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Stimulus helps Indian firms boost financial health
International Desk, Rtv
20 Jun 2021, 17:54
Unprecedented stimulus spending is helping Indian companies to financially recover after disastrous Covid-19 second wave. The indicators of the financial graph are going upwards.
The ratio of upgrades to downgrades in ratings and credit outlooks by the local units of S&P Global Ratings, Moody’s Investors Service and Fitch Group has improved to 1.2 this quarter, set for the highest level in nearly three years, data compiled by Bloomberg show.
K Ravichandran, a deputy chief rating officer at ICRA Ltd, a local unit of Moody’s, said, “Local companies are facing fewer downgrades during the second wave of the pandemic than during the first wave as most of them have bolstered their liquidity in the past couple of quarters, thanks to all the pandemic support announced by policymakers”.
The nascent recovery in Indian firms’ credit quality adds to signs that the pandemic-hit economy may be turning a corner. Still, many investors remain cautious and are piling into bonds that compensate them with higher coupons each time the indicators in the graph go down.
Source: The Times of India
B.M./ Rtv
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Warehouse developers bet on India as companies look beyond China
Land is getting hard to find in a sprawling industrial park in southern India where workers are scrambling to build modern new warehouses and factories for companies betting on the country's economic boom or diversifying their supply chains beyond China.
"It is one of the most wanted places in India for European and American companies," said S Raghuraman, an official of the Greenbase industrial park, near plants run by Apple supplier Foxconn and truckmaker Daimler, Reuters reports.
Inquiries for leasing space in the park, run by Blackstone and real estate tycoon Niranjan Hiranandani, have gone through the roof, he added.
"We are in talks with at least three clients looking to shift their base from China."
To meet the burgeoning demand, Greenbase aims to invest $800 million to quadruple its industrial park space to 20 million sq ft (1.9 million sq m), a target it revealed for the first time.
That is just the latest sign of a rush for leased warehouse space that peaked in the last quarter of 2023 at its highest in two years, says real estate firm Colliers, as India's economic growth of more than 8% outstrips advanced nations.
Businesses in India have traditionally relied on dingy, stuffy low-rise sheds known as godowns for their storage needs, but these are unsuited to the needs of foreign industrial giants whose investment Prime Minister Narendra Modi wants to lure.
So developers such as Greenbase are scouting for land nationwide, grappling with thorny acquisition issues, as they line up millions of dollars in new investment.
Prime targets are firms looking to expand manufacturing facilities beyond China as tension with the United States and other countries takes off some of its shine.Companies in the booming e-commerce and manufacturing industries also see India as a hub for exports while looking to boost sales to industries and domestic consumers amid a population of 1.4 billion.
US Diplomat Donald Lu denies Pushing Pakistani ex-PM Khan Out of Office
For the first time a top U.S. diplomat for South and Central Asia has for the first time publicly addressed allegations of conspiring to oust Pakistan's former Prime Minister Imran Khan in 2022.
US Assistant Secretary of State Donald Lu on Wednesday rubbished former Pakistan prime minister Imran Khan’s allegations his government was ousted via a conspiracy orchestrated by Washington, describing it as a “conspiracy theory” and a “lie.”
"These allegations, this conspiracy theory, is a lie, it is a complete falsehood," Lu said while responding to a question by committee Chairman Representative Joe Wilson, a Republican from the U.S. state of South Carolina.
Cypher conspiracy
In April 2022, Khan was expelled from power in a parliamentary vote of no-confidence.
Khan has since alleged that a secret diplomatic cable, or cypher, sent by then-Pakistani ambassador to the U.S. Asad Majeed Khan, proves the United States conspired with Pakistan's military and opposition leaders to remove him from office. The cable described a March 7, 2022, meeting with Lu in Washington.
Last August, an American news outlet, The Intercept, published what it said was the text of the cipher.
According to Ambassador Khan's purported cable, the State Department officials at the meeting encouraged Khan to tell Pakistan's powerful military that Islamabad could expect warmer relations if Khan were removed from office because of his neutrality on the Russian invasion of Ukraine. The Pakistani prime minister was in Moscow for talks with Russian President Vladimir Putin on the day the invasion began and failed to condemn it.
"I think if the no-confidence vote against the Prime Minister succeeds, all will be forgiven in Washington because the Russia visit is being looked at as a decision by the Prime Minister. … Otherwise, I think it will be tough going ahead," the document quoted Lu as telling the Pakistani ambassador.
While the State Department has consistently rejected the allegation of conspiring in Khan's ouster, the department's spokesperson Mathew Miller conceded last year that the Biden administration was unhappy with Khan's overtures to Russia.
"We expressed concern privately to the government of Pakistan as we expressed concerns publicly about the visit of then-Prime Minister Khan to Moscow on the very day of Russia's invasion of Ukraine. We made that concern quite clear," Miller said at a regular press conference while responding to a question about The Intercept's reporting.
The Pakistani military and Khan's opponents also have rejected his allegations.
The former Pakistani prime minister is currently serving a 10-year prison term for revealing the contents of the secret cable, a charge he rejects as politically motivated.
Lu called the reporting of the diplomatic cable in Pakistani media inaccurate.
"At no point does it [the cypher] accuse the United States' government or me personally of taking steps against Imran Khan," he told the committee.
Lu pointed out that Pakistan's now-former ambassador Khan had also testified to his government that there was no U.S. conspiracy to remove the prime minister from office.
In March 2022, Pakistan's National Security Committee headed by Khan issued a demarche to the U.S ambassador over his country's "interference" in Pakistan's politics.
After Khan's ouster, however, another NSC committee headed by then-Prime Minister Shehbaz Sharif concluded that the diplomatic cable did not indicate any U.S. conspiracy.
"We respect the sovereignty of Pakistan. We respect the principle that Pakistani people should be the only ones choosing their own leaders through a democratic process," Lu told Wednesday's hearing.
The assistant secretary was disrupted several times as some in the audience called him a liar. The proceedings stopped on a few occasions, and Capital Police removed some in attendance for being disruptive.
Lu told the committee that he has received several death threats, and his family also has been threatened over "unfounded allegations" since Khan's removal.
Election irregularities
Addressing reports of irregularities in Pakistan's February 8 general elections, Lu said the Biden administration was persistently urging Pakistani authorities to investigate.
"We as a partner of Pakistan have called for that to be done transparently and fully and for those found responsible for irregularities to be held accountable."
Pakistan's much-delayed elections faced several controversies. A state-backed crackdown on Khan's party, pre-election violence including terror attacks, suspension of mobile internet services on Election Day, and a massive delay in announcing results led local and international observers to question the fairness of the vote.
The United States, U.K. and the EU have called on Pakistan to probe the discrepancies.
In a February 28 letter to President Joe Biden and Secretary of State Antony Blinken, a bipartisan group of 31 members of the U.S. Congress urged the administration not to recognize Pakistan's new government until "a thorough, transparent, and credible investigation of election interference" was conducted.
In a statement on April 13, though, Blinken congratulated Sharif on being elected as prime minister of Pakistan. U.S. ambassador to Islamabad Donald Blome has since met Pakistan's new president, prime minister, as well as foreign and finance ministers.
Representative Greg Casar, a Democrat from Texas who was among the authors of the letter, questioned Lu on the administration recognizing Sharif's government.
"We do not go around recognizing or withholding recognition. We decide whether we are going to engage with the government," said Lu.
Pakistan's polls delivered a hung parliament. Khan's party had to field candidates as independents after it was deprived of a unified elections symbol.
Although candidates backed by Khan's PTI won the largest number of seats in the lower house of the parliament, Sharif's party, which came in second, formed a coalition government with Khan's opponents.
Source: Voice of America
Spain: Judge orders Telegram to be blocked nationwide
Media companies claim Telegram is allowing users to upload their content without permission. A Spanish court has now ordered for the platform to be suspended as a "precautionary measure."
The use of the messaging application Telegram in Spain will be temporarily suspended as of Monday, following a request from media companies.
The order was issued by judge Santiago Pedraz of the Audencia Nacional, a high court which handles sensitive cases.
Media companies, including Atresmedia, EGEDA, Mediaset, and Telefonica, complained that Telegram was allowing users to upload their content without permission.
While the claims are being investigated, Pedraz agreed to block Telegram's services in Spain. According to the court source, it will be the responsibility of mobile operators to block Telegram's services.
Why was the order issued?
The judge issued the order after officials in the Virgin Islands, where Telegram is registered, failed to respond to a court request from July 2023.
The court wanted information that would allow it to identify who was behind the accounts in question that were uploading apparently pirated content.
The lack of cooperation from the Virgin Islands led him to take this "precautionary measure," the judge said in Friday's order.
Consumer group slams ruling
Consumer advocacy group Facua criticized the ruling as disproportionate, warning that it would cause "enormous damage" to millions of the platform's users.
"It is as if they shut down the internet because there are websites that illegally host content protected by copyright," Facua's general secretary Ruben Sanchez said.
Telegram is the fourth most used messaging service in Spain, according to the competition watchdog CNMC. It was used by almost 19% of Spaniards surveyed by the CNMC.
Telegram claims to have 700 million monthly active users all over the world. The company has had to deal with blocking in a number of countries, from Brazil to Somalia.
More than 100 kidnapped schoolchildren rescued in Nigeria
The children had been kidnapped two weeks ago from their school in Kaduna. It comes as more and more criminal gangs in the area turn to abductions to seek out large ransoms.
Over 100 kidnapped schoolchildren were rescued in northern Nigeria on Sunday after they were abducted two weeks ago.
The mass kidnapping of 287 students in Kuriga, in Nigeria's northern state of Kaduna, was the first mass abduction in the West African country since 2021.
Authorities said 137 students — 76 girls and 61 boys — were rescued in the neighboring Zamfara State.
"In the early hours of 24 March 2024, the military working with local authorities and government agencies across the country in a coordinated search and rescue operation rescued the hostages," army spokesperson Major General Edward Buba said.
This represented all the students who were in captivity. The reported numbers for mass abductions in Nigeria are often lowered after people who went missing while fleeing attacks return home.
Kaduna Governor Uba Sani said the children were unharmed.
Children released ahead of ransom deadline
The children were released days before a deadline to pay a $690,000 (€635,000) ransom.
Ransoms are commonly paid for kidnappings in Nigeria, but it is rare for officials to admit to payments.
Nigerian President Bola Ahmed Tinubu had previously vowed to rescue the children "without paying a dime."
"This is indeed a day of joy," he added.
They will be escorted back to their home state for medical tests before being reunited with their families.
Philippines supply ships clash with Chinese coast guard
The Chinese Coast Guard used a water cannon against Philippines' ships attempting to deliver supplies to Filipino troops at an outpost in the South China Sea, according to Manila.
Philippine naval vessels were involved in a clash with the Chinese coast guard on Saturday while attempting to resupply troops at a contested outpost in the South China Sea.
A Philippine civilian boat, escorted by two navy ships and two coast guard vessels, was on a monthly supply run to a small number of Filipino marines stationed on the "Sierra Madre" – a warship intentionally run aground on the Second Thomas Shoal in 1999 in order to reinforce The Philippines' territorial claims in the area.
Manila says Chinese ships were 'irresponsible'
According to a statement from the Philippine coast guard, one of its ships was "impeded" and "encircled" by a Chinese coast guard vessel and two ships from the Chinese maritime militia.
Philippine authorities said one of its vessels had been damaged by a water canon during the "dangerous maneuvers" undertaken by the Chinese, who it said had showed a "disregard" for the Convention on the International Regulations for Preventing Collisions at Sea (COLREGS).
The statement accused he Chinese ships of "irresponsible and provocative behavior."
China, which claims most of the South China Sea as its territorial waters, has regularly deployed vessels to monitor and disrupt efforts to resupply the "Sierra Madre" and described Saturday's operation as "control measures."
In a similar incident in March, Manila claimed that four Filipino sailors had been injured and two boats damaged.
No injuries have been reported this time.
US, Japan support Philippines
The United States and Japan immediately expressed support for the Philippines and alarm at the aggression of Chinese forces off Second Thomas Shoal.
US State Department spokesperson Matthew Miller said in a statement that Washington "stands with its ally the Philippines and condemns the dangerous actions by the People's Republic of China against lawful Philippine maritime operations in the South China Sea."
Japan's ambassador-designate to Manila, Endo Kazuya, reiterated his country's "grave concern on the repeated dangerous actions by the Chinese coast guard in the South China Sea, which resulted in Filipino injuries."
Meanwhile, Chinese coast guard spokesperson Gan Yu said the Philippine vessels intruded into what he said was China's territorial waters despite repeated warnings.
Several countries compete for dominance in South China Sea.
China has even constructed artificial islands in the region and fortified them to underline its claims.
China promoting Mandarin in parts of Tibet: Report
The report added that Tibetans face restrictions not only on their right to freedom of assembly, but also on expressing opinions or criticism against the “repressive and unjust government policies, both online and offline”
“Even as China ended its draconian zero-Covid policy measures in 2023, Tibetans continue to face escalating crackdowns on freedom of expression, religion and belief,” the Dharamshala-based Tibetan Centre for Human Rights and Democracy said in a report.
The annual report released on Wednesday stated that despite numerous calls from the international community to halt its forced assimilation policy, Chinese authorities imposed Chinese-medium education in Tibetan schools and amended local regulations in Tibetan areas to promote Mandarin Chinese.
The Tibetan Centre for Human Rights and Democracy (TCHRD) is a registered non-profit human rights organisation based in Dharamshala, Himachal Pradesh. The annual report was prepared by TCHRD’s trilingual research team, working in Tibetan, Chinese and English. The team compiled and analysed information from a wide variety of sources on the human rights situation in Tibet in 2023.
The report added that Tibetans face restrictions not only on their right to freedom of assembly, but also on expressing opinions or criticism against the “repressive and unjust government policies, both online and offline”. Under the guise of maintaining social stability, Chinese authorities exercise direct supervision and censorship over all online platforms.
“The right to freedom of religion and belief faced further restrictions as Chinese authorities introduced more repressive regulations to exercise total control over the establishment, management and activities of the religious activity sites. Despite the relaxation of zero-Covid restrictions, it made no difference to Tibetan Buddhists, who continued to face restrictions in undertaking religious pilgrimages,” the report further.
According to the report, Tibetan detainees continue to face a litany of human rights violations. Those arbitrarily, preventatively or forcefully detained underwent unjust sentencing and torture, resulting in custodial deaths. Incommunicado detention in undisclosed locations without due process also remained a regular practice, leading to lasting health issues and premature deaths among political prisoners upon release.
Tenzin Dawa, executive director of TCHRD, said, “In 2023, China was re-elected to the UN Human Rights Council, the United Nation’s premier rights body responsible for protecting and promoting human rights globally. This re-election demonstrates how authoritarian states like China manipulate, obstruct and exploit the international human rights system by waging systematic campaigns to weaken and eviscerate the UN’s ability to enforce global compliance with international human rights standards.”
“The injustices and human rights violations in Tibet underscore the urgent need to address the human rights abuses in Tibet perpetrated by Chinese authorities. The Chinese government must release all Tibetans detained for merely exercising their human rights and political freedoms in the political, economic, social, cultural or any other areas of public life,” she said.
Source: Hindustan Times
Nepal asks China to convert Pokhara airport loan into grant to ease financial burden
Nepal's Prime Minister Pushpa Kamal Dahal announced on Tuesday that diplomatic efforts have been initiated with China to convert a loan for Pokhara International Airport to a grant as it failed to garner income, instead piled up more debt.
This came after opposition lawmaker Chanda Chaudhary raised questions about the increasing loss and piling debt, Nepal Prime Minister said that talks are underway to convert the loan into a grant.
"In order to operate the flights to and from the Pokhara International Airport, a committee has already been formed to study government-private sector cooperation. On the basis of the report prepared by the committee, necessary preparations would be made for the operation of the airport. The loan acquired for the construction of Pokhara International Airport, diplomatic talks are underway to convert it into a grant. Necessary coordination would be made for all the necessary financial management," PM Dahal said.
The Pokhara International Airport, opened on January 1, 2023, hasn't seen any frequent international flights except for chartered Chinese flights, which appear on rare occasions.
On March 21, 2016, Nepal and China reached a loan agreement stipulating a total loan amount of 1.37 billion Chinese yuan, out of which 355.9 million Chinese yuan were constituted as interest-free- loans. The Civil Aviation Authority of Nepal (CAAN), the aviation regulating body of the Himalayan nation, is responsible for paying the loan amount by the year 2036.
Earlier, Nepal PM Dahal, upon returning to Kathmandu last year after his visit to China, announced that Chinese flights would come to Pokhara, helping to cover the loss.
While no such flights have commenced, on Tuesday, the Prime Minister, referring to the visit, claimed, "During my recent visit to China (September 22,, 2023), a theoretical agreement was reached about commencing connecting flights from various cities of China to Pokhara, and I believe that international flights would land at Pokhara International Airport and help recover the loss."Days before the inauguration of the airport last year, the Chinese Ambassador to Nepal claimed in a tweet that the airport was a part of the Belt and Road Initiative (BRI) which was rejected by the Nepal Government.
But soon after the handover, the Pokhara airport exemplified the perils that came with importing China's infrastructure-at-any-cost development model, disproportionately benefiting Chinese firms at the expense of the borrowing nation.
China CAMC Engineering, the construction division of state-owned conglomerate Sinomach, played a pivotal role in the Pokhara airport project. It imported building materials and machinery from China, and the airport itself was brimming with Chinese-made security and industrial technology. Despite China's claims about the project's quality, an investigation by The New York Times revealed an unsettling narrative.
Multiple individuals involved in the project and a thorough examination of thousands of documents indicated that China CAMC Engineering had consistently dictated terms to maximise profits and protect its interests. Simultaneously, it systematically dismantled Nepali oversight.
As a consequence, Nepal found itself entangled in significant debt to Chinese creditors without the expected influx of passengers to repay the loans.
The Finance Ministry of the Himalayan nation had signed a memorandum of understanding supporting CAMC's proposal in 2011, even before an official bidding process had started. The Chinese loan agreement exclusively allowed Chinese firms to bid for the project.
CAMC initially submitted a bid for USD 305 million, nearly double Nepal's cost estimatefor the airport. This drew criticism from Nepali politicians, who accused the process of being rigged and the price inflated. Following the outcry, CAMC lowered its bid to USD 216 million, reducing the cost by approximately 30 per cent.
In 2016, China and Nepal formalised a 20-year agreement for the project, with a quarter of the funding provided as an interest-free loan. Nepal intended to borrow the remainder from China's Export-Import Bank at a 2 per cent interest rate.
As construction progressed, glaring issues came to light. The Civil Aviation Authority of Nepal was responsible for overseeing the Chinese contractor, but the lack of experienced personnel, combined with the inadequate allocation of funds for consultants, hampered the project.
Initially earmarked at USD 2.8 million, the budget for hiring consultants to ensure CAMC's compliance with international construction standards was eventually reduced to a mere USD 10,000, diverting funds elsewhere.
This lack of oversight allowed CAMC to initiate work before consultants were in place and perform construction work that did not meet international standards. Key components, such as soil density tests for the runway's foundation, were omitted, jeopardising the runway's future stability.
Other oversights included the airport's drainage system design, ignoring historical rainfall data and sloping topography, increasing the risk of flooding. The quality of Chinese-made building materials and the identity of vendors were inadequately documented, contravening the terms of CAMC's contract with Nepal, as reported by The New York Times.
While consulting efforts were expected to oversee CAMC's work, the Chinese company managed to sidestep consultants and interact directly with Nepali officials, who had limited construction experience. Any efforts to seek additional information or documentation were often fruitless.
China's Export-Import Bank had commissioned China IPPR International Engineering, aconsulting firm, to ensure the quality, safety, and schedule of the project and to confirm Nepal's satisfaction with CAMC's work.
However, the situation grew murkier in 2019 when CAMC acquired IPPR, turning it from a sister company into a direct subsidiary.
IPPR's fees came from Nepal as part of its loan from the Chinese bank. Chinese engineers working on the project claimed that they were instructed not to scrutinise CAMC's work closely, with a focus on delivering an airport.
Furthermore, allegations surfaced that documents related to the qualifications of IPPR'sworkers in Pokhara had been falsified. In some cases, even employee credentials were manipulated. Such practices revealed a disconcerting disregard for transparency and accountability.
As Pokhara airport struggled to attract international flights, especially from Indian airlines, Nepal's aspirations for the airport were put in jeopardy. Buddha Air, Nepal's largest airline, had requested permits for flights to India but awaited approval from the Indian government.
A feasibility study commissioned by CAMC had projected passenger numbers that would enable the airport to repay its loans from profits, but as of now, no international flights have commenced.
Nepali officials have reportedly requested that China convert the loan into a grant due to the airport's financial challenges, a matter discussed during Prime Minister Pushpa Kamal Dahal's visit to Beijing in late September.
The joint statement issued by China and Nepal during the visit acknowledged the completion and operation of the Pokhara airport but made no mention of plans to waive the loan.
The construction of Nepal's Pokhara airport, primarily funded and executed by Chinesecompanies, has raised concerns about the quality of work, the manipulation of oversight, and the burden of debt on Nepal.
Additionally, the airport's association with China's Belt and Road Initiative has ignited diplomatic tensions with India, making it challenging for the airport to attract international flights.
The Pokhara airport serves as a stark example of the pitfalls associated with importing China's infrastructure development model, highlighting concerns about financial sustainability and transparency, all while fueling geopolitical rivalries in the region.
Source: Beijing Bulletin
