Showing posts with label record. Show all posts
Showing posts with label record. Show all posts

Thursday, July 7, 2011

Russia makes record bank bail-out

1 July 2011 Last updated at 22:04 GMT Man leaving branch of Bank of Moscow The bank's erstwhile head, Andrei Borodin, has fled the country Russia's fifth largest bank, Bank of Moscow, has been given the biggest bail-out in Russian history.

The $14bn rescue came after another bank, VTB, gained control through a hostile bid, only to uncover bad loans valued at $9bn - a third of the bank's assets.

Bank of Moscow's former head, Andrei Borodin, has fled the country, and a warrant has been issued for his arrest.

The bank was used by ex-Moscow Mayor Yuri Luzhkov to fund property projects.

'Fraudulent lending'

Mr Luzhkov was sacked by Russian President Dmitry Medvedev last year.

In a statement issued in London, Mr Borodin said he was shocked at the size of the bail-out, and claimed that VTB's takeover of the bank was politically motivated.

VTB, for its part, accused Bank of Moscow of committing "fraudulent lending" under Mr Borodin's control, while Russian Finance Minister Alexei Kudrin has called for a criminal investigation.

Under the rescue deal, the Russian central bank will provide a 295bn rouble ($10.6bn) 10-year loan at a negligible interest rate to Bank of Moscow.

Meanwhile, VTB will invest a further 100bn roubles to recapitalise the bank - taking its ownership share from 46% to 75%, enough to qualify for state aid.

VTB, Russia's second-biggest lender, had itself to be rescued by the Russian state to the tune of $6.4bn during the financial crisis.


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Saturday, June 25, 2011

Off the record

23 June 2011 Last updated at 08:09 GMT By Paul Danahar Middle East bureau editor A Palestinian youth throws a stone towards Israeli soldiers standing on the other side of Israel's separation wall 3 June 2011. Since the separation barrier went up around the West Bank, Israelis don't have to watch their backs anymore "If you're going to crucify yourself, don't do it on a small cross." An interesting metaphor particularly when it is addressed to the prime minister of Israel. This advice, I'm told, was from US Vice President Joe Biden to Benjamin Netanyahu.

It was a little while ago, but there's been no sign since of the PM wandering around the Jerusalem forest looking for tall trees.

The message from his speech to the US Congress last month suggested he's not ready for self-sacrifice yet. There were no concessions to US President Barack Obama or the Palestinians.

So, said a senior member of the PLO to me recently: "It's going to be another showdown" when the UN General Assembly meets in September.

There is a lot of diplomatic activity at the moment to persuade Palestinian President Mahmoud Abbas not to seek statehood in the autumn.

It's likely that more than two-thirds of the UN General Assembly will recognise a Palestinian state if it goes to a vote.

But a state cannot get actual membership of the UN unless it is approved by the Security Council, and the Americans will veto that.

The Israelis are hoping to at least get the proposal rejected by a majority of the Security Council.

They want - to translate a common Hebrew phrase - to "lose with dignity".

Western 'bluff'

The Palestinian Authority wants a moral victory over what it sees as Israeli intransigence and American capitulation to Israel.

"What we need is recognition," I was told by someone senior in the Palestinian camp, "and there's wrong language that's being presented as though we going to declare statehood all of a sudden, we are not.

"We are going to ask the UN for recognition of Palestinian statehood, so we're going multi-lateral - we're not unilaterally declaring, which we did in 1988.

"We are trying to put ourselves in the community of nations where we are within international law and where our boundaries are defined by the '67 territories and occupied territories including East Jerusalem... and where will have access then to international accountability venues."

Diplomats say the key voters are Germany, France and the UK.

Germany has said no to recognition; France is "on the fence but trending positively" to supporting recognition; the UK is undecided and anyway won't show its hand until the last minute.

The wording of the resolution could be crucial to its support.

The Israeli government thinks this is a bluff.

"France and Britain will use it as a threat rather than an option," I was told.

Obama 'ambush'

But on the ground Israeli military commanders in the West Bank told me they feared a slow deterioration after September if no political solution were on the horizon.

Israeli Prime Minister Benjamin Netanyahu and Palestinian President Mahmoud Abbas with US Special Envoy George Mitchell. Sept 2010 The US will veto a Palestinian state at the UN

President Obama said in his speech on the Middle East in May that the "international community is tired of an endless process that never produces an outcome".

How tired?

Before the Arab Spring started someone from the "international community" described the conflict as "a competition for victimhood".

He said Mr Netanyahu "doesn't have it in him to be courageous... and he doesn't believe in it." He said the Arab leaders of the time were "huge hypocrites". That tired!

But President Obama hasn't made the process any easier.

His apparently personal decision, late in the day, to include in the May speech a reference to the peace process and in particular a solution based on the 1967 borders infuriated the Israelis.

"We felt like it was an ambush," an Israeli cabinet minister told me. "What seems clear at the moment is that America's most important ally doesn't have a voice in the inner circle.

"We realised, not for the first time, those we speak with like Dennis Ross, Dan Shapiro, [George] Mitchell... and so forth are not in the inner circle.

"The inner circle is very different, different agenda with different understandings."

I asked the minister whether the lack of a good personal relationship between Mr Netanyahu and Mr Obama was making life harder for Israel to make its case.

"You might be right," he said, "but the gaps are so wide - not just between us and the president but between the president and his staff. Mitchell, Dennis Ross, Dan Shapiro they see things very differently."

'Tricks and games'

And what of the Palestinians? They feel betrayed after the hope generated by President Obama's Cairo speech two years ago.

Israel's Foreign Minister Avigdor Lieberman at the annual meeting of the World Jewish Congress , 20 June 2011 Arabs "don't hate [Foreign Minister Avigdor] Lieberman, they fear him," a government official said

"Netanyahu is a disaster. Everybody knows that," the PLO member said.

"I don't know how in his right mind he thinks he can deceive everybody all the time - except the Americans, who are willing accomplices. They do want to be deceived.

"But the Europeans don't want to be deceived, so they see through his tricks and games and they know [Israeli Foreign Minister Avigdor] Lieberman for the SOB that he is."

"[The Arab world] don't hate him, they fear him," a government official told me. "They fear him the way they feared [former Israeli Prime Minister Ariel] Sharon. They fear Lieberman, they take what he says at face value."

"The level of trust is incredibly low between everyone and anyone," a European diplomat told me this week with masterly understatement. And he saw broad support in Israel for Prime Minister Netanyahu's tough stand.

"There he was going to Washington picking a fight with the US president who is likely to be re-elected... and his poll ratings in Israel shoot up."

The fact is that the status quo in recent years has been quite manageable for every nation and region involved in the process apart from the Palestinians, and the Israelis who live along the border with Gaza.

The same diplomat said he thought that "the Israeli people move on peace when they think it will make them more secure not less secure".

The truth is security is not a big issue for the large majority of Israelis and neither is the peace process.

Since the separation barrier went up around the West Bank, they don't have to watch their backs anymore.

The Arab world is actually only a few kilometres away but this autumn - while the rest of the world turns it sights towards the United Nations building in New York - many Israelis will continue to sit on the beach, look across the Mediterranean and pretend they're in Europe.

This is part of an occasional series of pieces by the BBC's Middle East bureau editor based on off-the-record briefings by officials and decision-makers in the region. Follow Paul Danahar on his Twitter feed.


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Friday, June 24, 2011

Airbus seals record aircraft deal

23 June 2011 Last updated at 11:59 GMT Airbus chief executive Tom Enders said he was proud to be AirAsia's partner

Airbus piled up the orders at the Paris air show as it announced the largest single order of commercial aircraft in history.

Malaysia's low-cost carrier AirAsia is buying 200 of the A320neo jets, in a deal worth about $18bn (?11bn).

That eclipsed a deal on Wednesday, when India's IndiGo confirmed an order for 180 planes from Airbus.

The new versions of the A320 are in demand as their new engines make them more fuel-efficient and cheaper to run.

The AirAsia deal, worth about $15.6bn, is for 150 A320neos and 30 A320s. It is confirmation of a memorandum of understanding the two companies signed in January this year.

'Historic deal'

Airbus said that the AirAsia deal made the Malaysian carrier its biggest airline customer for its single-aisle product line.

Altogether, AirAsia has now placed firm orders for 375 aircraft from the A320 family, with 89 already in service.

"With this historic deal, AirAsia has secured its future with the ability to meet the huge growth potential offered by the Asian market," said Tony Fernandes, chief executive of AirAsia.

Airbus, owned by EADS, has left rival Boeing far behind in terms of orders at the event, as high fuel costs increase the demand for more fuel-efficient aircraft.

Continue reading the main story
Though slightly modified, the 150-seat passenger jet itself is not new. But its engines are - and they are much better than anything else currently on offer”

End Quote image of Jorn Madslien Jorn Madslien Business reporter, BBC News, Paris air show It has taken firm orders for 586 aircraft, worth about $55.8bn, with a further $29.5bn in provisional orders.

Boeing, meanwhile, has taken firm orders for just 47 planes, worth $7.5bn, with another $14.9bn placed in provisional orders.

Other manufacturers have also been signing contracts with airlines at the show.

Canada's Bombardier has received firm orders for 36 planes, with options for airlines to buy up to 26 more.

Russian-Italian joint venture Superjet International has signed a provisional deal to sell 12 Superjet 100 airliners to Italian carrier Blue Panorama Airlines for $370m.

The company, jointly-owned by Russia's Sukhoi and a unit of Italy's Finmeccanica, has 170 firm orders to date and delivered its first aircraft earlier this year.

Boeing's dilemma

Airbus estimates it has sold more than 700 A320neo jets so far.

Continue reading the main story Slightly modified version of the A320, with "sharklet" wing tipsSingle-aisle passenger jet, seats 15015% more fuel-efficient than the conventional A320, which should save airlines almost $1m (?625,000) per year per planeShould reduce CO2 emissions from each aircraft by 3,600 tonnes per year

Source: Airbus

"There is a possibility that we will be at 1,000 by the end of the show," said Airbus sales chief John Leahy.

According to the BBC's aerospace industry specialist, Jorn Madslien, the A320neos are proving popular because their two new engines are 15% more fuel efficient and 30% cheaper to maintain than current models.

But Airbus' success leaves Boeing with a very tough dilemma, our correspondent at the air show says.

The US planemaker's A320 rival is the 737, but the plane is very low, so fitting modern, fuel-efficient engines under its wings would be a tight squeeze.

Making it happen would require a new undercarriage, which is costly and difficult, as well as time-consuming, he says.


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Monday, June 6, 2011

Sri Lanka defends military record

27 May 2011 Last updated at 07:43 GMT President Rajapaksa (wearing a scarf) inspects a guard of honour at the military festival President Rajapaksa says his forces followed international human rights law Sri Lankan President Mahinda Rajapaksa has defended the conduct of the military during fighting at the end of the country's protracted civil war.

He was speaking at a huge military festival in Colombo to mark the two-year anniversary of the government's defeat of the Tamil Tiger rebels.

A UN panel of experts recently accused both sides of war crimes during the last days of the conflict in 2009.

The president rejected calls for an independent international inquiry.

The BBC's Charles Haviland in Colombo said that it was a defiant speech from a president who still garners great public support from the war victory.

Thousands of military personnel took part in a march-past and military hardware display, in a now regular ritual.

Our correspondent says that the focus of the commemorations remained very much on the soldiers who died in the war rather than the civilians.

President Rajapaksa did not refer directly to the UN-commissioned report, but said that his forces followed international human rights law as they fought the rebels.

"Our forces carried the firearm in one hand and the human rights charter in the other. Our forces never harboured hatred towards any community or individual," he said.

"Looking at how other countries fight wars, we are proud of the humanitarian nature of our operation.

"Therefore, when we see how some countries carry out operations against enemies today, we are proud."

Sri Lankan Special Task Force soldiers participate in the victory day parade The president paid tribute to the skill of his armed forces at the parade

The president told his troops he would stand by them.

"We were with you in the battlefield. It is same today," he said. "We will not betray you before the world."

The military went out of its way to help the families of killed Tamil Tiger leaders, the president said.

He said that revisiting the past would "simply reopen old wounds".

He also castigated remnants of the Tamil Tigers and their supporters in Europe and the US - accusing them of plotting to destroy his country.

The UN-commissioned report said that tens of thousands of civilians died in the final phase of the war - most of them killed in shelling by government forces.


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