Singapore Airlines Ltd said on Monday that it had secured about $1 billion in credit facilities, in addition to the S$8.8 billion ($6.32 billion) it recently raised from a rights issue, to help it weather the COVID-19 pandemic.

Global airlines have taken a huge blow as curbs imposed to stop the spread of the coronavirus led to a plunge in travel demand, leading to a liquidity crisis at firms. Singapore Airlines` total financing is among the biggest raised by any carrier amid the global health crisis.

Singapore Airlines said it had raised S$900 million through loans on some of its aircraft. It had also arranged new lines of credit and a short-term loan with several banks for further liquidity of more than S$500 million.

<a href="https://www.wionews.com/technology/singapore-plans-a-coronavirus-contact-tracing-device-for-all-to-wear-303495">Also read:&nbsp;Singapore plans a coronavirus contact tracing device for all to wear</a>

"During this period of high uncertainty, SIA will continue to explore additional means to shore up liquidity as necessary," the company said in a statement.

On June 5, the company raised about S$8.8 billion through a rights issue, which was backed by existing shareholder Temasek Holdings [TEM.UL].

Singapore Airlines added that the maturity dates for some of its debts had been extended to 2021 or later, ensuring an available liquidity of more than S$1.7 billion.

The company also has the option to raise up to a further S$6.2 billion in additional mandatory convertible bonds until up to July 2021.

Singapore Airlines Ltd said on Monday that it had secured about $1 billion in credit facilities, in addition to the S$8.8 billion ($6.32 billion) it recently raised from a rights issue, to help it weather the COVID-19 pandemic.

Singapore Airlines Ltd said on Monday that it had secured about $1 billion in credit facilities, in addition to the S$8.8 billion ($6.32 billion) it recently raised from a rights issue, to help it weather the COVID-19 pandemic. Global airlines have taken a huge blow as curbs imposed to stop the spread of the coronavirus led to a plunge in travel demand, leading to a liquidity crisis at firms. Singapore Airlines` total financing is among the biggest raised by any carrier amid the global health crisis. Singapore Airlines said it had raised S$900 million through loans on some of its aircraft. It had also arranged new lines of credit and a short-term loan with several banks for further liquidity of more than S$500 million. Also read: Singapore plans a coronavirus contact tracing device for all to wear "During this period of high uncertainty, SIA will continue to explore additional means to shore up liquidity as necessary," the company said in a statement. On June 5, the company raised about S$8.8 billion through a rights issue, which was backed by existing shareholder Temasek Holdings [TEM.UL]. Singapore Airlines added that the maturity dates for some of its debts had been extended to 2021 or later, ensuring an available liquidity of more than S$1.7 billion. The company also has the option to raise up to a further S$6.2 billion in additional mandatory convertible bonds until up to July 2021.

Singapore Airlines secures $1 billion additional credit after rights issue

With the governments imposing large-scale restrictions on economic activities to halt the spread of coronavirus, the global economy has come to a virtual standstill.&nbsp;

A report by the United Nations Department of Economic and Social Affairs has projected that the world economy is set to lose nearly $8.5 trillion over the next 2 years.

UN has predicted that the world economy will contract by 3.2 per cent in 2020 amid the coronavirus crisis, the sharpest contraction since the Great Depression in the 1930s.

But in the worst-case scenario, it said the global economy could contract by a further 0.5 per cent in 2021 if a new wave of infections and lockdowns continues in the third quarter, which ends September 30.

The UN report projects that the economic output of developed countries will plunge to minus 5 per cent and below, meanwhile, the GDP of the developing countries will contract by 0.7 per cent in 2020.

The report also forecast a 15 per cent contraction in world trade in 2020 as a result of sharply reduced global demand and disruptions in global supply chains.&nbsp;

COVID-19 is likely to push more than 34 million people into extreme poverty, the report added.&nbsp;

India’s GDP growth rate dips to 1.2% for FY 2020-21

The UN has slashed India's projected growth rate to 1.2 per cent in 2020, a further deterioration from the already slowed growth of 4.1 per cent in 2019.

However, India, which grew at 6.8 per cent in the fiscal year 2018, is forecast to recover slightly and clock a 5.5 per cent growth rate in 2021.

“The national lockdown in India, for example, is expected to depress economic growth to just 1.2 per cent, much lower than the already disappointing growth in 2019,” the report said.

The abrupt halt of commercial activity threatens to impose economic pain so profound and enduring in every region of the world at once that recovery could take years.

(With inputs from agencies)

With the governments imposing large-scale restrictions on economic activities to halt the spread of coronavirus, the global economy has come to a virtual standstill.

With the governments imposing large-scale restrictions on economic activities to halt the spread of coronavirus, the global economy has come to a virtual standstill. A report by the United Nations Department of Economic and Social Affairs has projected that the world economy is set to lose nearly $8.5 trillion over the next 2 years. UN has predicted that the world economy will contract by 3.2 per cent in 2020 amid the coronavirus crisis, the sharpest contraction since the Great Depression in the 1930s. But in the worst-case scenario, it said the global economy could contract by a further 0.5 per cent in 2021 if a new wave of infections and lockdowns continues in the third quarter, which ends September 30. The UN report projects that the economic output of developed countries will plunge to minus 5 per cent and below, meanwhile, the GDP of the developing countries will contract by 0.7 per cent in 2020. The report also forecast a 15 per cent contraction in world trade in 2020 as a result of sharply reduced global demand and disruptions in global supply chains. COVID-19 is likely to push more than 34 million people into extreme poverty, the report added. India’s GDP growth rate dips to 1.2% for FY 2020-21 The UN has slashed India's projected growth rate to 1.2 per cent in 2020, a further deterioration from the already slowed growth of 4.1 per cent in 2019. However, India, which grew at 6.8 per cent in the fiscal year 2018, is forecast to recover slightly and clock a 5.5 per cent growth rate in 2021. “The national lockdown in India, for example, is expected to depress economic growth to just 1.2 per cent, much lower than the already disappointing growth in 2019,” the report said. The abrupt halt of commercial activity threatens to impose economic pain so profound and enduring in every region of the world at once that recovery could take years. (With inputs from agencies)

UN forecasts coronavirus to shrink world economy by 3.2%; India's growth rate projected to slow to 1.2% in 2020

India pledged 10 millon dollar toward covid-19 emergency fund and come together with Saarc leaders. World leaders laud PM's effort on Coronavirus Crisis.

WION Dispatch: World leaders laud PM Modi's effort on Coronavirus crisis

World economy impacted by Coronavirus outbreak. As the death toll from the coronavirus pandemic in many states, emergency fund is being raised to handle the situation

Emergency Funding for tackle Coronavirus Epidemic Globally

A team of international wildlife conservationists flew in Monday to&nbsp;examine&nbsp;four starving and&nbsp;sick&nbsp;lions&nbsp;at a zoo in the <a href="https://www.wionews.com/opinions/how-sudans-economic-crisis-had-a-role-in-protests-that-toppled-al-bashir-216685">Sudanese</a> capital where a <a href="https://www.wionews.com/world/social-media-in-uproar-after-emaciated-african-lion-images-go-viral-275561">lioness</a> died last week.

Months of political and economic turmoil that rocked&nbsp;<a href="https://www.wionews.com/world/32-killed-in-attack-in-disputed-south-sudan-border-region-official-275994">Sudan</a>&nbsp;from late 2018 severely damaged the health of the&nbsp;lions&nbsp;faced with shortages of food and medicine.

The five-member rapid response team from Four Paws was conducting tests on the&nbsp;lions&nbsp;at Al-Qurashi park zoo where the animals have been held for years, an AFP correspondent reported.

Also read:&nbsp;<a href="https://www.wionews.com/world/after-attacks-on-people-and-livestock-tanzania-will-relocate-36-serengeti-lions-275220">After attacks on people and livestock, Tanzania to relocate 36 Serengeti lions</a>

A lioness died of dehydration and lack of food despite having received intravenous fluids after the launch of an online appeal for veterinary help.

The animals lost as much as two-thirds of their body weight after going unfed for weeks as&nbsp;Sudan's chronic cash shortage hit donations.

"It's now important to improve the conditions of the animals... and the next step is to find a long-term solution," Amir Khalil of Four Paws told AFP.

Khalil said carrying out tests on the animals would not be easy. "It's very difficult to approach the animals and very risky," he said.

Also read: <a href="https://www.wionews.com/world/earths-wild-animal-population-plummets-60-per-cent-in-44-years-wwf-174289">In 44 years, humans have wiped out 60% of the world's animal population: WWF</a>

"The animals are very weak at this moment, so moving them won't be the best thing," said Juno Van Zon, another member of the team.

"I think for now we have to focus on getting the animals healthy and also to train the people."

Al-Qureshi Park is run by Khartoum municipality but funded partly by private donations, which have dried up due to the <a href="https://www.wionews.com/opinions/how-sudans-economic-crisis-had-a-role-in-protests-that-toppled-al-bashir-216685">economic crisis</a> that sparked nationwide protests though much of last year.

An online campaign has been launched under the hashtag #Sudananimalrescue to help save the&nbsp;lions.

It is not known how many&nbsp;lions&nbsp;survive in the wild in&nbsp;Sudan, but a population lives in Dinder National Park on the border with Ethiopia.

African&nbsp;lions&nbsp;are classified as a "vulnerable" species by the International Union for Conservation of Nature.

A team of international wildlife conservationists flew in Monday to examine four starving and sick lions at a zoo in the Sudanese capital where a lioness died last week.

A team of international wildlife conservationists flew in Monday to examine four starving and sick lions at a zoo in the Sudanese capital where a lioness died last week. Months of political and economic turmoil that rocked Sudan from late 2018 severely damaged the health of the lions faced with shortages of food and medicine. The five-member rapid response team from Four Paws was conducting tests on the lions at Al-Qurashi park zoo where the animals have been held for years, an AFP correspondent reported. Also read: After attacks on people and livestock, Tanzania to relocate 36 Serengeti lions A lioness died of dehydration and lack of food despite having received intravenous fluids after the launch of an online appeal for veterinary help. The animals lost as much as two-thirds of their body weight after going unfed for weeks as Sudan's chronic cash shortage hit donations. "It's now important to improve the conditions of the animals... and the next step is to find a long-term solution," Amir Khalil of Four Paws told AFP. Khalil said carrying out tests on the animals would not be easy. "It's very difficult to approach the animals and very risky," he said. Also read: In 44 years, humans have wiped out 60% of the world's animal population: WWF "The animals are very weak at this moment, so moving them won't be the best thing," said Juno Van Zon, another member of the team. "I think for now we have to focus on getting the animals healthy and also to train the people." Al-Qureshi Park is run by Khartoum municipality but funded partly by private donations, which have dried up due to the economic crisis that sparked nationwide protests though much of last year. An online campaign has been launched under the hashtag #Sudananimalrescue to help save the lions. It is not known how many lions survive in the wild in Sudan, but a population lives in Dinder National Park on the border with Ethiopia. African lions are classified as a "vulnerable" species by the International Union for Conservation of Nature.

Foreign experts in Sudan to examine sick lions

Protesters and security forces clash in Beirut, multiple wounded

Lebanese rescuers treated more than 300 people for injuries during hours of clashes between security forces and protesters that rocked central <a href="https://www.wionews.com/world/former-nissan-boss-ghosn-says-french-envoy-warned-about-nissan-turning-against-him-274341">Beirut</a> on Saturday night.

<img alt="Fireworks are set off in front of police officers standing in position behind riot shields during the protest" data-entity-type="file" data-entity-uuid="dacbb317-b37f-496c-947f-940928c4b91e" src="//cdn.wionews.com/sites/default/files/inline-images/Untitled%20design%20%2835%29_2.jpg" /> 
[ Fireworks are set off in front of police officers standing in position behind riot shields during the protest (Courtesy: Reuters) ]

It was the highest toll in some of the most intense violence since largely peaceful protests erupted across the country in October. As&nbsp;<a href="https://www.wionews.com/sports/prince-harry-draws-attention-to-2021-rugby-league-world-cup-274856">Lebanon</a>&nbsp;sinks deeper into its worst economic crisis in decades, anger has boiled over at a ruling elite dominating the country since the 1975-1990 civil war.

Watch: Fire engulfed in protester's camps in clash between security forces, protesters

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/beirut-fire-engulfed-in-protesters-camps-in-clash-between-security-forces-protesters-275301/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

The Lebanese Red Cross said it had treated 220 people who were wounded on both sides on Saturday night, taking 80 of them to hospital. The Civil Defence said it had helped 114 others.

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FINAL UPDATE: 18 ambulances, 80 EMTs and 6 dispatchers from the LRC responded to the protests in downtown Beirut. Over 80 victims have been transported to nearby hospitals and over 140 injured were treated at the scene. LRC teams are still on standby and ready to respond. <a href="https://t.co/p1OG7WFqwl">pic.twitter.com/p1OG7WFqwl</a>
— Lebanese Red Cross (@RedCrossLebanon) <a href="https://twitter.com/RedCrossLebanon/status/1218619286190809088?ref_src=twsrc%5Etfw">January 18, 2020</a></blockquote>
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Smoke enveloped a commercial district of the capital as security forces fired volleys of tear gas and unleashed water cannons. Riot police chased after men and women near&nbsp;Lebanon's parliament late into the night.

<img alt="A riot police kicks a tear gas canister during a protest against a ruling elite" data-entity-type="file" data-entity-uuid="84a7e4d3-2ccc-47f6-a34d-806c20c3f42c" src="//cdn.wionews.com/sites/default/files/inline-images/Untitled%20design%20%2837%29_3.jpg" /> 
[ A riot police kicks a tear gas canister during a protest against a ruling elite (Courtesy: Reuters) ]

Protesters, with their faces covered, hurled stones, steel barriers and flower pots. They ripped branches off trees and signposts off the ground, charging at riot police.

In three months of protests, which have gripped the country and pushed Prime Minister <a href="https://www.wionews.com/world/consultations-to-name-lebanese-pm-delayed-until-thursday-268534">Saad Hariri</a> to quit, politicians wrangling over cabinet seats have failed to agree on a new government or a rescue plan.

Meanwhile, the crisis is biting: the Lebanese pound has lost nearly half its value, dollar shortages have driven up prices and confidence in the banking system has collapsed.

Lebanese rescuers treated more than 300 people for injuries during hours of clashes between security forces and protesters that rocked central Beirut on Saturday night.

Lebanese rescuers treated more than 300 people for injuries during hours of clashes between security forces and protesters that rocked central Beirut on Saturday night. [ Fireworks are set off in front of police officers standing in position behind riot shields during the protest (Courtesy: Reuters) ] It was the highest toll in some of the most intense violence since largely peaceful protests erupted across the country in October. As Lebanon sinks deeper into its worst economic crisis in decades, anger has boiled over at a ruling elite dominating the country since the 1975-1990 civil war. Watch: Fire engulfed in protester's camps in clash between security forces, protesters The Lebanese Red Cross said it had treated 220 people who were wounded on both sides on Saturday night, taking 80 of them to hospital. The Civil Defence said it had helped 114 others. FINAL UPDATE: 18 ambulances, 80 EMTs and 6 dispatchers from the LRC responded to the protests in downtown Beirut. Over 80 victims have been transported to nearby hospitals and over 140 injured were treated at the scene. LRC teams are still on standby and ready to respond. pic.twitter.com/p1OG7WFqwl — Lebanese Red Cross (@RedCrossLebanon) January 18, 2020 × Smoke enveloped a commercial district of the capital as security forces fired volleys of tear gas and unleashed water cannons. Riot police chased after men and women near Lebanon's parliament late into the night. [ A riot police kicks a tear gas canister during a protest against a ruling elite (Courtesy: Reuters) ] Protesters, with their faces covered, hurled stones, steel barriers and flower pots. They ripped branches off trees and signposts off the ground, charging at riot police. In three months of protests, which have gripped the country and pushed Prime Minister Saad Hariri to quit, politicians wrangling over cabinet seats have failed to agree on a new government or a rescue plan. Meanwhile, the crisis is biting: the Lebanese pound has lost nearly half its value, dollar shortages have driven up prices and confidence in the banking system has collapsed.

Over 300 people wounded in Beirut protest clashes: Lebanese Red Cross

Satellite images reveal the extent of Australian bushfire damage

Lebanese Prime Minister Saad al-Hariri agreed on Sunday a package of reforms with government partners to <a href="https://www.wionews.com/world/tens-of-thousands-demonstrate-again-as-lebanons-government-frays-257113">ease an economic crisis that has sparked protests</a> aimed at ousting a ruling elite seen as riddled with corruption and cronyism.

Officials told Reuters the agreement was reached as hundreds of thousands of protesters flooded the streets for a fourth day in the biggest show of dissent against the establishment in decades.

A sea of people, some waving Lebanese flags, called for a revolution in protests that resembled the 2011 Arab revolts that toppled four presidents.

Hariri, who is leading a coalition government mired by sectarian and political rivalries, gave his feuding government partners a 72-hour deadline on Friday to agree to reforms that could ward off the crisis, hinting he may otherwise resign.

Hariri accused his rivals of obstructing his reform measures that could unlock $11 billion in Western donor pledges and help avert economic collapse.

The reform decisions require a 50 per cent&nbsp;reduction in salaries of current and former presidents, ministers and MPs plus cuts in benefits to state institutions and officials. It also obliges the central bank and private banks to contribute $3.3 billion to achieve a "near-zero deficit" for the 2020 budget.

It also includes a plan to privatise the telecommunications sector and an overhaul of the costly and crumbling electricity sector, which poses one of the biggest strains on the country's depleted finances.

Government sources said Hariri's cabinet would meet at midday on Monday at the presidential palace to approve the reform package.

Hopeful

<a href="https://www.wionews.com/world/hundreds-gather-in-lebanon-for-fresh-protests-256895">The anti-government protests</a>, fuelled by crippling economic conditions and anger at perceived government corruption, have fanned out across the country since Thursday.

Cheerful, buoyant and hopeful their protests would bring change, people of all ages and religions played patriotic songs and danced in the streets, with some forming human chains and chanting for their leaders to be ousted.

Festival-like scenes dominated the country from the capital Beirut to remote towns, with loudspeakers blaring music as crowds kept pouring into the streets.

"I am here because I am disgusted by our politicians. Nothing works. This is not a state. Salaries are very low, prices are very high. We don't even have work these days," said Cherine Shawa, 32, an interior architect, in Beirut.

Ending rampant corruption is a central demand of the protesters, who say the country's leaders have used their positions to enrich themselves for decades through favourable deals and kickbacks.

"We're here to say to our leaders 'leave'. We have no hope in them but we're hopeful that these protests will bring change," Hanan Takkouche, in her 40s and among a group of women in the capital.

"They came to fill their pockets. They're all crooks and thieves," she added.

Many blamed the ruling elite for driving their children out of Lebanon because they failed to build a country that could provide jobs.

Army troops and security forces deployed across the country and blocked roads leading to the presidential palace. Banks said they would remain closed on Monday and the main labour union announced a general strike, threatening further paralysis. 
 
Conditions met

A chorus of voices, from union leaders to politicians, have joined popular calls for <a href="https://www.wionews.com/world/protests-sweep-lebanon-as-fury-at-ruling-elite-grows-over-economic-corruption-256839">Hariri's government to resign</a>. The Maronite Christian Lebanese Forces party has said its four ministers would withdraw from the government.

But the approval of the reforms by Hariri's partners seem to have met his conditions and would most likely push him to stay the course, government sources said.

If Hariri, a Sunni Muslim who is traditionally backed by the West and Sunni Gulf Arab allies, resigns it would be harder for the various parties that make up the ruling coalition to form a new cabinet.

A new cabinet would also likely see Iranian-backed Hezbollah and its allies more in control, a shift that would make it nearly impossible for international donors or Gulf Arab countries at odds with Iran to offer aid or investments.

Without a foreign funding boost, officials and economists predict a currency devaluation or a debt default within months.

The IMF said last week that Lebanon's crisis requires tough austerity measures such as tax hikes and levies on fuel, steps the country's politicians have publicly vowed not to take.

Lebanon's economy registered just 0.3 per cent growth last year. The IMF said the reforms were needed to stem a ballooning deficit and public debt it forecasts to reach 155 per cent of GDP by year-end.

The officials said the budget would not include additional taxes or fees after a decision last week to put a levy on WhatsApp calls triggered the unrest.

The reforms also called for establishing new regulatory and transparency bodies within a "short period" of time to oversee reform plans.

Lebanese Prime Minister Saad al-Hariri agreed on Sunday a package of reforms with government partners to ease an economic crisis that has sparked protests aimed at ousting a ruling elite seen as riddled with corruption and cronyism.

Lebanese Prime Minister Saad al-Hariri agreed on Sunday a package of reforms with government partners to ease an economic crisis that has sparked protests aimed at ousting a ruling elite seen as riddled with corruption and cronyism. Officials told Reuters the agreement was reached as hundreds of thousands of protesters flooded the streets for a fourth day in the biggest show of dissent against the establishment in decades. A sea of people, some waving Lebanese flags, called for a revolution in protests that resembled the 2011 Arab revolts that toppled four presidents. Hariri, who is leading a coalition government mired by sectarian and political rivalries, gave his feuding government partners a 72-hour deadline on Friday to agree to reforms that could ward off the crisis, hinting he may otherwise resign. Hariri accused his rivals of obstructing his reform measures that could unlock $11 billion in Western donor pledges and help avert economic collapse. The reform decisions require a 50 per cent reduction in salaries of current and former presidents, ministers and MPs plus cuts in benefits to state institutions and officials. It also obliges the central bank and private banks to contribute $3.3 billion to achieve a "near-zero deficit" for the 2020 budget. It also includes a plan to privatise the telecommunications sector and an overhaul of the costly and crumbling electricity sector, which poses one of the biggest strains on the country's depleted finances. Government sources said Hariri's cabinet would meet at midday on Monday at the presidential palace to approve the reform package. Hopeful The anti-government protests, fuelled by crippling economic conditions and anger at perceived government corruption, have fanned out across the country since Thursday. Cheerful, buoyant and hopeful their protests would bring change, people of all ages and religions played patriotic songs and danced in the streets, with some forming human chains and chanting for their leaders to be ousted. Festival-like scenes dominated the country from the capital Beirut to remote towns, with loudspeakers blaring music as crowds kept pouring into the streets. "I am here because I am disgusted by our politicians. Nothing works. This is not a state. Salaries are very low, prices are very high. We don't even have work these days," said Cherine Shawa, 32, an interior architect, in Beirut. Ending rampant corruption is a central demand of the protesters, who say the country's leaders have used their positions to enrich themselves for decades through favourable deals and kickbacks. "We're here to say to our leaders 'leave'. We have no hope in them but we're hopeful that these protests will bring change," Hanan Takkouche, in her 40s and among a group of women in the capital. "They came to fill their pockets. They're all crooks and thieves," she added. Many blamed the ruling elite for driving their children out of Lebanon because they failed to build a country that could provide jobs. Army troops and security forces deployed across the country and blocked roads leading to the presidential palace. Banks said they would remain closed on Monday and the main labour union announced a general strike, threatening further paralysis. Conditions met A chorus of voices, from union leaders to politicians, have joined popular calls for Hariri's government to resign. The Maronite Christian Lebanese Forces party has said its four ministers would withdraw from the government. But the approval of the reforms by Hariri's partners seem to have met his conditions and would most likely push him to stay the course, government sources said. If Hariri, a Sunni Muslim who is traditionally backed by the West and Sunni Gulf Arab allies, resigns it would be harder for the various parties that make up the ruling coalition to form a new cabinet. A new cabinet would also likely see Iranian-backed Hezbollah and its allies more in control, a shift that would make it nearly impossible for international donors or Gulf Arab countries at odds with Iran to offer aid or investments. Without a foreign funding boost, officials and economists predict a currency devaluation or a debt default within months. The IMF said last week that Lebanon's crisis requires tough austerity measures such as tax hikes and levies on fuel, steps the country's politicians have publicly vowed not to take. Lebanon's economy registered just 0.3 per cent growth last year. The IMF said the reforms were needed to stem a ballooning deficit and public debt it forecasts to reach 155 per cent of GDP by year-end. The officials said the budget would not include additional taxes or fees after a decision last week to put a levy on WhatsApp calls triggered the unrest. The reforms also called for establishing new regulatory and transparency bodies within a "short period" of time to oversee reform plans.

Lebanon's Hariri agrees to reforms amid nationwide protests over economic crisis

Lebanese government agrees to put reforms in action after protests

Thousands of people demonstrated across Lebanon against the government's management of an economic crisis in one of the biggest protests in years, leading the Cabinet to pull a proposed new levy on WhatsApp calls.

Lebanon up in arms: Protests against Austerity measures

Anti government protests sweep Lebanon amid economic emergency

Under the stewardship of Prime Minister Narendra Modi, India has set sights on becoming a $5 trillion economy in five years from now, up from about $3 trillion at present.&nbsp;

Can India pull it off, or shall we say, can’t it? The target may seem ambitious, but is certainly not beyond the indomitable spirit of Indian enterprise!&nbsp;

What is essentially required is a political and bureaucratic commitment to work overtime to make a ‘sare jahan se achcha’ Bharat, by creating an ecosystem that unleashes the ‘animal spirits’ of Indian business.&nbsp;

For long, India has been a prisoner to socialist dogma, a maze of rules and regulations and flip-flop in policymaking. A fundamental shift in mindset is needed — unless ample wealth is created, no amount of ‘fair distribution’ would ensure ease of living for the poor. Unfortunately, job creators are seen as bloodsuckers, to put it crudely.

Highly conscious of this, Modi, who hails from Gujarat — a state where ‘making money’ is not looked down upon — said in his Independence Day speech this year that wealth creators must be honoured. From the ramparts of Red Fort, he said people involved in creating wealth were, to him, &nbsp;“the wealth of the country”.&nbsp;

He stressed that people should stop viewing wealth creators with suspicion and that they deserved greater respect. Greater wealth creation would lead to greater distribution and welfare of the people. “Our investors should invest more, earn more, and generate more jobs,” he said.

Modi’s SMS to Ratan Tata inviting him to set up a Nano car plant in Gujarat, after being hounded at Singur in West Bengal, is history. The Singur episode highlighted the anti-success and anti-wealth mentality pervasive and endemic in our society, including a section of political leadership and bureaucracy. This has to change for India to achieve her growth potential.

Our business ecosystem has changed since the days of then Prime Ministers P V Narasimha Rao and Manmohan Singh, but the job of dismantling the fetters is only half done.&nbsp;

Some years ago, Gautam Adani didn’t get an audience with the ‘political CEO’ during his Bihar visit! He went on to set up industry in neighbouring Jharkhand.&nbsp;

The recent scrapping of large contracts signed earlier in Andhra Pradesh is indicative of the whimsical functioning of a section of our politicians. These point to the deep-rooted malaise in our mindset that wealth is evil and rich people are bad people!

Eminent jurist and economist of yesteryears, late Nani A Palkhivala had once pointed out, citing figures, that the number of jobs created till then in government and in organised industry was almost the same. What this meant was that people engaged in production in the industry were being regulated by an equal number of government officials. A lopsided development model, to say the least.&nbsp;

It was again Palkhivala who had made a distinction in the colour of black money. The money earned by a doctor from private practice is through perfectly legal means but turns black for not being declared in income-tax returns.

On the other hand, money made on the sly by politicians, government officials, smugglers, bootleggers etc is through patently illegal means and is hidden from the I-T department too. Yet, politicos and top government babus are held in high esteem, while rich businessmen and industrialists are seen as bad, evil people!&nbsp;

The Modi government has repealed some laws and simplified some others, but more needs to be done. Way back in 1990, a leading English daily of Gujarat used to name a businessman in an I-T case only after conviction, and not after a raid. It is a moot point if this kind of respect for wealth creators is possible in these times of media boom.

If we are not to bequeath misery and poverty to our children, the society has to shed its anti-investor, anti-wealth creator, anti-achiever and anti-success culture. PM Modi has struck the right note in his Independence Day address. On his part, he should continue to focus on clarity and stability in policymaking, and shun any flip-flop. &nbsp;

(This article was originally published on The DNA. Read the <a href="https://www.dnaindia.com/analysis/column-respect-wealth-creators-for-conducive-economic-environment-2793818">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL) &nbsp;

Under the stewardship of Prime Minister Narendra Modi, India has set sights on becoming a $5 trillion economy in five years from now, up from about $3 trillion at present.

Under the stewardship of Prime Minister Narendra Modi, India has set sights on becoming a $5 trillion economy in five years from now, up from about $3 trillion at present. Can India pull it off, or shall we say, can’t it? The target may seem ambitious, but is certainly not beyond the indomitable spirit of Indian enterprise! What is essentially required is a political and bureaucratic commitment to work overtime to make a ‘sare jahan se achcha’ Bharat, by creating an ecosystem that unleashes the ‘animal spirits’ of Indian business. For long, India has been a prisoner to socialist dogma, a maze of rules and regulations and flip-flop in policymaking. A fundamental shift in mindset is needed — unless ample wealth is created, no amount of ‘fair distribution’ would ensure ease of living for the poor. Unfortunately, job creators are seen as bloodsuckers, to put it crudely. Highly conscious of this, Modi, who hails from Gujarat — a state where ‘making money’ is not looked down upon — said in his Independence Day speech this year that wealth creators must be honoured. From the ramparts of Red Fort, he said people involved in creating wealth were, to him, “the wealth of the country”. He stressed that people should stop viewing wealth creators with suspicion and that they deserved greater respect. Greater wealth creation would lead to greater distribution and welfare of the people. “Our investors should invest more, earn more, and generate more jobs,” he said. Modi’s SMS to Ratan Tata inviting him to set up a Nano car plant in Gujarat, after being hounded at Singur in West Bengal, is history. The Singur episode highlighted the anti-success and anti-wealth mentality pervasive and endemic in our society, including a section of political leadership and bureaucracy. This has to change for India to achieve her growth potential. Our business ecosystem has changed since the days of then Prime Ministers P V Narasimha Rao and Manmohan Singh, but the job of dismantling the fetters is only half done. Some years ago, Gautam Adani didn’t get an audience with the ‘political CEO’ during his Bihar visit! He went on to set up industry in neighbouring Jharkhand. The recent scrapping of large contracts signed earlier in Andhra Pradesh is indicative of the whimsical functioning of a section of our politicians. These point to the deep-rooted malaise in our mindset that wealth is evil and rich people are bad people! Eminent jurist and economist of yesteryears, late Nani A Palkhivala had once pointed out, citing figures, that the number of jobs created till then in government and in organised industry was almost the same. What this meant was that people engaged in production in the industry were being regulated by an equal number of government officials. A lopsided development model, to say the least. It was again Palkhivala who had made a distinction in the colour of black money. The money earned by a doctor from private practice is through perfectly legal means but turns black for not being declared in income-tax returns. On the other hand, money made on the sly by politicians, government officials, smugglers, bootleggers etc is through patently illegal means and is hidden from the I-T department too. Yet, politicos and top government babus are held in high esteem, while rich businessmen and industrialists are seen as bad, evil people! The Modi government has repealed some laws and simplified some others, but more needs to be done. Way back in 1990, a leading English daily of Gujarat used to name a businessman in an I-T case only after conviction, and not after a raid. It is a moot point if this kind of respect for wealth creators is possible in these times of media boom. If we are not to bequeath misery and poverty to our children, the society has to shed its anti-investor, anti-wealth creator, anti-achiever and anti-success culture. PM Modi has struck the right note in his Independence Day address. On his part, he should continue to focus on clarity and stability in policymaking, and shun any flip-flop. (This article was originally published on The DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Economic woes: PM Narendra Modi should continue to focus on clarity and stability in policymaking

Despite support from China and <a href="https://www.wionews.com/south-asia/saudi-crown-prince-expected-to-seal-multi-billion-dollar-deals-in-pakistan-196969">Saudi Arabia</a> and a huge <a href="https://www.wionews.com/south-asia/imf-approves-6-billion-loan-for-pakistan-to-right-the-nations-economy-232863">IMF loan that helped Pakistan</a> to address its immediate economic crisis, the United Nations on Thursday said that the country is still in the midst of a crisis.

In a brief comment on Pakistan in the Asia section, UN's Trade and Development Report 2019 said that "Pakistan is in the midst of a crisis" as the growth rate has halved, the balance of payments is in poor shape, the rupee has depreciated significantly and external debt is large and rising, reported The Dawn.

Meanwhile, the report also stated that slowdown observed in the rate of growth of the Chinese economy from 2017 onwards is projected to intensify in 2019 because of the trade and technology tensions.

The slowing of China's trade growth has a major impact on other East Asian and South-East Asian economies since it is likely that the integrated value chains spread across these economies and linked to China would be disrupted, the report noted.

The report further stated that public banking should be given back its traditional, bigger role if the environmental and economic landscape is to be transformed by 2030.

The annual fiscal deficit of <a href="https://www.wionews.com/videos/pakistans-belly-dance-formula-to-revive-economy-248440">Pakistan</a>&nbsp;to the highest in the last three decades at 8.9 per cent for the financial year 2018-19.

The fiscal deficit is a difference between revenues and expenditures of the federal government.

Pakistan Prime Minister Imran Khan, who was elected on an anti-corruption plank and a pledge to end austerity measures, had vowed to improve the depleting economic situation of the cash-strapped country.

In reality, prices of gas and oil products and electricity in Pakistan have risen considerably, burning a hole in common man's pocket.

Despite support from China and Saudi Arabia and a huge IMF loan that helped Pakistan to address its immediate economic crisis, the United Nations on Thursday said that the country is still in the midst of a crisis.

Despite support from China and Saudi Arabia and a huge IMF loan that helped Pakistan to address its immediate economic crisis, the United Nations on Thursday said that the country is still in the midst of a crisis. In a brief comment on Pakistan in the Asia section, UN's Trade and Development Report 2019 said that "Pakistan is in the midst of a crisis" as the growth rate has halved, the balance of payments is in poor shape, the rupee has depreciated significantly and external debt is large and rising, reported The Dawn. Meanwhile, the report also stated that slowdown observed in the rate of growth of the Chinese economy from 2017 onwards is projected to intensify in 2019 because of the trade and technology tensions. The slowing of China's trade growth has a major impact on other East Asian and South-East Asian economies since it is likely that the integrated value chains spread across these economies and linked to China would be disrupted, the report noted. The report further stated that public banking should be given back its traditional, bigger role if the environmental and economic landscape is to be transformed by 2030. The annual fiscal deficit of Pakistan to the highest in the last three decades at 8.9 per cent for the financial year 2018-19. The fiscal deficit is a difference between revenues and expenditures of the federal government. Pakistan Prime Minister Imran Khan, who was elected on an anti-corruption plank and a pledge to end austerity measures, had vowed to improve the depleting economic situation of the cash-strapped country. In reality, prices of gas and oil products and electricity in Pakistan have risen considerably, burning a hole in common man's pocket.

Pakistan in midst of economic crisis despite support from China, IMF: U.N.

Britain's bailed-out <a href="https://www.wionews.com/business-economy/rbs-to-appoint-alison-rose-as-ceo-in-coming-weeks-report-242063">Royal Bank of Scotland</a> (RBS) on Friday appointed a long-serving banker Alison Rose as its Chief Executive, making her the first female boss of a major UK lender.

Rose, currently the Deputy Head of both NatWest Holdings and the bank's commercial and private banking, business, will replace Ross McEwan on November 1, the company said in a statement.

"I am delighted that we have appointed Alison as our new CEO", said RBS Chairman Howard Davies.

"She brings extensive experience and a track record of success from her previous roles at the bank", he added.

Rose, who has worked at the Edinburgh-based giant for 27 years, takes the helm amid a period of heightened global turmoil that includes Brexit, the US-China trade war, and faltering economic growth.

"This is an exciting time as we enter a new chapter for this bank", she said in the statement.

"Our industry is facing a series of challenges; from the ongoing economic and political uncertainty to shifts in the behaviour and expectations of our customers, driven by rapid advances in technology... It will be my priority to make sure we are ready to meet these challenges", she added.

McEwan will step down on October 31 after holding the top job since 2013, having steered it through a steady recovery following a government bailout during the 2008 global financial crisis.

The New Zealander is leaving RBS to become the Chief Executive at National Australia Bank.

RBS is still 62 per cent owned by the government after receiving the world's biggest banking bailout during the crisis.

Britain's bailed-out Royal Bank of Scotland (RBS) on Friday appointed a long-serving banker Alison Rose as its Chief Executive, making her the first female boss of a major UK lender.

Britain's bailed-out Royal Bank of Scotland (RBS) on Friday appointed a long-serving banker Alison Rose as its Chief Executive, making her the first female boss of a major UK lender. Rose, currently the Deputy Head of both NatWest Holdings and the bank's commercial and private banking, business, will replace Ross McEwan on November 1, the company said in a statement. "I am delighted that we have appointed Alison as our new CEO", said RBS Chairman Howard Davies. "She brings extensive experience and a track record of success from her previous roles at the bank", he added. Rose, who has worked at the Edinburgh-based giant for 27 years, takes the helm amid a period of heightened global turmoil that includes Brexit, the US-China trade war, and faltering economic growth. "This is an exciting time as we enter a new chapter for this bank", she said in the statement. "Our industry is facing a series of challenges; from the ongoing economic and political uncertainty to shifts in the behaviour and expectations of our customers, driven by rapid advances in technology... It will be my priority to make sure we are ready to meet these challenges", she added. McEwan will step down on October 31 after holding the top job since 2013, having steered it through a steady recovery following a government bailout during the 2008 global financial crisis. The New Zealander is leaving RBS to become the Chief Executive at National Australia Bank. RBS is still 62 per cent owned by the government after receiving the world's biggest banking bailout during the crisis.

Royal Bank of Scotland names Alison Rose as Chief Executive

Hundreds of protesters took to the streets of Buenos Aires, Argentina on Tuesday, September 10 to demand economic relief, as Latin America's third-largest economy reels from recession and growing fears of a debt default. Watch this video to know more.

Argentina reels under economic crisis, Protests break out demanding relief

Edgar Fernandez keeps a mariachi suit in a rusty wardrobe at the public hospital in Caracas where he works as a nurse, donning it for performances that augment his meagre salary.

Given that he earns just $10 a month, the money from these shows has been his salvation in crisis-wracked Venezuela, where nurses have been forced to reinvent themselves as home entrepreneurs, security guards or builders just to survive.

Being a nurse in Venezuela is an almost impossible job these days: the country has seen an exodus of the profession, leaving those who remain short of colleagues and contending with problems such as major shortages of medical supplies and devastating electricity blackouts.

"A nurse's salary is worth nothing," Fernandez told AFP, saying the money he earns from a 12-hour shift "can't buy anything."

When a show clashes with his work shift, he has to pay a colleague to cover for him, meaning that his earnings -- which are not always money -- shrink.

"Sometimes they pay me... with flour, lentils... I prefer this to going home empty-handed," said the 40-year-old, who practically lives in the Perez Carreno hospital, sleeping on a dirty mattress since he cannot afford rent.

Decked out in his silver-lined outfit, Fernandez sings in bars and homes, and is even sometimes hired by former patients.

He saved up to record an album, which he peddles to radio stations. His hope is to one day find fame.

Home-made hairspray

Francis Guillen makes hairspray that she sells in Caracas's busy Catia market as she battles, like most Venezuelans, to make ends meet in a country whose inflation will reach a staggering one million per cent this year, according to the International Monetary Fund.

"If I didn't have another job, I don't know what would have become of me," said the 30-year-old nurse, who in a single day selling hairspray can earn the equivalent of her monthly salary.

Sometimes her father, also a nurse, helps her mix the chemicals in a bucket in her front room.

Her husband, who gave up his job as a fireman, also helps out with the business.

Guillen is tempted to resign from her job, but says the desire "to serve" her compatriots is keeping her from joining the 3.3 million people the United Nations estimates have left Venezuela since the start of 2016.

But since June 2018, 15,000 members of her profession -- or around 40 per cent -- quit and many of those emigrated, according to Ana Rosario Contreras, president of the Nurses College of Caracas, which has called for salaries to be paid in dollars to halt the exodus.

'In love' with nursing&nbsp;

By day, Carlos Ruiz works as a security guard for a metallurgy company and also does odd jobs.

The 42-year-old says he does "what's needed to survive."

But despite saving up as much as he can, he hasn't been able to buy a new nurse uniform for the last four years: he needs 10 months of salary for that.

He also has to deal with the scarcity of hospital supplies -- up to 80 per cent in some sectors, according to NGOs -- which President Nicolas Maduro blames on an economic war waged by the United States at the invitation of the opposition.

"There's no lack of those who accuse us of stealing medicines," according to Ruiz, who said he is "in love" with a job that allowed him to be present at the births of his four children.

In some hospitals, a single nurse has to look after up to four patients, something those in the profession decry as "labour persecution."

Working to save lives

Repeated major electricity blackouts have also taken their toll on the medical sector, knocking out power to hospitals -- many of which do not have working generators -- with potentially deadly consequences for patients.

Camilo Torres sells pastries and ice cream in his home in the southern state of Bolivar and goes to work at the local hospital on foot because of the lack of public transport. It takes him two hours.

Facebook photos attest to the toll his struggles have taken on his body: three years ago, he weighed 120 kilograms (264 pounds), but now weighs just 65 (143 pounds).

"I'm skinny and that's due to hunger," said the father of three, who wears broken shoes.

A neighbour helped him sew them up because a new pair costs three times his salary.

He can't even afford socks and his once white uniform looks yellow -- for Torres, detergent is a luxury.

But he won't give up.

"My job is to save lives. If there's no one in the hospital then I'm sure that if today 10 people die, tomorrow it will be 50 and that pain would never leave me," he said.

Edgar Fernandez keeps a mariachi suit in a rusty wardrobe at the public hospital in Caracas where he works as a nurse, donning it for performances that augment his meagre salary.

Edgar Fernandez keeps a mariachi suit in a rusty wardrobe at the public hospital in Caracas where he works as a nurse, donning it for performances that augment his meagre salary. Given that he earns just $10 a month, the money from these shows has been his salvation in crisis-wracked Venezuela, where nurses have been forced to reinvent themselves as home entrepreneurs, security guards or builders just to survive. Being a nurse in Venezuela is an almost impossible job these days: the country has seen an exodus of the profession, leaving those who remain short of colleagues and contending with problems such as major shortages of medical supplies and devastating electricity blackouts. "A nurse's salary is worth nothing," Fernandez told AFP, saying the money he earns from a 12-hour shift "can't buy anything." When a show clashes with his work shift, he has to pay a colleague to cover for him, meaning that his earnings -- which are not always money -- shrink. "Sometimes they pay me... with flour, lentils... I prefer this to going home empty-handed," said the 40-year-old, who practically lives in the Perez Carreno hospital, sleeping on a dirty mattress since he cannot afford rent. Decked out in his silver-lined outfit, Fernandez sings in bars and homes, and is even sometimes hired by former patients. He saved up to record an album, which he peddles to radio stations. His hope is to one day find fame. Home-made hairspray Francis Guillen makes hairspray that she sells in Caracas's busy Catia market as she battles, like most Venezuelans, to make ends meet in a country whose inflation will reach a staggering one million per cent this year, according to the International Monetary Fund. "If I didn't have another job, I don't know what would have become of me," said the 30-year-old nurse, who in a single day selling hairspray can earn the equivalent of her monthly salary. Sometimes her father, also a nurse, helps her mix the chemicals in a bucket in her front room. Her husband, who gave up his job as a fireman, also helps out with the business. Guillen is tempted to resign from her job, but says the desire "to serve" her compatriots is keeping her from joining the 3.3 million people the United Nations estimates have left Venezuela since the start of 2016. But since June 2018, 15,000 members of her profession -- or around 40 per cent -- quit and many of those emigrated, according to Ana Rosario Contreras, president of the Nurses College of Caracas, which has called for salaries to be paid in dollars to halt the exodus. 'In love' with nursing By day, Carlos Ruiz works as a security guard for a metallurgy company and also does odd jobs. The 42-year-old says he does "what's needed to survive." But despite saving up as much as he can, he hasn't been able to buy a new nurse uniform for the last four years: he needs 10 months of salary for that. He also has to deal with the scarcity of hospital supplies -- up to 80 per cent in some sectors, according to NGOs -- which President Nicolas Maduro blames on an economic war waged by the United States at the invitation of the opposition. "There's no lack of those who accuse us of stealing medicines," according to Ruiz, who said he is "in love" with a job that allowed him to be present at the births of his four children. In some hospitals, a single nurse has to look after up to four patients, something those in the profession decry as "labour persecution." Working to save lives Repeated major electricity blackouts have also taken their toll on the medical sector, knocking out power to hospitals -- many of which do not have working generators -- with potentially deadly consequences for patients. Camilo Torres sells pastries and ice cream in his home in the southern state of Bolivar and goes to work at the local hospital on foot because of the lack of public transport. It takes him two hours. Facebook photos attest to the toll his struggles have taken on his body: three years ago, he weighed 120 kilograms (264 pounds), but now weighs just 65 (143 pounds). "I'm skinny and that's due to hunger," said the father of three, who wears broken shoes. A neighbour helped him sew them up because a new pair costs three times his salary. He can't even afford socks and his once white uniform looks yellow -- for Torres, detergent is a luxury. But he won't give up. "My job is to save lives. If there's no one in the hospital then I'm sure that if today 10 people die, tomorrow it will be 50 and that pain would never leave me," he said.

Venezuela nurses turn to side jobs to survive economic crisis

As one of the world’s most important trade and business hubs, <a href="https://www.wionews.com/world/hong-kong-police-fire-first-gunshot-water-cannon-in-protest-clashes-245583">Hong Kong was always going to struggle this year</a> because of the escalating US-China tariff war.

But after three months of anti-government protests, the semi-autonomous Chinese city, a <a href="https://www.wionews.com/world/hong-kong-police-arrest-29-after-overnight-clashes-more-protests-planned-245416">shopper’s paradise and gourmet destination</a> for millions of tourists each year, is facing an existential as well as an economic crisis.

The world’s biggest equity deal this year was to unfold in Hong Kong later this month but has been put on hold. Banks are issuing unprecedented profit warnings, while hotels and restaurants are half-empty. Several global events have been postponed and economists say retail sales could drop by 20%-30% this year.

Hong Kong is facing its first recession in a decade, with all its growth pillars under significant stress.

While protesters are disrupting day-to-day activities, Beijing has displayed its paramilitary might near the border, raising questions over the city’s political, financial and economic future.

“Hong Kong is facing a crisis almost unprecedented in its history,” said Edison Lee, equities analyst at Jefferies.

In the April-June quarter, when the impact of the protests was mild, the economy shrank 0.4 per cent from the previous quarter. Since then, demonstrations have spread across the territory, disrupting traffic, paralyzing shopping and tourist areas and closing down the city’s sprawling airport at times.

The third quarter is bound to confirm the recession by its technical definition of two consecutive quarters of economic contraction.

For the whole year, the government expects growth at 0-1%, but some analysts expect it to shrink. Forecasting at this juncture, given the myriad of pathways the social crisis might take, is of little value, but the contraction could be severe.

Hong Kong protests: Relatives of police officials join rally

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/hong-kong-protests-relatives-of-police-officials-join-rally-245581/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

“When you have a boom for so many years, and now you get a bust, the bust is going to be quite massive also,” said Kevin Lai, chief economist for Asia ex-Japan at Daiwa Capital Markets.

Corporate warnings

Citing political unrest, China’s biggest e-commerce company Alibaba Group Holding Ltd has delayed its up to $15 billion listing in Hong Kong, two people with knowledge of the matter told Reuters earlier this week.

Bank of East Asia, after reporting a 75% plunge in first-half net profit due to writedowns in China, warned on Wednesday about the impact further protests could have on small and medium enterprises.

More than 20 other companies, including developer Henderson Land, hotel group Shangri-La Asia, Emperor Watch &amp; Jewellery, department store operator Lifestyle International and rail operator MTR Corp, said in recent earnings reports the protests have been damaging.

The Catering and Hotel Industries Employees General Union told Reuters employers had asked some of its members to take non-paid leave this month because of the downturn in business.

Yiu Si-wing, Chairman of China Travel Service (HK) Ltd, a major mainland tour operator, said revenue from room sales was set to plunge 50 per cent in August.

“Visits from mainland China that usually account for 80% of arrivals are down most as people fear for their safety,” Yiu told Reuters.

Organizers of several conferences and exhibitions are scrambling to postpone events.

Trade representatives of the world’s largest diamond trading centres have asked the organizer of the Hong Kong Jewellery and Gem Fair to postpone the high-profile event, which typically welcomes more than 54,000 visitors. The fair is due to be held in September.

BlackRock, the world’s largest asset manager, has postponed a two-day September conference at the Four Seasons Hotel until February “so that as many partners as possible from across Asia are able to join.”

On Thursday, the Hong Kong Retail Management Association, which represents more than 8,000 businesses, urged all landlords to halve rents for six months and warned if the situation continued “many retailers may have to sack staff”.

Hands tied

Hong Kong leader Carrie Lam has repeatedly warned that protests are hurting the economy. She has consistently declined to meet any of the protesters’ core demands.

Instead, this month, she announced stimulus measures worth $2.4 billion, from subsidies for education and utilities to loan relief for small businesses.

But analysts warn that in the current climate, handouts are ineffective as firms and consumers are in no mood to spend.

With no obvious infrastructure upgrades needed, and with the government having a long track record of failing to adequately boost housing supply, analysts only expect announcements of more handouts and tax breaks at Lam’s annual policy address in October.

Since the turn of the century, every time Hong Kong’s economy got in trouble, the mainland’s economic boom or its stimulus measures came to the rescue. Now Beijing is facing its sharpest slowdown in nearly three decades and record debt.

“Hong Kong is on its own this time,” said Tommy Wu, senior economist at Oxford Economics.

Grim future

Rating agencies have raised long-term questions over the quality of Hong Kong’s governance.

But an increasingly assertive Beijing is fuelling larger concerns. Mainland regulatory scrutiny on airline Cathay Pacific over the involvement of some of its employees in the protests will affect Hong Kong’s image as a safe place for business.

A 1992 US-Hong Kong Policy Act allowing Washington to have a different customs regime with Hong Kong than with mainland China is also crucial for economic stability. For it to stand, US authorities need to see Hong Kong as sufficiently independent from Beijing, therefore movements of mainland troops at the border in Shenzhen are worrying.

But for now, the uncertainty is disruptive enough.

“The social situation tugs at all our heartstrings,” Kaisun Holdings, an investment holding company, said in a statement.

“Many investors have chosen to leave Hong Kong, and some banks and (multinationals) have started planning on moving their base to other nearby Asian cities. Kaisun Holdings may also begin to look for alternate markets for some of our service-based businesses.”

As one of the world’s most important trade and business hubs, Hong Kong was always going to struggle this year because of the escalating US-China tariff war. But after three months of anti-government protests, the semi-autonomous Chinese city, a shopper’s paradise and gourmet destination for millions of tourists each year, is facing an existential as well as an economic crisis.

As one of the world’s most important trade and business hubs, Hong Kong was always going to struggle this year because of the escalating US-China tariff war. But after three months of anti-government protests, the semi-autonomous Chinese city, a shopper’s paradise and gourmet destination for millions of tourists each year, is facing an existential as well as an economic crisis. The world’s biggest equity deal this year was to unfold in Hong Kong later this month but has been put on hold. Banks are issuing unprecedented profit warnings, while hotels and restaurants are half-empty. Several global events have been postponed and economists say retail sales could drop by 20%-30% this year. Hong Kong is facing its first recession in a decade, with all its growth pillars under significant stress. While protesters are disrupting day-to-day activities, Beijing has displayed its paramilitary might near the border, raising questions over the city’s political, financial and economic future. “Hong Kong is facing a crisis almost unprecedented in its history,” said Edison Lee, equities analyst at Jefferies. In the April-June quarter, when the impact of the protests was mild, the economy shrank 0.4 per cent from the previous quarter. Since then, demonstrations have spread across the territory, disrupting traffic, paralyzing shopping and tourist areas and closing down the city’s sprawling airport at times. The third quarter is bound to confirm the recession by its technical definition of two consecutive quarters of economic contraction. For the whole year, the government expects growth at 0-1%, but some analysts expect it to shrink. Forecasting at this juncture, given the myriad of pathways the social crisis might take, is of little value, but the contraction could be severe. Hong Kong protests: Relatives of police officials join rally “When you have a boom for so many years, and now you get a bust, the bust is going to be quite massive also,” said Kevin Lai, chief economist for Asia ex-Japan at Daiwa Capital Markets. Corporate warnings Citing political unrest, China’s biggest e-commerce company Alibaba Group Holding Ltd has delayed its up to $15 billion listing in Hong Kong, two people with knowledge of the matter told Reuters earlier this week. Bank of East Asia, after reporting a 75% plunge in first-half net profit due to writedowns in China, warned on Wednesday about the impact further protests could have on small and medium enterprises. More than 20 other companies, including developer Henderson Land, hotel group Shangri-La Asia, Emperor Watch & Jewellery, department store operator Lifestyle International and rail operator MTR Corp, said in recent earnings reports the protests have been damaging. The Catering and Hotel Industries Employees General Union told Reuters employers had asked some of its members to take non-paid leave this month because of the downturn in business. Yiu Si-wing, Chairman of China Travel Service (HK) Ltd, a major mainland tour operator, said revenue from room sales was set to plunge 50 per cent in August. “Visits from mainland China that usually account for 80% of arrivals are down most as people fear for their safety,” Yiu told Reuters. Organizers of several conferences and exhibitions are scrambling to postpone events. Trade representatives of the world’s largest diamond trading centres have asked the organizer of the Hong Kong Jewellery and Gem Fair to postpone the high-profile event, which typically welcomes more than 54,000 visitors. The fair is due to be held in September. BlackRock, the world’s largest asset manager, has postponed a two-day September conference at the Four Seasons Hotel until February “so that as many partners as possible from across Asia are able to join.” On Thursday, the Hong Kong Retail Management Association, which represents more than 8,000 businesses, urged all landlords to halve rents for six months and warned if the situation continued “many retailers may have to sack staff”. Hands tied Hong Kong leader Carrie Lam has repeatedly warned that protests are hurting the economy. She has consistently declined to meet any of the protesters’ core demands. Instead, this month, she announced stimulus measures worth $2.4 billion, from subsidies for education and utilities to loan relief for small businesses. But analysts warn that in the current climate, handouts are ineffective as firms and consumers are in no mood to spend. With no obvious infrastructure upgrades needed, and with the government having a long track record of failing to adequately boost housing supply, analysts only expect announcements of more handouts and tax breaks at Lam’s annual policy address in October. Since the turn of the century, every time Hong Kong’s economy got in trouble, the mainland’s economic boom or its stimulus measures came to the rescue. Now Beijing is facing its sharpest slowdown in nearly three decades and record debt. “Hong Kong is on its own this time,” said Tommy Wu, senior economist at Oxford Economics. Grim future Rating agencies have raised long-term questions over the quality of Hong Kong’s governance. But an increasingly assertive Beijing is fuelling larger concerns. Mainland regulatory scrutiny on airline Cathay Pacific over the involvement of some of its employees in the protests will affect Hong Kong’s image as a safe place for business. A 1992 US-Hong Kong Policy Act allowing Washington to have a different customs regime with Hong Kong than with mainland China is also crucial for economic stability. For it to stand, US authorities need to see Hong Kong as sufficiently independent from Beijing, therefore movements of mainland troops at the border in Shenzhen are worrying. But for now, the uncertainty is disruptive enough. “The social situation tugs at all our heartstrings,” Kaisun Holdings, an investment holding company, said in a statement. “Many investors have chosen to leave Hong Kong, and some banks and (multinationals) have started planning on moving their base to other nearby Asian cities. Kaisun Holdings may also begin to look for alternate markets for some of our service-based businesses.”

Battered Hong Kong faces economic recession, existential crisis amid escalating US-China tariff war

Chaos in Zimbabwe; nation struggles with economic and political crisis

Argentina's Economy Minister Nicolas Dujovne resigned Saturday after a week of economic tumult caused by <a href="https://www.wionews.com/.../mauricio-macri-suffers-crushing-defeat-in-key- argentina-primaries-242365">President Mauricio Macri's defeat</a> in a primary poll ahead of a general election.

Dujovne will be replaced by Hernan Lacunza, economy minister for Buenos Aires province, Argentine media reported.&nbsp;

The country's peso ended the week having shed 20 per cent of its value against the US dollar as both Fitch and S&amp;P cut the South American country's long-term credit rating, citing increased uncertainty and a rising risk of default.

Dujovne said, in a letter posted on the website of La Nacion newspaper, he was "convinced that, under the circumstances, the (government's) management needs significant renewal in the economic arena."&nbsp;

He leaves in the middle of a <a href="https://www.wionews.com/.../argentinas-stock-exchange-crashes-after- president-macris-party-loses-in-primary-election-242522">deepening economic crisis</a> following last Sunday's primary elections in which market-friendly Macri was dealt a huge blow in his bid for re-election when he polled 15 points less than centre-left Peronist candidate Alberto Fernandez.

The primaries serve as a bellwether for general elections in October. Dujovne's announcement marks the first change in Macri's cabinet since voters went to the polls.

Fitch, which downgraded Argentina's credit rating two notches to "CCC," said the centre-right's defeat "increases risks of a break from the policy strategy of the current administration of Mauricio Macri guided by a program with the IMF."

Fernandez, now the clear favourite to unseat Macri, has questioned the reform program backed by a $56 billion rescue package from the International Monetary Fund.

Standard &amp; Poor's dropped Argentina's rating a single grade from "B" to "B-."

"My resignation is consistent with a government and political space that listens to the people and that acts accordingly," Dujovne said, in a clear message to the Argentine electorate, which still has two months left until voting in the presidential elections.

The country is currently in a recession and posted 22 per cent inflation for the first half of the year -- one of the highest rates in the world -- but the IMF said Macri's reform program was beginning to yield results.

The new economy minister will have the difficult task of trying to instil peace of mind in the markets while simultaneously dealing with the country's recession in the midst of Macri's uphill election battle.

In Argentina, 32 per cent of the population lives below the poverty line.

The country has annual inflation of more than 50 per cent.&nbsp;

Argentina's Economy Minister Nicolas Dujovne resigned Saturday after a week of economic tumult caused by President Mauricio Macri's defeat in a primary poll ahead of a general election.

Argentina's Economy Minister Nicolas Dujovne resigned Saturday after a week of economic tumult caused by President Mauricio Macri's defeat in a primary poll ahead of a general election. Dujovne will be replaced by Hernan Lacunza, economy minister for Buenos Aires province, Argentine media reported. The country's peso ended the week having shed 20 per cent of its value against the US dollar as both Fitch and S&P cut the South American country's long-term credit rating, citing increased uncertainty and a rising risk of default. Dujovne said, in a letter posted on the website of La Nacion newspaper, he was "convinced that, under the circumstances, the (government's) management needs significant renewal in the economic arena." He leaves in the middle of a deepening economic crisis following last Sunday's primary elections in which market-friendly Macri was dealt a huge blow in his bid for re-election when he polled 15 points less than centre-left Peronist candidate Alberto Fernandez. The primaries serve as a bellwether for general elections in October. Dujovne's announcement marks the first change in Macri's cabinet since voters went to the polls. Fitch, which downgraded Argentina's credit rating two notches to "CCC," said the centre-right's defeat "increases risks of a break from the policy strategy of the current administration of Mauricio Macri guided by a program with the IMF." Fernandez, now the clear favourite to unseat Macri, has questioned the reform program backed by a $56 billion rescue package from the International Monetary Fund. Standard & Poor's dropped Argentina's rating a single grade from "B" to "B-." "My resignation is consistent with a government and political space that listens to the people and that acts accordingly," Dujovne said, in a clear message to the Argentine electorate, which still has two months left until voting in the presidential elections. The country is currently in a recession and posted 22 per cent inflation for the first half of the year -- one of the highest rates in the world -- but the IMF said Macri's reform program was beginning to yield results. The new economy minister will have the difficult task of trying to instil peace of mind in the markets while simultaneously dealing with the country's recession in the midst of Macri's uphill election battle. In Argentina, 32 per cent of the population lives below the poverty line. The country has annual inflation of more than 50 per cent.

Argentina's economy minister Nicolas Dujovne resigns amid deepening crisis

Quoting acclaimed Russian-American author Ayn Rand, <a href="https://www.wionews.com/south-asia/pakistan-pm-imran-khan-to-visit-russia-in-september-will-attend-eastern-economic-forum-as-special-guest-233545">Pakistan Prime Minister Imran Khan</a> on Sunday slammed the previous government for the economic crisis Pakistan has plunged into.

Khan said Rand's statement is an aptly represents the situation of Pakistan that was handed over to his government last year.

"This is so apt for the Pakistan inherited by the PTI govt," the cricketer-turned-politician tweeted with a screenshot of the quote, captioned: "Ayn Rand wrote this almost 60 years ago. It's frightening how accurate the statement is today."

"When you see that trading is done, not by consent, but by compulsion when you see that in order to produce, you need to obtain permission from men who produce nothing when you see that money is flowing to those&nbsp;who deal, not in goods, but in favours," he said, quoting Rand's work.

"When you see that men get richer by graft and by pull than by work, and your laws don't protect you against them, but protect them against you when you see corruption being rewarded and honesty becoming self-sacrifice you may know that your society is doomed," Khan continued.

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This is so apt for the Pakistan inherited by the PTI govt. <a href="https://t.co/MHUJWkDUMQ">pic.twitter.com/MHUJWkDUMQ</a>
— Imran Khan (@ImranKhanPTI) <a href="https://twitter.com/ImranKhanPTI/status/1147850559338295296?ref_src=twsrc%5Etfw">July 7, 2019</a></blockquote>
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Pakistan has been facing severe economic crisis leading to inflation and massive foreign debts. Khan and his government, which came to power last year, have been blaming their predecessors for the economic downturn.

Ayn Rand, born in Russia in 1905, is best known for two of her best-selling novels- The Fountainhead and Atlas Shrugged. 
Known for developing a philosophical system called Objectivism Rand died in 1982 in New York.

Quoting acclaimed Russian-American author Ayn Rand, Pakistan Prime Minister Imran Khan on Sunday slammed the previous government for the economic crisis Pakistan has plunged into.

Quoting acclaimed Russian-American author Ayn Rand, Pakistan Prime Minister Imran Khan on Sunday slammed the previous government for the economic crisis Pakistan has plunged into. Khan said Rand's statement is an aptly represents the situation of Pakistan that was handed over to his government last year. "This is so apt for the Pakistan inherited by the PTI govt," the cricketer-turned-politician tweeted with a screenshot of the quote, captioned: "Ayn Rand wrote this almost 60 years ago. It's frightening how accurate the statement is today." "When you see that trading is done, not by consent, but by compulsion when you see that in order to produce, you need to obtain permission from men who produce nothing when you see that money is flowing to those who deal, not in goods, but in favours," he said, quoting Rand's work. "When you see that men get richer by graft and by pull than by work, and your laws don't protect you against them, but protect them against you when you see corruption being rewarded and honesty becoming self-sacrifice you may know that your society is doomed," Khan continued. This is so apt for the Pakistan inherited by the PTI govt. pic.twitter.com/MHUJWkDUMQ — Imran Khan (@ImranKhanPTI) July 7, 2019 × Pakistan has been facing severe economic crisis leading to inflation and massive foreign debts. Khan and his government, which came to power last year, have been blaming their predecessors for the economic downturn. Ayn Rand, born in Russia in 1905, is best known for two of her best-selling novels- The Fountainhead and Atlas Shrugged. Known for developing a philosophical system called Objectivism Rand died in 1982 in New York.

Imran Khan quotes Russian philosopher, links it to Pakistan's current situation

Pakistan Says Military Won't Get An Increase In Allocation Due To The Ongoing Economic Crisis Imran Khan lauds Pakistani Armed Forces for 'voluntary cuts' in defence spending despite multiple security challenges. But is it really a cutdown in spending, given that Pakistan spends similar amount of money to arm itself? Is Pakistan continuing with high defence spending when prices of essential commodities soar up? Palki explains

Gravitas: Pak military budget cut a sham?

BJP's largest ally Shiv Sena on Monday asked <a href="https://www.wionews.com/india-general-elections-2019/nirmala-sitharaman-the-first-full-time-woman-defence-minister-retained-as-union-minister-222866">Finance Minister Nirmala Sitharaman</a> to find a solution to the "economic crisis", citing the latest official data on slumping growth and rising unemployment.

It said merely playing around with words will not help fight unemployment, the highest in the last 45 years.

"The economic condition of the country appears to be deteriorating. The new Finance Minister must find a solution to the economic crisis. According to the data put forth by the National Sample Survey Office (NSSO), unemployment has increased by 6.1 per cent in the year 2017-18. This is the highest in the last 45 years. Merely playing around with words will not help the country fight the unemployment," an editorial in party mouthpiece 'Saamana'&nbsp;said.

Shiv Sena's comments came after the NSSO report, released on May 31, showed the GDP growth rate plunging to 5.8 per cent during the January to March quarter of the financial year 2018-19.

Recalling the Modi government's promise to create two crore jobs annually after it came to power in 2014, the editorial said, "In 2015-16, over 37 lakh job positions were vacant, but only 1.48 people were recruited. Likewise, in 2017-18, as many as 23 lakh job positions were to be filled, but only 9.21 lakh people were recruited."

It said that recruitment in the banks and railways also dropped.

"The condition of micro, small and medium enterprises (MSME) worsened over the years. Many of the public sector undertakings (PSUs) were either closed down or suffered a huge loss. New airports which were built by the BJP government in its last tenure are not fully functional," it read.

"Agriculture has received a huge blow. In the last 5 months, as many as 315 farmers have committed suicide in Marathawada alone. It is the responsibility of the government to provide employment to the people," the editorial added.&nbsp;

 
&nbsp;

BJP's largest ally Shiv Sena on Monday asked Finance Minister Nirmala Sitharaman to find a solution to the "economic crisis", citing the latest official data on slumping growth and rising unemployment.

BJP's largest ally Shiv Sena on Monday asked Finance Minister Nirmala Sitharaman to find a solution to the "economic crisis", citing the latest official data on slumping growth and rising unemployment. It said merely playing around with words will not help fight unemployment, the highest in the last 45 years. "The economic condition of the country appears to be deteriorating. The new Finance Minister must find a solution to the economic crisis. According to the data put forth by the National Sample Survey Office (NSSO), unemployment has increased by 6.1 per cent in the year 2017-18. This is the highest in the last 45 years. Merely playing around with words will not help the country fight the unemployment," an editorial in party mouthpiece 'Saamana' said. Shiv Sena's comments came after the NSSO report, released on May 31, showed the GDP growth rate plunging to 5.8 per cent during the January to March quarter of the financial year 2018-19. Recalling the Modi government's promise to create two crore jobs annually after it came to power in 2014, the editorial said, "In 2015-16, over 37 lakh job positions were vacant, but only 1.48 people were recruited. Likewise, in 2017-18, as many as 23 lakh job positions were to be filled, but only 9.21 lakh people were recruited." It said that recruitment in the banks and railways also dropped. "The condition of micro, small and medium enterprises (MSME) worsened over the years. Many of the public sector undertakings (PSUs) were either closed down or suffered a huge loss. New airports which were built by the BJP government in its last tenure are not fully functional," it read. "Agriculture has received a huge blow. In the last 5 months, as many as 315 farmers have committed suicide in Marathawada alone. It is the responsibility of the government to provide employment to the people," the editorial added.

Finance Minister must find a solution to economic crisis: Shiv Sena

Oil rose on Thursday, shaking off persistent concern about the outlook for demand after the <a href="https://www.google.com/url?q=http://www.wionews.com/world/we-cant-pay-informants-fbi-on-us-government-shutdown-192096&amp;sa=U&amp;ved=0ahUKEwj-0aKeq4bgAhWRiXAKHQB_DtcQFggFMAA&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw11jEab_5MBVmk6hxRnheGA">US government</a> said it could impose sanctions on OPEC member Venezuela's crude exports.

Venezuela's opposition leader Juan Guaido declared himself interim president on Wednesday, winning backing from Washington and parts of Latin America and promoting socialist Nicolas Maduro, the country's leader since 2013, to break relations with the United States.

Economic crisis under Maduro has decimated Venezuela's oil industry, cutting its crude output to near 70-year lows around 1.2 million barrels per day (bpd), from double that three years ago.

Venezuela's oil is predominantly heavy crude, which requires extensive refining, and as such, is frequently blended with lighter crudes to give refiners higher-value products.

With Iran already crippled by US sanctions on its oil, a further drop in Venezuelan exports could squeeze <a href="https://www.google.com/url?q=http://www.wionews.com/business-economy/china-us-trade-tension-a-major-risk-to-global-growth-imf-chief-192497&amp;sa=U&amp;ved=0ahUKEwi8vuy8q4bgAhUFSI8KHRHKCJkQFggFMAA&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw0abGL-IjwT_jDuySfhx-D_">global </a>supply and rapidly push up prices.

"The potential is that the US is starting to put things in motion and the risk for an acceleration in the decline in production from Venezuela is increasing," Petromatrix strategist Olivier Jakob said.

"For now, it's not being fully priced in, but I think this does provide a new upside risk for the market."

Brent crude futures were up 10 cents at $61.24 a barrel by 1010 GMT, having touched a session high of $61.38. West Texas Intermediate (WTI) futures were up 14 cents at $52.76 a barrel.

Neither the Brent nor the WTI contract, both of which are backed by light, sweet crude, are linked directly to Venezuelan oil. But evidence of the concern around the supply of heavy crudes is apparent in the US physical market, where prices for Mars Sour, a medium crude, shot to their highest since early 2011 this week.

Physical markets around the world have already seen a sharp rise in prices for oil cargoes thanks in part to reduced supply from the Organization of the Petroleum Exporting Countries.

OPEC, together with non-members such as Russia, Kazakhstan, and Oman, agreed in December to cut crude output this year by 1.2 million bpd to avoid a build-up in unused inventories, particularly if the global economic outlook darkened.

Concern about the US trade war with China, as well as slower European growth and more fragile emerging economies, has undermined confidence in the oil market in the last few months.

The International Monetary Fund this week cut its forecasts for growth in 2019 and 2020.

Oil rose on Thursday, shaking off persistent concern about the outlook for demand after the US government said it could impose sanctions on OPEC member Venezuela's crude exports.

Oil rose on Thursday, shaking off persistent concern about the outlook for demand after the US government said it could impose sanctions on OPEC member Venezuela's crude exports. Venezuela's opposition leader Juan Guaido declared himself interim president on Wednesday, winning backing from Washington and parts of Latin America and promoting socialist Nicolas Maduro, the country's leader since 2013, to break relations with the United States. Economic crisis under Maduro has decimated Venezuela's oil industry, cutting its crude output to near 70-year lows around 1.2 million barrels per day (bpd), from double that three years ago. Venezuela's oil is predominantly heavy crude, which requires extensive refining, and as such, is frequently blended with lighter crudes to give refiners higher-value products. With Iran already crippled by US sanctions on its oil, a further drop in Venezuelan exports could squeeze global supply and rapidly push up prices. "The potential is that the US is starting to put things in motion and the risk for an acceleration in the decline in production from Venezuela is increasing," Petromatrix strategist Olivier Jakob said. "For now, it's not being fully priced in, but I think this does provide a new upside risk for the market." Brent crude futures were up 10 cents at $61.24 a barrel by 1010 GMT, having touched a session high of $61.38. West Texas Intermediate (WTI) futures were up 14 cents at $52.76 a barrel. Neither the Brent nor the WTI contract, both of which are backed by light, sweet crude, are linked directly to Venezuelan oil. But evidence of the concern around the supply of heavy crudes is apparent in the US physical market, where prices for Mars Sour, a medium crude, shot to their highest since early 2011 this week. Physical markets around the world have already seen a sharp rise in prices for oil cargoes thanks in part to reduced supply from the Organization of the Petroleum Exporting Countries. OPEC, together with non-members such as Russia, Kazakhstan, and Oman, agreed in December to cut crude output this year by 1.2 million bpd to avoid a build-up in unused inventories, particularly if the global economic outlook darkened. Concern about the US trade war with China, as well as slower European growth and more fragile emerging economies, has undermined confidence in the oil market in the last few months. The International Monetary Fund this week cut its forecasts for growth in 2019 and 2020.

Oil rises after US threat of sanctions on Venezuela crude

Venezuela, the South American country convulsed by economic and humanitarian catastrophe, has defaulted on some of its debt after missing an interest payment due in October.

Even as investors meet in Caracas to discuss restructuring US$60 billion in foreign debt, the country is in urgent need of international financial assistance.

Yet few nations are rushing in to offer financial assistance to the ailing country. Under the authoritarian regime of Nicol&aacute;s Maduro, Venezuela is isolated in Latin America, and the United States, Canada and the European Union have all imposed sanctions against Venezuelan officials. Maduro has at times suggested he would not even accept humanitarian aid.

Still, no indebted nation is totally alone in this world. As a financial analyst, I know there are always international players who see opportunity in the problems of others. And for Venezuela, my home country, all hope of a bailout rests with China, Russia and the International Monetary Fund.

Will they do anything to help?

Venezuela&rsquo;s debt: By the numbers

Before exploring a possible Venezuela rescue, it is useful to understand how the country&rsquo;s debt became such a burden.

In 1998, the year before the late Hugo Ch&aacute;vez came into power, Venezuela was rich. It produced roughly 60 barrels of oil per inhabitant per year.

By late 2017, my projections &ndash; based on data compiled from Venezuela&rsquo;s National Statistics Institute and BP&rsquo;s World Energy Report 2017 &ndash; show that production will have dropped to 20 barrels per capita. That&rsquo;s a 66 per cent drop in 20 years.

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Oil output per capita in Venezuela has dropped significantly in the past several decades. Henkel Garcia/BP Statistical Review of World Energy 2017/National Statistics Institute (Others)
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Even as output steadily shrank, Ch&aacute;vez benefitted from relatively high oil prices, which allowed him to boost revenue from petroleum exports. And as oil sales rose, so did government expenditures, as well as imports of food and other goods.

Eventually, excess spending took a toll on Venezuela&rsquo;s international reserves. Rather than cut expenditures and imports, the Ch&aacute;vez regime piled up foreign debt.

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As exports (US$ per capita) rose, so too did government spending and imports. Banco Central de Venezuela, FRED (Federal Reserve Bank of St. Louis), National Statistics Institute and Econom&eacute;trica. (Others)
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Then, in late 2014, international oil prices began to plunge. Today, estimates indicate that Venezuela&rsquo;s public sector debt tops $184.5 billion, including $60 billion in foreign debt, though the Venezuelan Central Bank claims it&rsquo;s much lower.

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Venezuela&rsquo;s foreign public debt, in US$ million, is at an all-time high. (Venezuelan Central Bank) (Others)
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To service this debt, the government must pay $16 billion to $20 billion a year through at least 2022. Shouldering that huge expense has meant slashing imports, causing food and medicine shortages. As a result, almost 54 per cent of Venezuelan children are malnourished.

To ensure its citizens&rsquo; basic well-being, Venezuela must be able to import, on average, $1,000 a year per inhabitant &ndash; or roughly $33 billion a year. My data show it&rsquo;s currently bringing in about half that.

No Chinese largess

As an oil producer, Venezuela&rsquo;s desperation rouses geopolitical interests.

Venezuela owes $28.1 billion to China and $9.1 billion to Russia, its main creditors. In recent years, both countries have been eager to prop up the Maduro regime, with little concern for its authoritarian tendencies.

China, at least publicly, has remained decidedly mum on Venezuela&rsquo;s political crisis. According to a spokesperson from the Chinese Ministry of Foreign Affairs in October, Beijing &ldquo;believe[s] that the government of this country is able to appropriately handle its domestic affairs within the law, maintaining stability and prosperity.&rdquo;

So far, though, Chinese financial institutions have not further opened their coffers. They have, however, granted Venezuela a grace period of at least 18 months to pay off the debt it owes them. This modest concession gives the government a bit of breathing room.

China has also allowed Venezuela to use shipments of crude to pay off some of its debt, revealing China&rsquo;s main interest in Venezuela: its oil.

But, in my view, Venezuela shouldn&rsquo;t count on Beijing for significant additional financial help. For China to issue new loans, insiders have told me, Maduro&rsquo;s government would have to show clear signs of fiscal discipline. Nothing indicates it is capable of that.

I believe a more likely next step is that Venezuela will bring in much-needed cash by selling off existing stakes in oil companies and resource-extraction ventures it co-owns with China.

Putin to the rescue?

Russia has been somewhat more generous with Venezuela, and its geopolitical interests here are clear.

The Kremlin benefits from having a trustworthy ally on this side of the world &ndash; especially one that is avowedly anti-U.S. and ranked as the 11th-largest oil producer worldwide.

Plus, Russia already has many oil interests in the country, including joint exploration projects with Petr&oacute;leos de Venezuela, the state-owned oil company.

Indeed, Russia and its state-funded oil venture, Rosneft, have already helped the country avoid default at least twice, providing Caracas with $10 billion in financial assistance. In an Oct. 29 New York Times article, oil expert Francisco Monaldi said Russia is &ldquo;the only country that can toss Venezuela a lifeline.&rdquo;

In my opinion, even its public declarations defending Venezuela&rsquo;s politics are more incisive than China&rsquo;s. Russia&rsquo;s Foreign Ministry has called international sanctions against Venezuela &ldquo;unacceptable.&rdquo;

Still, thus far, Russia has agreed only to restructure its bilateral debt with Venezuela. While the terms weren&rsquo;t disclosed, I don&rsquo;t believe anything like a real bailout is on offer.

Last resource

This could lead Venezuela to its last resort: the International Monetary Fund. In my opinion, this global lender would be the most appropriate source of a bailout.

Neither China nor Russia is willing or able to offer the huge sum Venezuela needs to stay afloat, at least $30 billion. Nor is any country likely to match the super-low 2 per cent interest rate that the IMF offers to emerging economies in crisis.

Bondholders typically look askance at this type of financial assistance. Countries receiving support from the IMF and other multilateral lenders are generally &ldquo;advised to renegotiate foreign debt,&rdquo; which can leave investors with empty pockets.

And today, Venezuela has no official relationship with the organisation. The Ch&aacute;vez administration loved to disparage the IMF, saying it should &ldquo;close down&rdquo; or &ldquo;vanish.&rdquo;

Even so, there are signs that the IMF is sketching out a possible rescue plan for the country. Bank officials have expressed concern with both Venezuela&rsquo;s humanitarian crisis and the possible spinoff effects of its economic collapse on other Latin American economies.

Since the multilateral organisation is unlikely to bail out the current regime &ndash; which has previously rebuked its possible intervention &ndash; the IMF probably hopes to work with some future transition government that&rsquo;s more democratic and open to international aid. If so, help may be a long time coming.

This article was originally published on <a href="http://theconversation.com" rel="nofollow" target="blank">The Conversation</a>. Read the <a href="https://theconversation.com/nobody-is-going-to-bail-out-venezuela-87428" rel="nofollow" target="blank">original article</a>.

China, Russia and the International Monetary Fund are among those contemplating a Venezuela bailout. But help for this debt-stricken nation seems far from assured.

Venezuela, the South American country convulsed by economic and humanitarian catastrophe, has defaulted on some of its debt after missing an interest payment due in October. Even as investors meet in Caracas to discuss restructuring US$60 billion in foreign debt, the country is in urgent need of international financial assistance. Yet few nations are rushing in to offer financial assistance to the ailing country. Under the authoritarian regime of Nicolás Maduro, Venezuela is isolated in Latin America, and the United States, Canada and the European Union have all imposed sanctions against Venezuelan officials. Maduro has at times suggested he would not even accept humanitarian aid. Still, no indebted nation is totally alone in this world. As a financial analyst, I know there are always international players who see opportunity in the problems of others. And for Venezuela, my home country, all hope of a bailout rests with China, Russia and the International Monetary Fund. Will they do anything to help? Venezuela’s debt: By the numbers Before exploring a possible Venezuela rescue, it is useful to understand how the country’s debt became such a burden. In 1998, the year before the late Hugo Chávez came into power, Venezuela was rich. It produced roughly 60 barrels of oil per inhabitant per year. By late 2017, my projections – based on data compiled from Venezuela’s National Statistics Institute and BP’s World Energy Report 2017 – show that production will have dropped to 20 barrels per capita. That’s a 66 per cent drop in 20 years. Oil output per capita in Venezuela has dropped significantly in the past several decades. Henkel Garcia/BP Statistical Review of World Energy 2017/National Statistics Institute (Others) × Even as output steadily shrank, Chávez benefitted from relatively high oil prices, which allowed him to boost revenue from petroleum exports. And as oil sales rose, so did government expenditures, as well as imports of food and other goods. Eventually, excess spending took a toll on Venezuela’s international reserves. Rather than cut expenditures and imports, the Chávez regime piled up foreign debt. As exports (US$ per capita) rose, so too did government spending and imports. Banco Central de Venezuela, FRED (Federal Reserve Bank of St. Louis), National Statistics Institute and Econométrica. (Others) × Then, in late 2014, international oil prices began to plunge. Today, estimates indicate that Venezuela’s public sector debt tops $184.5 billion, including $60 billion in foreign debt, though the Venezuelan Central Bank claims it’s much lower. Venezuela’s foreign public debt, in US$ million, is at an all-time high. (Venezuelan Central Bank) (Others) × To service this debt, the government must pay $16 billion to $20 billion a year through at least 2022. Shouldering that huge expense has meant slashing imports, causing food and medicine shortages. As a result, almost 54 per cent of Venezuelan children are malnourished. To ensure its citizens’ basic well-being, Venezuela must be able to import, on average, $1,000 a year per inhabitant – or roughly $33 billion a year. My data show it’s currently bringing in about half that. No Chinese largess As an oil producer, Venezuela’s desperation rouses geopolitical interests. Venezuela owes $28.1 billion to China and $9.1 billion to Russia, its main creditors. In recent years, both countries have been eager to prop up the Maduro regime, with little concern for its authoritarian tendencies. China, at least publicly, has remained decidedly mum on Venezuela’s political crisis. According to a spokesperson from the Chinese Ministry of Foreign Affairs in October, Beijing “believe[s] that the government of this country is able to appropriately handle its domestic affairs within the law, maintaining stability and prosperity.” So far, though, Chinese financial institutions have not further opened their coffers. They have, however, granted Venezuela a grace period of at least 18 months to pay off the debt it owes them. This modest concession gives the government a bit of breathing room. China has also allowed Venezuela to use shipments of crude to pay off some of its debt, revealing China’s main interest in Venezuela: its oil. But, in my view, Venezuela shouldn’t count on Beijing for significant additional financial help. For China to issue new loans, insiders have told me, Maduro’s government would have to show clear signs of fiscal discipline. Nothing indicates it is capable of that. I believe a more likely next step is that Venezuela will bring in much-needed cash by selling off existing stakes in oil companies and resource-extraction ventures it co-owns with China. Putin to the rescue? Russia has been somewhat more generous with Venezuela, and its geopolitical interests here are clear. The Kremlin benefits from having a trustworthy ally on this side of the world – especially one that is avowedly anti-U.S. and ranked as the 11th-largest oil producer worldwide. Plus, Russia already has many oil interests in the country, including joint exploration projects with Petróleos de Venezuela, the state-owned oil company. Indeed, Russia and its state-funded oil venture, Rosneft, have already helped the country avoid default at least twice, providing Caracas with $10 billion in financial assistance. In an Oct. 29 New York Times article, oil expert Francisco Monaldi said Russia is “the only country that can toss Venezuela a lifeline.” In my opinion, even its public declarations defending Venezuela’s politics are more incisive than China’s. Russia’s Foreign Ministry has called international sanctions against Venezuela “unacceptable.” Still, thus far, Russia has agreed only to restructure its bilateral debt with Venezuela. While the terms weren’t disclosed, I don’t believe anything like a real bailout is on offer. Last resource This could lead Venezuela to its last resort: the International Monetary Fund. In my opinion, this global lender would be the most appropriate source of a bailout. Neither China nor Russia is willing or able to offer the huge sum Venezuela needs to stay afloat, at least $30 billion. Nor is any country likely to match the super-low 2 per cent interest rate that the IMF offers to emerging economies in crisis. Bondholders typically look askance at this type of financial assistance. Countries receiving support from the IMF and other multilateral lenders are generally “advised to renegotiate foreign debt,” which can leave investors with empty pockets. And today, Venezuela has no official relationship with the organisation. The Chávez administration loved to disparage the IMF, saying it should “close down” or “vanish.” Even so, there are signs that the IMF is sketching out a possible rescue plan for the country. Bank officials have expressed concern with both Venezuela’s humanitarian crisis and the possible spinoff effects of its economic collapse on other Latin American economies. Since the multilateral organisation is unlikely to bail out the current regime – which has previously rebuked its possible intervention – the IMF probably hopes to work with some future transition government that’s more democratic and open to international aid. If so, help may be a long time coming. This article was originally published on The Conversation. Read the original article.

Who is going to pay for Venezuela's oil debt

Pedro and Mohamed await every utility bill with much angst. To reduce the money they have to pay, they live in the dark, without heating, or shower just once a week -- victims like millions in Spain of energy poverty.

Welfare associations have for years warned against this situation, but the death earlier this month of 81-year-old Rosa in a fire caused by a candle she used for light has brought the issue firmly to the fore. Socialist lawmaker Pilar Lucio asked the ruling conservative government to immediately implement a &quot;winter truce&quot; on companies cutting power to those who cannot pay -- a measure with majority support in parliament and encouraged in a 2009 EU directive.

Last year, according to Spain&#39;s National Statistics Institute, 10.6 per cent of Spaniards were unable to properly heat their homes -- or more than four million people -- compared to just 5.9 per cent in 2008, when an economic crisis kicked off. At fault are the economic crisis and widespread loss of jobs it caused, as well as a 30- to 50-per cent rise in utility prices since 2006.

&nbsp;

&quot;Luxury&quot; items

Pedro Martinez, 48, has been in this situation for several years. Unemployed since 2013, when the furniture company he was working for closed, he survives on a pension of 426 euros ($450) a month, and what remains of the compensation he received for being fired.

Divorced, he lives with his 20-year-old son and 23-year-old mentally impaired daughter in a working-class district of Barcelona, without heating and using electric light only when absolutely necessary.

&quot;It&#39;s tough in winter. We just have an electric heater, which we rarely switch on for fear of the bill,&quot; he says. &quot;The cold chills you to the bone. We wear coats and at night we use all the blankets we have.&quot;

Tere Bermudez, spokeswoman for the Roman Catholic charity Caritas, says that &quot;for many families, water, light and gas are luxury items&quot;. She says that from 2007 to 2015, the organisation multiplied by 30 the number of utility bills it helped pay.

One of its beneficiaries is Mohamed Chairi, a 37-year-old Moroccan. Unemployed, his family lives off the monthly 250 euros from his wife&#39;s cleaning work as well as help from charities. &quot;We shower once a week, on Fridays, so that the kids are clean at the weekend,&quot; the father-of-three says.

In the corner of the living room of his small flat in Badalona near Barcelona, his youngest son plays with a broken electric radiator. Chairi has just received his electricity bill -- 24 euros for the month, a small sum for Spain but huge for him. &quot;The rent alone is 440 euros,&quot; he says. &quot;If I have to suffer from hunger or go without light or water, I don&#39;t care, but the kids...&quot;.

&nbsp;

Burning canvas shoes

According to the European Commission, Spain&#39;s gas and electricity prices were the third and fourth highest respectively in the European Union last year. &quot;We are above the European average (in terms of fuel poverty) despite having much better weather,&quot; says Jose Luis Lopez, spokesman for the Association of Environmental Science. There is no nationwide law on the issue, but several regions have implemented measures to try and address it.

In the northeastern region of Catalonia, for instance, a law stipulates that utility companies must notify social services before cutting electricity or gas, and if the family or person struggling to pay is classified as vulnerable, they are banned from doing so. But the law is not always respected, as was the case for Rosa, with utility firm Gas Natural acknowledging it had not contacted social services.

Lopez estimates that some 7,100 people die every year due to fuel poverty. Firefighters in Catalonia have also warned of the security risks involved.

&quot;We have come across people heating themselves with small fires made from newspapers or even canvas shoes,&quot; said union spokesman Antonio del Rio. Spain may be emerging from the crisis, but at least 600,000 households saw their electricity supply cut off last year, according to the Facua consumer association.

&quot;There&#39;s a lot of talk about recovery, but on the street you don&#39;t see it anywhere,&quot; said Pedro Martinez.

(AFP)

The economic crisis, widespread job loss and the soaring costs of energy have all conspired to put millions in Spain into energy poverty

Pedro and Mohamed await every utility bill with much angst. To reduce the money they have to pay, they live in the dark, without heating, or shower just once a week -- victims like millions in Spain of energy poverty. Welfare associations have for years warned against this situation, but the death earlier this month of 81-year-old Rosa in a fire caused by a candle she used for light has brought the issue firmly to the fore. Socialist lawmaker Pilar Lucio asked the ruling conservative government to immediately implement a "winter truce" on companies cutting power to those who cannot pay -- a measure with majority support in parliament and encouraged in a 2009 EU directive. Last year, according to Spain's National Statistics Institute, 10.6 per cent of Spaniards were unable to properly heat their homes -- or more than four million people -- compared to just 5.9 per cent in 2008, when an economic crisis kicked off. At fault are the economic crisis and widespread loss of jobs it caused, as well as a 30- to 50-per cent rise in utility prices since 2006. "Luxury" items Pedro Martinez, 48, has been in this situation for several years. Unemployed since 2013, when the furniture company he was working for closed, he survives on a pension of 426 euros ($450) a month, and what remains of the compensation he received for being fired. Divorced, he lives with his 20-year-old son and 23-year-old mentally impaired daughter in a working-class district of Barcelona, without heating and using electric light only when absolutely necessary. "It's tough in winter. We just have an electric heater, which we rarely switch on for fear of the bill," he says. "The cold chills you to the bone. We wear coats and at night we use all the blankets we have." Tere Bermudez, spokeswoman for the Roman Catholic charity Caritas, says that "for many families, water, light and gas are luxury items". She says that from 2007 to 2015, the organisation multiplied by 30 the number of utility bills it helped pay. One of its beneficiaries is Mohamed Chairi, a 37-year-old Moroccan. Unemployed, his family lives off the monthly 250 euros from his wife's cleaning work as well as help from charities. "We shower once a week, on Fridays, so that the kids are clean at the weekend," the father-of-three says. In the corner of the living room of his small flat in Badalona near Barcelona, his youngest son plays with a broken electric radiator. Chairi has just received his electricity bill -- 24 euros for the month, a small sum for Spain but huge for him. "The rent alone is 440 euros," he says. "If I have to suffer from hunger or go without light or water, I don't care, but the kids...". Burning canvas shoes According to the European Commission, Spain's gas and electricity prices were the third and fourth highest respectively in the European Union last year. "We are above the European average (in terms of fuel poverty) despite having much better weather," says Jose Luis Lopez, spokesman for the Association of Environmental Science. There is no nationwide law on the issue, but several regions have implemented measures to try and address it. In the northeastern region of Catalonia, for instance, a law stipulates that utility companies must notify social services before cutting electricity or gas, and if the family or person struggling to pay is classified as vulnerable, they are banned from doing so. But the law is not always respected, as was the case for Rosa, with utility firm Gas Natural acknowledging it had not contacted social services. Lopez estimates that some 7,100 people die every year due to fuel poverty. Firefighters in Catalonia have also warned of the security risks involved. "We have come across people heating themselves with small fires made from newspapers or even canvas shoes," said union spokesman Antonio del Rio. Spain may be emerging from the crisis, but at least 600,000 households saw their electricity supply cut off last year, according to the Facua consumer association. "There's a lot of talk about recovery, but on the street you don't see it anywhere," said Pedro Martinez. (AFP)

Light, water, heat a luxury in Spain

The Greek economy emerged from recession for the first time since 2014, managing two straight quarters of GDP growth, figures released Monday showed.

Greece&#39;s gross domestic product (GDP) increased by 0.5 per cent in the three months to September from the previous quarter, and by 1.5 per cent from the third quarter of 2015, statistics bureau Elstat said.

It had already nudged 0.2 per cent higher in the second quarter from the first. Two consecutive quarters of growth officially mark the end of a recession.

The Greek government expects the Greek economy to contract by 0.3 per cent in the full-year 2016, before returning to growth next year when it predicts GDP to surge by 2.7 per cent.

On Thursday it said the growth dynamic was now in better shape than at any point since the financial crisis.

&quot;The Greek economy has not known a comparable growth rhythm since the first quarter of 2008,&quot; government spokesman Dimitris Tzanakopoulos said.

He said Greece was counting on debt relief to support growth, as well as on Athens gaining access to the European Central Bank&#39;s quantitative easing programme which involves purchases of sovereign bonds.

Apart from a brief respite in 2014, the Greek economy has been steadily contracting since 2008 as the country&#39;s creditors as well as the European Union and the IMF imposed harsh austerity measures accompanying successive bailouts.

Falling salaries and pensions combined with tax hikes have had a devastating impact on demand, particularly consumer spending.

In May, Greece&#39;s eurozone partners and the IMF agreed in principle to debt relief as well as series of short-term measures to be finalised in December.

They have not, however, been able to agree on the pace or the scope of long-term debt restructuring. European Union heavyweight Germany has pushed back any such deal to end-2018.

(AFP)

Greece's gross domestic product (GDP) increased by 0.5 per cent in the three months to September from the previous quarter

The Greek economy emerged from recession for the first time since 2014, managing two straight quarters of GDP growth, figures released Monday showed. Greece's gross domestic product (GDP) increased by 0.5 per cent in the three months to September from the previous quarter, and by 1.5 per cent from the third quarter of 2015, statistics bureau Elstat said. It had already nudged 0.2 per cent higher in the second quarter from the first. Two consecutive quarters of growth officially mark the end of a recession. The Greek government expects the Greek economy to contract by 0.3 per cent in the full-year 2016, before returning to growth next year when it predicts GDP to surge by 2.7 per cent. On Thursday it said the growth dynamic was now in better shape than at any point since the financial crisis. "The Greek economy has not known a comparable growth rhythm since the first quarter of 2008," government spokesman Dimitris Tzanakopoulos said. He said Greece was counting on debt relief to support growth, as well as on Athens gaining access to the European Central Bank's quantitative easing programme which involves purchases of sovereign bonds. Apart from a brief respite in 2014, the Greek economy has been steadily contracting since 2008 as the country's creditors as well as the European Union and the IMF imposed harsh austerity measures accompanying successive bailouts. Falling salaries and pensions combined with tax hikes have had a devastating impact on demand, particularly consumer spending. In May, Greece's eurozone partners and the IMF agreed in principle to debt relief as well as series of short-term measures to be finalised in December. They have not, however, been able to agree on the pace or the scope of long-term debt restructuring. European Union heavyweight Germany has pushed back any such deal to end-2018. (AFP)

Greece out of recession for first time in two years

The International Monetary Fund on Friday approved a three-year, $12 billion loan for Egypt to help the country recover from its economic crisis amid soaring inflation and deficits.

The IMF executive board said it would release $2.75 billion to Egypt immediately, while further disbursements will depend on the country&#39;s economic performance and agreed milestones in implementing the reforms.

The program &quot;will help Egypt restore macroeconomic stability and promote inclusive growth,&quot; the board said in a statement.

IMF managing director Christine Lagarde said the IMF would be supporting an Egyptian &quot;homegrown economic program&quot; that addresses a huge budget deficit, rising debt, slow growth and high unemployment.

&quot;The authorities recognize that resolute implementation of the policy package under the economic program is essential to restore investor confidence, reduce inflation to single digits, rebuild international reserves, strengthen public finances, and encourage private sector-led growth,&quot; she said in a statement.

She said that there were &quot;significant&quot; risks to implementing the program, but that those risks were mitigated by key actions already being taken by the government and &quot;broad political support&quot; for the loan program&#39;s goals.

Six years of turmoil

The loan announcement by the global crisis lender comes after Cairo took crucial preliminary reform steps in recent weeks to meet IMF requirements, including cutting fuel subsidies, announcement of a value added tax, and floating the Egyptian pound, which subsequently lost 45 per cent of its value against the US dollar.

Egypt is reeling after six years of political and economic turmoil involving the ousters of two presidents. Police had to put down some small protests Friday against rising prices, and analysts warn the government will continue to face challenges.

Cairo governments had avoided implementing the economic reforms for years fearing unrest, but President Abdel Fattah al-Sisi said Egypt no longer has the luxury of postponing them.

The IMF said Egypt&#39;s economic program will be subject to five reviews over the life of the loan. The reviews are traditionally held every quarter, after which another tranche of the loan is released.

The IMF last month forecast the country&#39;s economy will grow 3.8 per cent this year and 4 per cent next year, but inflation is approaching 14 per cent and was expected to surge above 18 per cent in 2017. This is amid a budget deficit of 12 per cent.

The loan approval came hours after Standard and Poor&#39;s announced it was upgrading the outlook on Egyptian sovereign debt to stable from negative, while keeping the rating at B-.

&quot;A more competitive exchange rate could benefit Egypt&#39;s export of goods and services, particularly the depressed tourism sector, if the security environment stabilizes further,&quot; S&amp;P said.

However, S&amp;P cautioned that floating the currency will increase inflation in the short term and &quot;subsidy cuts on top of recent interest rate hikes will weigh on domestic consumption and may raise social tensions.&quot;

The IMF is fully aware of the potential for unrest, and has said repeatedly that social protection measures in the Egypt loan deal &quot;are a cornerstone of the program, not an add-on or afterthought,&quot; and include providing for increases in food subsidies even while advocating budget cuts.

&quot;Even if the IMF has changed and is no longer imposing the same austerity measures, the reality in the ground is that it&#39;s a very difficult agreement to implement,&quot; Bessma Momani, expert on the Arab world at the Centre for International Governance Innovation, told AFP.

Loans from Saudi Arabia and China will help Egypt gather the $5-$6 billion in additional financing required to complement the IMF loan.

(AFP)

IMF chief Christine Lagarde said the program will help Egypt restore macroeconomic stability, address a huge budget deficit and rising debt

The International Monetary Fund on Friday approved a three-year, $12 billion loan for Egypt to help the country recover from its economic crisis amid soaring inflation and deficits. The IMF executive board said it would release $2.75 billion to Egypt immediately, while further disbursements will depend on the country's economic performance and agreed milestones in implementing the reforms. The program "will help Egypt restore macroeconomic stability and promote inclusive growth," the board said in a statement. IMF managing director Christine Lagarde said the IMF would be supporting an Egyptian "homegrown economic program" that addresses a huge budget deficit, rising debt, slow growth and high unemployment. "The authorities recognize that resolute implementation of the policy package under the economic program is essential to restore investor confidence, reduce inflation to single digits, rebuild international reserves, strengthen public finances, and encourage private sector-led growth," she said in a statement. She said that there were "significant" risks to implementing the program, but that those risks were mitigated by key actions already being taken by the government and "broad political support" for the loan program's goals. Six years of turmoil The loan announcement by the global crisis lender comes after Cairo took crucial preliminary reform steps in recent weeks to meet IMF requirements, including cutting fuel subsidies, announcement of a value added tax, and floating the Egyptian pound, which subsequently lost 45 per cent of its value against the US dollar. Egypt is reeling after six years of political and economic turmoil involving the ousters of two presidents. Police had to put down some small protests Friday against rising prices, and analysts warn the government will continue to face challenges. Cairo governments had avoided implementing the economic reforms for years fearing unrest, but President Abdel Fattah al-Sisi said Egypt no longer has the luxury of postponing them. The IMF said Egypt's economic program will be subject to five reviews over the life of the loan. The reviews are traditionally held every quarter, after which another tranche of the loan is released. The IMF last month forecast the country's economy will grow 3.8 per cent this year and 4 per cent next year, but inflation is approaching 14 per cent and was expected to surge above 18 per cent in 2017. This is amid a budget deficit of 12 per cent. The loan approval came hours after Standard and Poor's announced it was upgrading the outlook on Egyptian sovereign debt to stable from negative, while keeping the rating at B-. "A more competitive exchange rate could benefit Egypt's export of goods and services, particularly the depressed tourism sector, if the security environment stabilizes further," S&P said. However, S&P cautioned that floating the currency will increase inflation in the short term and "subsidy cuts on top of recent interest rate hikes will weigh on domestic consumption and may raise social tensions." The IMF is fully aware of the potential for unrest, and has said repeatedly that social protection measures in the Egypt loan deal "are a cornerstone of the program, not an add-on or afterthought," and include providing for increases in food subsidies even while advocating budget cuts. "Even if the IMF has changed and is no longer imposing the same austerity measures, the reality in the ground is that it's a very difficult agreement to implement," Bessma Momani, expert on the Arab world at the Centre for International Governance Innovation, told AFP. Loans from Saudi Arabia and China will help Egypt gather the $5-$6 billion in additional financing required to complement the IMF loan. (AFP)

IMF approves $12 bn loan to support Egypt's economy

Venezuela freed four activists and the opposition postponed a symbolic trial in congress of President Nicolas Maduro on Tuesday even as it warned it would quit Vatican-backed talks in a matter of days if tough conditions were not met.

Maduro met with opposition leaders on Sunday for the start of talks to ease a political standoff between the ruling Socialist Party and the opposition-led parliament during a spiraling economic crisis.

As well as suspending its parliamentary proceedings against Maduro, the opposition also agreed to postpone a march planned for Thursday to the presidential palace that the government had described as part of a coup plot.

But it demanded that the government release around 100 jailed opposition activists and bring forward the next presidential election - conditions that are likely to meet with significant resistance from government leaders.

Venezuela&#39;s next presidential election is due in late 2018.

&quot;We have put these points on the table, not so that they can be addressed in months but rather in the coming days and weeks,&quot; said opposition legislative leader Julio Borges during Tuesday&#39;s session. &quot;Otherwise, we will walk away from the negotiating table and continue with our struggle.&quot;

Without concrete progress, Borges said, the opposition would reopen the political trial and resume protests. Hundreds of thousands of people took to the streets last week in demonstrations that left dozens arrested and wounded.

Maduro&#39;s adversaries accuse him of creating a dictatorship by leaning on compliant institutions to block the recall referendum and sideline the National Assembly.

The Socialist Party lost control of the legislature in a landslide election in 2015 that was driven primarily by voter outrage over triple-digit inflation and widespread product shortages that have left many unable to eat three meals per day.

Activists freed

Maduro insists economic troubles are the result of an &quot;economic war&quot; imposed by hostile businessmen with the help of Venezuela&#39;s ideological adversaries in Washington.

The two sides have held repeated dialogue processes over the years that generally produced limited results.

&quot;I congratulate the opposition because they are calming down,&quot; Maduro said in a radio show.

&quot;What is the alternative to dialogue? War.&quot;

Many in the opposition have called the dialogue a stalling tactic and insist Maduro has no intention of allowing a referendum or an early presidential vote.

Authorities on Monday night freed three activists - Carlos Melo, Andres Moreno and Marco Trejo.

Moreno and Trejo spent a month in jail, accused of damaging military morale in a political propaganda video that showed a soldier suffering the same economic hardships as protesters.

The opposition&#39;s coalition on Tuesday said authorities had also released Coromoto Rodriguez, head of security for the legislature who was arrested during an opposition rally in May.

Government critics had said the detention was illegal and called it an effort to intimidate the legislature.

Investigations of the activists will continue, the government says. The three deny the charges.

As well as the Vatican, three former heads of state from Panama, Dominican Republic and Spain plus the regional bloc Unasur are trying to foster dialogue in Venezuela.

Senior U.S. diplomat Tom Shannon is also in Caracas and met with Maduro on Monday to try and support the talks.

Having narrowly won election in 2013 to replace Hugo Chavez, who died of cancer, Maduro has seen his popularity plummet, largely due to the OPEC nation&#39;s unprecedented economic crisis.

(Reuters)

It also agreed to postpone a march planned for Thursday to the presidential palace that the government had described as part of a coup plot

Venezuela freed four activists and the opposition postponed a symbolic trial in congress of President Nicolas Maduro on Tuesday even as it warned it would quit Vatican-backed talks in a matter of days if tough conditions were not met. Maduro met with opposition leaders on Sunday for the start of talks to ease a political standoff between the ruling Socialist Party and the opposition-led parliament during a spiraling economic crisis. As well as suspending its parliamentary proceedings against Maduro, the opposition also agreed to postpone a march planned for Thursday to the presidential palace that the government had described as part of a coup plot. But it demanded that the government release around 100 jailed opposition activists and bring forward the next presidential election - conditions that are likely to meet with significant resistance from government leaders. Venezuela's next presidential election is due in late 2018. "We have put these points on the table, not so that they can be addressed in months but rather in the coming days and weeks," said opposition legislative leader Julio Borges during Tuesday's session. "Otherwise, we will walk away from the negotiating table and continue with our struggle." Without concrete progress, Borges said, the opposition would reopen the political trial and resume protests. Hundreds of thousands of people took to the streets last week in demonstrations that left dozens arrested and wounded. Maduro's adversaries accuse him of creating a dictatorship by leaning on compliant institutions to block the recall referendum and sideline the National Assembly. The Socialist Party lost control of the legislature in a landslide election in 2015 that was driven primarily by voter outrage over triple-digit inflation and widespread product shortages that have left many unable to eat three meals per day. Activists freed Maduro insists economic troubles are the result of an "economic war" imposed by hostile businessmen with the help of Venezuela's ideological adversaries in Washington. The two sides have held repeated dialogue processes over the years that generally produced limited results. "I congratulate the opposition because they are calming down," Maduro said in a radio show. "What is the alternative to dialogue? War." Many in the opposition have called the dialogue a stalling tactic and insist Maduro has no intention of allowing a referendum or an early presidential vote. Authorities on Monday night freed three activists - Carlos Melo, Andres Moreno and Marco Trejo. Moreno and Trejo spent a month in jail, accused of damaging military morale in a political propaganda video that showed a soldier suffering the same economic hardships as protesters. The opposition's coalition on Tuesday said authorities had also released Coromoto Rodriguez, head of security for the legislature who was arrested during an opposition rally in May. Government critics had said the detention was illegal and called it an effort to intimidate the legislature. Investigations of the activists will continue, the government says. The three deny the charges. As well as the Vatican, three former heads of state from Panama, Dominican Republic and Spain plus the regional bloc Unasur are trying to foster dialogue in Venezuela. Senior U.S. diplomat Tom Shannon is also in Caracas and met with Maduro on Monday to try and support the talks. Having narrowly won election in 2013 to replace Hugo Chavez, who died of cancer, Maduro has seen his popularity plummet, largely due to the OPEC nation's unprecedented economic crisis. (Reuters)

Venezuela opposition scraps Maduro trial but presses demands

Most Brazilians think the Olympics did more harm than good to their country but at the same time they&#39;re proud of their image abroad, according to a poll today. 
 
The poll by Ibope, published in Estadao newspaper, showed mixed feelings in Brazil after hosting South America&#39;s first Summer Games. 
 
Sixty-two per cent said the Games were more negative than positive for the country, while 57 per cent said the Games boosted Brazil&#39;s image internationally. 
 
On how the actual event has gone, 42 per cent said good or excellent, 30 per cent said average, and 24 per cent said poorly. 
 
The poll was conducted between 11-15 August, in the middle of the Olympics, which close today. 
 
Marcia Cavallari, head of Ibope Inteligencia, said the &quot;ambiguous&quot; findings are partly explained by the fact that Brazil hosted the party in the middle of its worst recession for decades. 
 
&quot;They don&#39;t clearly see the benefits that the country can expect from having events of this magnitude,&quot; she said in Folha. 
 
&quot;A majority support (the Games) but there are doubts on the use of public money for events of this nature when there are other priorities, especially considering the economic crisis.&quot; 
 
(AFP)

Most Brazilians think Olympics did more harm than good to their country, but at the same time they're proud of their image abroad

Most Brazilians think the Olympics did more harm than good to their country but at the same time they're proud of their image abroad, according to a poll today. The poll by Ibope, published in Estadao newspaper, showed mixed feelings in Brazil after hosting South America's first Summer Games. Sixty-two per cent said the Games were more negative than positive for the country, while 57 per cent said the Games boosted Brazil's image internationally. On how the actual event has gone, 42 per cent said good or excellent, 30 per cent said average, and 24 per cent said poorly. The poll was conducted between 11-15 August, in the middle of the Olympics, which close today. Marcia Cavallari, head of Ibope Inteligencia, said the "ambiguous" findings are partly explained by the fact that Brazil hosted the party in the middle of its worst recession for decades. "They don't clearly see the benefits that the country can expect from having events of this magnitude," she said in Folha. "A majority support (the Games) but there are doubts on the use of public money for events of this nature when there are other priorities, especially considering the economic crisis." (AFP)

Brazilians have mixed feelings after Rio Games: Poll

Venezuela&#39;s opposition gathered enough signatures to proceed with efforts to call a referendum on removing President Nicolas Maduro, electoral authorities said Monday, without setting a date for the next step. 
 
The head of the National Electoral Council (CNE), Tibisay Lucena, told a press conference Maduro&#39;s opponents had cleared the threshold of 200,000 valid signatures on a petition demanding the leftist leader face a recall referendum. 
 
The opposition blames Maduro for an economic implosion that has seen food shortages, hyperinflation, violence and looting erupt in the once-booming oil giant. 
 
The council did not set a date for the next stage of the lengthy recall process, in which the opposition must collect four million signatures in just three days. 
 
In a boost to the Maduro camp&#39;s claims of rampant fraud, Lucena said the authorities had detected more than 1,000 apparently falsified signatures. 
 
The opposition submitted 1.8 million signatures in May calling for Maduro to face a recall, 1.3 million of which were accepted by the council. 
 
Signatories then had to show up at electoral offices to validate their identity with fingerprint scans. 
 
The threshold was one per cent of the electorate, or roughly 200,000 signatures which the opposition cleared. 
 
&quot;The certification will be granted by the (CNE) secretariat,&quot; Lucena said. 
 
That enables the main opposition coalition, the Democratic Unity Roundtable (MUD), to formally request a recall vote. 
 
However, Lucena said more than 1,000 fingerprint scans did not correspond with the signatory&#39;s identity, more than 400 were repeats and nearly 200 people tried to register more than once. 
 
&quot;The electoral authority will ask the state prosecutor&#39;s office to investigate the potential usurpation of identity committed by some citizens,&quot; she said. 
 
A recent poll found 64 per cent of Venezuelans would vote to remove Maduro. 
 
But to get there, the opposition first has to collect another four million signatures in three days, at a yet-to-be-decided time. 
 
To win the ensuing recall referendum, Maduro&#39;s opponents would need more votes than he won the presidency with in 2013 around 7.5 million. 
 
Time appears to be on the president&#39;s side. 
 
His allies have an arsenal of possible delaying strategies. They have filed more than 8,000 legal challenges against the recall petition and called on the electoral authorities to ban MUD for alleged fraud. 
 
The opposition is racing to force a referendum by January 10, the cutoff date to trigger new elections four years into the president&#39;s six-year term. 
 
After that date, a successful recall vote would simply transfer power to Maduro&#39;s hand-picked vice-president.US Secretary of State John Kerry urged Venezuela not to stall. 
 
&quot;The Venezuelan constitution guarantees Venezuelans the right to have their voices heard through the referendum process. And we call on Venezuela`s authorities to allow this process to go forward in a timely and a fair manner, and not to play a game of delay,&quot; he said in Washington. 
 
MUD, a motley coalition of opposition parties, accuses the electoral authority of being in bed with Maduro. 
 
They are hoping pressure from Venezuelans desperate over the collapsing economy will force the government&#39;s hand. 
But MUD has struggled to rally mass protests. 
 
Many Venezuelans are too busy standing in line for scarce food and basic goods. 
 
Maduro has declared a state of emergency and given his military sweeping powers over food production and distribution. 
 
Venezuela has sunk into crisis as global prices for its main export, oil, have collapsed. 
 
Its economy is facing its third year of deep recession this year. Its inflation rate is the highest in the world, forecast to top 700 per cent this year. 
 
The economic tailspin is threatening 17 years of socialist rule under Maduro and his late predecessor, Hugo Chavez. 
 
The opposition won legislative elections in December, only to find its power stymied by the Supreme Court, which it says is also in Maduro&#39;s pocket. 
 
(AFP)

According to National Electoral Council, Maduro's opponents had cleared 200,000 valid signatures to call referendum

Venezuela's opposition gathered enough signatures to proceed with efforts to call a referendum on removing President Nicolas Maduro, electoral authorities said Monday, without setting a date for the next step. The head of the National Electoral Council (CNE), Tibisay Lucena, told a press conference Maduro's opponents had cleared the threshold of 200,000 valid signatures on a petition demanding the leftist leader face a recall referendum. The opposition blames Maduro for an economic implosion that has seen food shortages, hyperinflation, violence and looting erupt in the once-booming oil giant. The council did not set a date for the next stage of the lengthy recall process, in which the opposition must collect four million signatures in just three days. In a boost to the Maduro camp's claims of rampant fraud, Lucena said the authorities had detected more than 1,000 apparently falsified signatures. The opposition submitted 1.8 million signatures in May calling for Maduro to face a recall, 1.3 million of which were accepted by the council. Signatories then had to show up at electoral offices to validate their identity with fingerprint scans. The threshold was one per cent of the electorate, or roughly 200,000 signatures which the opposition cleared. "The certification will be granted by the (CNE) secretariat," Lucena said. That enables the main opposition coalition, the Democratic Unity Roundtable (MUD), to formally request a recall vote. However, Lucena said more than 1,000 fingerprint scans did not correspond with the signatory's identity, more than 400 were repeats and nearly 200 people tried to register more than once. "The electoral authority will ask the state prosecutor's office to investigate the potential usurpation of identity committed by some citizens," she said. A recent poll found 64 per cent of Venezuelans would vote to remove Maduro. But to get there, the opposition first has to collect another four million signatures in three days, at a yet-to-be-decided time. To win the ensuing recall referendum, Maduro's opponents would need more votes than he won the presidency with in 2013 around 7.5 million. Time appears to be on the president's side. His allies have an arsenal of possible delaying strategies. They have filed more than 8,000 legal challenges against the recall petition and called on the electoral authorities to ban MUD for alleged fraud. The opposition is racing to force a referendum by January 10, the cutoff date to trigger new elections four years into the president's six-year term. After that date, a successful recall vote would simply transfer power to Maduro's hand-picked vice-president.US Secretary of State John Kerry urged Venezuela not to stall. "The Venezuelan constitution guarantees Venezuelans the right to have their voices heard through the referendum process. And we call on Venezuela`s authorities to allow this process to go forward in a timely and a fair manner, and not to play a game of delay," he said in Washington. MUD, a motley coalition of opposition parties, accuses the electoral authority of being in bed with Maduro. They are hoping pressure from Venezuelans desperate over the collapsing economy will force the government's hand. But MUD has struggled to rally mass protests. Many Venezuelans are too busy standing in line for scarce food and basic goods. Maduro has declared a state of emergency and given his military sweeping powers over food production and distribution. Venezuela has sunk into crisis as global prices for its main export, oil, have collapsed. Its economy is facing its third year of deep recession this year. Its inflation rate is the highest in the world, forecast to top 700 per cent this year. The economic tailspin is threatening 17 years of socialist rule under Maduro and his late predecessor, Hugo Chavez. The opposition won legislative elections in December, only to find its power stymied by the Supreme Court, which it says is also in Maduro's pocket. (AFP)

Venezuela recall clears hurdle, but no date for next step

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