New Maldives President expands cabinet
The new president of the Maldives is expanding his Cabinet to strengthen the coalition government ruling the Indian Ocean nation.
A presidential spokesman says six members from four political parties will be sworn in Sunday as ministers in the government led by President Mohammed Waheed Hassan.
Former president Mohamed Nasheed’s Maldivian Democratic Party, however, has not responded to an invitation to join the Cabinet.
The Maldives has been rocked by political turmoil for nearly a week, since Nasheed resigned and was replaced by his vice president. Nasheed claims he was ousted in a coup, a charge the new president denies.
A senior U.S. diplomat who met with Maldivian leaders on Saturday said the Maldives wasn’t ready for early elections as a way out of its political crisi
Greeks agree on austerity, unions call strike
This cleared the way for the eurozone to decide on a bailout package, but unions called a new strike against the terms.
A final agreement has been reached among Greek political leaders on additional austerity measures demanded by EU-IMF creditors in return for a loan bailout, a government source said on Thursday.
“There is a final agreement on the measures,” the source told AFP hours before eurozone finance were set to decide on a new bailout worth 130 billion euros ($171 billion), averting a default and ending a chapter in the eurozone crisis.
A deal by banks to write-down Greek debt was also at hand, an EU diplomat said.
The Greek government coalition parties had balked overnight at cutting 650 million euros in supplementary pensions, and argued until almost the last minute on Thursday over finding savings in other areas of the budget.
The message from Brussels meanwhile was that the shortfall in cuts, however small, had to be bridged, by whatever means.
European Central Bank chief Mario Draghi told reporters in Frankfurt that he had received a phone call from Greek Prime Minister Lucas Papademos just minutes earlier and “he told me that agreement has been reached and has been endorsed by major parties.”
An EU diplomat told AFP there is also “consensus” on the voluntary writedown by private creditors of their holdings of Greek bonds — “the biggest debt restructuring ever.”
Private creditors, who are negotiating an exchange of bonds that will save Greece at least 100 billion euros, are to meet on Thursday in Paris before the Europgroup meeting, according to a spokesman.
Greece has run up total debt of about 350 billion euros, roughly 160 percent of its gross domestic product, and the IMF has insisted that level be brought down to a maximum of 120 percent of GDP in 2020 in order for a further bailout to go ahead.
The deal would likely see the face value of the 200 billion euros in bonds that private creditors hold be cut in half, but their total losses may hit 70 percent given they will receive 30-year bonds at lower interest rates.
The bond exchange will take several weeks to perform, raising concerns whether it can completed before Greece faces 14.5 billion euros in payments due on March 20 and defaults, which could spark a domino effect that undermines the entire euro common currency project.
The main private and public-sector unions called a 48-hour general strike on Friday and Saturday to fight “barbaric” new wage and pension cuts.
“We categorically reject this framework to impoverish and bankrupt society and the economy,” the leading union GSEE said.
According to the Greek press, the measures under consideration included slashing the minimum wage by 22 percent, sweeping cuts to salaries and pensions and 15,000 public sector job losses.
Anguish over the measures was exacerbated as official data showed the jobless rate exceeding a million people, or 20.9 percent of the workforce.
If eurozone finance ministers approve the deal at a meeting due to begin at 1700 GMT the programme of reforms will be put before the Greek parliament on Friday, ahead of a vote on Sunday.
In principle, the government coalition can rely on support from 255 of the 300 deputies, but the political stakes are high as the parties prepare for early legislative elections in April.
Far-right leader Georgios Karatzaferis, the first to emerge from the coalition talks, denounced the troika for heaping unreasonable pressure on the Greek government to enact more painful cuts to public spending.
“I made clear my intentions right at the start of the meeting. I cannot in one hour sign up to a plan which will affect the country for 40 or 50 years with receiving (legal) assurances that the measures are going to get the country out of its impasse,” he told reporters.–AFP
Greek austerity talks stalled, minister heads to Brussels
Greek leaders failed on Thursday to agree on a reform and austerity program, the price of a financial bailout to avoid a messy default, forcing Finance Minister Evangelos Venizelos to go to the country s financial backers with an incomplete deal.
Venizelos will travel to Brussels later on Thursday, where his fellow euro zone finance ministers had hoped he would present a commitment to make budget savings worth 3.3 billion euros ($4.4 billion) this year.
But after all-night talks with leaders of the three parties in the Greek coalition and with officials from the EU and IMF, Venizelos emerged shortly before dawn to say that one issue remained unresolved.
“I am leaving for Brussels in a short while with the hope that the Eurogroup meeting will be held, and a positive decision on the new program will be taken,” he told reporters.
“The financial survival of the country in the coming years depends on the new program … It is time of responsibility for everyone.”
Venizelos did not say what the problem was or why he was not certain the Brussels meeting on the 130 billion euro bailout would go ahead.
A spokesman for the socialist PASOK party said disagreement over pension reform had been the stumbling block.
A senior government official said the party chiefs had agreed on how to make about 90 percent of the promised savings, leaving a relatively small hole in the calculations.
Athens had to close this gap quickly, said the official. “Greece has another 15 days to specify fiscal savings worth 300 million euros,” he said on condition of anonymity.
PM HOPES
Earlier, Prime Minister Lucas Papademos said he hoped the party leaders could sort out their differences before the euro zone finance ministers meet at 1700 GMT.
Prospects for a long-awaited deal on Greece s second bailout since 2010 appeared to brighten when the finance ministers chairman Jean-Claude Juncker called the Brussels meeting – which IMF managing director Christine Lagarde will also attend – to examine the bailout and accompanying bond swap.
On offer from the European Union and International Monetary Fund is a package involving the new rescue funds – which Greece needs to avoid a chaotic default when big debt repayments fall due on March 20 – and a bond swap with private creditors to ease the nation s huge debt burden.
In return, Athens must accept conditions requiring big cuts in many Greeks living standards. The smallest member of the coalition, the far-right LAOS party, was particularly uncomfortable with the measures.
“The president of LAOS George Karatzaferis expressed serious reservations,” said Papademos, a former central banker brought in when a PASOK government collapsed last November.
Panos Beglitis, spokesman for PASOK which is in the coalition along with LAOS and the conservative New Democracy party, said they had disagreed over the level of cuts to supplementary pensions needed to safeguard the pension system.
However, Beglitis told reporters the leaders had agreed to cut the minimum wage by 22 percent as part of efforts to make the economy more competitive. Plans to scrap bonuses paid to private sector workers at Christmas, Easter and in the summer had been dropped.
Two sources close to the Athens talks said the government would promise spending cuts and tax rises totaling 13 billion euros from 2012 to 2015, almost double the seven billion it originally pledged.
Karnataka ministers caught watching obscene clips quit cabinet
Following directive issued by central leadership of Bharatiya Janata Party (BJP), three Karnataka BJP ministers resigned from the state cabinet after they were engulfed in a row over watching sleazy clippings during the Assembly proceedings.
A day after the incident caused huge embarrassment to the BJP government, all the three ministers were summoned to the party office and were asked to submit their resignation after a meeting of the senior leaders presided over by Chief Minister D V Sadananda Gowda.
Minister for Cooperation Laxman Savadi, Minister for Women and Child Development C C Patil and Minister for Ports and Science and Technology Krishna Palemar announced after a meeting with top leaders that they have decided to quit.
According to Raj Bhavan sources, Karnataka Governor H R Bhardwaj has accepted the resignation of three tainted ministers, which were forwarded by Chief Minister D V Sadananda Gowda earlier on Wednesday.
Karnataka Chief Minister D V Sadananda Gowda told the mediapersons that the ministers had voluntarily submitted their resignations.
Former Karnataka Chief Minister B S Yeddyurappa, who also spoke on the issue, said the ministers decision to resign highlighted their dedication to the BJP.
“Today the important thing is that our three ministers, they have given their resignations and no other political party can take such type of decision because they have voluntarily given their resignations because this is the specialty of Bharatiya Janata Party and even our national leaders they have now demanded a resignation letter,” said Yeddyurappa.
Savadi and Patil were caught on Tuesday while they were allegedly viewing the porno video footage inside the state assembly, an incident that battered the image of the Sadananda Gowda Government and BJP.
The incident created controversy, across the country as local television channels showed Savadi watching the video clips on his phone.
The controversy led to an uproar, with political parties in the state demanding the sacking of the minister due to his inappropriate conduct.
SC issues interim order in Reko Diq case
Three-member bench of the Supreme Court headed by Chief Justice Iftikhar Muhammad Chaudhry heard the Reko Diq case.
The petitioner, Raza Kazim, informed the court that one party has taken the case to International Court of Arbitration (ICA) and “we want apex court to resolve this matter”.
Chief Justice, in his remarks, said whether it would be acceptable for all parties if the SC issues interim order against taking the matter to the ICA.
On this, counsel for Tethyan Company, Khalid Anwar said that TCCP would resist such order as Pakistan was bound to abide by international laws.
Anwar said that international court had fined a country when its one court issued stay order against the ICA.
Why the other parties of the case want to push Pakistan into this litigation, Anwar asked. Who does not know who is funding the petitioners of the case against issuance of mining license to Tethyan Company, he asked.
The Supreme Court, while issuing the interim order, directed the federal and the Balochistan governments to submit request to International Court of Arbitration for deferring appointment of the mediator.
It is said in the order that the Balochistan government will submit this application in International Centre for Investment Disputes and it would be requested that mediator’s appointment may remain deferred till such time the SC could decide the case.
The hearing of the case has been adjourned for two weeks.
Fazal assures Senate, general polls in 2012
Talking to the media, after attending provincial and parliamentary party meetings, Jamiat Ulema-e-Islam – Fazal (JUI-F) Ameer Maulana Fazal-ur-Rehman said that JUI and ANP contacted each other on provincial level to stop horse trading and seat to seat adjustment in Senate elections.
Fazal said that he has full trust on his members therefore no need to take their oath on Holy Quran. They will cast their vote according to party decision, he said.
JUI-F chief said that religious parties are ready to restore MMA without Jamait-e-Islami, however MMA s restoration will be after convincing JI.
He also announced to hold Islam Zindabad Conference in Peshawar on March 25.
Pakistan not supporting regime change, military intervention in Syria
Pakistan supported a Security Council resolution with regards to conflict in Syria tabled in the United Nations. The resolution could not be passed eventually when it was vetoed by China and Russia during the voting on Sunday.
Senior diplomatic sources, talking to News Trends, explained Pakistan s decision to support Security Council resolution on Syria in UN. They said that Pakistan had made three specific demands during the deliberations process in the Security Council, and all of these were met.
“Pakistan had demanded that Syria s territorial integrity, unity and sovereignty will not be violated. Pakistan had also opposed the military intervention and regime change in Syria during parleys in the Security Council,” sources informed.
“Pakistan also urged both parties in the conflict to bring killings to an end and respect human rights,” sources revealed adding that all three Pakistani demands were accepted by the members in the lead-up to the SC resolution in UN.
When asked about the decision of China and Russia to veto the resolution, diplomatic sources expressed surprise. “Even China and Russia were ready to support this resolution till Thursday after consensus was achieved on the draft. However, they probably had a change in heart on Friday,” they opined.
“Pakistan has good relations with China but has its own position on the Syrian issue, particularly when all its demands had also been met. Therefore, Pakistan went ahead with its principled position,” they pointed in response to another question.
Drawing attention towards the stance adopted by the Arab League on Syria, they said the entire Arab world was speaking in one voice against the Syrian situation and the Arab League had also supported the resolution. “It is difficult to ignore the Arab voice for Pakistan because of the good relations with them, and also because that is consistent with Pakistani position on the issue,” they asserted.
Recalling that the original draft of the resolution had already been changed quite a lot during the last 3-4 days of discussions between member countries of the Security Council, they said “the resolution supported by Pakistan only mentions the political process and human rights situation in Syria.”
“Security Council resolution also makes no mention of military intervention or regime change in Syria,” they said while reiterating the Pakistani position in this regard. “Pakistan is monitoring the situation as it unfolds as it is very hard to ignore killings and human rights injustice,” they observed.
- Contributed by Awais Saleem, News Trends correspondent in Washington, DC
PML-N hints to support 20th Amendment
Pakistan People’s Party delegation comprised of Raza Rabbani, Khurshid Shah and Naveed Qamar called on Pakistan Muslim League – Nawaz leaders Ch Nisar, Ishaq Dar and Ayaz Sadiq. According to the sources, PML-N hinted for supporting 20th amendment for providing constitutional protection to by-elections.
According to sources, PML-N also demanded to include establishment of an interim set up before the general elections, with the consultation of the government and the opposition, in the 20th amendment.
However, the sources claimed that there is a deadlock between both parties on this issue. PPP’s Raja Pervez Ashraf and Manzoor Watto also have met with JUI-F chief Maulna Fazalur Rehman in Islamabad in order to get his support on the said amendment.
PM calls key meeting of coalition partners
Prime Minister Syed Yousaf Raza Gilani has convened an emergency meeting in which coalition parties will be taken into confidence over the Supreme Court’s decision to indict Gilani on February 13 in court contempt notice.
All coalition partners including Senior Federal Minister Pervaiz Elahi have postponed all their meetings and are arriving in Islamabad.
The meeting will start at 7pm and will discuss the current situation including filing the review petition.
Greece, IMF expect debt deals soon
Greece and the IMF said Wednesday that negotiations for landmark debt deals will be concluded in a “matter of days,” raising hopes that the country will dodge a disastrous default in the spring.
Greece is locked in two sets of talks one with private creditors to have them take losses on their bondholdings and the other with its international bailout rescuers to receive new loans.
“We are at a crucial point in developments. In the coming days, the agreements must be completed” for the bond swap and a second 130 billion euro ($171 billion) bailout package, government spokesman Pantelis Kapsis said.
Debt inspectors from the European Commission, European Central Bank and the International Monetary Fund, known as the troika, are in Athens for talks on the second rescue package, which is tied to an agreement with private creditors to accept losses on Greek bonds they hold. The success of the bond deal, however, also depends on the outcome of the bailout talks.
The bond swap, known as the Private Sector Involvement, or PSI, will see private creditors swap the bonds they hold with new ones worth half their original face value, longer repayment times and lower interest rates. They will also get a 30 billion euro cash sweetener to be taken from the 130 billion euro bailout for accepting the deal. Once secured, the PSI will cut 100 billion euro off Greece s national debt.
Overall, the investors participating in the deal will face a loss on their bondholdings of more than 70 percent, Finance Minister Evangelos Venizelos said in a Parliament committee meeting Tuesday night. The official offering of the new bonds will come by Feb. 13, Venizelos said.
Greece is running out of time, as it faces a 14.5 billion euros bond redemption on March 20 that it cannot afford to pay without additional help. A default would spell disaster for the country and destabilize European and global markets.
Both deals will need the agreement of the heads of the three political parties in Greece s interim coalition, Kapsis said, and Prime Minister Lucas Papademos was to call the party heads to a meeting to sign off on them and required austerity measures.
Chief IMF inspector Poul Thomsen also said a deal was close, but pressed the recession-plagued country to lower employment costs and even slash the minimum wage to make the economy more competitive.
“It s a matter of days,” Thomsen was quoted as saying by the Athens daily Kathimerini. “The discussions for the (new) program will be concluded very soon.”
Thomsen insisted wages in Greece remain too high and urged the government to consider cutting the minimum wage of 750 euro ($988) gross pay per month.
