IMF offers economic advice for Somali government

IMF offers economic advice for Somali government

Unknown   Saturday, April 13, 2013

The International Monetary Fund recognized the government of Somalia Friday, ending a 22-year breaks in relations that could lead to the IMF technical and political support for the country.

"The International Monetary Fund has recognized the Federal Government of Somalia led by Sheikh Hassan Mohammed president, paving the way for the resumption of relations after a gap of 22 years, the IMF said in a statement."

This decision is consistent with broad international support and recognition from the federal government. "Somalia has been a member of the IMF since 1962, but broke off relations after the civil war of the 1990s left the country with" no government with which the Fund could try. 'S new government Mohammed, who took office in September 2012, "has since enjoyed considerable support, including the United States United Nations, African Union, European Union, the Organization of Islamic Cooperation, and many countries IMF members, "the IMF said. Somalia, however, still owes about $ 352 million to the Fund, and so is currently eligible for any new financing.

The country has been engulfed in civil strife and fighting between warlords chronic since the fall of dictator Mohamed Siad Barre in 1991.

A transitional government, backed by an African force, is beginning to consolidate after big wins against the Shebab, a violent Islamist group with links to al Qaeda.Shebab considered on the back foot, having lost a number of major cities in recent months to African Union forces, Somali and Ethiopian troops soldiers.

The Security Council of the UN last month suspended the arms embargo on Somalia for one year, easing the oldest international blockade of weapons to help the government to take on Islamist militants.But Washington believes that the group remains a threat to stability in the Horn of Africa and beyond. In 2010, Shebab is believed to have been behind the suicide bombings in Uganda, and earlier this year states that execute a French hostage.

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Libya transferring 2 billion Dollar to Central Bank of Egypt

Libya transferring 2 billion Dollar to Central Bank of Egypt

Unknown   Monday, March 25, 2013

Central Bank of Egypt

Libya's transitional government is finalizing an agreement with Egypt to deposit $ 2 billion in the Central Bank of Egypt, an official said on Sunday talks.

The time suggested a possible quid pro quo, arriving five days after Egypt complied with the request of Libya months, to round up for possible extradition at least three prominent supporters of Colonel Muammar el-Qaddafi, who had been living openly in Cairo.

The deposit of $ 2 billion was first reported by the Anatolia news agency in Turkey on Sunday, citing information from the Libyan ambassador to Cairo, Mohamed Fayez Jibril.

The Libyan government had pleaded for months for the extradition of dozens of former allies of Colonel Gaddafi who are wanted for trial in Tripoli. But Egypt was willing to allow free stay in Cairo. It has become a meeting point for Gaddafi loyalists who fled the revolution in Libya.

Egypt, however, is now extremely short currency. Tourism revenue and new foreign investments have collapsed during the turmoil that followed the ouster of President Hosni Mubarak two years ago.

Egypt bookings are down to less than $ 14 billion, about $ 36 billion before the revolution, depressing the value of the Egyptian pound and raising questions about the government's ability to import essential goods such as fuel and wheat. Egypt is in talks with the International Monetary Fund on a loan package of $ 4.8 billion that could reassure other potential lenders about the solvency of Egypt. But negotiations have stalled over the amount of Egypt must raise taxes and cut subsidies.

Libya tank is equivalent to the open-ended loan for Egypt. In a similar system, the depositor retains the right to withdraw the money, allowing Egypt to temporarily use it to spice up their source of income.

In Libya, reports of the arrests seem to be reinforcing the popularity of Prime Minister Ali Zeidan, who is fighting to retain the support of wayward Libyan transitional parliament. Many Libyans resent Gaddafi's allies for abuses and corruption during the previous administration, and some suspect of working from Cairo to try to destabilize the new government.

Those arrested include Qaddaf Ahmed al-Dam, a cousin of Colonel Gaddafi, Ali Maria, former Libyan ambassador in Cairo, and Mohamed Ibrahim, the brother of a Gaddafi spokesman, Moussa Ibrahim.

Quoting an Egyptian security official, The Associated Press reported that the Libyan government has asked Egypt to stop last year to about 40 suspects, and sent a delegation to Cairo on Thursday to arrange the extradition had brought a list of 88 more.

Mr. Dam is challenging his extradition on the grounds that it has an Egyptian passport because his mother was Egyptian, from an area near the border with Libya, according to press reports. But it also faces charges related Egyptian illegal weapons police say were discovered in his home in Cairo.

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Cyprus financial future showed no sign of lifting

Cyprus financial future showed no sign of lifting

Unknown   Thursday, March 21, 2013

The question about the financial future of Cyprus showed no sign of lifting Thursday, with officials reportedly set to introduce new legislation to try to prevent capital from leaving the country, in the middle of negotiations to bolster finances country.

Laws that restrict capital to stop the flight of deposits in the country, and to establish new rules for insolvent banks likely will appear before the country's parliament on Thursday, The Wall Street Journal.

The laws would be needed before banks reopen their doors to customers - now reports an event that will take place next Tuesday.

Banks have been closed this week after the announcement last Saturday that about 10 million euros (13 billion) financial aid agreement between Cyprus and Trioka the - the Eurogroup, the European Central Bank and the International Monetary Fund - would require a rate once bank deposits to raise € 5.8 billion.

The tax deposit plan sparked outrage and was roundly rejected by parliament on Tuesday the country.
The Government of Cyprus has returned to the negotiating table with the Trioka and is also in talks with Russia, the country paid € 2.5 billion two years ago, despite signs of progress are limited so far.

"There is no easy option will be available for Cyprus after its parliament rejected the bailout terms offered by the Troika," said Credit Agricole economist Frederik Ducrozet.

Brown Brothers Harriman strategists said that one of the key questions is whether Cyprus before the European Central Bank will extend credit payday loan, since the agreement on Saturday rejected.
"He had previously threatened to cut," the strategists said. "This was a hard place on the other side of the rock of conditionality, which includes a tax to all depositors, that Cyprus is on the last weekend," they said.

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