research & Development Unit >
22. Asian Banks Make the Lion's Share of Global Profits
On July 3rd Bob Diamond, the chief executive of
Barclays, resigned, days after the bank was fined a
combined USD 454 mn by authorities in America and
Britain for manipulating LIBOR, a benchmark
interest rate. Barclays was the 18th-most-profitable
bank in the world last year, raking in USD 9.1 bn in
pre-tax profits and accounting for 20% of western
Europe's total banking profits, according to the
Banker.
But the region's profitability has declined markedly
since the financial crisis. In 2007, banks there made
USD 363 bn, but by 2011 this had shrunk to USD 44
bn as Europe's debt crisis continued.
Of the world's largest 1,000 banks in 2011, 24 of the
25 biggest lossmakers were based in western
Europe, losing USD 121 bn between them.
As the chart shows, the biggest banking profits have
moved from western Europe to the Asia-Pacific
region for which read China. Four of the world's five
most profitable banks in 2011 were Chinese. They
made a collective profit of USD130 bn in 2011, one- Source: The Economist
third of the region's total.
Source: The Economist
< Research & Development Unit >
23. World GDP
The world economy's growth accelerated
in the first 03 months of the year,
according to The Economist‟s measure of
global GDP, based on 52 countries.
First-quarter output expanded by 2.9%
compared to the same period last year.
Austerity measures in Europe, coupled
with uncertainty about the future of the
euro, saw the economy of the common-
currency area shrink marginally.
And a more worrying sign is the fall in the
contribution to world GDP of the BRIC
countries, which have been widely
considered the driving force behind global
growth.
In America, though, despite signs that the
recovery could decelerate, first-quarter
growth nearly reached 2%, driven
primarily by consumption and exports. Source: The Economist
Source: The Economist
< Research & Development Unit >
24. Steps Taken by India to Support Rupee
June 25 - The Reserve Bank of India (RBI) raised the investment limit for foreign
institutional buyers in government debt by USD 5 bn to USD 20 bn. However, the
additional limit can be invested only in bonds of three years and above.
It also allowed sovereign wealth funds, multi-lateral agencies, foreign central
banks and insurance, pension and endowment funds to buy federal bonds.
RBI reduced the lock-in period of investment to three years from five for foreign
investment in government bonds for up to USD10 bn, including the additional
USD 5 bn.
June 25 - The RBI stated manufacturing and infrastructure companies can raise
money overseas via external commercial borrowings by an additional USD10 bn
to meet capital expenditure and repay rupee loans.
The central bank also allowed qualified foreign investors to invest in mutual fund
schemes with 25 % of assets in the infrastructure sector under the current USD 3 Source: The Economist
bn sub-limit. Earlier 100 % of the investment had to be in infrastructure assets.
May 21 - The RBI stated net overnight rupee open position limit for Indian banks
shall not include positions taken in the currency futures and options segment,
thereby reducing speculative trading in the foreign exchange market.
The central bank also stated positions taken in the futures and options markets
Cont.…
cannot be offset by undertaking positions in the over-the-counter market and
vice-versa.
< Research & Development Unit >
25. Steps Taken by India to Support Rupee (cont…)
May 10 - RBI stated exporters must cash in 50 % of dollar holdings in their accounts within two weeks, to help ease
tight supplies.
The RBI also mandated that exporters should exhaust the available dollar balance in their accounts before raising
fresh funds from the markets.
May 10 - The RBI allowed intraday trading at five times the net overnight open position limit of the bank or the
central bank-approved intraday limit, whichever is higher, allowing banks to take larger positions.
Earlier, traders could not exceed the overnight limit.
May 9 - The central bank eased rules for using foreign currency deposits, by allowing banks to use foreign
currency non-resident (FCNR) deposits as collateral against loans to local residents.
May 7 - The government deferred a controversial tax proposal, which had chilled capital inflows, though foreign
investors have demanded more clarity about the guidelines.
May 4 - The RBI relaxed the interest rate ceiling on FCNR deposits with maturities of 1 year to less than 3 years, to
200 basis points above the LIBOR or swap rate from 125 basis points.
On 3 to 5-year maturity FCNR deposits, the rate ceiling was relaxed to 300 basis points above LIBOR.
The central bank also allowed banks to freely determine the interest rates on export credit in foreign currency.
Source: Reuters
< Research & Development Unit >
27. Fiscal Management Snapshot
Figures in Rs. Bn
Budget 2012* Jan-Apr 2012 Jan-Apr 2011
Total Revenue & Grants 1,126.0 307.6 286.2
Total Revenue 1,106.0 305.5 284.9
Tax Revenue 1,006.0 276.4 249.7
Non tax Revenue 105.5 29.0 35.1
Grants 20.0 2.0 1.3
Total Expenditure 1,594.0 593.4 458.5
Recurrent 1,107.0 445.3 360.2
Interest 370.0 173.6 142.2
Salaries and Wages 367.9 112.1 108.2
Public Investment 497.5 152.4 103.9
Revenue Surplus/Deficit (-) (1.8) (139.8) (75.3)
Budget Deficit (468.9) (285.7) (172.2)
Revenue/GDP (%) 14.7 4.1 4.4
Current Expenditure/GDP (%) 14.7 5.9 5.6
Public Investment/GDP (%) 6.6 2.0 1.6
Revenue Surplus/Deficit (%) (0.0) (1.9) (1.2)
Budget Deficit/GDP (%) (6.2) (3.8) (2.7)
Source: Mid Year Fiscal Report 2012. * Estimates
< Research & Development Unit >
28. Foreign Financing Commitments Foreign Financing Disbursements (Jan – Apr, 2012)
(Jan– Apr, 2012)
Total disbursements from January to April 2012 were US$ 625
mn.
Development Amount (USD Mn)
Of the total disbursements, project loans and grants accounted
Partner Loan Grant Total for USD 608 mn and USD 17 mn respectively.
Bilateral 740.8 275.1 1,015.9
India 443.1 257.3 700.3 External Debt
Japan 162.7 12.6 175.3 At the end of April 2012, the total outstanding
Netherland 102.5 - 102.5 external debt of the Government was USD 18.9
bn1.
China 32.5 - 32.5
Total debt service payment2 from January to April
Other - 5.3 5.3 2012 amounted to USD 378.4 mn.
Multilateral 33.0 4.9 37.9 Of this, USD 216.3 mn was for principal payments
IFAD 1 22.0 - 22.0 and the balance USD 162.1 mn was for the interest
payments.
WB 2 11.0 0.5 11.5
The total estimated debt service payments for
Other - 4.4 4.4 2012 is USD 1,630 mn3, of which 23 % has already
been paid by 30th April 2012.
Total 773.8 280.0 1,053.8
1 This includes outstanding only for loans obtained to finance development projects and International
Source: Mid Year Fiscal Report 2012 Bond Issues
2 Debt Service Payments = Principal Payments + Interest Payments
1 International Fund for Agricultural Development 3 Includes the Debt Service Payments of International Sovereign Bond Issues. Estimates in terms of
2 World Bank, includes commitments made with International Development Association and International US$ are based on the exchange rates as at 30th April 2012
Bank for Reconstruction & Development
Source: Mid Year Fiscal Report 2012
< Research & Development Unit >
29. Sri Lanka - Selected Economic Indicators
Cont.…
< Research & Development Unit >
30. Sri Lanka - Selected Economic Indicators (cont…)
< Research & Development Unit >
31. “He who walks in another‟s tracks leaves no footprints…”
Joan Brannon
The views expressed in Economic Capsule are not necessarily those of the Management of Commercial Bank of Ceylon PLC
The information contained in this presentation has been drawn from sources that we believe to be reliable. However, while we have taken reasonable care to maintain accuracy/completeness of the
information, it should be noted that Commercial Bank of Ceylon PLC and/or its employees should not be held responsible, for providing the information or for losses or damages, financial or otherwise,
suffered in consequence of using such information for whatever purpose.
Research & Development Unit