The IMF will conduct a proper debt sustainability analysis of <a href="http://www.wionews.com/opinions/where-is-debt-ridden-pakistan-heading-175637">Pakistan</a> before granting it any loan, a senior official has said, amid concerns that Islamabad is seeking a multibillion-dollar bailout package from the <a href="http://www.wionews.com/south-asia/pakistan-ready-to-share-details-of-cpec-debts-with-imf-for-bailout-package-finance-minister-umar-171414">global financial body</a> to pay back Chinese creditors.

Cash-strapped Pakistan is seeking US $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.

A recent meeting between the IMF and Pakistan ended in a stalemate.&nbsp;

"Clearly debt transparency is essential to conduct a proper analysis of the sustainability of a country's debt. That's what the IMF does when we are going into a programme with our member countries. So that will be the case in Pakistan," IMF Director Communications Gerry Rice told reporters at a news conference here on Thursday.&nbsp;

China is making huge infrastructure investments as part of its Belt and Road Initiative (BRI). The BRI's flagship project is the US $60 billion <a href="http://www.wionews.com/south-asia/no-imf-money-to-pakistan-to-repay-chinese-debt-us-183669">China-Pakistan Economic Corridor (CPEC)</a> that is planned to run from northwest China's Xinjiang province to Gwadar port in Pakistan's Balochistan province.&nbsp; 
There are concerns that given Pakistan's growing Chinese debt, the same could happen to the Gwadar port and other major CPEC-linked projects in Pakistan.

But China has rejected criticism that the CPEC projects have saddled Pakistan with expensive debt.&nbsp;

Following Pakistan's request for financial support, IMF team visited Islamabad in November for talks.&nbsp;

"The discussions are active. They continue to work reaching an understanding on the policy priorities and reforms to stabilise the economy, lay the foundations for sustainable and inclusive growth," he said.&nbsp;

Rice was responding to questions on a US statement that it q making all efforts to ensure that any IMF loan to Pakistan is not used to repay its Chinese debt.&nbsp;

"One of the things that we do in every programme is to have a very detailed debt sustainability analysis to ensure that indeed the country's debt profile is sustainable. So kind of information and that level of detail will be available at such times as we reach conclusions on discussions and go forward with the programme,"&nbsp;he said.

Rice said debt sustainability in a country's debt profile is one of the priority issues that the IMF looks at in the context of a programme discussion with a member.&nbsp;

"So that definitely will be the case in the case of Pakistan. This level of detail and granularity will become public actually at the time of the programme agreement," he said.&nbsp;

The IMF will conduct a proper debt sustainability analysis of Pakistan before granting it any loan, a senior official has said, amid concerns that Islamabad is seeking a multibillion-dollar bailout package from the global financial body to pay back Chinese creditors.

The IMF will conduct a proper debt sustainability analysis of Pakistan before granting it any loan, a senior official has said, amid concerns that Islamabad is seeking a multibillion-dollar bailout package from the global financial body to pay back Chinese creditors. Cash-strapped Pakistan is seeking US $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. A recent meeting between the IMF and Pakistan ended in a stalemate. "Clearly debt transparency is essential to conduct a proper analysis of the sustainability of a country's debt. That's what the IMF does when we are going into a programme with our member countries. So that will be the case in Pakistan," IMF Director Communications Gerry Rice told reporters at a news conference here on Thursday. China is making huge infrastructure investments as part of its Belt and Road Initiative (BRI). The BRI's flagship project is the US $60 billion China-Pakistan Economic Corridor (CPEC) that is planned to run from northwest China's Xinjiang province to Gwadar port in Pakistan's Balochistan province. There are concerns that given Pakistan's growing Chinese debt, the same could happen to the Gwadar port and other major CPEC-linked projects in Pakistan. But China has rejected criticism that the CPEC projects have saddled Pakistan with expensive debt. Following Pakistan's request for financial support, IMF team visited Islamabad in November for talks. "The discussions are active. They continue to work reaching an understanding on the policy priorities and reforms to stabilise the economy, lay the foundations for sustainable and inclusive growth," he said. Rice was responding to questions on a US statement that it q making all efforts to ensure that any IMF loan to Pakistan is not used to repay its Chinese debt. "One of the things that we do in every programme is to have a very detailed debt sustainability analysis to ensure that indeed the country's debt profile is sustainable. So kind of information and that level of detail will be available at such times as we reach conclusions on discussions and go forward with the programme," he said. Rice said debt sustainability in a country's debt profile is one of the priority issues that the IMF looks at in the context of a programme discussion with a member. "So that definitely will be the case in the case of Pakistan. This level of detail and granularity will become public actually at the time of the programme agreement," he said.

IMF to check Pakistan's debt sustainability before loan: Official

As Imran Khan ends his<a href="http://www.wionews.com/south-asia/imran-khan-arrives-in-china-to-seek-help-for-pakistans-shrinking-economy-174997"> three-day visit</a> to all-weather ally China, the Pakistan Prime Minister's tour did not pan out the way he expected.&nbsp;

After he won a US $6 billion loan from Saudi Arabia, Khan was hoping for a similar response - but that has not happened.&nbsp;

Beijing remained silent about Islamabad's need for immediate financial support. But, talks over issues involving India were thoroughly discussed.&nbsp;

A joint statement, issued hereafter Prime Minister Imran Khan's talks with Chinese President and Premier Li Keqiang, said that China backed Pakistan's efforts to improve ties with India to settle "outstanding disputes", without directly mentioning the Kashmir issue.

"China appreciates Pakistan's quest for peace through dialogue, cooperation and negotiation, on the basis of mutual respect and equality, and supports Pakistan's efforts for improvement of Pakistan-India relations and for settlement of outstanding disputes between the two countries," the joint statement said.

Over Islamabad issue, Khan said that he expected Chinese support to build exchange reserves and avoid a possible bailout from IMF.&nbsp;

Pakistan is drowning under the weight of his debt with foreign exchange reserves down to US $8 billion - barely enough to cover two months of exports.&nbsp;

While a bailout from the international monetary fund seems inevitable, Pakistan is having second thoughts about it.

The IMF bailout will come with tough conditions -- IMF would examine with a forensic microscope Pakistan's various agreements on the China-Pakistan economic corridor or CPEC.

All weather friends, <a href="http://www.wionews.com/south-asia/willing-to-work-with-pm-to-build-new-era-of-china-pakistan-destiny-xi-jinping-to-imran-khan-175091">China and Pakistan</a> also agreed to enhance their defence cooperation. China is the main supplier of defence equipment for Pakistan.

They agreed to further enhance defence cooperation, maintain high-level visits and exchanges at various levels between relevant departments of the two armed forces, the joint statement said.

Both sides have agreed to make full use of the China-Pakistan Defence and Security Consultation mechanism, deepen cooperation in areas such as military exercises, training cooperation, personnel exchanges, and equipment and technology cooperation, it said.

As Imran Khan ends his three-day visit to all-weather ally China, the Pakistan Prime Minister's tour did not pan out the way he expected. After he won a US $6 billion loan from Saudi Arabia, Khan was hoping for a similar response - but that has not happened.

As Imran Khan ends his three-day visit to all-weather ally China, the Pakistan Prime Minister's tour did not pan out the way he expected. After he won a US $6 billion loan from Saudi Arabia, Khan was hoping for a similar response - but that has not happened. Beijing remained silent about Islamabad's need for immediate financial support. But, talks over issues involving India were thoroughly discussed. A joint statement, issued hereafter Prime Minister Imran Khan's talks with Chinese President and Premier Li Keqiang, said that China backed Pakistan's efforts to improve ties with India to settle "outstanding disputes", without directly mentioning the Kashmir issue. "China appreciates Pakistan's quest for peace through dialogue, cooperation and negotiation, on the basis of mutual respect and equality, and supports Pakistan's efforts for improvement of Pakistan-India relations and for settlement of outstanding disputes between the two countries," the joint statement said. Over Islamabad issue, Khan said that he expected Chinese support to build exchange reserves and avoid a possible bailout from IMF. Pakistan is drowning under the weight of his debt with foreign exchange reserves down to US $8 billion - barely enough to cover two months of exports. While a bailout from the international monetary fund seems inevitable, Pakistan is having second thoughts about it. The IMF bailout will come with tough conditions -- IMF would examine with a forensic microscope Pakistan's various agreements on the China-Pakistan economic corridor or CPEC. All weather friends, China and Pakistan also agreed to enhance their defence cooperation. China is the main supplier of defence equipment for Pakistan. They agreed to further enhance defence cooperation, maintain high-level visits and exchanges at various levels between relevant departments of the two armed forces, the joint statement said. Both sides have agreed to make full use of the China-Pakistan Defence and Security Consultation mechanism, deepen cooperation in areas such as military exercises, training cooperation, personnel exchanges, and equipment and technology cooperation, it said.

Pakistan PM Imran Khan does not get bailout from China

Netflix Inc said on Monday it planned to raise $1.5 billion in debt as the video streaming pioneer continues a rapid expansion in production of original shows.

The company said it intends to use the net proceeds from the offering for general corporate purposes, which may include content acquisitions, production.

In announcing the planned debt financing Monday,&nbsp;Netflix&nbsp;included the standard boilerplate that it expects to use the net proceeds “for general corporate purposes,” but the company has been clear that it’s plowing capital into content.

Netflix reported&nbsp;booming first-quarter 2018&nbsp;results last week, exceeding subscriber-growth estimates both in the U.S. and abroad, to hit 125 million total streaming customers at the end of the period. The company reiterated that it expects content spending to be $7.5 billion to $8 billion for 2018 on a profit/loss basis, in line with its previous estimates.

Netflix crushed Wall Street’s estimates for subscriber additions earlier this month, driven by hit original shows “Altered Carbon” and “Jessica Jones”, and said it looks to spend nearly $8 billion on content in 2018.

Netflix shares were up 1 per cent in premarket trading.

The company said it intends to use the net proceeds from the offering for general corporate purposes, which may include content acquisitions, production

Netflix Inc said on Monday it planned to raise $1.5 billion in debt as the video streaming pioneer continues a rapid expansion in production of original shows. The company said it intends to use the net proceeds from the offering for general corporate purposes, which may include content acquisitions, production. In announcing the planned debt financing Monday, Netflix included the standard boilerplate that it expects to use the net proceeds “for general corporate purposes,” but the company has been clear that it’s plowing capital into content. Netflix reported booming first-quarter 2018 results last week, exceeding subscriber-growth estimates both in the U.S. and abroad, to hit 125 million total streaming customers at the end of the period. The company reiterated that it expects content spending to be $7.5 billion to $8 billion for 2018 on a profit/loss basis, in line with its previous estimates. Netflix crushed Wall Street’s estimates for subscriber additions earlier this month, driven by hit original shows “Altered Carbon” and “Jessica Jones”, and said it looks to spend nearly $8 billion on content in 2018. Netflix shares were up 1 per cent in premarket trading.

Netflix to raise $1.5 billion in debt

India`s steel-to-autos conglomerate Tata Group, widely seen as a potential suitor for Air India, is unlikely to consider a bid for the state-run carrier as the government`s terms are just too onerous, two sources familiar with the matter said.

India, keen to sell the loss-making, debt-ridden airline, finalised plans in late March to divest a 76 percent stake and offload about $5.1 billion of its debt.

But the government has stipulated the winning bidder cannot merge the airline with existing businesses as long as the government holds a stake. The winner may also be required to list Air India and would need to abide by conditions designed to safeguard employee interests, restricting its ability to cut staff.

Since the terms were disclosed, no company has come forward to say it is interested or to reaffirm previous interest, while Jet Airways and rival IndiGo, have already publicly opted out of the race.

Tata Group, which already owns stakes in two airline joint-ventures in India, does not see "how a deal would be workable" under the current terms, said one of the sources, who asked not to be identified due to the sensitivity of the matter.&nbsp

The same source also said the airline had too much debt and noted there was little clarity on what a buyer would be allowed to do with the airline`s large workforce.

"Anyone who puts money upfront ... even for Tata to put in that kind of money, it would want complete control," added the second source.

Tata Sons, the holding company for the conglomerate Tata Group, declined to comment.

Prior to the disclosure of the terms, there had been some expression of interest from the group.

In January, Leslie Thng, the chief executive of Vistara, a joint-venture between Tata and Singapore Airlines told reporters its owners were open to evaluating a bid for Air India. Vistara declined to comment and Singapore Airlines had no immediate comment on Wednesday.

Last October, Tata Group Chairman N. Chandrasekaran, said in a TV interview the group would "definitely look" at Air India once the privatisation process was finalised

India, keen to sell the loss-making, debt-ridden airline, finalised plans in late March to divest a 76 percent stake and offload about $5.1 billion of its debt

India`s steel-to-autos conglomerate Tata Group, widely seen as a potential suitor for Air India, is unlikely to consider a bid for the state-run carrier as the government`s terms are just too onerous, two sources familiar with the matter said. India, keen to sell the loss-making, debt-ridden airline, finalised plans in late March to divest a 76 percent stake and offload about $5.1 billion of its debt. But the government has stipulated the winning bidder cannot merge the airline with existing businesses as long as the government holds a stake. The winner may also be required to list Air India and would need to abide by conditions designed to safeguard employee interests, restricting its ability to cut staff. Since the terms were disclosed, no company has come forward to say it is interested or to reaffirm previous interest, while Jet Airways and rival IndiGo, have already publicly opted out of the race. Tata Group, which already owns stakes in two airline joint-ventures in India, does not see "how a deal would be workable" under the current terms, said one of the sources, who asked not to be identified due to the sensitivity of the matter. The same source also said the airline had too much debt and noted there was little clarity on what a buyer would be allowed to do with the airline`s large workforce. "Anyone who puts money upfront ... even for Tata to put in that kind of money, it would want complete control," added the second source. Tata Sons, the holding company for the conglomerate Tata Group, declined to comment. Prior to the disclosure of the terms, there had been some expression of interest from the group. In January, Leslie Thng, the chief executive of Vistara, a joint-venture between Tata and Singapore Airlines told reporters its owners were open to evaluating a bid for Air India. Vistara declined to comment and Singapore Airlines had no immediate comment on Wednesday. Last October, Tata Group Chairman N. Chandrasekaran, said in a TV interview the group would "definitely look" at Air India once the privatisation process was finalised

Tata Group unlikely to bid for Air India as terms too onerous

A French court ordered Bollywood actress Mallika Sherawat and husband to be evicted from their Paris apartment for failing to keep up with the rent.

The court told in its ruling on December 14 that the Indian actress and French husband Cyrille Auxenfans will have to move out as the couple is yet to pay 78,787 euros ($94,000) in rent owed and expenses, ever since they moved into the posh apartment.

The court gave a green signal for their&nbsp;furniture to be seized.

Mallika and Cyrille rented the apartment starting January 1, 2017, for a monthly sum of 6,054 euros (Rs. 4,60,000 approx.).&nbsp;

According to the owner, the couple never paid the rent,&nbsp;making only a single payment of 2,715 euros.

The matter had a hearing on November 14 where the couple&#39;s lawyer defended saying the &quot;couple was in financial difficulty&quot; emphasising on the &quot;irregular&quot; nature of Mallika&#39;s work -- an argument dismissed by the owners of the apartment who claimed she had earned tens of millions during the rental period.

It is now expected that the couple might appeal the eviction order.

They cannot be thrown out until March 31, when a moratorium on wintertime evictions expires.

&nbsp;

The couple took an apartment in a posh locality of Paris on January 1, 2017

A French court ordered Bollywood actress Mallika Sherawat and husband to be evicted from their Paris apartment for failing to keep up with the rent. The court told in its ruling on December 14 that the Indian actress and French husband Cyrille Auxenfans will have to move out as the couple is yet to pay 78,787 euros ($94,000) in rent owed and expenses, ever since they moved into the posh apartment. The court gave a green signal for their furniture to be seized. Mallika and Cyrille rented the apartment starting January 1, 2017, for a monthly sum of 6,054 euros (Rs. 4,60,000 approx.). According to the owner, the couple never paid the rent, making only a single payment of 2,715 euros. The matter had a hearing on November 14 where the couple's lawyer defended saying the "couple was in financial difficulty" emphasising on the "irregular" nature of Mallika's work -- an argument dismissed by the owners of the apartment who claimed she had earned tens of millions during the rental period. It is now expected that the couple might appeal the eviction order. They cannot be thrown out until March 31, when a moratorium on wintertime evictions expires.

Mallika Sherawat, French husband asked to evict Paris flat for not paying rent

This is not an appropriate time to divest government stake in Air India, which should be given at least five years to revive and its debt written off, a parliamentary panel is likely to tell the government.&nbsp;

The panel is also understood to have concluded that the equity infusion in the national carrier, as part of the turnaround plan (TAP), was made on a &quot;piece meal basis&quot;, adversely affecting its financial and operational performance and &quot;forcing&quot; the airline to take loans &quot;at a higher interest rate to meet the shortfall&quot;.&nbsp;

The Parliamentary Standing Committee on Transport, Tourism and Culture concluded that the government should review its decision to privatise or disinvest Air India and explore the possibility of &quot;an alternative to disinvestment of our national carrier which is our national pride&quot;.&nbsp;

Observing that Air India has always &quot;risen to the occasion&quot; at times of need like calamities, social or political unrest in India or abroad, the Committee said &quot;it would be lopsided to assess and evaluate the functioning of Air India solely from business point of view, as has been done by the NITI Aayog.&quot;&nbsp;

In its revised draft report on the airline&#39;s proposed disinvestment, the panel noted that the TAP and financial restructuring plan (FRP) was for a period of 10 years from 2012 to 2022 and Air India has shown &quot;an overall improvement in various parameters and every indication is that it is coming out of the red&quot;.&nbsp;

&quot;At the end of TAP period, government may evaluate the financial and performance status of Air India and take a decision accordingly,&quot; the panel said.&nbsp;

The parliamentary committee, after hearing the views of all stakeholders, &quot;strongly feels that it will not be appropriate at this stage to disinvest when Air India has started earning profit from its operations.&quot;&nbsp;

It also said that as some of its subsidiaries Air India Air Transport Services Limited (AIATSL), Air India SATS Airport Services Private Limited (AISATS), Alliance Air and Air India Express were making profits, these units should &quot;not be disinvested.&quot;&nbsp;

Strongly recommending that the airline&#39;s debt &quot;should be written off by the government&quot;, the revised draft report said, &quot;Air India should be given a chance for at least five years to revive themselves&quot;. The tenure of five years indicates the end of the TAP and FRP period in 2022.&nbsp;

It said the airline&#39;s debt was &quot;due to policy directions of the Ministry of Civil Aviation. Air India may be permitted to function as a government PSU with less government control.&quot;&nbsp;

The Committee also expressed apprehension that Air India&#39;s strategic disinvestment &quot;would result in job loss of many people&quot; and asked the government to &quot;make an assessment&quot; of the job loss before deciding on stake sale.&nbsp;

&quot;If the disinvestment of Air India and its subsidiaries is inevitable, the Committee emphatically recommends that the interests of employees should be protected,&quot; the revised draft report said.&nbsp;

It asked the Ministries of Finance and Civil Aviation to &quot;develop a strategic package to protect the rights and interests of officers and staff of Air India and its subsidiaries in respect of their pension, gratuity and VRS and also the wages of contractual workers engaged by government from time to time in case the disinvestment of Air India is inevitable.&quot;&nbsp;

The panel found merit in the views of some of its members that if Air India is withdrawn from the aviation scene, &quot;private airlines would indulge in gouging and that (will not be) in the interest of the consumers.&quot;&nbsp;

Air India has a total debt of about Rs 48,877 crore at the end of March 2017, of which about Rs 17,360 crore were aircraft loans and Rs 31,517 crore were working capital loans.&nbsp;

The airline is expected to report a net loss of Rs 3,579 crore for 2017-18, as per budget estimates projected for 2017 -18 from a provisional net loss of Rs 3,643 crore for 2016-17.&nbsp;

The airline is projected to increase its operating profit to Rs 531 crore (BE projected) for 2017-18 from a provisional operating profit of Rs 215 crore for 2016-17, as per latest figures tabled in Parliament.&nbsp;

The Parliamentary panel concluded that the government should review its decision to privatise or disinvest Air India and explore the possibility of 'an alternative to disinvestment of our national carrier which is our national pride'

This is not an appropriate time to divest government stake in Air India, which should be given at least five years to revive and its debt written off, a parliamentary panel is likely to tell the government. The panel is also understood to have concluded that the equity infusion in the national carrier, as part of the turnaround plan (TAP), was made on a "piece meal basis", adversely affecting its financial and operational performance and "forcing" the airline to take loans "at a higher interest rate to meet the shortfall". The Parliamentary Standing Committee on Transport, Tourism and Culture concluded that the government should review its decision to privatise or disinvest Air India and explore the possibility of "an alternative to disinvestment of our national carrier which is our national pride". Observing that Air India has always "risen to the occasion" at times of need like calamities, social or political unrest in India or abroad, the Committee said "it would be lopsided to assess and evaluate the functioning of Air India solely from business point of view, as has been done by the NITI Aayog." In its revised draft report on the airline's proposed disinvestment, the panel noted that the TAP and financial restructuring plan (FRP) was for a period of 10 years from 2012 to 2022 and Air India has shown "an overall improvement in various parameters and every indication is that it is coming out of the red". "At the end of TAP period, government may evaluate the financial and performance status of Air India and take a decision accordingly," the panel said. The parliamentary committee, after hearing the views of all stakeholders, "strongly feels that it will not be appropriate at this stage to disinvest when Air India has started earning profit from its operations." It also said that as some of its subsidiaries Air India Air Transport Services Limited (AIATSL), Air India SATS Airport Services Private Limited (AISATS), Alliance Air and Air India Express were making profits, these units should "not be disinvested." Strongly recommending that the airline's debt "should be written off by the government", the revised draft report said, "Air India should be given a chance for at least five years to revive themselves". The tenure of five years indicates the end of the TAP and FRP period in 2022. It said the airline's debt was "due to policy directions of the Ministry of Civil Aviation. Air India may be permitted to function as a government PSU with less government control." The Committee also expressed apprehension that Air India's strategic disinvestment "would result in job loss of many people" and asked the government to "make an assessment" of the job loss before deciding on stake sale. "If the disinvestment of Air India and its subsidiaries is inevitable, the Committee emphatically recommends that the interests of employees should be protected," the revised draft report said. It asked the Ministries of Finance and Civil Aviation to "develop a strategic package to protect the rights and interests of officers and staff of Air India and its subsidiaries in respect of their pension, gratuity and VRS and also the wages of contractual workers engaged by government from time to time in case the disinvestment of Air India is inevitable." The panel found merit in the views of some of its members that if Air India is withdrawn from the aviation scene, "private airlines would indulge in gouging and that (will not be) in the interest of the consumers." Air India has a total debt of about Rs 48,877 crore at the end of March 2017, of which about Rs 17,360 crore were aircraft loans and Rs 31,517 crore were working capital loans. The airline is expected to report a net loss of Rs 3,579 crore for 2017-18, as per budget estimates projected for 2017 -18 from a provisional net loss of Rs 3,643 crore for 2016-17. The airline is projected to increase its operating profit to Rs 531 crore (BE projected) for 2017-18 from a provisional operating profit of Rs 215 crore for 2016-17, as per latest figures tabled in Parliament.

Don't privatise Air India, give it 5 years to revive: Parliamentary panel

The National Company Law Tribunal today allowed the government to appoint 10 directors on the board of debt-ridden realty firm Unitech Ltd.&nbsp;

The two-member NCLT bench headed by Chairman Justice M M Kumar has directed the government to submit the 10 names by December 20, the next date of hearing.

The government had approached the NCLT to take over the management of Unitech alleging mismanagement and siphoning of funds by the management.&nbsp;NCLT has also issued a&nbsp;notice to Unitech Ltd directing it to file the reply.

&quot;They have permitted the central government to appoint 10 nominee directors to run the day to day business and list of that would be given by 20th December&quot;, said Additional Solicitor General Sanjay Jain who had appeared on behalf of the Government&nbsp;in NCLT.&nbsp;

He further said: &quot;In the meanwhile, the suspended directors of the company shall not sell, mortgage or create charge either their properties or company&#39;s properties&quot;.

A two-member NCLT bench have permitted Central government to appoint 10 nominee directors to run Unitech over allegations of money siphoning by the original management

The National Company Law Tribunal today allowed the government to appoint 10 directors on the board of debt-ridden realty firm Unitech Ltd. The two-member NCLT bench headed by Chairman Justice M M Kumar has directed the government to submit the 10 names by December 20, the next date of hearing. The government had approached the NCLT to take over the management of Unitech alleging mismanagement and siphoning of funds by the management. NCLT has also issued a notice to Unitech Ltd directing it to file the reply. "They have permitted the central government to appoint 10 nominee directors to run the day to day business and list of that would be given by 20th December", said Additional Solicitor General Sanjay Jain who had appeared on behalf of the Government in NCLT. He further said: "In the meanwhile, the suspended directors of the company shall not sell, mortgage or create charge either their properties or company's properties".

NCLT allows govt to appoint 10 directors on Unitech board

The European Commission sounded the alarm on Wednesday over Italy&#39;s high level of public debt, adding to concerns about the eurozone&#39;s third-largest economy.

&quot;In the case of Italy, the persisting high government debt is a reason of concern,&quot; the European Commission said in a statement, adding that Brussels would write to Rome giving it until spring 2018 to bring things back in order.

The European Commission sounded the alarm over Italy's high level of public debt on Wednesday, adding to concerns about the eurozone's third-largest economy

The European Commission sounded the alarm on Wednesday over Italy's high level of public debt, adding to concerns about the eurozone's third-largest economy. "In the case of Italy, the persisting high government debt is a reason of concern," the European Commission said in a statement, adding that Brussels would write to Rome giving it until spring 2018 to bring things back in order.

Italy's high level of debt reason for concern: EU

Lower taxes and higher public expenditure could widen budget deficit in 2017-18, but steps taken by the government to broaden the tax base and improve spending efficiency would help in narrowing it going forward, US-based rating agency Moody&#39;s said.

In an interview to PTI, Moody&#39;s Investors Service V-P (Sovereign Risk Group) William Foster said the agency believes that the government&#39;s commitment to fiscal consolidation remains and sustained growth would help it reduce the debt burden.

Moody&#39;s had last week raised India&#39;s sovereign rating for the first time in over 13 years, saying growth prospects have improved with continued progress on economic and institutional reforms. The rating was upgraded to Baa2 from Baa3 and rating outlook was changed to stable from positive.

Foster said the upgrade reflects the expectation that continued progress on economic and institutional reforms will enhance India&#39;s high growth potential and its large and stable financing base for government debt and will likely contribute to a gradual decline in the general government debt burden over the medium term.

India&#39;s debt-to-GDP ratio stood at 68.6 per cent and a government-appointed panel has recommended lowering it to 60 per cent by 2023.

&quot;We forecast the general government budget deficit at 6.5 per cent of GDP this fiscal year, similar to the last two fiscal years. Lower government revenues than planned in the Budget and somewhat higher government spending could lead to a deficit somewhat wider than targeted.

&quot;However, over time, measures aimed at broadening the tax base and improving the efficiency of government spending will contribute to a gradual narrowing of the deficit. Together with robust and sustained nominal GDP growth, this would be conducive to a gradual decline in the government debt burden,&quot; Foster said.

Foster, however, added that a material deterioration in fiscal metrics and the outlook for general government fiscal consolidation would put negative pressure on the rating.

General budget deficit includes expenditure incurred and revenue earned by both the Centre and states. &quot;The rating could also face downward pressure if the health of the banking system deteriorated significantly or external vulnerability increased sharply,&quot; he added.

The central government, in Budget 2017-18, had set a target of 3.2 per cent for fiscal deficit, which is the difference between the Centre&#39;s revenue and expenditure, for this fiscal. It would be brought down to 3 per cent next fiscal.

The finance ministry is scheduled to review the deficit target for the current financial year next month as it reassesses revenue mop-up from the recently launched Goods and Services Tax (GST) and PSU disinvestment programme.

The deficit has already touched 91.3 per cent of the target in the first half of the fiscal.

Projecting GDP growth to moderate to 6.7 per cent in the current fiscal, from 7.1 per cent last year, Moody&#39;s said while GST and demonetisation have undermined growth over the near term, growth will rise to 7.5 per cent in 2018-19 as the disruption fades.

According to Foster, the stable outlook denotes that Moody&#39;s does not expect a rating change in the foreseeable future. &quot;There are both positive and negative risks to the economy and India&#39;s credit profile,&quot; Foster added.

His assessment is a material strengthening in fiscal metrics, combined with a strong and durable recovery of the investment cycle, probably supported by significant economic and institutional reforms would be credit positive.

&quot;In particular, greater expectation of a sizeable and sustained reduction in the general government debt burden, through increased government revenues combined with a reduction in expenditures, would put positive pressure on the rating. Implementation of key pending reforms, including land and labour reforms, could put additional upward pressure on the rating,&quot; Foster said.&nbsp;

Moody's had last week raised India's sovereign rating for the first time in over 13 years, saying growth prospects have improved with continued progress on economic and institutional reforms

Lower taxes and higher public expenditure could widen budget deficit in 2017-18, but steps taken by the government to broaden the tax base and improve spending efficiency would help in narrowing it going forward, US-based rating agency Moody's said. In an interview to PTI, Moody's Investors Service V-P (Sovereign Risk Group) William Foster said the agency believes that the government's commitment to fiscal consolidation remains and sustained growth would help it reduce the debt burden. Moody's had last week raised India's sovereign rating for the first time in over 13 years, saying growth prospects have improved with continued progress on economic and institutional reforms. The rating was upgraded to Baa2 from Baa3 and rating outlook was changed to stable from positive. Foster said the upgrade reflects the expectation that continued progress on economic and institutional reforms will enhance India's high growth potential and its large and stable financing base for government debt and will likely contribute to a gradual decline in the general government debt burden over the medium term. India's debt-to-GDP ratio stood at 68.6 per cent and a government-appointed panel has recommended lowering it to 60 per cent by 2023. "We forecast the general government budget deficit at 6.5 per cent of GDP this fiscal year, similar to the last two fiscal years. Lower government revenues than planned in the Budget and somewhat higher government spending could lead to a deficit somewhat wider than targeted. "However, over time, measures aimed at broadening the tax base and improving the efficiency of government spending will contribute to a gradual narrowing of the deficit. Together with robust and sustained nominal GDP growth, this would be conducive to a gradual decline in the government debt burden," Foster said. Foster, however, added that a material deterioration in fiscal metrics and the outlook for general government fiscal consolidation would put negative pressure on the rating. General budget deficit includes expenditure incurred and revenue earned by both the Centre and states. "The rating could also face downward pressure if the health of the banking system deteriorated significantly or external vulnerability increased sharply," he added. The central government, in Budget 2017-18, had set a target of 3.2 per cent for fiscal deficit, which is the difference between the Centre's revenue and expenditure, for this fiscal. It would be brought down to 3 per cent next fiscal. The finance ministry is scheduled to review the deficit target for the current financial year next month as it reassesses revenue mop-up from the recently launched Goods and Services Tax (GST) and PSU disinvestment programme. The deficit has already touched 91.3 per cent of the target in the first half of the fiscal. Projecting GDP growth to moderate to 6.7 per cent in the current fiscal, from 7.1 per cent last year, Moody's said while GST and demonetisation have undermined growth over the near term, growth will rise to 7.5 per cent in 2018-19 as the disruption fades. According to Foster, the stable outlook denotes that Moody's does not expect a rating change in the foreseeable future. "There are both positive and negative risks to the economy and India's credit profile," Foster added. His assessment is a material strengthening in fiscal metrics, combined with a strong and durable recovery of the investment cycle, probably supported by significant economic and institutional reforms would be credit positive. "In particular, greater expectation of a sizeable and sustained reduction in the general government debt burden, through increased government revenues combined with a reduction in expenditures, would put positive pressure on the rating. Implementation of key pending reforms, including land and labour reforms, could put additional upward pressure on the rating," Foster said.

India's budget deficit may rise in FY18, but will improve in years ahead: Moody's

Hundreds in Nepal who had borrowed money to rebuild their lives after two earthquakes left them homeless are at risk of being trafficked or duped into selling their kidneys to pay off their debts, an international development organisation said. 
 
Nepal received $4.1 billion in pledges from donors for reconstruction after quakes last April and May killed 9,000 people, injured at least 22,000 and damaged or destroyed more than 900,000 houses in the Himalayan nation. 
 
More than a year on, reconstruction has been slow with unrest over a new constitution adding to the delays. Unable to find work, hundreds in Nepal are deep in debt, the Asia Foundation said today.&nbsp;&quot;Their ability to pay is very limited and indebtedness makes them more vulnerable to exploitation,&quot; said Nandita Baruah, Asia Foundation&#39;s deputy country representative in Kathmandu. 
 
&quot;Their desperation makes them take greater risks, such as sending their children away for what they think are better lives, or even selling their kidneys,&quot; she told.&nbsp;&quot;We&#39;re going to see an uptick in people moving out to earn money as their debts become due. Some of them will be trafficked,&quot; Baruah added. 
 
Nepal&#39;s economy is highly dependent on remittances sent back by its migrant workers, which make up about 30 percent of its gross domestic product.&nbsp;Following the earthquakes, hundreds of migrant workers returned to Nepal to help their families. Many are likely to have paid their employers to be allowed to return home, going without wages for several months while spending money on rebuilding, Baruah said. 
 
&quot;These are workers who pay 200,000-500,000 rupees ($1,850-$4,640) to go abroad in the first place and are very likely still paying off that debt,&quot; she said. &quot;The quakes exacerbated their indebtedness,&quot; she added. 
 
Activists say there are signs of an increase in the number of Nepali women and children being trafficked after last year&#39;s disaster. Anti-trafficking charity Maiti Nepal said it stopped 745 women and children, suspected victims of human trafficking, at the Nepal-India border in the three months following the earthquakes. 
 
That compares with 615 such interceptions in the three months before the quakes, their data showed. Nepal is both a source and a destination country for victims of human trafficking with some 8,500 Nepalis trafficked every year, according to the country&#39;s human rights commission. 
 
Women are typically trafficked for sex work, domestic work and forced marriages to India, the Middle East, China and South Korea, while men are made to work in construction, as drivers and in hotels in India, the Middle East and Southeast Asia. 
 
Some victims are duped into selling their kidneys and brought to India, where a chronic organ shortage has fuelled a black-market trade in illegal transplants, activists say. 
 
Nepal&#39;s economy is forecast by the Asian Development Bank to have grown only about 1.5 percent in the fiscal year to mid-July after reconstruction delays and trade disruptions. A recovery is dependent on the pace of reconstruction, it said. 
 
&quot;Now, the aid will also stop flowing. We&#39;re going to see more migration, more trafficking,&quot; said Baruah. &quot;Those who have taken on debt don&#39;t have options,&quot; she said. 
 
(Reuters) 
&nbsp;

More than a year after the earthquakes, reconstruction has been slow with unrest over a new constitution adding to the delays

Hundreds in Nepal who had borrowed money to rebuild their lives after two earthquakes left them homeless are at risk of being trafficked or duped into selling their kidneys to pay off their debts, an international development organisation said. Nepal received $4.1 billion in pledges from donors for reconstruction after quakes last April and May killed 9,000 people, injured at least 22,000 and damaged or destroyed more than 900,000 houses in the Himalayan nation. More than a year on, reconstruction has been slow with unrest over a new constitution adding to the delays. Unable to find work, hundreds in Nepal are deep in debt, the Asia Foundation said today. "Their ability to pay is very limited and indebtedness makes them more vulnerable to exploitation," said Nandita Baruah, Asia Foundation's deputy country representative in Kathmandu. "Their desperation makes them take greater risks, such as sending their children away for what they think are better lives, or even selling their kidneys," she told. "We're going to see an uptick in people moving out to earn money as their debts become due. Some of them will be trafficked," Baruah added. Nepal's economy is highly dependent on remittances sent back by its migrant workers, which make up about 30 percent of its gross domestic product. Following the earthquakes, hundreds of migrant workers returned to Nepal to help their families. Many are likely to have paid their employers to be allowed to return home, going without wages for several months while spending money on rebuilding, Baruah said. "These are workers who pay 200,000-500,000 rupees ($1,850-$4,640) to go abroad in the first place and are very likely still paying off that debt," she said. "The quakes exacerbated their indebtedness," she added. Activists say there are signs of an increase in the number of Nepali women and children being trafficked after last year's disaster. Anti-trafficking charity Maiti Nepal said it stopped 745 women and children, suspected victims of human trafficking, at the Nepal-India border in the three months following the earthquakes. That compares with 615 such interceptions in the three months before the quakes, their data showed. Nepal is both a source and a destination country for victims of human trafficking with some 8,500 Nepalis trafficked every year, according to the country's human rights commission. Women are typically trafficked for sex work, domestic work and forced marriages to India, the Middle East, China and South Korea, while men are made to work in construction, as drivers and in hotels in India, the Middle East and Southeast Asia. Some victims are duped into selling their kidneys and brought to India, where a chronic organ shortage has fuelled a black-market trade in illegal transplants, activists say. Nepal's economy is forecast by the Asian Development Bank to have grown only about 1.5 percent in the fiscal year to mid-July after reconstruction delays and trade disruptions. A recovery is dependent on the pace of reconstruction, it said. "Now, the aid will also stop flowing. We're going to see more migration, more trafficking," said Baruah. "Those who have taken on debt don't have options," she said. (Reuters)

Nepal quake survivors struggle with debt, raising trafficking fears

The world&#39;s biggest cement maker, LafargeHolcim has agreed to sell its Lafarge India business to the Ahmedabad-based group of Indian companies, Nirma Ltd for an enterprise value of around $1.4 billion, they said on Monday. 
 
&quot;This agreement is an important step in our 3.5 billion Swiss franc ($3.56 billion) divestment programme,&quot; LafargeHolcim Chief Executive Eric Olsen said in a statement. 
 
&quot;With this deal, two-thirds of the programme has been secured and the remainder of the program is well on track. We are confident that we will meet our target by the end of this year.&quot; 
 
The deal, the proceeds of which will be used to pay down LafargeHolcim&#39;s debt, is subject to approval by the competition commission of India. 
 
($1 = 0.9828 Swiss francs) 
 
(Reuters)

CEO Eric Olsen said that this agreement is an important step in the firm's 3.5 billion Swiss franc divestment programme

The world's biggest cement maker, LafargeHolcim has agreed to sell its Lafarge India business to the Ahmedabad-based group of Indian companies, Nirma Ltd for an enterprise value of around $1.4 billion, they said on Monday. "This agreement is an important step in our 3.5 billion Swiss franc ($3.56 billion) divestment programme," LafargeHolcim Chief Executive Eric Olsen said in a statement. "With this deal, two-thirds of the programme has been secured and the remainder of the program is well on track. We are confident that we will meet our target by the end of this year." The deal, the proceeds of which will be used to pay down LafargeHolcim's debt, is subject to approval by the competition commission of India. ($1 = 0.9828 Swiss francs) (Reuters)

LafargeHolcim agrees to sell its India business to Nirma Ltd

Kuwait said on Sunday that it plans to tap the international debt market through bond issues to finance its budget deficit after recording a first shortfall in 16 years. 
 
The oil-rich Gulf state plans to &quot;borrow up to three billion Dinars ($10 billion) in US-denominated bonds from international markets, in both conventional and (Islamic) sukuk issuance,&quot; Finance minister Anas al-Saleh told parliament. 
 
The ministry will borrow another two billion Kuwaiti Dinars ($6.6 billion) in both conventional and Islamic instruments from the domestic market, Saleh said. 
 
It will be the country&#39;s first foreign debt in around two decades. 
 
The borrowings will take place during the 2016-2017 fiscal year, which began April 1 and end next March 31, the minister said, without giving specific dates. 
 
Saleh said the finance ministry has already borrowed $2.5 billion from the domestic market. 
 
Saleh, who is also acting oil minister, said Kuwait recorded its first budget deficit of 5.5 billion Dinars ($18.3 billion) in the 2015/2016 fiscal year. 
 
The emirate is also projecting a shortfall of $28 billion in the current fiscal year. 
 
Kuwait posted healthy budget surpluses for 16 consecutive fiscal years until oil prices began to slide two years ago. Oil income made up around 95 per cent of public revenues. 
 
During the surplus years, Kuwait piled up around $600 billion in its sovereign wealth fund managed by Kuwait Investment Authority in holdings mostly in the United States, Europe and Asia. 
 
(AFP)

This is the country's first foreign debt in around two decades

Kuwait said on Sunday that it plans to tap the international debt market through bond issues to finance its budget deficit after recording a first shortfall in 16 years. The oil-rich Gulf state plans to "borrow up to three billion Dinars ($10 billion) in US-denominated bonds from international markets, in both conventional and (Islamic) sukuk issuance," Finance minister Anas al-Saleh told parliament. The ministry will borrow another two billion Kuwaiti Dinars ($6.6 billion) in both conventional and Islamic instruments from the domestic market, Saleh said. It will be the country's first foreign debt in around two decades. The borrowings will take place during the 2016-2017 fiscal year, which began April 1 and end next March 31, the minister said, without giving specific dates. Saleh said the finance ministry has already borrowed $2.5 billion from the domestic market. Saleh, who is also acting oil minister, said Kuwait recorded its first budget deficit of 5.5 billion Dinars ($18.3 billion) in the 2015/2016 fiscal year. The emirate is also projecting a shortfall of $28 billion in the current fiscal year. Kuwait posted healthy budget surpluses for 16 consecutive fiscal years until oil prices began to slide two years ago. Oil income made up around 95 per cent of public revenues. During the surplus years, Kuwait piled up around $600 billion in its sovereign wealth fund managed by Kuwait Investment Authority in holdings mostly in the United States, Europe and Asia. (AFP)

Kuwait to tap foreign debt markets to finance deficit

Japanese mobile carrier SoftBank announced Wednesday they are planning to sell at least $ 7.9 billion (USD) of its stake in Chinese e-commerce giant Alibaba, as it looks to pay down a whopping debt load. 
 
The move will reduce SoftBank&#39;s 32.2 per cent holding in the Chinese company to about 28 per cent with the sale, it said, adding that proceeds would be earmarked to pay down debts. 
 
SoftBank said in a statement it has &quot;approved of a series of capital raising transactions, which involve monetising a portion of the shares of Alibaba&quot;. 
 
The Japanese mobile carrier, led by Masayoshi Son, first made its investment in Alibaba in 2000. 
 
&quot;This investment has been phenomenally successful and, over the past 16 years, we have built a close relationship, working together on 
many exciting projects,&quot; Son said in the statement, adding that the pair would continue to work together. 
 
Led by Son, SoftBank launched an acquisition streak that saw it pick up an assortment of firms, including its $16 billion purchase of US-based mobile giant Sprint. 
 
But the buying spree has put pressure on SoftBank&#39;s finances, and the firm also announced earlier this year it would buy back more than 14 per cent of its stock at a cost of about 500 billion yen. 
 
&nbsp;As per the official statement, Son and Alibaba&#39;s executive chairman Jack Ma will remain on the board of the other&#39;s firms 
 
&quot;Under the leadership of Masayoshi Son, SoftBank has been a highly valued, long-time partner of Alibaba for more than 16 years, and we look forward to continuing our strong partnership together,&quot; Ma said in a separate statement. 
 
&quot;As SoftBank looks to strengthen its own balance sheet, Alibaba determined that it was the best use of our capital to re-invest in our own business through an efficient buyback of a large number of shares in our own company that is accretive to our stockholders.&quot; 
 
SoftBank said Alibaba itself would buy back at least USD 2.0 billion worth of the shares it is selling. 
 
SoftBank has seen its profits boosted thanks to Alibaba&#39;s record USD 25 billion market debut in 2014 in New York. 
Today&#39;s announcement came after the Chinese online giant disclosed last week that US securities regulators were probing its accounting for possible violations of US securities laws. 
 
SoftBank shares rose more than two percent shortly after the opening bell today. 
 
Alibaba&#39;s US-listed shares declined 3.1 per cent yesterday after the announcement of SoftBank&#39;s planned share sale. (AFP)

Japanese mobile carrier SoftBank today said it will sell at least $ 7.9 billion (USD) of its stake in Chinese e-commerce giant Alibaba, as it looks to pay down a whopping debt.

Japanese mobile carrier SoftBank announced Wednesday they are planning to sell at least $ 7.9 billion (USD) of its stake in Chinese e-commerce giant Alibaba, as it looks to pay down a whopping debt load. The move will reduce SoftBank's 32.2 per cent holding in the Chinese company to about 28 per cent with the sale, it said, adding that proceeds would be earmarked to pay down debts. SoftBank said in a statement it has "approved of a series of capital raising transactions, which involve monetising a portion of the shares of Alibaba". The Japanese mobile carrier, led by Masayoshi Son, first made its investment in Alibaba in 2000. "This investment has been phenomenally successful and, over the past 16 years, we have built a close relationship, working together on many exciting projects," Son said in the statement, adding that the pair would continue to work together. Led by Son, SoftBank launched an acquisition streak that saw it pick up an assortment of firms, including its $16 billion purchase of US-based mobile giant Sprint. But the buying spree has put pressure on SoftBank's finances, and the firm also announced earlier this year it would buy back more than 14 per cent of its stock at a cost of about 500 billion yen. As per the official statement, Son and Alibaba's executive chairman Jack Ma will remain on the board of the other's firms "Under the leadership of Masayoshi Son, SoftBank has been a highly valued, long-time partner of Alibaba for more than 16 years, and we look forward to continuing our strong partnership together," Ma said in a separate statement. "As SoftBank looks to strengthen its own balance sheet, Alibaba determined that it was the best use of our capital to re-invest in our own business through an efficient buyback of a large number of shares in our own company that is accretive to our stockholders." SoftBank said Alibaba itself would buy back at least USD 2.0 billion worth of the shares it is selling. SoftBank has seen its profits boosted thanks to Alibaba's record USD 25 billion market debut in 2014 in New York. Today's announcement came after the Chinese online giant disclosed last week that US securities regulators were probing its accounting for possible violations of US securities laws. SoftBank shares rose more than two percent shortly after the opening bell today. Alibaba's US-listed shares declined 3.1 per cent yesterday after the announcement of SoftBank's planned share sale. (AFP)

SoftBank to sell part of stake in China's Alibaba for $7.9 billion

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