Euro zone, IMF reach deal to cut long-term Greek debt

BRUSSELS (Reuters) - Euro zone finance ministers and the International Monetary Fund clinched agreement on reducing Greece's debt on Monday in a breakthrough to release urgently needed loans to keep the near-bankrupt economy afloat.


After 12 hours of talks at their third meeting in as many weeks, Greece's international lenders agreed on a package of measures to reduce Greek debt by 40 billion euros, cutting it to 124 percent of gross domestic product by 2020.


In a significant new pledge, ministers committed themselves to take further steps to lower Greece's debt to "significantly below 110 percent" in 2022 -- the most explicit recognition so far that some write-off of loans may be necessary from 2016, the point when Greece is forecast to reach a primary budget surplus.


"When Greece has achieved, or is about to achieve, a primary surplus and fulfilled all of its conditions, we will, if need be, consider further measures for the reduction of the total debt," German Finance Minister Wolfgang Schaeuble said.


Eurogroup Chairman Jean-Claude Juncker said ministers would formally approve the release of a major aid installment needed to recapitalize Greece's teetering banks and enable the government to pay wages, pensions and suppliers on December 13.


Greece will receive up to 43.7 billion euros in stages as it fulfills the conditions. The December installment will comprise 23.8 billion for banks and 10.6 billion in budget assistance.


The IMF's share, less than a third of the total, will only be paid out once a buy-back of Greek debt has occurred in the coming weeks, but IMF Managing Director Christine Lagarde said the Fund had no intention of pulling out of the program.


To reduce Greece's debt pile, ministers agreed to cut the interest rate on official loans, extend their maturity by 15 years to 30 years, and grant Athens a 10-year interest repayment deferral.


They promised to hand back 11 billion euros in profits accruing to their national central banks from European Central Bank purchases of discounted Greek government bonds in the secondary market.


They also agreed to finance Greece to buy back its own bonds from private investors at what officials said was a target cost of around 35 cents in the euro.


European Central Bank President Mario Draghi said on leaving the talks: "I very much welcome the decisions taken by the ministers of finance. They will certainly reduce the uncertainty and strengthen confidence in Europe and in Greece."


BETTER FUTURE


The euro strengthened against the dollar after news of the deal was first reported by Reuters.


Juncker said the accord opened new hope for Greeks.


"This is not just about money. This is the promise of a better future for the Greek people and for the euro area as a whole, a break from the era of missed targets and loose implementation towards a new paradigm of steadfast reform momentum, declining debt ratios and a return to growth," he told a 2 a.m. news conference.


Greek Finance Minister Yannis Stournaras said earlier that Athens had fulfilled its part of the deal by enacting tough austerity measures and economic reforms, and it was now up to the lenders to do their part.


Greece, where the euro zone's debt crisis erupted in late 2009, is the currency area's most heavily indebted country, despite a big "haircut" this year on privately-held bonds. Its economy has shrunk by nearly 25 percent in five years.


Negotiations had been stalled over how Greece's debt, forecast to peak at 190-200 percent of GDP in the coming two years, could be cut to a more sustainable 120 percent by 2020.


The agreed figure fell slightly short of that goal, and the IMF was still insisting that euro zone ministers should make a firm commitment to further steps to reduce the debt stock if Athens implements its adjustment program faithfully.


The key question remains whether Greek debt can become sustainable without euro zone governments having to write off some of the loans they have made to Athens.


Germany and its northern European allies have hitherto rejected any idea of forgiving official loans to Athens, but EU officials believe that line may soften after next year's German general election.


DEBT RELIEF "NOT ON TABLE"


Schaeuble told reporters earlier that debt forgiveness was legally impossible, not just for Germany but for other euro zone countries, if it was linked to a new guarantee of loans.


"You cannot guarantee something if you're cutting debt at the same time," he said. That did not preclude possible debt relief at a later stage if Greece completed its adjustment program and no longer needs new loans.


At Germany's insistence, earmarked revenue and aid payments will go into a strengthened "segregated account" to ensure that Greece services its debts.


A source familiar with IMF thinking said a loan write-off once Greece has fulfilled its adjustment program would be the simplest way to make its debt viable, but other methods such as forgoing interest payments, or lending at below market rates and extending maturities could all help.


The German banking association (BDB) said a fresh "haircut" or forced reduction in the value of Greek sovereign debt, must only happen as a last resort.


The ministers agreed to reduce interest on already extended bilateral loans from the current 150 basis points above financing costs to 50 bps.


No figures were announced for the debt buy-back in an effort to avoid triggering a rise in market prices in anticipation of a buyer. But before the meetings, officials had spoken of a 10 billion euro buy-back, that would achieve a net reduction of about 20 billion euros in the debt stock.


German central bank governor Jens Weidmann has suggested that Greece could "earn" a reduction in debt it owes to euro zone governments in a few years if it diligently implements all the agreed reforms. The European Commission backs that view.


An opinion poll published on Monday showed Greece's anti-bailout SYRIZA party with a four-percent lead over the Conservatives who won election in June, adding to uncertainty over the future of reforms.


(Additional reporting by Robert-Jan Bartunek, Ethan Bilby, Luke Baker in Brussels, Reinhardt Becker in Berlin; Writing by Paul Taylor; Editing by Luke Baker)


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My Waterway@Punggol wins another award






SINGAPORE: HDB's My Waterway@Punggol project has won an international gold award.

It clinched the honour under the Project Built section in the 2012 International Award for Liveable Communities conferred by the LivCom Management Company.

The award recognizes International Best Practices in the management of the local environment and is endorsed by the United Nations Environment Programme (UNEP).

My Waterway@Punggol was chosen as the winner by an independent panel of environmental and landscape management experts.

All project entries were judged based on the following criteria: Enhancement of the natural and Built Landscape, arts, culture and heritage, environmental best practices, community participation and empowerment, healthy lifestyle and strategic planning.

The Livcom Awards are given out annually since 1997 and over 50 countries have been represented at the Awards.

Besides winning the LivCom Awards 2012, My Waterway@Punggol's most recent accolades include the FIABCI Singapore Property Award in October 2012 and the Global Superior Achievement Award by the International Water Association in August 2012.

The LivCom Awards 2012 winners were announced at the award ceremony held in Al Ain in the United Arab Emirates on Monday.

- CNA/ir



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Parliament again disrupted over retail FDI

NEW DELHI: Parliament was disrupted for the fourth day on Tuesday as the opposition continued its protests against the government's policy on allowing foreign investment in multi-brand retail.

The Lok Sabha and Rajya Sabha could not carry on with question hour as members of the opposition raised a din inside the two houses over the foreign direct investment (FDI) policy that they claim will hit small traders.

Within minutes of proceedings beginning, opposition MPs were on their feet raising slogans against the FDI policy.

In the Lok Sabha, Speaker Meira Kumar said, "The first question is on crime against women and you are not allowing it."

Despite her request to take their seats, the MPs continued with their sloganeering, resulting in Meira Kumar adjourning the house till 12 noon.

Similar scenes were witnessed in the Rajya Sabha with Hamid Ansari asking the MPs, who trooped near his podium carrying placards that had slogans against the FDI policy, to return to their seats.

As the MPs continued to raise slogans, Ansari adjourned the house till 12 noon.

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Bounce houses a party hit but kids' injuries soar

CHICAGO (AP) — They may be a big hit at kids' birthday parties, but inflatable bounce houses can be dangerous, with the number of injuries soaring in recent years, a nationwide study found.

Kids often crowd into bounce houses, and jumping up and down can send other children flying into the air, too.

The numbers suggest 30 U.S. children a day are treated in emergency rooms for broken bones, sprains, cuts and concussions from bounce house accidents. Most involve children falling inside or out of the inflated playthings, and many children get hurt when they collide with other bouncing kids.

The number of children aged 17 and younger who got emergency-room treatment for bounce house injuries has climbed along with the popularity of bounce houses — from fewer than 1,000 in 1995 to nearly 11,000 in 2010. That's a 15-fold increase, and a doubling just since 2008.

"I was surprised by the number, especially by the rapid increase in the number of injuries," said lead author Dr. Gary Smith, director of the Center for Injury Research and Policy at Nationwide Children's Hospital in Columbus, Ohio.

Amusement parks and fairs have bounce houses, and the playthings can also be rented or purchased for home use.

Smith and colleagues analyzed national surveillance data on ER treatment for nonfatal injuries linked with bounce houses, maintained by the U.S. Consumer Product Safety Commission. Their study was published online Monday in the journal Pediatrics.

Only about 3 percent of children were hospitalized, mostly for broken bones.

More than one-third of the injuries were in children aged 5 and younger. The safety commission recommends against letting children younger than 6 use full-size trampolines, and Smith said barring kids that young from even smaller, home-use bounce houses would make sense.

"There is no evidence that the size or location of an inflatable bouncer affects the injury risk," he said.

Other recommendations, often listed in manufacturers' instruction pamphlets, include not overloading bounce houses with too many kids and not allowing young children to bounce with much older, heavier kids or adults, said Laura Woodburn, a spokeswoman for the National Association of Amusement Ride Safety Officials.

The study didn't include deaths, but some accidents are fatal. Separate data from the product safety commission show four bounce house deaths from 2003 to 2007, all involving children striking their heads on a hard surface.

Several nonfatal accidents occurred last year when bounce houses collapsed or were lifted by high winds.

A group that issues voluntary industry standards says bounce houses should be supervised by trained operators and recommends that bouncers be prohibited from doing flips and purposefully colliding with others, the study authors noted.

Bounce house injuries are similar to those linked with trampolines, and the American Academy of Pediatrics has recommended against using trampolines at home. Policymakers should consider whether bounce houses warrant similar precautions, the authors said.

___

Online:

Pediatrics: http://www.pediatrics.org

Trade group: http://www.naarso.com

___

AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner

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Co. Paying Just $1,200 for Each Factory Fire Life













A company that makes clothes for Sean Combs' clothing brand ENYCE and other U.S. labels reassured investors that a factory fire that killed 112 people over the weekend would not harm its balance sheet, and also pledged to pay the families of the dead $1,200 per victim.


In an announcement Monday, Li & Fung Ltd., a middleman company that supplies clothes from Bangladesh factories to U.S. brands, said "it wishes to clarify" that the deadly Saturday night blaze at the high-rise Tazreen Fashions factory outside Dhaka "will not have any material impact on the financial performance" of the firm.


The fire broke out on the ground floor of the nine-floor building as hundreds of workers were upstairs on a late-night shift producing fleece jackets and trousers for the holiday rush at American stores, including Wal-Mart, according to labor rights groups. Fire officials said the only way out was down open staircases that fed right into the flames. Some workers died as they jumped from higher floors.


PHOTOS from the factory fire.


After reassuring investors about its financial health, Li & Fung's statement went on to express "deepest condolences" to the families of the dead, and pledge the equivalent of $1,200 to each family. The company also said it would set up an educational fund for the victims' children.








Bangladesh Garment Factory Fire Leaves 112 Dead Watch Video









As reported on "ABC World News with Diane Sawyer" earlier this year, Bangladesh has become a favorite of many American retailers, drawn by the cheapest labor in the world, as low as 21 cents an hour, producing clothes in crowded conditions that would be illegal in the U.S. In the past five years, more than 700 Bangladeshi garment workers have died in factory fires.


READ the original ABC News report.


WATCH the original 'World News' report on deadly factories.


"[It's] the cheapest place, the worst conditions, the most dangerous conditions for workers and yet orders continue to pour in," said Scott Nova, executive director of Worker Rights Consortium, an American group working to improve conditions at factories abroad that make clothes for U.S. companies. Nova said the fire was the most deadly in the history of the Bangladesh apparel industry, and "one of the worst in any country."


Today, U.S. companies extended condolences to the families of the victims, and scrambled to answer questions about the dangerous factory that had been making their clothes.


Wal-Mart inspectors had warned last year that "the factory had violations or conditions which were deemed to be high risk," according to a document posted on-line.


Yet Wal-mart clothing continued to be made at the factory, according to workers groups who found clothing with Wal-Mart's private label, Faded Glory, in the burned out remains along with clothing for a number of other U.S. labels, including ENYCE, Dickies and a brand associated with Sears.


Wal-Mart confirmed Monday that its clothes were being made at the Tazreen factory. Even though Wal-Mart is famed for maintaining tight control over its supply chain, the company said its clothes were being made at the plant without its knowledge.






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Egypt's Mursi to meet judges over power grab

CAIRO (Reuters) - Egyptian President Mohamed Mursi will meet senior judges on Monday to try to ease a crisis over his seizure of new powers which has set off violent protests reminiscent of last year's revolution which brought him to power.


Egypt's stock market plunged on Sunday in its first day open since Mursi issued a decree late on Thursday temporarily widening his powers and shielding his decisions from judicial review, drawing accusations he was behaving like a new dictator.


More than 500 people have been injured in clashes between police and protesters worried Mursi's Muslim Brotherhood aims to dominate the post-Hosni Mubarak era after winning Egypt's first democratic parliamentary and presidential elections this year.


One Muslim Brotherhood member was killed and 60 people were hurt on Sunday in an attack on the main office of the Brotherhood in the Egyptian Nile Delta town of Damanhour, the website of the Brotherhood's Freedom and Justice Party said.


Egypt's highest judicial authority hinted at compromise to avert a further escalation, though Mursi's opponents want nothing less than the complete cancellation of a decree they see as a danger to democracy.


The Supreme Judicial Council said Mursi's decree should apply only to "sovereign matters", suggesting it did not reject the declaration outright, and called on judges and prosecutors, some of whom began a strike on Sunday, to return to work.


Mursi would meet the council on Monday, state media said.


Mursi's office repeated assurances that the measures would be temporary, and said he wanted dialogue with political groups to find "common ground" over what should go in Egypt's constitution, one of the issues at the heart of the crisis.


Hassan Nafaa, a professor of political science at Cairo University, saw an effort by the presidency and judiciary to resolve the crisis, but added their statements were "vague". "The situation is heading towards more trouble," he said.


Sunday's stock market fall of nearly 10 percent - halted only by automatic curbs - was the worst since the uprising that toppled Mubarak in February, 2011.


Images of protesters clashing with riot police and tear gas wafting through Cairo's Tahrir Square were an unsettling reminder of that uprising. Activists were camped in the square for a third day, blocking traffic with makeshift barricades. Nearby, riot police and protesters clashed intermittently.


"BACK TO SQUARE ONE"


Mursi's supporters and opponents plan big demonstrations on Tuesday that could be a trigger for more street violence.


"We are back to square one, politically, socially," said Mohamed Radwan of Pharos Securities, an Egyptian brokerage firm.


Mursi's decree marks an effort to consolidate his influence after he successfully sidelined Mubarak-era generals in August. It reflects his suspicions of a judiciary little reformed since the Mubarak era.


Issued just a day after Mursi received glowing tributes from Washington for his work brokering a deal to end eight days of violence between Israel and Hamas, the decree drew warnings from the West to uphold democracy. Washington has leverage because of billions of dollars it sends in annual military aid.


"The United States should be saying this is unacceptable," former presidential nominee John McCain, leading Republican on the Senate Armed Services Committee, said on Fox News.


"We thank Mr. Mursi for his efforts in brokering the ceasefire with Hamas ... But this is not what the United States of America's taxpayers expect. Our dollars will be directly related to progress toward democracy."


The Mursi administration has defended his decree as an effort to speed up reforms that will complete Egypt's democratic transformation. Yet leftists, liberals, socialists and others say it has exposed the autocratic impulses of a man once jailed by Mubarak.


"There is no room for dialogue when a dictator imposes the most oppressive, abhorrent measures and then says 'let us split the difference'," prominent opposition leader Mohamed ElBaradei said on Saturday.


WARNINGS FROM WEST


Investors had grown more confident in recent months that a legitimately elected government would help Egypt put its economic and political problems behind it. The stock market's main index had risen 35 percent since Mursi's victory. It closed on Sunday at its lowest level since July 31.


Political turmoil also raised the cost of government borrowing at a treasury bill auction on Sunday.


"Investors know that Mursi's decisions will not be accepted and that there will be clashes on the street," said Osama Mourad of Arab Financial Brokerage.


Just last week, investor confidence was helped by a preliminary agreement with the International Monetary Fund over a $4.8 billion loan needed to shore up state finances.


Mursi's decree removes judicial review of decisions he takes until a new parliament is elected, expected early next year.


It also shields the Islamist-dominated assembly writing Egypt's new constitution from a raft of legal challenges that have threatened it with dissolution, and offers the same protection to the Islamist-controlled upper house of parliament.


"I am really afraid that the two camps are paving the way for violence," said Nafaa. "Mursi has misjudged this, very much so. But forcing him again to relinquish what he has done will appear a defeat."


Many of Mursi's political opponents share the view that Egypt's judiciary needs reform, though they disagree with his methods. Mursi's new powers allowed him to sack the prosecutor general who took his job during the Mubarak era and is unpopular among reformists of all stripes.


(Additional reporting by Yasmine Saleh and Marwa Awad in Cairo and Philip Barbara in Washington; Editing by Peter Graff and Philippa Fletcher)


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Bangladesh garment factory fire under control






DHAKA: Bangladesh firefighters on Monday quelled a blaze at a 12-storey building housing four different garment factories in Dhaka, days after a fire killed 110 textile workers in a different facility.

Some workers had been trapped on the roof by the new fire, but authorities said that although they were still searching the building, they believed most had escaped and there were no reported deaths.

"We don't have any casualties but the firefighters will search the building and see whether anyone has been suffocated," Dhaka deputy commissioner of police Nisharul Arif told AFP.

"Most workers broke grills in the upper floors and escaped to a safe location at an adjacent building."

Thousands of garment workers staged protests on Monday demanding better protection after the deadly inferno on Saturday night that trapped more than 1,000 workers and forced many to jump from windows and roofs.

- AFP/ck



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Government open to debate on FDI in retail: Kamal Nath

NEW DELHI: The government was open to discussions on foreign direct investment (FDI) in retail, parliamentary affairs minister Kamal Nath said on Monday ahead of an all-party meeting on the ongoing logjam in parliament.

"Government is open for a discussion on the issue of FDI in multi-brand retail. The primary concern is that the house must be allowed to function," Kamal Nath told reporters in the Parliament House complex.

He said the government would try to strike an agreement in the all-party meet. However, he remained noncommittal on whether the government would allow a debate under rules that entail voting.

Major opposition parties, including the Bharatiya Janata Party (BJP) and the Left, have been demanding a debate in the Lok Sabha on the issue under rule 184, which entails voting.

Lok Sabha, Rajya Sabha adjourned till noon

Both Lok Sabha and Rajya Sabha were adjourned till 12 noon on Monday as differences continued over the issue of foreign investment in multi-brand retail and the cap on subsidised LPG cylinders.

Trinamool Congress members rushed towards the speaker's podium to noisily voice their protest, forcing the house to adjourn soon after it began.

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AP PHOTOS: Simple surgery heals blind Indonesians

PADANG SIDEMPUAN, Indonesia (AP) — They came from the remotest parts of Indonesia, taking crowded overnight ferries and riding for hours in cars or buses — all in the hope that a simple, and free, surgical procedure would restore their eyesight.

Many patients were elderly and needed help to reach two hospitals in Sumatra where mass eye camps were held earlier this month by Nepalese surgeon Dr. Sanduk Ruit. During eight days, more than 1,400 cataracts were removed.

The patients camped out, sleeping side-by-side on military cots, eating donated food while fire trucks supplied water for showers and toilets. Many who had given up hope of seeing again left smiling after their bandages were removed.

"I've been blind for three years, and it's really bad," said Arlita Tobing, 65, whose sight was restored after the surgery. "I worked on someone's farm, but I couldn't work anymore."

Indonesia has one of the highest rates of blindness in the world, making it a target country for Ruit who travels throughout the developing world holding free mass eye camps while training doctors to perform the simple, stitch-free procedure he pioneered. He often visits hard-to-reach remote areas where health care is scarce and patients are poor. He believes that by teaching doctors how to perform his method of cataract removal, the rate of blindness can be reduced worldwide.

Cataracts are the leading cause of blindness globally, affecting about 20 million people who mostly live in poor countries, according to the World Health Organization.

"We get only one life, and that life is very short. I am blessed by God to have this opportunity," said Ruit, who runs the Tilganga Eye Center in Katmandu, Nepal. "The most important of that is training, taking the idea to other people."

During the recent camps, Ruit trained six doctors from Indonesia, Thailand and Singapore.

Here, in images, are scenes from the mobile eye camps:

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GOP Starting to Rebel Against No-Tax-Hikes Pledge













With the fiscal cliff looming for the United States, some Republican members of Congress said today they are ready to break a long standing pledge not to raise taxes.


"The only pledge we should be making to each other is to avoid becoming Greece. And Republicans should put revenue on the table," South Carolina Sen. Lindsey Graham said on ABC's "This Week."


Read more of the discussion of the fiscal on "This Week" today.


Graham's comments followed those by another Republican senator, Saxby Chambliss of Georgia, who said last week he'll no longer abide by the pledge.


"I care more about my country than I do about a 20-year-old pledge," he said in a local interview.


He got support today from House member Peter King, another Republican from New York.


"I agree entirely with Saxby Chambliss -- a pledge he signed 20 years ago, 18 years ago is for that Congress," King said on NBC's "Meet the Press." He added, "The world is changed and the economic situation is different."






JIM WATSON/AFP/Getty Images











Sen. Lindsey Graham and Sen. Dick Durbin on 'This Week' Watch Video











Loathed and Loved: What We Never Knew About J.R. Ewing Watch Video





Read Matthew Dowd's analysis of the efforts to avoid the fiscal cliff.


This growing chorus is about the pledge that Americans for Tax Reform president Grover Norquist has gotten hundreds of Republicans to sign. But in an interview with ABC News, Norquist says it's just a few deserters.


"The people who have made a commitment to their constituents are largely keeping it," he said. "The fact is there is more support for both protecting the rates, you saw the Republican leader in the house say rates are non-negotiable, and he also talked about revenue coming from growth."


But President Obama has said rates will go up for the wealthy. There could be some political cover for Republicans if the country actually goes over the cliff. All the Bush era tax cuts would expire, including those for the wealthy. Congress could then vote to actually reduce taxes for everyone expect the rich. Therefore, they wouldn't technically raise taxes and violate Norquist's pledge.


But Nordquist said he doesn't think the public would buy those political moves, and he also doesn't think the country will actually go over the cliff.


"I think we'll continue the tax cuts. Not raise taxes $500 billion. Obama made the correct decision (by extending the Bush tax cuts) two years ago," Norquist told us.


Leading Democratic Sen. Richard Durbin also said he believes a deal is possible now that the Thanksgiving holiday break is over.


"We can solve this problem," he said on "This Week," adding: "There's no excuse. We're back in town."



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