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Greek ministers appeal to MPs to back austerity plan


(Reuters) - Greek ministers urged wavering members of the ruling Socialist party on Saturday to do their duty in a knife-edge vote in parliament next week and back painful austerity measures that lenders demand as the price for fresh bailout loans.
Finance Minister Evangelos Venizelos offered to talk to any MP who might have concerns. "I believe that the sense of responsibility will ultimately prevail, the God of Greece is great," he said on TV station Alter.
With Prime Minister George Papandreou's majority down to a handful of votes, one deputy from his PASOK party said on Friday he would vote against the measures, joining another party rebel who announced his opposition earlier this month.
The mix of spending cuts, state selloffs and tax hikes demanded by international lenders to reduce Greece's enormous public debt has caused bitter resentment among ordinary Greeks, who have taken to the streets in daily protests.
A two-day general strike is planned next week to coincide with the votes, following a rolling series of strikes at companies including Greece's dominant electricity producer PPC, which is slated for privatisation next year.
Unable to borrow on the markets because of the ruined state of its public finances, Greece depends on international support to avert bankruptcy in the next few days, an event that could plunge the global economy into turmoil.
But international lenders have demanded a clear commitment to reform and if parliament fails to back either of two key austerity votes on June 29 and 30, the EU and the IMF may refuse to release a vital 12-billion euro funding that Greece needs immediately or to approve a new bailout package.
Athens accepted a package of 110 billion euros of EU/IMF loans in May 2010 but now needs a second bailout of a similar size to meet its financial obligations until the end of 2014, when it hopes to return to capital markets for funding.
Justice Minister Miltiadis Papaioannou urged his fellow MPs to back the unpopular measures. "They must shut their ears to all the criticism they are hearing and do their duty," he said in an interview on TV station Mega.
Despite heavy pressure from European leaders including German Chancellor Angela Merkel, the conservative New Democracy opposition party, has refused to support the package, meaning two or three votes either way could decide the outcome.
Papandreou's government now has 155 seats in the 300-strong parliament. Austerity measures have cost the Socialists five defections since their October 2009 election victory with a majority of 160 MPs.
The embattled prime minister last week sacrificed his previous finance minister, George Papaconstantinou, in a reshuffle to smooth the passage of the austerity plan but opinion polls still show him trailing the opposition.
Papandreou's MPs solidly backed the new government in a vote of confidence on Wednesday. But doubters maintain their opposition to higher taxes and the planned sale of shares in some state-controlled companies.
"Shops are shutting down every day and we are taking anti-growth measures," party maverick Thomas Robopoulos, a car dealer from Greece's second city, Thessaloniki, and one of the few businessmen in parliament told Reuters.
Austerity measures have pushed Greece into its deepest recession in 37 years, with GDP declining more than 4 percent last year. Unemployment has surged to a record 16.2 percent in March with youth jobless rates now at 43 percent.
Venizelos acknowledged that many of the measures he agreed with inspectors from the EU and the IMF late on Thursday were unfair and harsh, but said they were necessary to stave off default.

US eager to deepen cooperate on anti-corruption in India


The United States is eager to deepen its cooperation with India on anti-corruption issues, especially in the field of money laundering and terrorism financing, a top Obama Administration official has said.
"We are very eager to deepen our cooperation with the Indian government (on anti-corruption issues)," the Under Secretary of Treasury for International Affairs Lael Brainard told a group of Indian reporters yesterday when asked about the on-going popular anti-corruption movement in India.

"We have put forward a number of ways that we would be happy to do that including extending technical assistance," Brainard said in response to a question.


"We are looking forward during the discussions on Tuesday next week talking further about the challenges both sides are facing and some of the ways we work here to counter money laundering and terrorism financing.

"We are very eager to deepen co-operation in that area," said the top Treasury official ahead of the next week's India-US Economic Dialogue.

When asked if corruption in India would affect trade and investment in India, she said: "We know from a lot of research and economics that one of the key factors in explaining the health of the investment environment is how much transparency there is and how effective are safeguards against corruption."

"So generally speaking it is very beneficial for purpose of foreign direct investment, for purposes of domestic investment to be able to have an environment which is effective at combating corruption," she said.

Countrywide protests against fuel price hike


Political parties, including the Left and BJP, today came down heavily on the government for striking “another blow” on the common man by hiking the fuel price and staged demonstrations in many parts of the country demanding its immediate rollback.
Slamming the government for the hike, the Left parties asked all their units to immediately conduct hartals, demonstrations and other protest actions.
The CPI(M), CPI, RSP and Forward Bloc said it was “another cruel blow” to the common people as the increase in diesel price would raise transportation cost and affect farmers, while those in kerosene and LPG cylinders would burden the poor.
CPI National Secretary D. Raja accused the government of kneeling down before market forces and corporate houses and demanded immediate roll back of prices.
The Central government on Friday increased diesel price by Rs. 3 per litre, domestic LPG by Rs. 50 per cylinder and kerosene by Rs. 2 per litre.
In the national capital, BJP activists marched towards Parliament but were prevented by police who resorted to use of water canons to disperse the protesters.
The activists tried to jump the barricade and march towards Parliament but police deployed in large numbers prevented them. When the protesters did not stop, police resorted to use of water canons.
Chanting slogans against Prime Minister Manmohan Singh, UPA president Sonia Gandhi and Delhi Chief Minister Sheila Dikshit, they alleged price rise have broken the back of common man.The activists also courted arrest.
The ruling SAD in Punjab and main opposition INLD in Haryana slammed the Centre for effecting “hefty and unwarranted” hike in fuel prices, terming the decision as "anti-people" and demanded a rollback..

Keywords: diesel pricefuel price hike

ICICI Bank to lend Air India R5.5k cr via NCD route

New Delhi: India’s largest private sector lender ICICI Bank has agreed to lend R5,500 crore to Air India to refinance the cash-strapped national carrier, according to media reports on Thursday citing unidentified sources.

ICICI Bank will subscribe to non-convertible debentures (NCDs) to be issued by Air India at 9.8% to help lessen the airline's burgeoning debt, the report said.
The state-run airline, which has been incurring losses since 2007 following a merger with erstwhile Indian Airlines, has a towering debt of R40,000 crore.
Air India, which has been servicing the loan taken for buying aircraft at over 12%, will pay interest every six months to the bank and has agreed to provide government guarantee to the lender.
The bond issue is expected to help the national carrier save around interest cost worth R180 crore, the sources said.
Earlier this month, Air India had announced that it has presented a turnaround plan to various banks.