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☆ World Bank's IFC to provide Sri Lanka with $400 mln financing
▼ + stars: | 2023-02-27 | by ( ) www.reuters.com time to read: +1 min

COLOMBO, Feb 27 (Reuters) - The International Finance Corporation (IFC), the World Bank's investment arm, said it will provide Sri Lanka a $400 million cross-currency swap facility to help fund essential imports. Three private banks, which together deal with over 30% of Sri Lanka's remittances and exports, will receive the facility to fund essential imports, including medicine, food and fertiliser, the IFC said in a statement on Monday. The funds will provide a much needed foreign exchange cushion for Sri Lanka, which is grappling with its worst financial crisis in over seven decades partly triggered by a severe shortage of dollars. IFC is also working on further plans to support client banks with other long-term funding and advisory services in the future, the statement added. Sri Lanka signed a preliminary agreement with the International Monetary Fund (IMF) for a $2.9 billion bailout last September but has to put its debt on a sustainable repayment track before the funds can be disbursed.

BENGALURU, Feb 25 (Reuters) - There are some disagreements over restructuring debt for distressed economies, the chief of the International Monetary Fund said on Saturday on the sidelines of a G20 meeting, adding that banning private cryptocurrencies should be an option. "On debt restructuring, while there are still some disagreements, we now have the global sovereign debt roundtable with consideration of all public and private creditors," IMF Managing Director Kristalina Georgieva told reporters after the roundtable she co-chaired with Indian Finance Minister Nirmala Sitharaman. Apart from restructuring debt, regulating cryptocurrencies is another priority area for India, which Georgieva agreed with. "We have to differentiate between central bank digital currencies that are backed by the state and stable coins, and crypto assets that are privately issued," Georgieva said. "There has to be very strong push for regulation... if regulation fails, if you're slow to do it, then we should not take off the table banning those assets, because they may create financial stability risk."

☆ China calls for 'joint action' in debt settlements at G20
▼ + stars: | 2023-02-24 | by ( Joe Cash | ) www.reuters.com time to read: +3 min

BEIJING, Feb 24 (Reuters) - China, the world's largest bilateral creditor, urged G20 nations on Friday to conduct a fair, objective and in-depth analysis of the causes of global debt issues and to "resolve the problem in a comprehensive and effective manner." The United States has repeatedly criticised China over what it considers to be "foot-dragging" on debt relief for dozens of low-and middle-income countries. According to a statement released by his ministry, Liu said that international financial institutions and commercial creditors should follow the principle of "joint action, fair burden" in debt settlements. Officials from the IMF, the World Bank and G7 nations will meet on Saturday on the sidelines of the G20 meeting for the first in-person discussions of the new IMF Global Sovereign Debt Roundtable. China's role in the G20 Common Framework, however, is expected to feature in Saturday's talks.

BENGALURU, Feb 24 (Reuters) - The United States and China will hold deputy-level talks between their finance officials on Friday to discuss debt and other issues on the sidelines of a G20 finance meet in India, two sources familiar with the matter told Reuters. U.S. Treasury Secretary Janet Yellen said on Thursday, ahead of a meeting of G20 finance ministers and central bank governors near Bengaluru, that communication between the United States and China was important for "the sake of the entire globe". China's Ministry of Finance and its central bank did not immediately respond to a request seeking comment. The United States has repeatedly criticised China over what it considers to be "foot-dragging" on debt relief for dozens of low-and middle-income countries including Sri Lanka. China, the world's largest bilateral creditor, urged G20 nations on Friday to conduct a fair, objective and in-depth analysis of the causes of global debt issues and to "resolve the problem in a comprehensive and effective manner."

☆ Indian PM Modi urges G20 to focus on unsustainable debt
▼ + stars: | 2023-02-24 | by ( ) www.reuters.com time to read: +1 min

MUMBAI, Feb 24 (Reuters) - The financial viability of many countries is being threatened by unsustainable debt, India's Prime Minister Narendra Modi said on Friday, as he called for the Group of 20 (G20) to focus on the world's most vulnerable citizens. Even the financial viability of many countries is threatened by unsustainable debt levels," Modi said. Many societies are suffering due to rising prices," Modi said in his address to delegates. Reuters reported last week that India is drafting a proposal for G20 countries to help debtor nations by asking lenders, including China, the world's largest sovereign creditor, to take a large haircut, or accept losses, on loans. Reporting by Swati Bhat and Shilpa Jamkhandikar; editing by Sudipto Ganguly, Robert BirselOur Standards: The Thomson Reuters Trust Principles.

☆ Factbox: The countries in the grip of debt crises
▼ + stars: | 2023-02-24 | by ( ) www.reuters.com time to read: +8 min

LONDON, Feb 24 (Reuters) - Meetings being held in India will see top officials from the Group of 20 leading economies discuss how to help the growing number of countries now in the grip of debt crises. Below is a list of countries that have either defaulted on their international debt or are seen at risk of doing so. Prime Minister Denys Shmyhal said this week Kyiv is hoping to clinch a $15 billion, multi-year International Monetary Fund programme. But progress with Zambia's $13 billion debt rework has been glacial. EGYPTEgypt has experienced a double whammy from COVID-19 and soaring food and energy prices, and has struggled in recent years to contain its rising debt and debt servicing burden.

☆ Yellen says U.S. to resume discussions on economic issues with China at 'appropriate time'
▼ + stars: | 2023-02-23 | by ( David Lawder | ) www.reuters.com time to read: +2 min

BENGALURU, Feb 23 (Reuters) - U.S. Treasury Secretary Janet Yellen said on Thursday the United States would resume discussions with China on economic issues "at an appropriate time" but is continuing to warn Beijing of the consequences of violating U.S. sanctions on Russia. At a news conference ahead of a G20 financial leaders meeting in Bengaluru, Yellen said communication between the United States and China was important for "the sake of the entire globe." Yellen said she did not have any details on timing of her visit focused on economic and financial issues, but said: "I believe we will resume at an appropriate time those discussions." Turning to U.S. sanctions on Russia over its war in Ukraine, Yellen reiterated Washington's warnings. Reporting by David Lawder; Writing by Shivam Patel; Editing by Alex Richardson and Tomasz JanowskiOur Standards: The Thomson Reuters Trust Principles.

☆ As G20 finance chiefs gather, Yellen calls for more economic aid to Ukraine
▼ + stars: | 2023-02-23 | by ( David Lawder | ) www.reuters.com time to read: +4 min

"Continued, robust support for Ukraine will be a major topic of discussion during my time here in India." Yellen said that previous U.S. military, economic and humanitarian aid totalling $46 billion has allowed Ukraine to preserve economic and financial stability under "extraordinary circumstances." In the coming months, we expect to provide around $10 billion in additional economic support for Ukraine." Yellen said that G20 countries, especially China, need to work to ease the debt overhang that is putting more than half of low-income countries in debt distress. The United States intends to put forward a candidate for the World Bank presidency "very quickly", she added.

After Russia invaded Ukraine, the West formed what looked like an overwhelming global coalition: 141 countries supported a United Nations measure demanding that Russia unconditionally withdraw. South Korea Indonesia Israel Thailand Japan Saudi Arabia Philippines Afghanistan CambodiaBy contrast, Russia seemed isolated. Eritrea “Russian actions are being distorted” North Korea Russia Belarus Syria Eritrea “Russian actions are being distorted” North Korea Russia Belarus SyriaBut the West never won over as much of the world as it initially seemed. But like many other African countries, South Africa appears careful to balance its growing ties with Russia against maintaining a relationship with the West. Others that provided Ukraine with military support have declined to impose economic sanctions on Russia.

☆ A first-of-its-kind fighter jet landing shows India's big ambitions for its growing aircraft carrier fleet
▼ + stars: | 2023-02-23 | by ( Benjamin Brimelow | ) www.businessinsider.com time to read: +7 min

Two fighter jets landed on and took off from India's new aircraft carrier, INS Vikrant, this month. The continued growth of India's carrier fleet reflects New Delhi's ambitions in the region. Indian carriersA naval variant of India's Tejas fighter jet lands on INS Vikrant on February 6. Indian navyThough Vikrant is India's first domestically built carrier, it is actually the fourth to enter service with the Indian Navy. The third carrier, INS Vikramaditya, is a modified Kiev-class carrier India purchased from Russia in 2004.

☆ Inside the small Ukrainian city where Russia is fighting a protracted battle for control
▼ + stars: | 2023-02-22 | by ( Jillian Kumagai | ) www.reuters.com time to read: 1 min

After Sri Lanka raised electricity prices by 66% in a move to persuade the International Monetary Fund to bail out the country's economy, family-owned Wish Bakers decided not to increase prices for fear of losing business. Their costs, however, have tripled in the past year.

☆ Top photos of the day
▼ + stars: | 2023-02-22 | by ( Dave Lucas | ) www.reuters.com time to read: 1 min

[1/2] The Gateway of India monument in Mumbai is lit up to mark India's G20 presidency on December 13, 2022. REUTERS/Francis Mascarenhas/File PhotoBENGALURU, Feb 22 (Reuters) - India does not want the Group of 20 nations to discuss additional sanctions on Russia for its invasion of Ukraine during New Delhi's one-year presidency of the bloc, six senior Indian government officials told Reuters. "India is not keen to discuss or back any additional sanctions on Russia during the G20," said one of the officials. "The existing sanctions on Russia have had a negative impact on the world." India has also sharply raised purchases of oil from Russia, its biggest supplier of defence hardware.

☆ Sri Lanka investment board approves $442 mln Adani Green wind power plants
▼ + stars: | 2023-02-22 | by ( ) www.reuters.com time to read: +2 min

COLOMBO, Feb 22 (Reuters) - Sri Lanka's Board of Investment on Wednesday approved two wind power plants by India's Adani Green Energy Ltd (ADNA.NS) with a total investment of $442 million, a statement issued by the board said. "The two wind power plants of 350 MW are scheduled to be commissioned in two years and accordingly, they will be added to the national grid by 2025," the statement added. The Adani Group has denied any wrongdoing. The Sri Lankan Board of Investment statement said the Adani wind power project will generate 1,500 to 2,000 new job opportunities. Sri Lanka also aims to export renewable energy from its northern areas to southern India.

☆ A bakery in Sri Lanka faces electricity price hikes and food inflation amid national financial crisis
▼ + stars: | 2023-02-21 | by ( Jillian Kumagai | ) www.reuters.com time to read: 1 min

A baker pours flour into the mixer to make cakes at Wish Bakers shop, in Colombo, Sri Lanka, February 17, 2023. "It's not just the ovens, most of our machines need power," managing director Sanjula Peiris said. "We're struggling to maintain our...moreA baker pours flour into the mixer to make cakes at Wish Bakers shop, in Colombo, Sri Lanka, February 17, 2023. "It's not just the ovens, most of our machines need power," managing director Sanjula Peiris said. "We're struggling to maintain our business."

☆ Best of London Fashion Week
▼ + stars: | 2023-02-21 | by ( Dave Lucas | ) www.reuters.com time to read: 1 min

☆ In pictures: Carnival in Brazil
▼ + stars: | 2023-02-21 | by ( Dave Lucas | ) www.reuters.com time to read: 1 min

BENGALURU, India, Feb 21 (Reuters) - G20 finance ministers and central bank governors will discuss debt troubles in developing economies, crypto currencies and global inflationary pressures at a meeting later this week, Indian officials said on Tuesday. The Feb. 22-25 meeting in the Nandi Hills summer retreat near Bengaluru is the first major event of India's G20 presidency. The meeting straddles the Feb. 24 anniversary of Russia's invasion of Ukraine and the war is likely to be high on the agenda. Reuters reported last week that India is drafting a proposal for G20 countries to help debtor nations by asking lenders, including China, the world's largest sovereign creditor, to take a large haircut on loans. "So the discussions would be aimed both at handling them before they arise and after they arise as well."

REUTERS/Peter Nicholls/File PhotoWASHINGTON/LONDON, Feb 17 (Reuters) - U.S.-based investment firm BlackRock said on Friday it would join a new sovereign debt roundtable set up to accelerate progress on stalled relief efforts for distressed countries, with Britain's Standard Chartered also joining, according to sources. "We welcome the Global Sovereign Debt Roundtable and look forward to engaging constructively in the dialogue alongside other key stakeholders," a spokesperson for BlackRock (BLK.N) told Reuters. Unlike the G20's Common Framework platform for bilateral debt restructuring, the roundtable talks include public and private creditors as well as borrowing countries. Some 52% of private-sector-held sovereign debt is under contract in New York state. "Private creditors are major players in many debt restructurings and need to share the responsibility for achieving a successful restructuring," Malpass added.

[1/5] Police officers stand in the aftermath of an attack on a police station in Karachi, Pakistan February 17, 2023. REUTERS/Akhtar SoomroKARACHI, Pakistan, Feb 17 (Reuters) - Islamists stormed a police station in the southern Pakistani city of Karachi on Friday, killing two people in a hail of gunfire and a series of loud explosions before they themselves were killed, officials said. Security forces retook the building after several hours and killed three militants, a government spokesman said. A huge explosion was heard inside the station after a series of blasts when it was first attacked. The Pakistani Taliban, or Tehreek-e-Taliban Pakistan (TTP), took responsibility for the attack in a message sent by their spokesman to journalists.

NEW DELHI, Feb 16 (Reuters) - G20 finance and central bank chiefs meet in India next week at the first-year anniversary of Russia's invasion of Ukraine to discuss rising debt troubles among developing countries, the regulation of cryptocurrencies and the global slowdown. The Feb. 22-25 meeting in the Nandi Hills summer retreat near Bengaluru is the first major event of India's G20 presidency and will be followed by a March 1-2 meeting of foreign ministers in New Delhi. As global borrowing costs rise, India - whose neighbours Sri Lanka, Pakistan and Bangladesh have all sought International Monetary Fund support in recent months - wants to put debt relief at the forefront of discussions at the finance talks. "Crypto assets are by definition borderless and require international collaboration to prevent regulatory arbitrage," India's Ministry of Finance told parliament this week. Neither the Russian finance minister nor the central bank chief were expected to attend the meeting.

☆ Sri Lanka hikes power prices by 66% hoping to gain IMF support
▼ + stars: | 2023-02-16 | by ( ) www.cnbc.com time to read: +1 min

Sri Lanka increased electricity prices by 66% on Thursday, in a move that the government hoped would persuade the International Monetary Fund to provide urgent support for its crisis stricken economy. The scale of the price rise will heap misery on Sri Lankans already struggling with inflation running at 54.2%. "We know that this will be hard on the public, especially the poor but Sri Lanka is caught in a financial crisis and we have no choice but to move towards cost reflective pricing," Energy Minister Kanchana Wijesekera told reporters. "We hope that with this step Sri Lanka has moved closer to getting the IMF programme." The size of the price rise was confirmed by a Ceylon Electricity Board official.

China and other G20 countries were aware that India was working on a proposal, the officials said. "China takes the debt issue of developing countries seriously and supports relevant financial institutions to put forward solutions," he said. The People’s Bank of China and the Finance Ministry did not immediately respond to requests for comment. New Delhi expects the United States to be one of the main backers of its proposal, said one of the sources. India and the Paris Club of creditors recently told the IMF they supported Sri Lanka's debt restructuring plan as the bankrupt nation sought a $2.9 billion loan.

☆ Mob storms Pakistani police station, lynches man accused of blasphemy
▼ + stars: | 2023-02-11 | by ( Mubasher Bukhari | ) www.reuters.com time to read: +2 min

LAHORE, Pakistan, Feb 11 (Reuters) - A mob in eastern Pakistan stormed a police station on Saturday and lynched a man under custody and accused of blasphemy, police said, in the latest incident of religion-linked violence in the Islamic republic. However, the mob stormed the station, located in the city of Nankana Sahib, took Waris out of the premises, beat him to death and attempted to set his body on fire, Waqas added. Blasphemy is also a crime under Pakistani law, which can carry the death sentence. A number of police officials have been suspended because of their inability to stop the mob, a statement from the police said. Prime Minister Shehbaz Sharif has taken notice of the incident and ordered an inquiry, the government said.

☆ Factbox: Turkey earthquake and some of the worst natural disasters of this century
▼ + stars: | 2023-02-09 | by ( ) www.reuters.com time to read: +3 min

HAITI 2010 EARTHQUAKEA 7.0 magnitude earthquake on Jan. 13, 2010, devastated Haiti's capital Port-au-Prince and killed about 316,000 people. CHINA QUAKEA 7.8 magnitude earthquake hit China's Sichuan province on May 12, 2008, killing about 87,600 people. PAKISTAN QUAKEA 7.6 magnitude quake that struck northeast of Islamabad on Oct. 8, 2005, killed at least 73,000 people. JAPAN QUAKE/TSUNAMIA 9.0 magnitude earthquake and tsunami struck Japan’s northeast on March 11, 2011, killing about 15,690 people. HAITI 2021 QUAKEA 7.2 magnitude earthquake struck southern Haiti on Aug. 14, 2021, killing more than 2,200 people and destroying or damaging about 13,000 homes.

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