Eurozone, International Monetary Fund Agreed to New Greek Debt Deal
Eurozone finance ministers signed a deal on 27 November 2012 with International Monetary Fund (IMF) to reduce over 40 billion Euros or 52 billion US Dollar massive debt burden of Greece by 2020, thus freeing long-blocked loans. This decision would help in reducing the lack of confidence in Europe as well as Greece, thus strengthening buoyancy in the economy.
The major elements of the agreement are as follows:
• Greece is responsible for reaching the surplus target of 4.55 percent GDP in 2016 only, instead of 2014 so that the economy could be given a better chance of growth once again.
• Greece would be organising debt buy-back of the bonds which are held by its private investors. This buy-back should be held by 12 December 2012. The amount was not announced but 35 cents a euro might be under consideration.
Once this buy-back amount yielded positive results, IMF would come into the picture to join program. Eurozone thereafter would consider following:
a) There will be a cut in the interest rate on the loans to Greece by 100 basis points under first bailout, thus bringing down this rate to 50 basis points over Euribor or the financing costs. Portugal and Ireland would not cut interest because they too receive the aid.
b) Temporary bailout fund of Eurozone- the EFSF will bring down the fees to Greece by 10 basis points which is charged on loans.
c) Maturities of the loan which are given to Greece by EFSF and bilateral would be extended by a time period of 15 years.
d) Greece need not pay the interest on loans received from EFSF for a time period of 10 years.
e) Profits coming from the Greek bond portfolio of European Central Bank which were acquired during the Securities Market Programme (SMP) of the bank would be passed on to Greece for debt servicing from 2013 budget year onwards.
f) Eurozone countries need to keep in mind the measures as well as aids, which include reducing the interest rate further on bilateral loans to Greece in order to help Athens achieve debt sustainability. This would be done when Greece achieves primary surplus and fulfills the conditions of the reform program.
g) The debt-to-GDP ratio of Greece should fall to 175 percent in 2016 till 124 percent in 2020. Thereafter the target is 110 percent in 2022.
h) Eurozone countries would keep financing Greece till it achieves market access, provided that Greece remains firm to the agreed reform program.
i) Greece will be receiving aid of 34.4 billion Euros in December 2012. 10.6 billion Euros out of this would be used for budget financing. 23.8 billion Euros would go for recapitalization of banks. Furthermore, 9.3 billion Euros would be given out to Greece in 3 sub-tranches in first quarter of 2013, provided Athens meet reform landmarks as set by the lenders. Formal decision regarding the disbursement of this money would be taken on 13 December 2012 provided that the national procedures in Eurozone nations are accomplished.
What are Eurozone Nations?
Eurozone is also known as the Euro Area. It is the EMU or Economic and Monetary Union of total 17 European Union (EU) states which have mutually agreed to espouse Euro as the common currency as well as legal tender. The nations which come under Eurozone include Greece, Ireland, Austria, Belgium, France, Germany, Cyprus, Estonia, Luxembourg, Malta, Slovenia, Finland, the Netherlands, Portugal, Slovakia, Spain and Italy.
Eurozone finance ministers signed a deal on 27 November 2012 with International Monetary Fund (IMF) to reduce over 40 billion Euros or 52 billion US Dollar massive debt burden of Greece by 2020, thus freeing long-blocked loans. This decision would help in reducing the lack of confidence in Europe as well as Greece, thus strengthening buoyancy in the economy.
The major elements of the agreement are as follows:
• Greece is responsible for reaching the surplus target of 4.55 percent GDP in 2016 only, instead of 2014 so that the economy could be given a better chance of growth once again.
• Greece would be organising debt buy-back of the bonds which are held by its private investors. This buy-back should be held by 12 December 2012. The amount was not announced but 35 cents a euro might be under consideration.
Once this buy-back amount yielded positive results, IMF would come into the picture to join program. Eurozone thereafter would consider following:
a) There will be a cut in the interest rate on the loans to Greece by 100 basis points under first bailout, thus bringing down this rate to 50 basis points over Euribor or the financing costs. Portugal and Ireland would not cut interest because they too receive the aid.
b) Temporary bailout fund of Eurozone- the EFSF will bring down the fees to Greece by 10 basis points which is charged on loans.
c) Maturities of the loan which are given to Greece by EFSF and bilateral would be extended by a time period of 15 years.
d) Greece need not pay the interest on loans received from EFSF for a time period of 10 years.
e) Profits coming from the Greek bond portfolio of European Central Bank which were acquired during the Securities Market Programme (SMP) of the bank would be passed on to Greece for debt servicing from 2013 budget year onwards.
f) Eurozone countries need to keep in mind the measures as well as aids, which include reducing the interest rate further on bilateral loans to Greece in order to help Athens achieve debt sustainability. This would be done when Greece achieves primary surplus and fulfills the conditions of the reform program.
g) The debt-to-GDP ratio of Greece should fall to 175 percent in 2016 till 124 percent in 2020. Thereafter the target is 110 percent in 2022.
h) Eurozone countries would keep financing Greece till it achieves market access, provided that Greece remains firm to the agreed reform program.
i) Greece will be receiving aid of 34.4 billion Euros in December 2012. 10.6 billion Euros out of this would be used for budget financing. 23.8 billion Euros would go for recapitalization of banks. Furthermore, 9.3 billion Euros would be given out to Greece in 3 sub-tranches in first quarter of 2013, provided Athens meet reform landmarks as set by the lenders. Formal decision regarding the disbursement of this money would be taken on 13 December 2012 provided that the national procedures in Eurozone nations are accomplished.
What are Eurozone Nations?
Eurozone is also known as the Euro Area. It is the EMU or Economic and Monetary Union of total 17 European Union (EU) states which have mutually agreed to espouse Euro as the common currency as well as legal tender. The nations which come under Eurozone include Greece, Ireland, Austria, Belgium, France, Germany, Cyprus, Estonia, Luxembourg, Malta, Slovenia, Finland, the Netherlands, Portugal, Slovakia, Spain and Italy.
TATA Motors Entered Bangladesh Passenger Car Market Segment
Tata MotorsOn 27 November 2012, Tata Motors, the leading car manufacturer in India announced that it entered the passenger car market segment of Bangladesh as well. The debut models in this country are Indica Vista, which is a hatchback, Indigo eCS as well as Indigo Manza, both of which are sedans.In the beginning, these models will only be available in Dhaka where single showroom has been opened. Eventually Tata Motors would make an entry in three other cities of Bangladesh as well with one showroom each by the year 2013. Nitol Motors was appointed as the distributor in the market of Bangladesh. Factually, there are 53000 commercial vehicles of TATA on the roads of Bangladesh.
Nuclear Waste Would Not Be Dumped At Kolar Gold Mine: Govt. To SC
The Union Government of India on 28 November 2012 cleared its intention in front of the Supreme Court about dumping the Uranium waste in useless gold mines at the Kolar Gold Fields (KGF) in Karnataka from Kudankulam Nuclear Power Plant. Nuclear Power Corporation of India Ltd (NPCIL) in its supplementary affidavit made clear before the court that there was nothing mentioned in earlier affidavit which indicated that the union government identified Kolar Gold Mine as the storage for nuclear waste. In the early affidavit which was dated 7 November 2012, NPCIL had stated that the underground chamber in Kolar gold mines was developed for underground research laboratory (URL). This affidavit was filed in context of the complaint of apex court in which it ordered the Centre to explain how the nuclear waste of the Kudankulam Nuclear Plant would be disposed. Protests against the action of centre were organised following the call of bandh by political parties.
The Union Government of India on 28 November 2012 cleared its intention in front of the Supreme Court about dumping the Uranium waste in useless gold mines at the Kolar Gold Fields (KGF) in Karnataka from Kudankulam Nuclear Power Plant. Nuclear Power Corporation of India Ltd (NPCIL) in its supplementary affidavit made clear before the court that there was nothing mentioned in earlier affidavit which indicated that the union government identified Kolar Gold Mine as the storage for nuclear waste. In the early affidavit which was dated 7 November 2012, NPCIL had stated that the underground chamber in Kolar gold mines was developed for underground research laboratory (URL). This affidavit was filed in context of the complaint of apex court in which it ordered the Centre to explain how the nuclear waste of the Kudankulam Nuclear Plant would be disposed. Protests against the action of centre were organised following the call of bandh by political parties.
Researchers Found Mechanism behind Origin of Life on Early Earth
Researchers in the fourth week of November 2012 discovered a molecular network with a capability of self perpetuation that could have triggered mechanism through which life developed on early Earth. The mathematical research shows the possible mechanism through which it was possible for life to get a foothold in chemical soup which existed on early Earth. The researchers suggested about various competing theories regarding the starting of life on earth much before first genes or the living cells developed. There are certain differences in these suggested scenarios but one thing that is common is the network of molecules.
These molecules have a capability of working together as well as pacing their replication. These are the two important things for starting life. Researchers from the University Of Canterbury, New Zealand made use of the mathematical model for easy chemical reactions in order to demonstrate that these networks could be formed easily than what other researchers thought. On looking at the structure of these networks of molecules it was found that they are actually composed of the smaller subsets of these molecules. When combined, split or recombined using their own subunits, these subsets of the molecules could possibly lead to large as well as complex chemical reactions or maybe even life. The result of the research could have a huge impact on how people thought life originated from the pure chemistry.
Marc Grossman, US Special Envoy to Af-Pak Resigned
The US special envoy to Af-Pak (Afghanistan-Pakistan), Marc Grossman on 27 November 2012 announced his resignation after being at the helm of diplomatic affairs in the volatile region for two years from 2010 to 2012. His resignation would come into effect from 14 December 2012. Grossman would be succeeded by his Deputy Special US Representative for Afghanistan and Pakistan, David D Pearce. Grossman, a former State Department diplomat, Grossman was roped in after the sudden death of Richard Holbrooke in 2010.
Maldives cancelled its Biggest Foreign Investment Project with GMR Group
Maldives cancelled its biggest foreign investment project with Indian firm GMR Group to develop its international airport. The total value of the project was 511 million dollar. The deal with the GMR was signed during former President Mohamed Nasheed's administration. Prior to this, a competitive bidding process was conducted by the World Bank's International Finance Corporation (IFC). The project was implemented through a joint venture company comprising GMR Infrastructure Limited and Malaysia Airports Holding Berhad.However the contract was termed invalid by the new regime as it included a 25 dollars airport development charge per outgoing passenger. This was not authorised by the Parliament of Maldives.
US Military’s Ban on Women in most Combat Positions Challenged
The American Civil Liberties Union filed a constitutional challenge in a federal court in San Francisco to the US military's ban on women in most combat positions. The Union argued that women were still barred from more than two hundred thousand frontline roles despite recent relaxations. Approximately, 14500 combat positions had been opened to women under the current defence secretary. The possibility of opening additional roles for women in the US military are being explored. Women have served in the United States Army since 1775. They nursed the ill and wounded, laundered and mended clothing, and cooked for the troops in camp on campaign; services that did not exist among the uniformed personnel within the Army until the 20th Century. Women are an integral part of the US Army. At present, women serve in 91 percent of all Army occupations and make up about 14 percent of the Active Army. Women continue to play a crucial role in current operations and their sacrifices in this noble effort underscore their dedication and willingness to share great sacrifices.
Union Government approved an Anti-Piracy Scheme in Audio-Visual Sector
The Union Government of India on 27 November 2012 approved a scheme under the 12th Five Year Plan for carrying out an anti-piracy initiative in the audio-visual sector with an allocation of two crore rupees. The new scheme of Information and Broadcasting Ministry aimps to put special focus on piracy on the internet. Under the scheme, the campaign on piracy through audio-visual, internet and print media will be launched.The piracy continues to be a key challenge for the Indian film sector and has been a prime reason for the decline of the home video market in the country. The emerging threat to legitimate exhibition of films is illegal download of films available on websites.
The US special envoy to Af-Pak (Afghanistan-Pakistan), Marc Grossman on 27 November 2012 announced his resignation after being at the helm of diplomatic affairs in the volatile region for two years from 2010 to 2012. His resignation would come into effect from 14 December 2012. Grossman would be succeeded by his Deputy Special US Representative for Afghanistan and Pakistan, David D Pearce. Grossman, a former State Department diplomat, Grossman was roped in after the sudden death of Richard Holbrooke in 2010.
Maldives cancelled its Biggest Foreign Investment Project with GMR Group
Maldives cancelled its biggest foreign investment project with Indian firm GMR Group to develop its international airport. The total value of the project was 511 million dollar. The deal with the GMR was signed during former President Mohamed Nasheed's administration. Prior to this, a competitive bidding process was conducted by the World Bank's International Finance Corporation (IFC). The project was implemented through a joint venture company comprising GMR Infrastructure Limited and Malaysia Airports Holding Berhad.However the contract was termed invalid by the new regime as it included a 25 dollars airport development charge per outgoing passenger. This was not authorised by the Parliament of Maldives.
US Military’s Ban on Women in most Combat Positions Challenged
The American Civil Liberties Union filed a constitutional challenge in a federal court in San Francisco to the US military's ban on women in most combat positions. The Union argued that women were still barred from more than two hundred thousand frontline roles despite recent relaxations. Approximately, 14500 combat positions had been opened to women under the current defence secretary. The possibility of opening additional roles for women in the US military are being explored. Women have served in the United States Army since 1775. They nursed the ill and wounded, laundered and mended clothing, and cooked for the troops in camp on campaign; services that did not exist among the uniformed personnel within the Army until the 20th Century. Women are an integral part of the US Army. At present, women serve in 91 percent of all Army occupations and make up about 14 percent of the Active Army. Women continue to play a crucial role in current operations and their sacrifices in this noble effort underscore their dedication and willingness to share great sacrifices.
Union Government approved an Anti-Piracy Scheme in Audio-Visual Sector
The Union Government of India on 27 November 2012 approved a scheme under the 12th Five Year Plan for carrying out an anti-piracy initiative in the audio-visual sector with an allocation of two crore rupees. The new scheme of Information and Broadcasting Ministry aimps to put special focus on piracy on the internet. Under the scheme, the campaign on piracy through audio-visual, internet and print media will be launched.The piracy continues to be a key challenge for the Indian film sector and has been a prime reason for the decline of the home video market in the country. The emerging threat to legitimate exhibition of films is illegal download of films available on websites.
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