Are world leaders ignoring an impending global financial crisis? China's Evergrande crisis has rattled global markets. While Treasury Secretary Janet Yellen has warned the US could default on its debt obligations. Palki Sharma tells you more.

Gravitas US Edition: Are world leaders ignoring an impending financial pandemic?

Zambians were voting in a general election on Thursday after a tense campaign dominated by economic woes, a debt crisis and the impact of the coronavirus pandemic.

Sixteen presidential candidates are vying for the top job, but the frontrunners are incumbent Edgar Lungu, 64, and his long-time nemesis Hakainde Hichilema, a business tycoon, who are facing off at the polls for the third time.

Hichilema, 59, who is running for a sixth time, is backed by an alliance of 10 parties.

Queues of hundreds of people formed before dawn in front of voting stations in Lusaka's densely-populated and working class neighbourhoods, before polls opened at 6:00 a.m. (0400 GMT).

President Lungu was among the first people to vote at a nursery school in Chawama, a poor neighbourhood of Lusaka.

<a href="https://www.wionews.com/world/semen-terrorism-angers-women-in-south-korea-404805">Also read |&nbsp;'Semen terrorism' angers women in South Korea</a>

Upbeat, Lungu told reporters: "We are winning, otherwise I wouldn't have been in the race if we were not winning, we are a winning team".

But a flagging economy and rising living costs have eroded his support base, surveys suggest, and the election could be even tighter than 2016 polls when he narrowly scraped a victory over Hichilema.

Lungu, a lawyer by training, is accused of borrowing unsustainably, particularly from Chinese creditors, to finance a spree of infrastructure projects.

Under him,&nbsp;Zambia&nbsp;became the first African country to default on its sovereign debt since the coronavirus pandemic began, while inflation soared to 24.6 percent in June, the highest rate in more than a decade.

Africa's second biggest producer of copper after the Democratic Republic of Congo, and the eighth producer in the world, missed another debt repayment this year.

"I am voting for change. We can't continue on this path," said Andrew Daka, 20, who was voting for the first time in his life.

'Hoping for change'

Just before he cast his ballot, 35-year-old unemployed primary school teacher Ernest Chimba, said he was "hoping for change on the issue of the economy... because the cost of living in&nbsp;Zambia&nbsp;has gone really high".&nbsp;

But Lungu says that "things are moving well in the country", although his critics point to the high cost of living, poverty and joblessness.

Tensions have flared in the run-up to polling in this southern African country of 17 million people.

Supporters of Lungu's Patriotic Front (PF) party and Hichilema's United Party for National Development (UPND) have clashed violently on several occasions, prompting Lungu to deploy the army.

Critics denounced the unprecedented move as a tactic to intimidate opposition voters, which the PF denies.

The president has also grown tough on dissent since he took power in 2015, raising concerns of heavyhandedness if results are contested.

UPND supporters have meanwhile been keeping a low profile in the capital Lusaka, a Lungu stronghold, for fear of being attacked by PF counterparts.

Around seven million citizens are registered to vote for a president, legislators and local government representatives.

The winning candidate must acquire more than 50 percent of votes to avoid a run-off, which analysts deem unlikely. If no one makes it past the threshold, a second round will be held in 37 days &nbsp;

Lungu is confident of bagging half-a-million votes more than Hichilema.

Hichilema is pinning his hopes on disenchantment with Lungu's administration of the economy to clinch the presidency.

"Zambia&nbsp;is at a crossroads," Hichilema said Wednesday, pledging to fix the economy.

The opposition has accused the government of seeking to rig the ballot -- allegations the PF has rejected.

United Nations chief Antonio Guterres is "closely" following the vote and called on all candidates "to do their part&nbsp;to create an environment conducive to credible, inclusive and peaceful elections", his spokesman Stephane Dujarric said.

Local and international observers will be monitoring polling stations, some of which will be using a biometric voter identification system for the first time.

Polls close at 6:00 pm&nbsp;at more than 12,000 voting stations dotted across the vast country. Official results are expected by Sunday.

Zambians were voting in a general election on Thursday after a tense campaign dominated by economic woes, a debt crisis and the impact of the coronavirus pandemic.

Zambians were voting in a general election on Thursday after a tense campaign dominated by economic woes, a debt crisis and the impact of the coronavirus pandemic. Sixteen presidential candidates are vying for the top job, but the frontrunners are incumbent Edgar Lungu, 64, and his long-time nemesis Hakainde Hichilema, a business tycoon, who are facing off at the polls for the third time. Hichilema, 59, who is running for a sixth time, is backed by an alliance of 10 parties. Queues of hundreds of people formed before dawn in front of voting stations in Lusaka's densely-populated and working class neighbourhoods, before polls opened at 6:00 a.m. (0400 GMT). President Lungu was among the first people to vote at a nursery school in Chawama, a poor neighbourhood of Lusaka. Also read | 'Semen terrorism' angers women in South Korea Upbeat, Lungu told reporters: "We are winning, otherwise I wouldn't have been in the race if we were not winning, we are a winning team". But a flagging economy and rising living costs have eroded his support base, surveys suggest, and the election could be even tighter than 2016 polls when he narrowly scraped a victory over Hichilema. Lungu, a lawyer by training, is accused of borrowing unsustainably, particularly from Chinese creditors, to finance a spree of infrastructure projects. Under him, Zambia became the first African country to default on its sovereign debt since the coronavirus pandemic began, while inflation soared to 24.6 percent in June, the highest rate in more than a decade. Africa's second biggest producer of copper after the Democratic Republic of Congo, and the eighth producer in the world, missed another debt repayment this year. "I am voting for change. We can't continue on this path," said Andrew Daka, 20, who was voting for the first time in his life. 'Hoping for change' Just before he cast his ballot, 35-year-old unemployed primary school teacher Ernest Chimba, said he was "hoping for change on the issue of the economy... because the cost of living in Zambia has gone really high". But Lungu says that "things are moving well in the country", although his critics point to the high cost of living, poverty and joblessness. Tensions have flared in the run-up to polling in this southern African country of 17 million people. Supporters of Lungu's Patriotic Front (PF) party and Hichilema's United Party for National Development (UPND) have clashed violently on several occasions, prompting Lungu to deploy the army. Critics denounced the unprecedented move as a tactic to intimidate opposition voters, which the PF denies. The president has also grown tough on dissent since he took power in 2015, raising concerns of heavyhandedness if results are contested. UPND supporters have meanwhile been keeping a low profile in the capital Lusaka, a Lungu stronghold, for fear of being attacked by PF counterparts. Around seven million citizens are registered to vote for a president, legislators and local government representatives. The winning candidate must acquire more than 50 percent of votes to avoid a run-off, which analysts deem unlikely. If no one makes it past the threshold, a second round will be held in 37 days Lungu is confident of bagging half-a-million votes more than Hichilema. Hichilema is pinning his hopes on disenchantment with Lungu's administration of the economy to clinch the presidency. "Zambia is at a crossroads," Hichilema said Wednesday, pledging to fix the economy. The opposition has accused the government of seeking to rig the ballot -- allegations the PF has rejected. United Nations chief Antonio Guterres is "closely" following the vote and called on all candidates "to do their part to create an environment conducive to credible, inclusive and peaceful elections", his spokesman Stephane Dujarric said. Local and international observers will be monitoring polling stations, some of which will be using a biometric voter identification system for the first time. Polls close at 6:00 pm at more than 12,000 voting stations dotted across the vast country. Official results are expected by Sunday.

Debt-ridden Zambia votes in closely contested polls

A court in the United Kingdom has declared Indian fugitive businessman Vijay Mallya bankrupt. This paves the way for a consortium of Indian banks, led by the State Bank of India, to recover debt from loans.

London court declares fugitive businessman Vijay Mallya bankrupt, Indian banks can realise debt

IMF member countries have agreed to clear Sudan's arrears to the institution, France`s president said on Monday, removing a final hurdle to the African nation getting wider relief on external debt of at least $50 billion.

Hosting a conference for Sudan in Paris, French President Emmanuel Macron also kick-started the broader debt relief effort, saying his country was in favour of fully cancelling the $5 billion it is owed by Khartoum.

Also read-&nbsp;<a href="France hits target of 20mn first COVID-19 vaccinations: PM">France hits target of 20mn first COVID-19 vaccinations: PM</a>

Sudan is emerging from decades of economic sanctions and isolation under ousted former President Omar al-Badri.

It had built up huge arrears on its debt, but has made rapid progress towards having much of it forgiven under the IMF and World Bank's Highly Indebted Poor Countries (HIPC) scheme, which would reopen access to badly needed cheap international financing.

A transitional military-civilian power-sharing government is trying to pull the country out of a deep economic crisis with inflation at over 300% and shortages of basic goods fuelled by a lack of foreign currency reserves.

In order to reach the 'decision point'&nbsp;that would unlock the HIPC process in June, Sudan recently cleared its arrears to the World Bank and the African Development Bank with bridge loans from Western states.

The remaining step was to clear Sudan's arrears to the IMF, which France confirmed it would facilitate through a $1.5 billion bridge loan, and for that loan to be covered by member state pledges.

Those pledges were made during the Paris conference, paving the way for HIPC to proceed and boosting the prospects of broader economic reform in Sudan, Macron said.

Key recent reforms under an IMF monitoring programme, a requirement for HIPC, include lifting fuel subsidies and sharply devaluing the currency.

"The reduction of Sudan's debt that we are going to soon initiate is a first result of these reforms, and this trajectory ... should be consolidated, both economically and politically," Macron said.

With arrears to multilateral lenders settled, Sudan can move forward to settling its estimated $38 billion debt to bilateral creditors. Of the country's bilateral debt, about half is with Paris Club members. An additional $6 billion of its external debt is commercial debt, an unusually high proportion.

Sudan's ministry of foreign affairs said in a tweet that Italy and Germany had committed to clearing their shares of

Sudan's debt, which total $1.8 billion, according to IMF estimates. Norway's ambassador to Sudan said on Twitter her country would cancel its debt, listed at $100 million.

The HIPC process operates by consensus, whereby debt is restructured along similar terms for all creditors.

Kuwait, Sudan's largest creditor by far at $9.8 billion, said in a statement it would support debt 'resolution'&nbsp;discussions.

Saudi Arabia, another major creditor, has also said it will press strongly for a broad agreement on debt.

China has reduced and forgiven some debt and will push for the international community to do the same, said Hua Chunying, a foreign ministry spokeswoman.

The first part of the Paris conference was dedicated to promoting investment, with officials touting reforms in the banking sector and showcasing projects worth billions of dollars in energy, mining, infrastructure and agriculture.

IMF member countries have agreed to clear Sudan's arrears to the institution, France`s president said on Monday, removing a final hurdle to the African nation getting wider relief on external debt of at least $50 billion.

IMF member countries have agreed to clear Sudan's arrears to the institution, France`s president said on Monday, removing a final hurdle to the African nation getting wider relief on external debt of at least $50 billion. Hosting a conference for Sudan in Paris, French President Emmanuel Macron also kick-started the broader debt relief effort, saying his country was in favour of fully cancelling the $5 billion it is owed by Khartoum. Also read- France hits target of 20mn first COVID-19 vaccinations: PM Sudan is emerging from decades of economic sanctions and isolation under ousted former President Omar al-Badri. It had built up huge arrears on its debt, but has made rapid progress towards having much of it forgiven under the IMF and World Bank's Highly Indebted Poor Countries (HIPC) scheme, which would reopen access to badly needed cheap international financing. A transitional military-civilian power-sharing government is trying to pull the country out of a deep economic crisis with inflation at over 300% and shortages of basic goods fuelled by a lack of foreign currency reserves. In order to reach the 'decision point' that would unlock the HIPC process in June, Sudan recently cleared its arrears to the World Bank and the African Development Bank with bridge loans from Western states. The remaining step was to clear Sudan's arrears to the IMF, which France confirmed it would facilitate through a $1.5 billion bridge loan, and for that loan to be covered by member state pledges. Those pledges were made during the Paris conference, paving the way for HIPC to proceed and boosting the prospects of broader economic reform in Sudan, Macron said. Key recent reforms under an IMF monitoring programme, a requirement for HIPC, include lifting fuel subsidies and sharply devaluing the currency. "The reduction of Sudan's debt that we are going to soon initiate is a first result of these reforms, and this trajectory ... should be consolidated, both economically and politically," Macron said. With arrears to multilateral lenders settled, Sudan can move forward to settling its estimated $38 billion debt to bilateral creditors. Of the country's bilateral debt, about half is with Paris Club members. An additional $6 billion of its external debt is commercial debt, an unusually high proportion. Sudan's ministry of foreign affairs said in a tweet that Italy and Germany had committed to clearing their shares of Sudan's debt, which total $1.8 billion, according to IMF estimates. Norway's ambassador to Sudan said on Twitter her country would cancel its debt, listed at $100 million. The HIPC process operates by consensus, whereby debt is restructured along similar terms for all creditors. Kuwait, Sudan's largest creditor by far at $9.8 billion, said in a statement it would support debt 'resolution' discussions. Saudi Arabia, another major creditor, has also said it will press strongly for a broad agreement on debt. China has reduced and forgiven some debt and will push for the international community to do the same, said Hua Chunying, a foreign ministry spokeswoman. The first part of the Paris conference was dedicated to promoting investment, with officials touting reforms in the banking sector and showcasing projects worth billions of dollars in energy, mining, infrastructure and agriculture.

Sudan clears final hurdle for debt relief at Paris conference

The idea of forgiving debt held by poor countries in exchange for "green" investments gained ground this week during the spring meetings of the IMF and World Bank, with concrete proposals expected in time for a global climate summit this fall.

Low-income countries face a double crisis — they are under pressure to pay down their debt while also confronting environmental problems.

That makes them "highly, highly vulnerable," Kristalina Georgieva, managing director of the International Monetary Fund, said this week, adding that it thus "makes sense" for the world to pursue so-called "green debt swaps."&nbsp;

A World Bank spokeswoman underscored that point.

"The Covid-19 crisis has made it significantly harder for developing countries to tackle the rising risks posed by climate change" and environmental disasters, said the spokeswoman, who declined to be named.

With already tight budgets, these countries have had to use emergency financial assistance to address the severe impact of the pandemic and the resulting economic crisis.

"By enlarging the debt burdens of governments — which were already at record levels on the eve of the crisis — it has left them with fewer resources to invest in a recovery that will also put the planet on a more sustainable footing," the spokeswoman told AFP.

'Creative options'

A technical working group — bringing together representatives not only of the IMF and World Bank but also of the United Nations and the OECD — was launched this week to examine "creative options to help countries tackle these simultaneous challenges," the World Bank spokeswoman said.

"This work has only just begun," she said, "but we think a proactive approach is essential: we must look closely at how potential solutions to the challenges of climate and debt can be integrated to address the key development issues of our time."

While there is no timeline yet for announcing concrete measures, all parties involved are clearly pointing toward the COP26 climate summit to be held in November in the Scottish city of Glasgow.

"We are going to work with the World Bank. And by COP26 we will advance that option" of a debt swap, Georgieva said, adding that it will then be up to creditors and debtors to decide whether to take part.&nbsp;

For Thierry Deau, the founder and CEO of the Paris-based Meridiam group, which specializes in developing and financing infrastructure projects, if the green debt-swap option is pursued, it will have to be linked to clear "conditionalities" to ensure that debt relief in fact leads to the launching of green projects.

Job opportunities

"The primary responsibility there on this debt relief is between the countries that are on both sides," he said.&nbsp;"There's a lot of politeness about this topic, and I think we have to stop that and create real true partnerships."

The IMF and World Bank will also have to consider the plight of several island nations with middle-income economies that receive less economic support but face daunting environmental challenges.

Their heavily tourism-dependent economies have seen revenues dry up as the coronavirus pandemic severely curtails world travel.&nbsp;

At the same time, their low-lying territories are often the victims of extreme weather events, including devastating cyclones or hurricanes.

Georgieva said this week that vulnerability to climate shocks should be taken into account when the international agencies allocate financial aid.&nbsp;

She also stressed that countries launching "green" projects can see the added benefit of heightened employment.&nbsp;

"There are opportunities for job creation," she said. "Just take, for example, renewable energy -- seven jobs to one in the traditional coal energy sector," even if some training is required.

"Similarly, reforestation, taking care of land degradation, resilience to climate shocks, these are all labor-intensive activities," Georgieva said.&nbsp;

"Policymakers need to think about it now."

The idea of forgiving debt held by poor countries in exchange for "green" investments gained ground this week during the spring meetings of the IMF and World Bank, with concrete proposals expected in time for a global climate summit this fall.

The idea of forgiving debt held by poor countries in exchange for "green" investments gained ground this week during the spring meetings of the IMF and World Bank, with concrete proposals expected in time for a global climate summit this fall. Low-income countries face a double crisis — they are under pressure to pay down their debt while also confronting environmental problems. That makes them "highly, highly vulnerable," Kristalina Georgieva, managing director of the International Monetary Fund, said this week, adding that it thus "makes sense" for the world to pursue so-called "green debt swaps." A World Bank spokeswoman underscored that point. "The Covid-19 crisis has made it significantly harder for developing countries to tackle the rising risks posed by climate change" and environmental disasters, said the spokeswoman, who declined to be named. With already tight budgets, these countries have had to use emergency financial assistance to address the severe impact of the pandemic and the resulting economic crisis. "By enlarging the debt burdens of governments — which were already at record levels on the eve of the crisis — it has left them with fewer resources to invest in a recovery that will also put the planet on a more sustainable footing," the spokeswoman told AFP. 'Creative options' A technical working group — bringing together representatives not only of the IMF and World Bank but also of the United Nations and the OECD — was launched this week to examine "creative options to help countries tackle these simultaneous challenges," the World Bank spokeswoman said. "This work has only just begun," she said, "but we think a proactive approach is essential: we must look closely at how potential solutions to the challenges of climate and debt can be integrated to address the key development issues of our time." While there is no timeline yet for announcing concrete measures, all parties involved are clearly pointing toward the COP26 climate summit to be held in November in the Scottish city of Glasgow. "We are going to work with the World Bank. And by COP26 we will advance that option" of a debt swap, Georgieva said, adding that it will then be up to creditors and debtors to decide whether to take part. For Thierry Deau, the founder and CEO of the Paris-based Meridiam group, which specializes in developing and financing infrastructure projects, if the green debt-swap option is pursued, it will have to be linked to clear "conditionalities" to ensure that debt relief in fact leads to the launching of green projects. Job opportunities "The primary responsibility there on this debt relief is between the countries that are on both sides," he said. "There's a lot of politeness about this topic, and I think we have to stop that and create real true partnerships." The IMF and World Bank will also have to consider the plight of several island nations with middle-income economies that receive less economic support but face daunting environmental challenges. Their heavily tourism-dependent economies have seen revenues dry up as the coronavirus pandemic severely curtails world travel. At the same time, their low-lying territories are often the victims of extreme weather events, including devastating cyclones or hurricanes. Georgieva said this week that vulnerability to climate shocks should be taken into account when the international agencies allocate financial aid. She also stressed that countries launching "green" projects can see the added benefit of heightened employment. "There are opportunities for job creation," she said. "Just take, for example, renewable energy -- seven jobs to one in the traditional coal energy sector," even if some training is required. "Similarly, reforestation, taking care of land degradation, resilience to climate shocks, these are all labor-intensive activities," Georgieva said. "Policymakers need to think about it now."

IMF, World Bank begin push to swap debt relief for green projects

French Finance Minister Bruno Le Maire on Sunday said that France's public deficit is expected to reach 9% of gross domestic product (GDP) in 2021, it is up from a previous forecast of 8.5% as the country enters its third national Coronavirus lockdown.

World Business Watch: France lifts 2021 deficit, debt forecasts, lowers GDP projections to 5%

Pressure politics, if used wisely, can be a powerful tool. The best example is Sri Lanka. In April last year, the country introduced a new rule. All coronavirus victims would be cremated and no burials.&nbsp;

There was no scientific explanation for it. A few Buddhist monks claimed burying the victims would contaminate the ground and the government agreed. A classic case of appeasement politics but they probably didn't anticipate the backlash. Rights groups and community leaders were appalled.&nbsp;

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/gravitas-sri-lanka-faces-scrutiny-at-unhrc-366303/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

The organisation of Islamic cooperation expressed concern that Muslims on the island were being denied dignity in death. In December, 19 bodies were forcefully cremated, including that of a baby.&nbsp;

The world community turned on Colombo. The Lankan Government had backed itself into a corner. Now, the order has been revoked and there are no more forced cremations. Muslims are free to bury their relatives. The pressure campaign worked but there's more to this story than activism.&nbsp;

Sri Lanka is facing a stern test at the UN Human Rights Council. There's a new resolution doing the rounds that slams the country for its dismal reconciliation efforts.&nbsp;

It's been 12 years since the civil war ended. The Tamils are still awaiting justice. Far from punishing the war criminals, the government is rewarding them. Several former generals accused of war crimes have been appointed to government jobs to avoid being indicted at the UN, Sri Lanka needs help. It needs to gather enough votes to kill the resolution by reversing the burial ban, Colombo is wooing Islamic nations. Many of whom have a seat at the council. So while the global outcry definitely helped political convenience too played a part. &nbsp;&nbsp;

Here's another reason why we can't call this a change of heart. The Lankan government is considering a controversial law, one that would ban burqas in public. The cabinet has been consulted and with their permission, this proposal could make its way to the Parliament.&nbsp;

It's one step forward and two steps back. Sri Lanka's justification for the burqa ban is a time-tested one.&nbsp;

This has become the norm under President Gotabaya Rajapaksa. Stigmatisation has been used as a state policy while the government drums up anti-minority sentiments.&nbsp;

It seems oblivious to real issues like China's expanding debt trap and Sri Lanka's finances are in a shambles. The treasury is almost drained. Sri Lanka's solution is to borrow from China. The country is seeking $ 2.2 billion dollars from Chinese banks.&nbsp;

Borrowing from China is never a good idea as it invariably ends with Beijing taking over strategic assets. Sri Lanka should know this because it's happened to them already.&nbsp;

The Hambantota fiasco where China holds a 99-year lease on the strategic port and if reports are true, there is an option to extend it by another 99 years. Colombo wants to renegotiate the deal but Beijing isn't interested. Every time, there is a new project in Sri Lanka. Chinese companies are first-off the block as they secure contracts with exorbitant bids and set up strategic Chinese presence all over the island. This is exactly what's happening in northern Sri Lanka. Three islands are being developed as clean energy hubs. The contracts have been given to Chinese firms but here's where it gets interesting.&nbsp;

These islands are just 48 kilometres from mainland India. How convenient that China's strategic and economic interests converge so seamlessly! Right now, Sri Lanka finds itself in a vulnerable spot. It needs diplomatic backing at the United Nations and financial support to keep the country running.&nbsp;

It's not an ideal situation for any sovereign nation but then again, that's where misplaced priorities get you. &nbsp;

Pressure politics, if used wisely, can be a powerful tool. The best example is Sri Lanka. In April last year, the country introduced a new rule. All coronavirus victims would be cremated and no burials.

Pressure politics, if used wisely, can be a powerful tool. The best example is Sri Lanka. In April last year, the country introduced a new rule. All coronavirus victims would be cremated and no burials. There was no scientific explanation for it. A few Buddhist monks claimed burying the victims would contaminate the ground and the government agreed. A classic case of appeasement politics but they probably didn't anticipate the backlash. Rights groups and community leaders were appalled. The organisation of Islamic cooperation expressed concern that Muslims on the island were being denied dignity in death. In December, 19 bodies were forcefully cremated, including that of a baby. The world community turned on Colombo. The Lankan Government had backed itself into a corner. Now, the order has been revoked and there are no more forced cremations. Muslims are free to bury their relatives. The pressure campaign worked but there's more to this story than activism. Sri Lanka is facing a stern test at the UN Human Rights Council. There's a new resolution doing the rounds that slams the country for its dismal reconciliation efforts. It's been 12 years since the civil war ended. The Tamils are still awaiting justice. Far from punishing the war criminals, the government is rewarding them. Several former generals accused of war crimes have been appointed to government jobs to avoid being indicted at the UN, Sri Lanka needs help. It needs to gather enough votes to kill the resolution by reversing the burial ban, Colombo is wooing Islamic nations. Many of whom have a seat at the council. So while the global outcry definitely helped political convenience too played a part. Here's another reason why we can't call this a change of heart. The Lankan government is considering a controversial law, one that would ban burqas in public. The cabinet has been consulted and with their permission, this proposal could make its way to the Parliament. It's one step forward and two steps back. Sri Lanka's justification for the burqa ban is a time-tested one. This has become the norm under President Gotabaya Rajapaksa. Stigmatisation has been used as a state policy while the government drums up anti-minority sentiments. It seems oblivious to real issues like China's expanding debt trap and Sri Lanka's finances are in a shambles. The treasury is almost drained. Sri Lanka's solution is to borrow from China. The country is seeking $ 2.2 billion dollars from Chinese banks. Borrowing from China is never a good idea as it invariably ends with Beijing taking over strategic assets. Sri Lanka should know this because it's happened to them already. The Hambantota fiasco where China holds a 99-year lease on the strategic port and if reports are true, there is an option to extend it by another 99 years. Colombo wants to renegotiate the deal but Beijing isn't interested. Every time, there is a new project in Sri Lanka. Chinese companies are first-off the block as they secure contracts with exorbitant bids and set up strategic Chinese presence all over the island. This is exactly what's happening in northern Sri Lanka. Three islands are being developed as clean energy hubs. The contracts have been given to Chinese firms but here's where it gets interesting. These islands are just 48 kilometres from mainland India. How convenient that China's strategic and economic interests converge so seamlessly! Right now, Sri Lanka finds itself in a vulnerable spot. It needs diplomatic backing at the United Nations and financial support to keep the country running. It's not an ideal situation for any sovereign nation but then again, that's where misplaced priorities get you.

Sri Lanka sailing in troubled waters

While debt burden imposed by China on many countries has been in news for long, Nigeria is faced with a problem that is both -- ecological and financial. Nigeria has a loan of USD 6.5 billion from China. This has resulted in debt burden for China. The loan amount is so huge that Nigeria can only repay it&nbsp;in 2 decades. A failure to repay the debt means that Nigeria will have to surrender its oil fields or coastal port authorities. Nigeria is world's 10th largest oil producer.

Worry is on the ecological front as well with Chinese illegal unreported and unregulated (IUU) fishing activities being another cause of concern. Nigeria is losing $70 million due to Chinese trawlers. IUU has been a global concern, from Africa to Latin America putting pressure on local ecology and encroaching on national sovereignties.

China is keen on increasing engagement with the African continent. Chinese Foreign Minister Wang Yi had visited Niger in the first week of January this year, with a focus on cooperation against covid and a number of agreements being signed. &nbsp;And while China is trying hard to win over the continent, it has already got a lot of bad press, especially when it comes to racism.&nbsp;

2020 saw Nigeria strongly voicing its concern after videos emerged of discrimination faced by Nigerians in Guangzhou. They were been stigmatized for being carriers of the Covid virus. The Chinese envoy to Nigeria was summoned by foreign minister Geoffrey Onyeama and the matter was strongly taken up.

While debt burden imposed by China on many countries has been in news for long, Nigeria is faced with a problem that is both -- ecological and financial. Nigeria has a loan of USD 6.

While debt burden imposed by China on many countries has been in news for long, Nigeria is faced with a problem that is both -- ecological and financial. Nigeria has a loan of USD 6.5 billion from China. This has resulted in debt burden for China. The loan amount is so huge that Nigeria can only repay it in 2 decades. A failure to repay the debt means that Nigeria will have to surrender its oil fields or coastal port authorities. Nigeria is world's 10th largest oil producer. Worry is on the ecological front as well with Chinese illegal unreported and unregulated (IUU) fishing activities being another cause of concern. Nigeria is losing $70 million due to Chinese trawlers. IUU has been a global concern, from Africa to Latin America putting pressure on local ecology and encroaching on national sovereignties. China is keen on increasing engagement with the African continent. Chinese Foreign Minister Wang Yi had visited Niger in the first week of January this year, with a focus on cooperation against covid and a number of agreements being signed. And while China is trying hard to win over the continent, it has already got a lot of bad press, especially when it comes to racism. 2020 saw Nigeria strongly voicing its concern after videos emerged of discrimination faced by Nigerians in Guangzhou. They were been stigmatized for being carriers of the Covid virus. The Chinese envoy to Nigeria was summoned by foreign minister Geoffrey Onyeama and the matter was strongly taken up.

Nigeria faces China's ecological, financial drain

The Wuhan Coronavirus is: Leaving cured patients with lasting symptoms. Crippling families with debt. Causing global economic losses worth trillions. WION's Palki Sharma tells you how you are paying for China's cover-up.

Gravitas: Wuhan Coronavirus pandemic: How you are paying for China's cover up?

Sri Lanka has repaid a billion US dollar international sovereign bond (ISB) that was due for settlement this week, the Central Bank said on Saturday.

The ISB repayment on Friday came days after Moody's on Monday downgraded Lanka's sovereign credit rating by two notches, saying the South Asian nation would be hard-pressed to secure funding to service its huge foreign debt.

Sri Lanka was pushed down from "B2" (high credit risk) to "Caa1" (very high credit risk), as the coronavirus pandemic compounded the economic woes of the island nation.

"This settlement reconfirms the government's unwavering commitment to honour its foreign liabilities, thereby bolstering investor confidence and dispelling any concerns foreign investors may have in relation to the government's ability and willingness to maintain its unblemished debt servicing record,? the Central Bank said in a statement.

"The domestic foreign exchange market has already reacted positively to this settlement and other recent positive developments in the Sri Lankan economy.

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"With the envisaged inflows to the domestic foreign exchange market supported by proactive measures taken by the government and the Central Bank of Sri Lanka, the market sentiment is expected to further strengthen in the period ahead,? it said.

The Sri Lankan government said with the settlement of the one billion dollar ISB, the country now has no large debt payments before July 2021.

The government had dismissed the downgrade by Moody's as premature and unfair.

The government defended its ability to meet its debt repayments, citing a currency swap with India's RBI (Reserve Bank of India) and anticipated Japanese and Chinese bonds, in addition to a syndicated loan from China.

The Moody's had said Sri Lanka only had limited secured funding sources to meet its material external debt service payments over the coming years.

Following Moody's downgrading of Lanka's sovereign credit, the Opposition parties called for urgent economic reforms through collective efforts. 
&nbsp;

Sri Lanka has repaid a billion US dollar international sovereign bond (ISB) that was due for settlement this week, the Central Bank said on Saturday. The ISB repayment on Friday came days after Moody's on Monday downgraded Lanka's sovereign credit rating by two notches, saying the South Asian nation would be hard-pressed to secure funding to service its huge foreign debt.

Sri Lanka has repaid a billion US dollar international sovereign bond (ISB) that was due for settlement this week, the Central Bank said on Saturday. The ISB repayment on Friday came days after Moody's on Monday downgraded Lanka's sovereign credit rating by two notches, saying the South Asian nation would be hard-pressed to secure funding to service its huge foreign debt. Sri Lanka was pushed down from "B2" (high credit risk) to "Caa1" (very high credit risk), as the coronavirus pandemic compounded the economic woes of the island nation. "This settlement reconfirms the government's unwavering commitment to honour its foreign liabilities, thereby bolstering investor confidence and dispelling any concerns foreign investors may have in relation to the government's ability and willingness to maintain its unblemished debt servicing record,? the Central Bank said in a statement. "The domestic foreign exchange market has already reacted positively to this settlement and other recent positive developments in the Sri Lankan economy. Also Read | Pay firefighting bill before leaving, Sri Lanka tells stricken oil tanker "With the envisaged inflows to the domestic foreign exchange market supported by proactive measures taken by the government and the Central Bank of Sri Lanka, the market sentiment is expected to further strengthen in the period ahead,? it said. The Sri Lankan government said with the settlement of the one billion dollar ISB, the country now has no large debt payments before July 2021. The government had dismissed the downgrade by Moody's as premature and unfair. The government defended its ability to meet its debt repayments, citing a currency swap with India's RBI (Reserve Bank of India) and anticipated Japanese and Chinese bonds, in addition to a syndicated loan from China. The Moody's had said Sri Lanka only had limited secured funding sources to meet its material external debt service payments over the coming years. Following Moody's downgrading of Lanka's sovereign credit, the Opposition parties called for urgent economic reforms through collective efforts.

Sri Lanka repays billion US dollar sovereign bond

Companies around the world will take on as much as $1 trillion of new debt in 2020, as they try to shore up their finances against the coronavirus, a new study of 900 top firms has estimated. 
 
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The unprecedented increase will see total global corporate debt jump by 12% to around $9.3 trillion, adding to years of accumulation that has left the world’s most indebted firms owing as much as many medium-sized countries.

Last year also saw a sharp 8% rise, driven by mergers and acquisitions, and by firms borrowing to fund share buybacks and dividends. But this year’s jump will be for an entirely different reason - preservation as the virus saps profits.

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/covid-19-to-cost-global-banks-21-trillion-by-the-end-of-2021-312148/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

“Covid has changed everything,” said Seth Meyer, a portfolio manager at Janus Henderson, the firm that compiled the analysis for a new corporate debt index. “Now it is about conserving capital and building a fortified balance sheet”.

Companies tapped bond markets for $384 billion between January and May, and Meyer estimates that recent weeks have set a new record for debt issuance from riskier “high yield” firms with lower credit ratings.

Lending markets had slammed shut for all but the most trusted firms in March, but have been opened up wide again by emergency corporate debt buying programmes from central banks like the US Federal Reserve, the European Central Bank and Bank of Japan.

Companies included in the new debt index already owe almost 40% more than they did in 2014, and growth in debt has comfortably outstripped growth in profits.

Pre-tax profits for the same group of 900 companies have risen a collective 9.1% to $2.3 trillion. Gearing, a measure of debt relative to shareholder finance, hit a record 59% in 2019, while the proportion of profit devoted to servicing interest payments also rose to a new high.

US companies owe almost half of the world’s corporate debt at $3.9 trillion and have seen the fastest increase in the last five years of any major economy with the exception of Switzerland where there has been a wave of major M&amp;A deals.

Germany comes in at number two at $762 billion. It also has three of the world’s most indebted firms including the most indebted, Volkswagen, which with $192 billion of debt is not far behind countries like South Africa or Hungary, though it is inflated by its car finance arm.

In contrast, a quarter of the companies in the new index have no debt at all, and some have vast cash reserves. The biggest of these stands at $104 billion and belongs to Google’s owner Alphabet.

Meyer said credit markets still had some way to go to get back to pre-Covid conditions and the ongoing threat of the virus, especially the recent surge in US cases, remained investors’ central concern.

“It is all a recipe for a more challenged outlook than we thought two months ago,” he said.

Companies around the world will take on as much as $1 trillion of new debt in 2020, as they try to shore up their finances against the coronavirus, a new study of 900 top firms has estimated.

Companies around the world will take on as much as $1 trillion of new debt in 2020, as they try to shore up their finances against the coronavirus, a new study of 900 top firms has estimated. Also read: WHO records highest single-daily spike with 230,370 global coronavirus cases The unprecedented increase will see total global corporate debt jump by 12% to around $9.3 trillion, adding to years of accumulation that has left the world’s most indebted firms owing as much as many medium-sized countries. Last year also saw a sharp 8% rise, driven by mergers and acquisitions, and by firms borrowing to fund share buybacks and dividends. But this year’s jump will be for an entirely different reason - preservation as the virus saps profits. “Covid has changed everything,” said Seth Meyer, a portfolio manager at Janus Henderson, the firm that compiled the analysis for a new corporate debt index. “Now it is about conserving capital and building a fortified balance sheet”. Companies tapped bond markets for $384 billion between January and May, and Meyer estimates that recent weeks have set a new record for debt issuance from riskier “high yield” firms with lower credit ratings. Lending markets had slammed shut for all but the most trusted firms in March, but have been opened up wide again by emergency corporate debt buying programmes from central banks like the US Federal Reserve, the European Central Bank and Bank of Japan. Companies included in the new debt index already owe almost 40% more than they did in 2014, and growth in debt has comfortably outstripped growth in profits. Pre-tax profits for the same group of 900 companies have risen a collective 9.1% to $2.3 trillion. Gearing, a measure of debt relative to shareholder finance, hit a record 59% in 2019, while the proportion of profit devoted to servicing interest payments also rose to a new high. US companies owe almost half of the world’s corporate debt at $3.9 trillion and have seen the fastest increase in the last five years of any major economy with the exception of Switzerland where there has been a wave of major M&A deals. Germany comes in at number two at $762 billion. It also has three of the world’s most indebted firms including the most indebted, Volkswagen, which with $192 billion of debt is not far behind countries like South Africa or Hungary, though it is inflated by its car finance arm. In contrast, a quarter of the companies in the new index have no debt at all, and some have vast cash reserves. The biggest of these stands at $104 billion and belongs to Google’s owner Alphabet. Meyer said credit markets still had some way to go to get back to pre-Covid conditions and the ongoing threat of the virus, especially the recent surge in US cases, remained investors’ central concern. “It is all a recipe for a more challenged outlook than we thought two months ago,” he said.

Covid-19 bringing record $1 trillion of new global corporate debt in 2020: Report

The United Nations raised $7.7 billion in humanitarian aid on Tuesday for Syria, where nine years of war have displaced millions in a humanitarian crisis exacerbated by soaring food prices and the coronavirus crisis.&nbsp;

While less than the almost $10 billion sought by U.N. agencies, the pledges were higher than expected, given the economic shock of COVID-19 on many governments and shortfalls in other aid appeals, notably for Yemen this month.

"We recognise that the circumstances are very unusual, it is a difficult moment in every country to find the resources necessary to relieve the suffering of the Syrian people," U.N. aid chief Mark Lowcock said after the virtual donor conference by some 60 governments and non-official agencies.

Pledges came from countries including Qatar, which has promised $100 million, and Germany, which offered 1.58 billion euros ($1.78 billion) in what Berlin said was the single biggest country donation.

"POLITICAL SOLUTION"

The United Nations, which last year raised $7 billion, said this year it needs $3.8 billion for aid inside Syria where 11 million people require help and protection, with more than 9.3 million of them lacking adequate food.

Another $6.04 billion is sought to help the 6.6 million Syrians who have fled, in what is the world's biggest refugee crisis.

U.N. officials will still press for more pledges throughout the year, and have time as the money is split between 2020 and 2021.

Adding to Syrians' hardship, an economic slump and COVID-19 lockdown have pushed food prices more than 200% higher in less than a year, according to the World Food Programme (WFP).

According to a tally by Johns Hopkins University, there have only been 269 confirmed coronavirus cases, but the World Health Organization (WHO) has warned the real situation is probably far worse and the number of infections likely to accelerate.

Rebuilding destroyed cities will take billions of dollars more and cannot start until powers involved back a peaceful transition away from the rule of President Bashar al-Assad, EU governments say.

"We finally need a political solution to the conflict," said German Development Minister Gerd Muller.

The United Nations raised $7.7 billion in humanitarian aid on Tuesday for Syria, where nine years of war have displaced millions in a humanitarian crisis exacerbated by soaring food prices and the coronavirus crisis.

The United Nations raised $7.7 billion in humanitarian aid on Tuesday for Syria, where nine years of war have displaced millions in a humanitarian crisis exacerbated by soaring food prices and the coronavirus crisis. While less than the almost $10 billion sought by U.N. agencies, the pledges were higher than expected, given the economic shock of COVID-19 on many governments and shortfalls in other aid appeals, notably for Yemen this month. "We recognise that the circumstances are very unusual, it is a difficult moment in every country to find the resources necessary to relieve the suffering of the Syrian people," U.N. aid chief Mark Lowcock said after the virtual donor conference by some 60 governments and non-official agencies. Pledges came from countries including Qatar, which has promised $100 million, and Germany, which offered 1.58 billion euros ($1.78 billion) in what Berlin said was the single biggest country donation. "POLITICAL SOLUTION" The United Nations, which last year raised $7 billion, said this year it needs $3.8 billion for aid inside Syria where 11 million people require help and protection, with more than 9.3 million of them lacking adequate food. Another $6.04 billion is sought to help the 6.6 million Syrians who have fled, in what is the world's biggest refugee crisis. U.N. officials will still press for more pledges throughout the year, and have time as the money is split between 2020 and 2021. Adding to Syrians' hardship, an economic slump and COVID-19 lockdown have pushed food prices more than 200% higher in less than a year, according to the World Food Programme (WFP). According to a tally by Johns Hopkins University, there have only been 269 confirmed coronavirus cases, but the World Health Organization (WHO) has warned the real situation is probably far worse and the number of infections likely to accelerate. Rebuilding destroyed cities will take billions of dollars more and cannot start until powers involved back a peaceful transition away from the rule of President Bashar al-Assad, EU governments say. "We finally need a political solution to the conflict," said German Development Minister Gerd Muller.

UN raises $7.7 billion for Syrians beset by war and COVID-19

Argentina's debt restructuring talks, in a tense final stretch, hit a roadblock on Wednesday with the government determined not to cede further ground after making an improved offer and a key creditor group warning that negotiations had failed.

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An Economy Ministry source told Reuters the country was sticking by its latest proposal with a net present value of around 50 cents on the dollar and warrants linked to Argentina's farm-driven exports. The offer was shared with creditors during recent talks.

The South American grains producer is in talks to revamp around $65 billion in foreign debt that has become unsustainable. The two sides have been inching closer, though tensions have simmered below the surface.

"The government believes that the creditors' proposal has an unsustainable cost for Argentines," said the Economy Ministry source, who asked not to be identified as the talks were private. Creditor groups have made counter-proposals during the process.

"The president is not going to cede any further," the source said.

The major "Ad Hoc" bondholder group, including names like Fidelity, AllianceBernstein and BlackRock, said in a statement that the Argentine government had "walked away" from a counterproposal it had made and called the talks a "failure."

Argentina's Economy Ministry released details of the latest version of its own proposal in a statement late on Wednesday, which it said had been shared with creditors. It also published two counterproposals it had received.

The ministry said creditor demands had varied widely and that some were "inconsistent" with what the country could meet.

Argentina's center-left Peronist President Alberto Fernandez said in a televised interview with network Telefé that the country would keep negotiating with creditors to try to reach an accord, but would not pay more than it was able.

"We are going to pay what we can. Not a millimeter more. And in that I am inflexible," he said.

WHO BLINKS FIRST?

A second person with knowledge of the debt negotiations and familiar with the government's thinking said the country had gone "as far as we could, but the creditors want more."

Proposed warrants tied to agricultural exports had appeared to fall short with bondholders, the person said. "The creditors saw the warrants as a perk but not as a bargaining tool strong enough to bridge the gap," he said.

Argentina, which already improved an original offer made in April, has long argued that debt sustainability analysis shows it cannot afford to pay much more. The International Monetary Fund, a major creditor, has supported that view.

"(Creditors) are not recognizing the restrictions that we set out in the debt sustainability studies that the government and the IMF did," the second person added. "Allowing the NDAs (nondisclosure agreements) to expire means we reached the limit of what we can give and the creditors have not acknowledged that the limit had been reached."

Another creditor involved in the talks with Argentina said the saber rattling was not wholly unexpected.

"There's this point in every negotiation. If you are trying to get the other side to blink, you have to at least pretend you are willing to walk away from the table," the person said.

Argentina's debt restructuring talks, in a tense final stretch, hit a roadblock on Wednesday with the government determined not to cede further ground after making an improved offer and a key creditor group warning that negotiations had failed.

Argentina's debt restructuring talks, in a tense final stretch, hit a roadblock on Wednesday with the government determined not to cede further ground after making an improved offer and a key creditor group warning that negotiations had failed. Also read: Trump sought Jinping's help for 2020 re-election, says Ex-NSA John Bolton An Economy Ministry source told Reuters the country was sticking by its latest proposal with a net present value of around 50 cents on the dollar and warrants linked to Argentina's farm-driven exports. The offer was shared with creditors during recent talks. The South American grains producer is in talks to revamp around $65 billion in foreign debt that has become unsustainable. The two sides have been inching closer, though tensions have simmered below the surface. "The government believes that the creditors' proposal has an unsustainable cost for Argentines," said the Economy Ministry source, who asked not to be identified as the talks were private. Creditor groups have made counter-proposals during the process. "The president is not going to cede any further," the source said. The major "Ad Hoc" bondholder group, including names like Fidelity, AllianceBernstein and BlackRock, said in a statement that the Argentine government had "walked away" from a counterproposal it had made and called the talks a "failure." Argentina's Economy Ministry released details of the latest version of its own proposal in a statement late on Wednesday, which it said had been shared with creditors. It also published two counterproposals it had received. The ministry said creditor demands had varied widely and that some were "inconsistent" with what the country could meet. Argentina's center-left Peronist President Alberto Fernandez said in a televised interview with network Telefé that the country would keep negotiating with creditors to try to reach an accord, but would not pay more than it was able. "We are going to pay what we can. Not a millimeter more. And in that I am inflexible," he said. WHO BLINKS FIRST? A second person with knowledge of the debt negotiations and familiar with the government's thinking said the country had gone "as far as we could, but the creditors want more." Proposed warrants tied to agricultural exports had appeared to fall short with bondholders, the person said. "The creditors saw the warrants as a perk but not as a bargaining tool strong enough to bridge the gap," he said. Argentina, which already improved an original offer made in April, has long argued that debt sustainability analysis shows it cannot afford to pay much more. The International Monetary Fund, a major creditor, has supported that view. "(Creditors) are not recognizing the restrictions that we set out in the debt sustainability studies that the government and the IMF did," the second person added. "Allowing the NDAs (nondisclosure agreements) to expire means we reached the limit of what we can give and the creditors have not acknowledged that the limit had been reached." Another creditor involved in the talks with Argentina said the saber rattling was not wholly unexpected. "There's this point in every negotiation. If you are trying to get the other side to blink, you have to at least pretend you are willing to walk away from the table," the person said.

Argentina debt talks hit roadblock as government, creditors rattle sabers

Relations between India-China will show signs of stress after the showdown at the Actual Line of Control (LAC) where both the sides suffered casualties.

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/gravitas-india-must-say-no-to-chinese-money-306638/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

In the aftermath, many Indians are asking for an end to the reliance on Chinese companies.

A Chinese construction company is set to get a tunnel construction project in India. The firm in question was the lowest bidder, followed by an Indian company. The difference between their bid amounted to 44 crore Rupees.

The government recently issued a clarification saying that the project is being funded by the Asian Development Bank (ADB), and that the tender is being processed and not final yet.

Additionally, ADB guidelines prohibit discrimination.

A debt trap for India?

China-backed Asian Infrastructure Investment Bank has approved a loan of 750 million Dollars to India to contain the COVID-19 pandemic. India had accepted a similar loan from the bank earlier.

If India accepts this loan, the country will owe over 1.2 billion Dollars to the organisation backed by China.

Many have dubbed the Asian Infrastructure Investment Bank as China’s own version of the World Bank and the IMF.

India is one of the members of the institution, where China’s voting power is thrice as much as India. Compared to other smaller nations, China vote amounts to over hundred times as theirs in the institution!

Recently, as both the countries sparred across the border, a Chinese automaker Great Wall Motors signed an MOU with the Maharashtra government. As part of this, the company will invest one billion Dollars into the state. However, the company does not intend to build its own factory, but will renovate a former General Motors plant, with a promise to generate 3,000 jobs.

Relations between India-China will show signs of stress after the showdown at the Actual Line of Control (LAC) where both the sides suffered casualties. In the aftermath, many Indians are asking for an end to the reliance on Chinese companies.

Relations between India-China will show signs of stress after the showdown at the Actual Line of Control (LAC) where both the sides suffered casualties. In the aftermath, many Indians are asking for an end to the reliance on Chinese companies. A Chinese construction company is set to get a tunnel construction project in India. The firm in question was the lowest bidder, followed by an Indian company. The difference between their bid amounted to 44 crore Rupees. The government recently issued a clarification saying that the project is being funded by the Asian Development Bank (ADB), and that the tender is being processed and not final yet. Additionally, ADB guidelines prohibit discrimination. A debt trap for India? China-backed Asian Infrastructure Investment Bank has approved a loan of 750 million Dollars to India to contain the COVID-19 pandemic. India had accepted a similar loan from the bank earlier. If India accepts this loan, the country will owe over 1.2 billion Dollars to the organisation backed by China. Many have dubbed the Asian Infrastructure Investment Bank as China’s own version of the World Bank and the IMF. India is one of the members of the institution, where China’s voting power is thrice as much as India. Compared to other smaller nations, China vote amounts to over hundred times as theirs in the institution! Recently, as both the countries sparred across the border, a Chinese automaker Great Wall Motors signed an MOU with the Maharashtra government. As part of this, the company will invest one billion Dollars into the state. However, the company does not intend to build its own factory, but will renovate a former General Motors plant, with a promise to generate 3,000 jobs.

China has many plans for India, including a debt-trap!

The U.S. govt has criticised China for crippling Pakistan's economy. The flashpoint is the corruption shrouded in the China-Pakistan economic corridor. WION's Executive Editor Palki Sharma Upadhyay tells you more.

Gravitas: U.S-China clash over Pak's debt crisis

Russia told Britain's Supreme Court on Monday that <a href="https://www.wionews.com/world/putin-zelensky-meet-in-paris-for-summit-amid-push-to-end-ukraine-war-267304">Ukraine</a> should not be allowed to use geopolitical arguments to dispute billions of dollars in debt, after Kiev argued it had been forced to borrow the money from Moscow.

The case, being decided in London because the debt was structured as a $3 billion Eurobond under English law, could see British courts rule on some of the most contentious issues in the Russia-Ukraine feud that has divided Moscow from the West.

The debt was borrowed six years ago by pro-Russian Ukrainian President Viktor Yanukovich months before he was toppled in a popular uprising. After his fall, Russia seized Ukraine's Crimea peninsula and backed separatists in a war that has killed 13,000 people and brought Western sanctions against Moscow.

The Eurobond, which matured in December 2015, has not been repaid.

Moscow was initially granted a summary judgement that could have seen Ukraine ordered to pay the debt in full. An appeals court accepted Ukraine's arguments that it should not be forced to pay without first being given a chance to challenge the debt in a full trial. But Russia wants that appeal overturned.

"The geopolitical dispute...has nothing to do whatsoever with the enforceability of the notes," Mark Howard, a lawyer acting for Russia, told the five Supreme Court judges.

In court documents prepared for the hearing, Kiev said it was "induced to issue the Eurobonds by overwhelming pressure from Russia's threats to Ukraine's territory, economy and citizens."

Those threats "were born out just months later with the unlawful invasion and occupation of Crimea, and military interference in eastern Ukraine," it said.

Russia's finance ministry said in a statement on Monday it remained confident that Supreme Court would rule in Moscow's favour in the case. Ukraine said it expected a decision in the first half of next year.

Ukraine's new president, Volodymyr Zelenskiy, met Russia's Vladimir Putin for the first time on Monday at a summit in Paris aimed at pushing for a peaceful resolution to the conflict in eastern Ukraine.

Moscow wants payment in full of the Eurobond, including interest it says, pushes the debt to $4.5 billion. Kiev says Russia should have participated in a 2015 restructuring of its Eurobonds.

The case is one of two major court cases this month being watched by international investors in Ukraine. Hearings are due to begin in Kiev on December&nbsp;19 in the case of the nationalisation of Ukraine's largest commercial bank.

Russia told Britain's Supreme Court on Monday that Ukraine should not be allowed to use geopolitical arguments to dispute billions of dollars in debt, after Kiev argued it had been forced to borrow the money from Moscow.

Russia told Britain's Supreme Court on Monday that Ukraine should not be allowed to use geopolitical arguments to dispute billions of dollars in debt, after Kiev argued it had been forced to borrow the money from Moscow. The case, being decided in London because the debt was structured as a $3 billion Eurobond under English law, could see British courts rule on some of the most contentious issues in the Russia-Ukraine feud that has divided Moscow from the West. The debt was borrowed six years ago by pro-Russian Ukrainian President Viktor Yanukovich months before he was toppled in a popular uprising. After his fall, Russia seized Ukraine's Crimea peninsula and backed separatists in a war that has killed 13,000 people and brought Western sanctions against Moscow. The Eurobond, which matured in December 2015, has not been repaid. Moscow was initially granted a summary judgement that could have seen Ukraine ordered to pay the debt in full. An appeals court accepted Ukraine's arguments that it should not be forced to pay without first being given a chance to challenge the debt in a full trial. But Russia wants that appeal overturned. "The geopolitical dispute...has nothing to do whatsoever with the enforceability of the notes," Mark Howard, a lawyer acting for Russia, told the five Supreme Court judges. In court documents prepared for the hearing, Kiev said it was "induced to issue the Eurobonds by overwhelming pressure from Russia's threats to Ukraine's territory, economy and citizens." Those threats "were born out just months later with the unlawful invasion and occupation of Crimea, and military interference in eastern Ukraine," it said. Russia's finance ministry said in a statement on Monday it remained confident that Supreme Court would rule in Moscow's favour in the case. Ukraine said it expected a decision in the first half of next year. Ukraine's new president, Volodymyr Zelenskiy, met Russia's Vladimir Putin for the first time on Monday at a summit in Paris aimed at pushing for a peaceful resolution to the conflict in eastern Ukraine. Moscow wants payment in full of the Eurobond, including interest it says, pushes the debt to $4.5 billion. Kiev says Russia should have participated in a 2015 restructuring of its Eurobonds. The case is one of two major court cases this month being watched by international investors in Ukraine. Hearings are due to begin in Kiev on December 19 in the case of the nationalisation of Ukraine's largest commercial bank.

Russia tells UK court Ukraine should be forced to pay debt despite disputes

<a href="https://www.wionews.com/world/alberto-fernandez-wins-argentina-presidential-election-258405">President-elect Alberto Fernandez</a> said Tuesday he will make good on Argentina's debt payments but without new austerity measures because people in his country are already hard-pressed financially.

"We cannot make more fiscal adjustments because the situation is enormously complicated," Fernandez, a centre-left Peronist, said in a statement after speaking with IMF chief Kristalina Georgieva.

Fernandez's predecessor Mauricio Macri last year negotiated a $57 billion bailout from the IMF to halt a devastating currency skid.

The economy is in recession and expected to shrink by 3.1 per cent this year, according to the IMF. More than a third of the population lives below the poverty line. Inflation is running at 42 per cent.

Watch: Alberto Fernandez wins presidency

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Fernandez, with former president Cristina Kirchner as his running mate, defeated Macri in October elections.

The return of the Peronists had prompted fears that Argentina might not live up to its debt obligations.

The government has important debt payments coming up next year, both principal and interest.

The government says that as of the second quarter of this year Argentina's debt totalled $336 billion, or 80 per cent of GDP.

President-elect Alberto Fernandez said Tuesday he will make good on Argentina's debt payments but without new austerity measures because people in his country are already hard-pressed financially.

President-elect Alberto Fernandez said Tuesday he will make good on Argentina's debt payments but without new austerity measures because people in his country are already hard-pressed financially. "We cannot make more fiscal adjustments because the situation is enormously complicated," Fernandez, a centre-left Peronist, said in a statement after speaking with IMF chief Kristalina Georgieva. Fernandez's predecessor Mauricio Macri last year negotiated a $57 billion bailout from the IMF to halt a devastating currency skid. The economy is in recession and expected to shrink by 3.1 per cent this year, according to the IMF. More than a third of the population lives below the poverty line. Inflation is running at 42 per cent. Watch: Alberto Fernandez wins presidency Fernandez, with former president Cristina Kirchner as his running mate, defeated Macri in October elections. The return of the Peronists had prompted fears that Argentina might not live up to its debt obligations. The government has important debt payments coming up next year, both principal and interest. The government says that as of the second quarter of this year Argentina's debt totalled $336 billion, or 80 per cent of GDP.

Argentina's President-elect vows to make good on debt without austerity measures

Pakistan to return $93.5 Million to Russia within 90 days

Pakistan agrees to settle Soviet-Era trade

The Asian Development Bank (ADB) has approved a $2.7 billion lending programme which will provide $ 2.7 billion in approved financing to <a href="https://www.wionews.com/south-asia/pakistan-prime-minister-imran-khan-discusses-bilateral-issues-with-chinese-president-xi-jinping-254769">Pakistan</a> during the outgoing calendar year. 
 
The ADB announced via a tweet that it "recently approved Country Operations Business Plan (COBP) 2020-2022, it will increase average lending to the country to 2.4 billion dollars a year -&nbsp;showing a whopping increase from the 1.4 billion on average from 2015 to 2018," Dawn said in a news report. 
 
It also stated that ADB will leverage Islamabad's lending through the mobilisation of co-financing and funding from other sources, including regional concessional resources. 
 
"The new COBP will support <a href="https://www.wionews.com/south-asia/pak-opposition-parties-call-cpecas-formation-as-illegal-254704">Pakistan's development goals</a> and complement efforts by other development partners," it added. 
 
Earlier in July, the ADB had announced to extend up to 10 billion dollars indicative lendings to Pakistan for various development projects and programmes during the next five years. 
 
Meanwhile, on Tuesday it was reported that the Pakistan government has accumulated a record level of debt under the first year of Imran Khan's prime ministership. 
 
Islamabad has accumulated a record public debt of PKR 7,509 billion during its first year in power, as per local media reports.

The Asian Development Bank (ADB) has approved a $2.7 billion lending programme which will provide $ 2.7 billion in approved financing to Pakistan during the outgoing calendar year.

The Asian Development Bank (ADB) has approved a $2.7 billion lending programme which will provide $ 2.7 billion in approved financing to Pakistan during the outgoing calendar year. The ADB announced via a tweet that it "recently approved Country Operations Business Plan (COBP) 2020-2022, it will increase average lending to the country to 2.4 billion dollars a year - showing a whopping increase from the 1.4 billion on average from 2015 to 2018," Dawn said in a news report. It also stated that ADB will leverage Islamabad's lending through the mobilisation of co-financing and funding from other sources, including regional concessional resources. "The new COBP will support Pakistan's development goals and complement efforts by other development partners," it added. Earlier in July, the ADB had announced to extend up to 10 billion dollars indicative lendings to Pakistan for various development projects and programmes during the next five years. Meanwhile, on Tuesday it was reported that the Pakistan government has accumulated a record level of debt under the first year of Imran Khan's prime ministership. Islamabad has accumulated a record public debt of PKR 7,509 billion during its first year in power, as per local media reports.

Asian Development Bank approves lending $2.7 billion to Pakistan

The <a href="https://www.wionews.com/south-asia/saudi-arabias-crown-prince-mohammad-bin-salman-snubbed-imran-khan-called-back-private-plane-given-to-him-reports-254218">Imran Khan-led Pakistani government</a> has accumulated a record public debt of Pakistani Rupees (PKR) 7,509 billion during its first year in power, as per local media reports. 
 
The foreign debt incurred by Pakistan's Tehreek-e-Insaf (PTI) government from August 2018 to August 2019 stood at PKR 2,804 billion, while the internally accumulated figure stood at PKR 4,705 billion, Geo News reported. 
 
As per the State Bank of Pakistan, the total public debt stood at PKR 31.786 trillion at the end of June 2019. 
 
Additionally, <a href="https://www.wionews.com/south-asia/after-gen-bipin-rawats-claim-balakot-reactivated-imran-khan-advises-his-people-not-to-cross-loc-253951">the government has projected public debt</a> to increase by 47 per cent to PKR 45.57 trillion in five years. 
 
In April this year, Pakistan Finance Minister Asad Umar had said that Pakistan's basic debts have reached alarmingly high levels and that the country is near bankruptcy. 
 
The Pakistani PM has paid a visit to many countries seeking financial help for Islamabad's ballooning economic crisis ever since coming to power last year. 
 
Several countries, including Saudi Arabia and China, have provided bailout packages to Islamabad in a bid to save its crippling economy.

The Imran Khan-led Pakistani government has accumulated a record public debt of Pakistani Rupees (PKR) 7,509 billion during its first year in power, as per local media reports.

The Imran Khan-led Pakistani government has accumulated a record public debt of Pakistani Rupees (PKR) 7,509 billion during its first year in power, as per local media reports. The foreign debt incurred by Pakistan's Tehreek-e-Insaf (PTI) government from August 2018 to August 2019 stood at PKR 2,804 billion, while the internally accumulated figure stood at PKR 4,705 billion, Geo News reported. As per the State Bank of Pakistan, the total public debt stood at PKR 31.786 trillion at the end of June 2019. Additionally, the government has projected public debt to increase by 47 per cent to PKR 45.57 trillion in five years. In April this year, Pakistan Finance Minister Asad Umar had said that Pakistan's basic debts have reached alarmingly high levels and that the country is near bankruptcy. The Pakistani PM has paid a visit to many countries seeking financial help for Islamabad's ballooning economic crisis ever since coming to power last year. Several countries, including Saudi Arabia and China, have provided bailout packages to Islamabad in a bid to save its crippling economy.

Pakistan: Record debt accumulated in first year of Imran Khan's term

Malaysia and Singapore have agreed to delay by another month a decision on whether to go ahead with a billion-dollar train project connecting the city-state with Malaysia's southern state of Johor, Malaysia said on Sunday.

The countries agreed to extend the deadline to decide on the RTS Link project by a month to October 31 without any additional cost, Malaysia's Ministry of Transport said in a statement.

<a href="https://www.wionews.com/south-asia/pakistan-turkey-malaysia-to-jointly-launch-english-channel-for-confronting-islamophobia-252222">Malaysia</a> will have to pay Singapore abortive costs if the Rapid Transit System Link is not taken forward.&nbsp;

The two countries first suspended the transit system in May as Malaysia's new government - hit with $259.7 billion&nbsp;of debt and liabilities as of end-2017 - reassessed projects announced by the previous administration.

It successfully persuaded China to cut the cost of another train project by nearly a third to about $11 billion.

The RTS Link, due to have been completed in 2026, is designed to carry up to 10,000 passengers every hour in each direction, more than 30 times more than the existing train service can accommodate.

The <a href="https://www.wionews.com/world/malaysias-5g-plan-a-potential-boon-for-chinas-huawei-251771">Southeast Asian neighbours</a> last year also suspended a high-speed rail project linking Singapore to the Malaysian capital Kuala Lumpur, which analysts estimated to cost around $17 billion.&nbsp;

Malaysia and Singapore have agreed to delay by another month a decision on whether to go ahead with a billion-dollar train project connecting the city-state with Malaysia's southern state of Johor, Malaysia said on Sunday.

Malaysia and Singapore have agreed to delay by another month a decision on whether to go ahead with a billion-dollar train project connecting the city-state with Malaysia's southern state of Johor, Malaysia said on Sunday. The countries agreed to extend the deadline to decide on the RTS Link project by a month to October 31 without any additional cost, Malaysia's Ministry of Transport said in a statement. Malaysia will have to pay Singapore abortive costs if the Rapid Transit System Link is not taken forward. The two countries first suspended the transit system in May as Malaysia's new government - hit with $259.7 billion of debt and liabilities as of end-2017 - reassessed projects announced by the previous administration. It successfully persuaded China to cut the cost of another train project by nearly a third to about $11 billion. The RTS Link, due to have been completed in 2026, is designed to carry up to 10,000 passengers every hour in each direction, more than 30 times more than the existing train service can accommodate. The Southeast Asian neighbours last year also suspended a high-speed rail project linking Singapore to the Malaysian capital Kuala Lumpur, which analysts estimated to cost around $17 billion.

Debt-choked Malaysia dithers on $1 billion train project with Singapore

India's crisis-hit shadow bank <a href="https://www.wionews.com/india-news/nifty-sensex-edge-higher-auto-material-stocks-lead-236288">Dewan Housing Finance Corp</a> (DHFL) said on Friday its board had approved a plan that included converting debt into equity, even as it seeks to sell assets and raise more capital.

The conversion of debt into equity may result in a change in ownership, the company said in a regulatory filing, adding that the plan still needed shareholder approval.

DHFL, India's fourth-biggest housing finance company, has roughly 1 trillion rupees ($14.15 billion) of debt and owes about 400 billion rupees to banks alone.&nbsp;

The company hasn't been able to service its debt and it has defaulted on its obligations several times.

As a result, the non-banking financial company is undergoing a restructuring process that is being deliberated upon by its lenders, to help it ride out a liquidity crunch and restart its lending business.

DHFL and other shadow banking firms have been stung by a liquidity crunch following last year's collapse of Infrastructure Leasing &amp; Financial Services Ltd - once one of the biggest players in the sector.

DHFL's struggles also come as the domestic banking sector still grapples with nearly $150 billion of stressed assets.

India's crisis-hit shadow bank Dewan Housing Finance Corp (DHFL) said on Friday its board had approved a plan that included converting debt into equity, even as it seeks to sell assets and raise more capital.

India's crisis-hit shadow bank Dewan Housing Finance Corp (DHFL) said on Friday its board had approved a plan that included converting debt into equity, even as it seeks to sell assets and raise more capital. The conversion of debt into equity may result in a change in ownership, the company said in a regulatory filing, adding that the plan still needed shareholder approval. DHFL, India's fourth-biggest housing finance company, has roughly 1 trillion rupees ($14.15 billion) of debt and owes about 400 billion rupees to banks alone. The company hasn't been able to service its debt and it has defaulted on its obligations several times. As a result, the non-banking financial company is undergoing a restructuring process that is being deliberated upon by its lenders, to help it ride out a liquidity crunch and restart its lending business. DHFL and other shadow banking firms have been stung by a liquidity crunch following last year's collapse of Infrastructure Leasing & Financial Services Ltd - once one of the biggest players in the sector. DHFL's struggles also come as the domestic banking sector still grapples with nearly $150 billion of stressed assets.

DHFL board approves plan to convert debt into equity, sell assets

In the aftermath of Café Coffee Day founder V G Siddhartha’s death what refuses to go away is the abounding speculation over the trigger for his suicide. Was it the mountain of debt? Was it the taxman’s scrutiny that he was subject to? Was it his inability to cope with the stress of managing a big business empire and the bigger debt it inevitably involves? Or, was it a lethal combination of all three?

Whatever was the last straw that made Siddhartha take the extreme step and plunge to his death, there are good reasons for the government, the business community and other interested sections to know, understand and draw the correct conclusions. Doubtless, there would be lessons, too, to be learnt.

At the same time, to pick on particular officials and question them for the harassment alleged by Siddhartha would be unfair. There is no case whatsoever for such a course of action. In such cases, officials, particularly tax and enforcement officials, are damned if they do, and damned if they don’t. Diligently doing their duty risks the charge of harassment. Failure to go by the book can invite accusations of negligence or favouritism. &nbsp;And, it is easy to make a scapegoat of an official especially if the political class wants to.

Precisely for that reason, the political class must desist from giving in to the temptation of picking on an official unless there is direct culpability with proof of personal enmity or vendetta. In the absence of these, questioning an official for “harassment” in the vague sense would be a fishing expedition.

Therein lies a lesson for government officials: to discharge their duty, at all times, without fear or favour and shun political bias, influence or instruction.

(Disclaimer: WION Edit is the channel's take on the big events of the world)

In the aftermath of Café Coffee Day founder V G Siddhartha’s death what refuses to go away is the abounding speculation over the trigger for his suicide. Was it the mountain of debt?

In the aftermath of Café Coffee Day founder V G Siddhartha’s death what refuses to go away is the abounding speculation over the trigger for his suicide. Was it the mountain of debt? Was it the taxman’s scrutiny that he was subject to? Was it his inability to cope with the stress of managing a big business empire and the bigger debt it inevitably involves? Or, was it a lethal combination of all three? Whatever was the last straw that made Siddhartha take the extreme step and plunge to his death, there are good reasons for the government, the business community and other interested sections to know, understand and draw the correct conclusions. Doubtless, there would be lessons, too, to be learnt. At the same time, to pick on particular officials and question them for the harassment alleged by Siddhartha would be unfair. There is no case whatsoever for such a course of action. In such cases, officials, particularly tax and enforcement officials, are damned if they do, and damned if they don’t. Diligently doing their duty risks the charge of harassment. Failure to go by the book can invite accusations of negligence or favouritism. And, it is easy to make a scapegoat of an official especially if the political class wants to. Precisely for that reason, the political class must desist from giving in to the temptation of picking on an official unless there is direct culpability with proof of personal enmity or vendetta. In the absence of these, questioning an official for “harassment” in the vague sense would be a fishing expedition. Therein lies a lesson for government officials: to discharge their duty, at all times, without fear or favour and shun political bias, influence or instruction. (Disclaimer: WION Edit is the channel's take on the big events of the world)

WION Edit: Let officials do their job without fear or favour

Pakistan Prime Minister Imran Khan, who is being snubbed by the country`s opposition for "begging" abroad, on Thursday asserted that he never bowed down to anyone.

"Neither have I bowed down to anyone nor will I let my nation to do so. We are a self-respecting nation. All my struggle is focused to make our country one of the great nations of the world based on the principles set by the Holy Prophet (peace be upon him) upon which he founded the state of Madinah," Khan said while addressing a gathering at Islamabad airport upon returning to Pakistan after his three-day trip to the United States.

Khan`s remarks came in response to Pakistan Peoples Party (PPP) chairman Bilawal Bhutto Zardari`s claim of the Prime Minister having caused "embarrassment" to the nation during his maiden visit to the US.

Dubbing Khan as "Selected Prime Minister", Bilawal had tweeted, "Pitty even when representing our country abroad Selected PM can`t get of his container" earlier this week.

"Imran is a ruler, not a leader. Pakistan needs a leader who speaks for all Pakistanis, not just himself. If the government does opposition &amp; opposition does opposition then who`s left to run the country?" he added.

Khan, who took a commercial flight to the US instead of a private jet to cut down on expenses, was not accorded due state protocol in the country and was instead received by Foreign Minister Shah Mahmood Qureshi at the Dulles International Airport.&nbsp;

During his visit, Khan had his first face-to-face interaction with US President Donald Trump. He also met Secretary of State Micheal R. Pompeo.&nbsp;

Pakistan Prime Minister Imran Khan, who is being snubbed by the country`s opposition for "begging" abroad, on Thursday asserted that he never bowed down to anyone.

Pakistan Prime Minister Imran Khan, who is being snubbed by the country`s opposition for "begging" abroad, on Thursday asserted that he never bowed down to anyone. "Neither have I bowed down to anyone nor will I let my nation to do so. We are a self-respecting nation. All my struggle is focused to make our country one of the great nations of the world based on the principles set by the Holy Prophet (peace be upon him) upon which he founded the state of Madinah," Khan said while addressing a gathering at Islamabad airport upon returning to Pakistan after his three-day trip to the United States. Khan`s remarks came in response to Pakistan Peoples Party (PPP) chairman Bilawal Bhutto Zardari`s claim of the Prime Minister having caused "embarrassment" to the nation during his maiden visit to the US. Dubbing Khan as "Selected Prime Minister", Bilawal had tweeted, "Pitty even when representing our country abroad Selected PM can`t get of his container" earlier this week. "Imran is a ruler, not a leader. Pakistan needs a leader who speaks for all Pakistanis, not just himself. If the government does opposition & opposition does opposition then who`s left to run the country?" he added. Khan, who took a commercial flight to the US instead of a private jet to cut down on expenses, was not accorded due state protocol in the country and was instead received by Foreign Minister Shah Mahmood Qureshi at the Dulles International Airport. During his visit, Khan had his first face-to-face interaction with US President Donald Trump. He also met Secretary of State Micheal R. Pompeo.

Neither have I bowed down to anyone nor will I let my nation to do so: Imran Khan

Pakistan Prime Minister Imran Khan has vowed to go after the "thieves" who left the country badly in debt and set up a high-powered commission to probe <a href="https://www.wionews.com/south-asia/our-debt-has-gone-up-to-205-billion-in-the-last-decade-pakistan-pm-imran-khan-in-national-address-225840">huge debts incurred during the last 10 years</a>, as he defended arrests of several key political figures in corruption cases.&nbsp;

In an unusual midnight speech after the first budget of his cash-strapped government was presented, Khan said that all economic problem was due to <a href="https://www.wionews.com/south-asia/imran-khan-asks-pakistanis-to-declare-their-undisclosed-assets-by-jun-30-225963">debt which increased to Rs 300 crore</a> from Rs 60 crore in 10 years.&nbsp;

His speech came on the day when Leader of the Opposition in the Punjab Assembly, Hamza Shehbaz was arrested by the National Accountability Bureau (NAB) in cases related to money laundering.&nbsp;

On Monday, former president <a href="https://www.wionews.com/south-asia/zardari-produced-before-court-anti-graft-body-seeks-physical-remand-226185">Asif Ali Zardari </a>was also arrested by the NAB in connection with a multi-million dollar money laundering case.&nbsp;

Former Prime Minister <a href="https://www.wionews.com/pakistan/nawaz-sharif-quizzed-in-jail-by-anti-graft-body-over-illegal-purchase-of-over-30-bulletproof-vehicles-222338">Nawaz Sharif </a>(from the PML-N party) is already in jail having been sentenced in another corruption case in 2018.

Khan announced that after putting to rest the initial focus of the government to stabilise the economy, his attention would be more targeted towards bringing the ones to task who had caused the country to fall into such dire straits.

Also read:&nbsp;<a href="https://www.wionews.com/south-asia/pakistan-to-stay-on-fatfs-grey-list-official-to-wion-222508">Pakistan to stay on FATF's grey list: Official to WION</a>

"Pakistan is stable now. That pressure [to stabilise the economy] has been relieved. Now I will go after them [the corrupt politicians]," declared the prime minister.

"I'm making a high-powered enquiry commission with a one-point agenda: how did they raise the debt to Rs 24,000 billion (240 crore) in 10 years?"

He said that the commission shall comprise the FIA (Federal Investigation Agency), IB (Intelligence Bureau), ISI (the Inter-services Intelligence Directorate), FBR (Federal Board of Revenue) and SECP (Securities and Exchange Commission of Pakistan).&nbsp;

The Pakistan Peoples Party and Pakistan Muslim League-Nawaz served in two successive terms since 2008 when Khan claimed debt increased.

Khan said that the commission will include representatives of the Federal Investigation Agency (FIA), Intelligence Bureau (IB), Inter-Services Intelligence (ISI), Federal Bureau of Revenue (FBR) and Security and Exchange Commission of Pakistan (SECP).

He said that those who were in helms of affairs during last 10 years will not be spared.

Watch: Is the IMF bailout a&nbsp;Lifeline for Pakistan's economy?

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"All those in power will be fully investigated by this commission which will prepare a report so that no one dares leave the country in tatters ever again," he said.&nbsp;

"Even if my life goes, I will not leave these thieves alone. I had prayed to God to give me one chance. I will not leave them."

He blamed the two previous governments for all ills including low growth, joblessness and devaluations.

Khan's government has been heavily criticised for the politically-motivated arrests in corruption cases, but he defended them.

Khan said he would not be "blackmailed" with protests.&nbsp;

Talking about the recent arrests of the bigwigs, Khan said, "I am grateful to Allah, the big figures who are now jailed, no one could have imagined [it could be done]."&nbsp;

"People are crying that Sharif and Zardari have been jailed [...] both of them used to call each other corrupt. Mian Nawaz Sharif jailed Zardari twice during his two tenures.

The prime minister said that they [Nawaz and Zardari] came to an agreement that each would rule for five years and "not say anything to each other".&nbsp;

Pakistan Prime Minister Imran Khan has vowed to go after the "thieves" who left the country badly in debt and set up a high-powered commission to probe huge debts incurred during the last 10 years, as he defended arrests of several key political figures in corruption cases.

Pakistan Prime Minister Imran Khan has vowed to go after the "thieves" who left the country badly in debt and set up a high-powered commission to probe huge debts incurred during the last 10 years, as he defended arrests of several key political figures in corruption cases. In an unusual midnight speech after the first budget of his cash-strapped government was presented, Khan said that all economic problem was due to debt which increased to Rs 300 crore from Rs 60 crore in 10 years. His speech came on the day when Leader of the Opposition in the Punjab Assembly, Hamza Shehbaz was arrested by the National Accountability Bureau (NAB) in cases related to money laundering. On Monday, former president Asif Ali Zardari was also arrested by the NAB in connection with a multi-million dollar money laundering case. Former Prime Minister Nawaz Sharif (from the PML-N party) is already in jail having been sentenced in another corruption case in 2018. Khan announced that after putting to rest the initial focus of the government to stabilise the economy, his attention would be more targeted towards bringing the ones to task who had caused the country to fall into such dire straits. Also read: Pakistan to stay on FATF's grey list: Official to WION "Pakistan is stable now. That pressure [to stabilise the economy] has been relieved. Now I will go after them [the corrupt politicians]," declared the prime minister. "I'm making a high-powered enquiry commission with a one-point agenda: how did they raise the debt to Rs 24,000 billion (240 crore) in 10 years?" He said that the commission shall comprise the FIA (Federal Investigation Agency), IB (Intelligence Bureau), ISI (the Inter-services Intelligence Directorate), FBR (Federal Board of Revenue) and SECP (Securities and Exchange Commission of Pakistan). The Pakistan Peoples Party and Pakistan Muslim League-Nawaz served in two successive terms since 2008 when Khan claimed debt increased. Khan said that the commission will include representatives of the Federal Investigation Agency (FIA), Intelligence Bureau (IB), Inter-Services Intelligence (ISI), Federal Bureau of Revenue (FBR) and Security and Exchange Commission of Pakistan (SECP). He said that those who were in helms of affairs during last 10 years will not be spared. Watch: Is the IMF bailout a Lifeline for Pakistan's economy? × "All those in power will be fully investigated by this commission which will prepare a report so that no one dares leave the country in tatters ever again," he said. "Even if my life goes, I will not leave these thieves alone. I had prayed to God to give me one chance. I will not leave them." He blamed the two previous governments for all ills including low growth, joblessness and devaluations. Khan's government has been heavily criticised for the politically-motivated arrests in corruption cases, but he defended them. Khan said he would not be "blackmailed" with protests. Talking about the recent arrests of the bigwigs, Khan said, "I am grateful to Allah, the big figures who are now jailed, no one could have imagined [it could be done]." "People are crying that Sharif and Zardari have been jailed [...] both of them used to call each other corrupt. Mian Nawaz Sharif jailed Zardari twice during his two tenures. The prime minister said that they [Nawaz and Zardari] came to an agreement that each would rule for five years and "not say anything to each other".

Imran Khan vows to go after 'thieves' responsible for Pakistan's economic woes 

Lenders to cash-strapped Jet Airways, led by State Bank of India (SBI), on Monday invited Expressions of Interest (EoI) for sale of up to 75% stake in the beleaguered airline. According to a report, six airlines have shown interest in the 'expressions of interest' stake sale process of Jet Airways. Watch this video to know more.

WION Wallet: Debt-ridden Jet Airways seeks new owner, 6 airlines are interested

Reliance Communications has decided to opt for insolvency proceedings following its failure to sell assets for paying back its lenders, the <a href="http://www.wionews.com/india-news/supreme-court-issues-notice-to-anil-ambanis-rcom-over-contempt-petition-by-ericsson-188738">Anil Ambani-led telecom firm</a> said Friday.&nbsp;

RCom even failed to sell spectrum to Mukesh Ambani's Reliance Jio, a deal that was expected to bring some relief to the cash-strapped company.&nbsp;

"RCom board of directors decides upon implementation of debt resolution plans through NCLT framework," the company said in a statement.

Swedish telecom gear maker Ericsson had filed the first petition before National Company Law Tribunal to invoke insolvency proceedings against RCom. The NCLT on the request of RCom had granted it time to clear dues to avoid insolvency proceedings.

It is estimated that RCom has been reeling under debt of over Rs 46,000 crore.

The board of directors of RCom Friday reviewed the progress of the company's debt resolution plans since the invocation of strategic debt resolution on June 2, 2017.&nbsp;

The Board noted that despite the passage of over 18 months, lenders have received zero proceeds from the proposed asset monetisation plans, and the overall debt resolution process is yet to make any headway, the statement said.&nbsp;

"Accordingly, the Board decided that the Company will seek fast track resolution through NCLT, Mumbai. The Board believes this course of action will be in the best interests of all stakeholders, ensuring comprehensive debt resolution in a final, transparent and time bound manner within the prescribed 270 days," the statement said.

The company had chalked out plans to sell assets for about Rs 25,000 crore and use it for clearing debt of around 40 lenders.&nbsp;

RCom was expecting to realise Rs 975 crore from sale of spectrum to Jio which it promised to use paying dues of Rs 550 crore to Ericsson and Rs 230 crore to settle dues of minority stakeholder Reliance Infratel.

Reliance Jio, however, declined to take over any past liability of RCom for which the Department of Telecom may raise demand in future.

Reliance Communications has decided to opt for insolvency proceedings following its failure to sell assets for paying back its lenders, the Anil Ambani-led telecom firm said Friday.

Reliance Communications has decided to opt for insolvency proceedings following its failure to sell assets for paying back its lenders, the Anil Ambani-led telecom firm said Friday. RCom even failed to sell spectrum to Mukesh Ambani's Reliance Jio, a deal that was expected to bring some relief to the cash-strapped company. "RCom board of directors decides upon implementation of debt resolution plans through NCLT framework," the company said in a statement. Swedish telecom gear maker Ericsson had filed the first petition before National Company Law Tribunal to invoke insolvency proceedings against RCom. The NCLT on the request of RCom had granted it time to clear dues to avoid insolvency proceedings. It is estimated that RCom has been reeling under debt of over Rs 46,000 crore. The board of directors of RCom Friday reviewed the progress of the company's debt resolution plans since the invocation of strategic debt resolution on June 2, 2017. The Board noted that despite the passage of over 18 months, lenders have received zero proceeds from the proposed asset monetisation plans, and the overall debt resolution process is yet to make any headway, the statement said. "Accordingly, the Board decided that the Company will seek fast track resolution through NCLT, Mumbai. The Board believes this course of action will be in the best interests of all stakeholders, ensuring comprehensive debt resolution in a final, transparent and time bound manner within the prescribed 270 days," the statement said. The company had chalked out plans to sell assets for about Rs 25,000 crore and use it for clearing debt of around 40 lenders. RCom was expecting to realise Rs 975 crore from sale of spectrum to Jio which it promised to use paying dues of Rs 550 crore to Ericsson and Rs 230 crore to settle dues of minority stakeholder Reliance Infratel. Reliance Jio, however, declined to take over any past liability of RCom for which the Department of Telecom may raise demand in future.

RCom to go for insolvency resolution process after failure to repay debt

Debt-laden Indian carrier Jet Airways on Wednesday denied its <a href="http://www.wionews.com/business-economy/jet-airways-decides-to-cancel-15-flights-on-wednesday-six-boeing-737-planes-on-ground-193877">aircraft had been grounded</a> by GE Capital Aviation Services (GECAS) after media reports raised further concerns over the airline's ability to pay dues.

Jet's troubles have been worsened by a rising debt-pile, amid intense competition in the Indian aviation sector and higher oil prices.

In the latest effort to save itself, the airline will now seek shareholder approval next month to convert existing debt into equity.

Earlier in the day, media reports said that Jet had been asked by GECAS, the aircraft financing and leasing business of General Electric Co, to ground at least five Boeing 737 planes due to non-payment of dues.

Jet said in its statement that it had not ground any aircraft due to a notice from GECAS.

The airline is in the process of delivering three aircraft to lessors due to the scheduled expiry of lease terms, it said in a statement.

Jet added that three of its aircraft were temporarily grounded for engine normalization, which is expected to be completed by Friday. Two others were on ground - one for scheduled termination of the engine's lease and another for technical reasons.

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Jet Airways on cancellation of its 4 flights on January 28: The cancellations were due to scheduled termination of an aircraft lease &amp; to carry out an engine normalization exercise. The aircraft temporarily grounded are expected to rejoin operations from February 1. <a href="https://t.co/WihDD5cCWs">pic.twitter.com/WihDD5cCWs</a>
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Crisis talks between the airline and its lessors had failed to ease a row over late payments, prompting some lessors to explore taking back aircraft, three people familiar with the matter told Reuters earlier this month.

Meanwhile, Abu Dhabi-based Etihad Airways, Jet's second-largest shareholder, is now in talks with creditors for a deal that could help the airline back on its feet.

Debt-laden Indian carrier Jet Airways on Wednesday denied its aircraft had been grounded by GE Capital Aviation Services (GECAS) after media reports raised further concerns over the airline's ability to pay dues.

Debt-laden Indian carrier Jet Airways on Wednesday denied its aircraft had been grounded by GE Capital Aviation Services (GECAS) after media reports raised further concerns over the airline's ability to pay dues. Jet's troubles have been worsened by a rising debt-pile, amid intense competition in the Indian aviation sector and higher oil prices. In the latest effort to save itself, the airline will now seek shareholder approval next month to convert existing debt into equity. Earlier in the day, media reports said that Jet had been asked by GECAS, the aircraft financing and leasing business of General Electric Co, to ground at least five Boeing 737 planes due to non-payment of dues. Jet said in its statement that it had not ground any aircraft due to a notice from GECAS. The airline is in the process of delivering three aircraft to lessors due to the scheduled expiry of lease terms, it said in a statement. Jet added that three of its aircraft were temporarily grounded for engine normalization, which is expected to be completed by Friday. Two others were on ground - one for scheduled termination of the engine's lease and another for technical reasons. Jet Airways on cancellation of its 4 flights on January 28: The cancellations were due to scheduled termination of an aircraft lease & to carry out an engine normalization exercise. The aircraft temporarily grounded are expected to rejoin operations from February 1. pic.twitter.com/WihDD5cCWs — ANI (@ANI) January 30, 2019 × Crisis talks between the airline and its lessors had failed to ease a row over late payments, prompting some lessors to explore taking back aircraft, three people familiar with the matter told Reuters earlier this month. Meanwhile, Abu Dhabi-based Etihad Airways, Jet's second-largest shareholder, is now in talks with creditors for a deal that could help the airline back on its feet.

Jet Airways denies being told to ground aircraft

Senior Economist- World Bank Prospects Group Patrick Kirby said that high levels of public debt, in general, could be one of the biggest risk being faced by the South Asian Region's economic growth.&nbsp;

Speaking exclusively to WION he also added that India would still be the leading growing economy in coming years with GDP growth estimated at 7.3% for 2018-19.

On being asked whether China is adding to the Global Debt Crisis by lending loans to low-income countries and then influencing their policy decisions favouring China, Patrick Kirby further added that debt vulnerabilities in low-income countries have increased substantially in recent years. As a result, in most low-income countries, interest payments are absorbing an increasing proportion of government revenues.&nbsp;

In a recent report conducted by The Center for Global Development, a non-profit research organization, which analyzed debt to China that will be incurred by nations participating in the current Belt and Road investment plan. Eight nations will find themselves vulnerable to above-average debt: Djibouti, Kyrgyzstan, Laos, the Maldives, Mongolia, Montenegro, Pakistan, and Tajikistan.

<img alt="The Center for Global Development" data-entity-type="file" data-entity-uuid="cb1b7b82-94c4-40f1-96f2-9a8fb242a2ff" src="/sites/default/files/inline-images/The%20Center%20for%20Global%20Development.jpg" />

In another report by The Center for Global Development in early 2018 on Examining the Debt Implications of the Belt and Road Initiative from a Policy Perspective stated that countries like Mongolia, Kyrgyzstan, Tajikistan, Pakistan etc are in the High-Risk Category because of BRI Project. While Sri Lanka, Maldives etc are under significant threat because of the BRI Loans.&nbsp;

Here are the excerpts from the exclusive conversation with Patrick Kirby:

WION: The primary reason for India's growth in GDP in the World Banks forecast?

Patrick Kirby:&nbsp;India’s growth accelerated to an estimated 7.3 per cent in FY2018/19 as economic activity continued to recover with strong domestic demand. While investment continued to strengthen amid GST harmonization and a rebound of credit growth, consumption remained the major contributor to growth.

India’s GDP is forecast to grow by 7.3 per cent in FY2018/19 and 7.5 per cent thereafter, in line with June forecasts. Private consumption is projected to remain robust and investment growth is expected to continue as the benefits of recent policy reforms begin to materialize and credit rebounds. Strong domestic demand is envisioned to widen the current account deficit to 2.6 per cent of GDP next year. Inflation is projected to rise somewhat above the midpoint of the Reserve Bank of India’s target range of 2 to 6 per cent, mainly owing to energy and food prices.

WION: What is the growth outlook for the South Asia Region? Also, China recently has been accused of DEBT DIPLOMACY Globally and crushing various economies worldwide forcing countries like Pakistan, Equador, Sri Lanka, Maldives etc in debt crisis thus influencing their regional politics as well. How does the World Bank look at this crisis?&nbsp;

Patrick Kirby:&nbsp;On the outlook for the South Asian region, South Asia remains the world’s fastest-growing region. Growth in the region is projected to accelerate to 7.1 per cent in 2019 from 6.9 in the previous year. Over the medium term, robust domestic demand will continue to underpin growth, which is expected to average 7.1 per cent.&nbsp;

Nevertheless, there are a number of risks to the outlook. For example, we say that South Asian economies have high levels of public debt in general. Fiscal slippages could further worsen already-precarious public debt positions and result in a costly rise in already-elevated interest payments. 
Also, the upcoming election cycle next year elevates political uncertainty in the region. The challenging political environment could adversely affect the ongoing reform agenda and economic activity in some countries (e.g. Afghanistan, Sri Lanka).

In South Asia, non-performing assets are still high despite recent measures taken to improve the recognition of these assets. Especially, public sector banks in India, which represent roughly 70 per cent of the banking sector assets, still report low profitability and high non-performing loans. Credit expansion could be limited in some major South Asia economies unless further steps are taken to deal with financial and corporate balance sheets.

On the external front, the region has relatively low exposure to international trade, which limits the benefits from trade over the long term. However, the low exposure also suggests that it could be more insulated from the effects of rising trade protectionism than other regions. Moreover, the region may even benefit from trade diversion amid the recent dispute between some major economies.

WION: What can be the possible reasons for Slowdown in Chinese Economy?&nbsp;

Patrick Kirby:&nbsp;On the issue of China, growth is estimated to have slowed to a still robust 6.5 per cent in 2018, supported by resilient consumption. Growth is projected to decelerate to 6.2 per cent in 2019, slightly below previous projections as a result of weaker exports, and to further moderate to 6 per cent by the end of the forecast horizon, broadly in line with its potential pace. Domestic demand is projected to remain robust aided by policies to boost consumption. Supportive fiscal and monetary policies undertaken or announced so far are expected to largely offset the negative impact of higher tariffs; however, additional stimulus may have the undesirable effect of slowing the deleveraging and de-risking process

WION: How does the World Bank look at the Global Debt Crisis especially in low-income countries?&nbsp;

Patrick Kirby:&nbsp;On the issue of debt, debt vulnerabilities in low-income countries have increased substantially in recent years. Since 2013, median government debt has risen by 20 percentage points of GDP and has shifted toward non-concessional and private financing. As a result, in most low-income countries, interest payments are absorbing an increasing proportion of government revenues. The majority of low-income countries would be hard hit by a sudden weakening in a trade or global financial conditions are given their high levels of external debt, lack of fiscal space, low foreign currency reserves, and undiversified exports. Efforts to reduce debt-related vulnerabilities are a policy priority for many low-income countries, and a key focus needs to be improving debt management and developing domestic financial systems.

WION: How important is coordination between Central Banks and Policy Makers (Government) in a country's economy? For eg RBI and GOI having different views on Farm Loan Waivers.&nbsp;

Patrick Kirby:&nbsp;On the issue of central banks in general, policymakers in emerging market and developing economies need to uphold a credible commitment to medium-term price stability—one that is supported by macroeconomic frameworks that set attainable inflation targets where appropriate, as well as maintain strong institutional independence and transparency. This will be especially critical if the ongoing period of low and stable global inflation comes to an end, perhaps driven by a slowdown or rollback of the structural factors that have held inflation at bay in recent decades—in particular, trade and financial integration—or erosion of central bank independence.

WION: How should we see Artificial Intelligence replacing humans as a workforce? Can it be seen as a potential threat or a power booster?&nbsp;

Patrick Kirby:&nbsp;On the issue of the future of work, this issue is discussed extensively in the World Bank’sWorld Development Report 2019, The Changing Nature of Work.

Senior Economist- World Bank Prospects Group Patrick Kirby said that high levels of public debt, in general, could be one of the biggest risk being faced by the South Asian Region's economic growth.

Senior Economist- World Bank Prospects Group Patrick Kirby said that high levels of public debt, in general, could be one of the biggest risk being faced by the South Asian Region's economic growth. Speaking exclusively to WION he also added that India would still be the leading growing economy in coming years with GDP growth estimated at 7.3% for 2018-19. On being asked whether China is adding to the Global Debt Crisis by lending loans to low-income countries and then influencing their policy decisions favouring China, Patrick Kirby further added that debt vulnerabilities in low-income countries have increased substantially in recent years. As a result, in most low-income countries, interest payments are absorbing an increasing proportion of government revenues. In a recent report conducted by The Center for Global Development, a non-profit research organization, which analyzed debt to China that will be incurred by nations participating in the current Belt and Road investment plan. Eight nations will find themselves vulnerable to above-average debt: Djibouti, Kyrgyzstan, Laos, the Maldives, Mongolia, Montenegro, Pakistan, and Tajikistan. In another report by The Center for Global Development in early 2018 on Examining the Debt Implications of the Belt and Road Initiative from a Policy Perspective stated that countries like Mongolia, Kyrgyzstan, Tajikistan, Pakistan etc are in the High-Risk Category because of BRI Project. While Sri Lanka, Maldives etc are under significant threat because of the BRI Loans. Here are the excerpts from the exclusive conversation with Patrick Kirby: WION: The primary reason for India's growth in GDP in the World Banks forecast? Patrick Kirby: India’s growth accelerated to an estimated 7.3 per cent in FY2018/19 as economic activity continued to recover with strong domestic demand. While investment continued to strengthen amid GST harmonization and a rebound of credit growth, consumption remained the major contributor to growth. India’s GDP is forecast to grow by 7.3 per cent in FY2018/19 and 7.5 per cent thereafter, in line with June forecasts. Private consumption is projected to remain robust and investment growth is expected to continue as the benefits of recent policy reforms begin to materialize and credit rebounds. Strong domestic demand is envisioned to widen the current account deficit to 2.6 per cent of GDP next year. Inflation is projected to rise somewhat above the midpoint of the Reserve Bank of India’s target range of 2 to 6 per cent, mainly owing to energy and food prices. WION: What is the growth outlook for the South Asia Region? Also, China recently has been accused of DEBT DIPLOMACY Globally and crushing various economies worldwide forcing countries like Pakistan, Equador, Sri Lanka, Maldives etc in debt crisis thus influencing their regional politics as well. How does the World Bank look at this crisis? Patrick Kirby: On the outlook for the South Asian region, South Asia remains the world’s fastest-growing region. Growth in the region is projected to accelerate to 7.1 per cent in 2019 from 6.9 in the previous year. Over the medium term, robust domestic demand will continue to underpin growth, which is expected to average 7.1 per cent. Nevertheless, there are a number of risks to the outlook. For example, we say that South Asian economies have high levels of public debt in general. Fiscal slippages could further worsen already-precarious public debt positions and result in a costly rise in already-elevated interest payments. Also, the upcoming election cycle next year elevates political uncertainty in the region. The challenging political environment could adversely affect the ongoing reform agenda and economic activity in some countries (e.g. Afghanistan, Sri Lanka). In South Asia, non-performing assets are still high despite recent measures taken to improve the recognition of these assets. Especially, public sector banks in India, which represent roughly 70 per cent of the banking sector assets, still report low profitability and high non-performing loans. Credit expansion could be limited in some major South Asia economies unless further steps are taken to deal with financial and corporate balance sheets. On the external front, the region has relatively low exposure to international trade, which limits the benefits from trade over the long term. However, the low exposure also suggests that it could be more insulated from the effects of rising trade protectionism than other regions. Moreover, the region may even benefit from trade diversion amid the recent dispute between some major economies. WION: What can be the possible reasons for Slowdown in Chinese Economy? Patrick Kirby: On the issue of China, growth is estimated to have slowed to a still robust 6.5 per cent in 2018, supported by resilient consumption. Growth is projected to decelerate to 6.2 per cent in 2019, slightly below previous projections as a result of weaker exports, and to further moderate to 6 per cent by the end of the forecast horizon, broadly in line with its potential pace. Domestic demand is projected to remain robust aided by policies to boost consumption. Supportive fiscal and monetary policies undertaken or announced so far are expected to largely offset the negative impact of higher tariffs; however, additional stimulus may have the undesirable effect of slowing the deleveraging and de-risking process WION: How does the World Bank look at the Global Debt Crisis especially in low-income countries? Patrick Kirby: On the issue of debt, debt vulnerabilities in low-income countries have increased substantially in recent years. Since 2013, median government debt has risen by 20 percentage points of GDP and has shifted toward non-concessional and private financing. As a result, in most low-income countries, interest payments are absorbing an increasing proportion of government revenues. The majority of low-income countries would be hard hit by a sudden weakening in a trade or global financial conditions are given their high levels of external debt, lack of fiscal space, low foreign currency reserves, and undiversified exports. Efforts to reduce debt-related vulnerabilities are a policy priority for many low-income countries, and a key focus needs to be improving debt management and developing domestic financial systems. WION: How important is coordination between Central Banks and Policy Makers (Government) in a country's economy? For eg RBI and GOI having different views on Farm Loan Waivers. Patrick Kirby: On the issue of central banks in general, policymakers in emerging market and developing economies need to uphold a credible commitment to medium-term price stability—one that is supported by macroeconomic frameworks that set attainable inflation targets where appropriate, as well as maintain strong institutional independence and transparency. This will be especially critical if the ongoing period of low and stable global inflation comes to an end, perhaps driven by a slowdown or rollback of the structural factors that have held inflation at bay in recent decades—in particular, trade and financial integration—or erosion of central bank independence. WION: How should we see Artificial Intelligence replacing humans as a workforce? Can it be seen as a potential threat or a power booster? Patrick Kirby: On the issue of the future of work, this issue is discussed extensively in the World Bank’sWorld Development Report 2019, The Changing Nature of Work.

High-level debt in South Asian Countries a major risk: World Bank

<a href="http://www.wionews.com/entertainment/cuba-defends-controversial-arts-decree-but-seeks-consensus-on-norms-182401">Cuba</a>'s government admitted on Friday that it won't be able to pay all its debt commitments in 2019, blaming Hurricane Irma and the United States sanctions for its woes.

"In 2019, we'll have less credit than the amount of debt we're planning to pay," said finance minister Alejandro Gil during a parliamentary session.

"There will be a level of debt that we won't be able to pay next year and this will affect the performance of the economy."

"There is a high level of debt in the economy that creates daily tensions."

"We've been looking for specific solutions but it's affecting the harmonious performance of the economy."

Gil insisted that Cuba's new loans would be marginally lower than the existing debts it will pay off, meaning that "we won't be increasing our level of debt."

Cuba recently defaulted on a part of its debt with Brazil and is behind in reimbursing another portion related to the construction of a port and purchase of food.

Havana blames these delays on the effects of Hurricane Irma, which made landfall in early September 2017, and a hardening US embargo that hinders its international financial transactions.

Cuba's government has said the economy grew by 1.2 per cent in 2018.

Cuba's government admitted on Friday that it won't be able to pay all its debt commitments in 2019, blaming Hurricane Irma and the United States sanctions for its woes.

Cuba's government admitted on Friday that it won't be able to pay all its debt commitments in 2019, blaming Hurricane Irma and the United States sanctions for its woes. "In 2019, we'll have less credit than the amount of debt we're planning to pay," said finance minister Alejandro Gil during a parliamentary session. "There will be a level of debt that we won't be able to pay next year and this will affect the performance of the economy." "There is a high level of debt in the economy that creates daily tensions." "We've been looking for specific solutions but it's affecting the harmonious performance of the economy." Gil insisted that Cuba's new loans would be marginally lower than the existing debts it will pay off, meaning that "we won't be increasing our level of debt." Cuba recently defaulted on a part of its debt with Brazil and is behind in reimbursing another portion related to the construction of a port and purchase of food. Havana blames these delays on the effects of Hurricane Irma, which made landfall in early September 2017, and a hardening US embargo that hinders its international financial transactions. Cuba's government has said the economy grew by 1.2 per cent in 2018.

Cuba says unable to pay off debt commitments in 2019

A top US lawmaker has said that any<a href="http://www.wionews.com/south-asia/imf-to-check-pakistans-debt-sustainability-before-loan-official-184060"> IMF loan to cash-strapped Pakistan </a>cannot be just a "convenient way" to repay its debt to China which has engaged many countries in a debt trap.

Pakistan is seeking USD 8 billion from the <a href="http://www.wionews.com/business-economy/imf-says-trade-war-already-hurting-asia-may-cut-global-growth-forecasts-184777">International Monetary Fund (IMF) </a>to bail itself out from a severe balance-of-payments crisis that threatens to cripple the country's economy.

The US almost has a veto power in the IMF, said Democratic Congressman Brad Sherman, who in an address to a dissident Pakistani leader also said that the US aid to Pakistan which has been cut by the current Trump administration is unlikely to be restored soon.

Sherman said that last week, he has raised with the Trump administration the issue of IMF loan to Pakistan.

He spoke on this issue during a Congressional hearing with David Malpass, Under Secretary of Treasury for International Affairs.

"I've shared with him the concern that any IMF loan to Pakistan cannot be just a convenient way to repay China. China has engaged in a debt trap. We've seen it in Sri Lanka. We're seeing it in Africa. If the Chinese do that, then China has to learn that sometimes they just don't get repaid," he said. 
"In fact, this is beyond just South Asia, I'm working on a legislation that I would call Chinese Debt Trap Relief Act," Sharman said, adding that the legislation would encourage countries not to repay bad loans.

"The idea that Pakistan would turn to its own people and vilify a man who helped us destroy Osama bin Laden, does not speak well of the future of US-Pakistani relations. Our aid has been cut to Pakistan. I do not think it will be restored to major levels until the Dr (Shakil) Afridi issue is dealt with," Sherman said in his keynote address to the conference.

Dr Shakil Afridi is a Pakistani doctor serving a 33-year jail term for helping the CIA in tracking down Al-Qaeda chief Osama bin Laden to Abbottabad in 2011.

The US has been pressing Pakistan to release Dr Afridi, who was involved in a CIA-linked plan to find bin Laden with a fake vaccination operation in the Pakistani garrison city.

Sherman, who is on the financial services committee, said the US should simply instruct American banks and more importantly, American bond rating agencies to say that if there's a default on a debt, but that debt is part of a Chinese debt trap, it just doesn't count.

And then turn to the Chinese and say that it is not going to be able to use western financial institutions to penalise countries who fall into their debt traps.&nbsp;

"So if China wants to make these loans, fine. If they don't get repaid, that's their business and countries will be then free to engage in other financial transactions with countries hopefully that do not engage in such traps," Sherman said.

In his address to the conference, organised under the banner of South Asians Against Terrorism and for Human Rights (SAATH), and co-hosted by US-based columnist Mohammad Taqi and Haqqani, the top American lawmaker said that US has provided Pakistan with USD 43 billion in financial assistance post-independence.

Sherman also slammed Pakistan for blocking US websites like Voice of America inside the country.&nbsp;

A top US lawmaker has said that any IMF loan to cash-strapped Pakistan cannot be just a "convenient way" to repay its debt to China which has engaged many countries in a debt trap.

A top US lawmaker has said that any IMF loan to cash-strapped Pakistan cannot be just a "convenient way" to repay its debt to China which has engaged many countries in a debt trap. Pakistan is seeking USD 8 billion from the International Monetary Fund (IMF) to bail itself out from a severe balance-of-payments crisis that threatens to cripple the country's economy. The US almost has a veto power in the IMF, said Democratic Congressman Brad Sherman, who in an address to a dissident Pakistani leader also said that the US aid to Pakistan which has been cut by the current Trump administration is unlikely to be restored soon. Sherman said that last week, he has raised with the Trump administration the issue of IMF loan to Pakistan. He spoke on this issue during a Congressional hearing with David Malpass, Under Secretary of Treasury for International Affairs. "I've shared with him the concern that any IMF loan to Pakistan cannot be just a convenient way to repay China. China has engaged in a debt trap. We've seen it in Sri Lanka. We're seeing it in Africa. If the Chinese do that, then China has to learn that sometimes they just don't get repaid," he said. "In fact, this is beyond just South Asia, I'm working on a legislation that I would call Chinese Debt Trap Relief Act," Sharman said, adding that the legislation would encourage countries not to repay bad loans. "The idea that Pakistan would turn to its own people and vilify a man who helped us destroy Osama bin Laden, does not speak well of the future of US-Pakistani relations. Our aid has been cut to Pakistan. I do not think it will be restored to major levels until the Dr (Shakil) Afridi issue is dealt with," Sherman said in his keynote address to the conference. Dr Shakil Afridi is a Pakistani doctor serving a 33-year jail term for helping the CIA in tracking down Al-Qaeda chief Osama bin Laden to Abbottabad in 2011. The US has been pressing Pakistan to release Dr Afridi, who was involved in a CIA-linked plan to find bin Laden with a fake vaccination operation in the Pakistani garrison city. Sherman, who is on the financial services committee, said the US should simply instruct American banks and more importantly, American bond rating agencies to say that if there's a default on a debt, but that debt is part of a Chinese debt trap, it just doesn't count. And then turn to the Chinese and say that it is not going to be able to use western financial institutions to penalise countries who fall into their debt traps. "So if China wants to make these loans, fine. If they don't get repaid, that's their business and countries will be then free to engage in other financial transactions with countries hopefully that do not engage in such traps," Sherman said. In his address to the conference, organised under the banner of South Asians Against Terrorism and for Human Rights (SAATH), and co-hosted by US-based columnist Mohammad Taqi and Haqqani, the top American lawmaker said that US has provided Pakistan with USD 43 billion in financial assistance post-independence. Sherman also slammed Pakistan for blocking US websites like Voice of America inside the country.

No 'convenient way' for Pakistan: US lawmaker on IMF loan

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