Protesters break into Moldova's Parliament

January 20, 2016

CHISINAU, Moldova (AP) — Hundreds of protesters broke through police lines on Wednesday to storm Moldova's Parliament after it approved a new government to end months of deadlock between the president and the legislature. Six police officers were injured in the scuffles.

Before the vote, protesters massed outside Parliament waving the Moldovan flag and yelling "early elections" as lawmakers met. Afterward, their numbers swelled to thousands who scuffled with police officers before forcing their way into Parliament. They yelled "Cancel the vote!" and "Thieves!"

Police later pushed the protesters back but they forced their way into the legislature again. Police then sent in reinforcements and protesters were later forced out. Moldova, an impoverished former Soviet republic of about 4 million, has been locked in political turmoil since up to $1.5 billion went missing from three banks prior to the 2014 parliamentary elections. Weeks of protests in the fall of 2015 demanded a thorough inquiry into the missing money.

Some of the protesters Wednesday believe the new government is a compromise solution which will not tackle endemic corruption and undertake reforms, while others oppose a pro-European government and think Moldova should remain in Russia's orbit.

Police and demonstrators fired tear gas, radio reported, and protesters set fire to part of the fence surrounding Parliament. Some police officers were beaten by the demonstrators, six of whom were later treated for non-life threatening injuries at the Chisinau Municipal Emergency Hospital, said Eufalia Negreata, a doctor. The head of the pro-European Liberal Party Mihai Ghimpu who voted for the new government, was punched, but did not require hospital treatment.

The European Union's foreign policy chief, Federica Mogherini called for restraint and a dialogue between the sides and Romania's foreign ministry also appealed for calm. The U.S. Embassy in Chisinau called for authorities to meet with the protesters and treat the issues in a calm and transparent way.

Earlier, Parliament had approved the pro-European government of Pavel Filip, the previous technology minister and a former candy factory manager, with 57 votes. The pro-Russian opposition boycotted the vote.

As the session got underway, lawmakers from the Socialists' Party booed, blew whistles and blocked off part of the Parliament. In the end, Filip merely announced his Cabinet. He later said he was committed to Moldova joining the European Union. Moldova signed a political and trade association agreement with the EU in 2014, something Russia opposed.

Parliament had to approve a government by Jan. 29 or face being dissolved. Lawmakers dismissed the previous government in October amid corruption allegations.

Alison Mutler in Bucharest, Romania also contributed to this report.

Hungary government sides with taxi drivers against Uber

January 20, 2016

BUDAPEST, Hungary (AP) — The Hungarian government says it supports taxi drivers in their protest against ride-hailing apps like Uber.

Officials said Wednesday they would initiate talks with drivers to draft legislation aimed at unifying regulations for taxis and other passenger services, like Uber. Uber said in a statement that it welcomed the government's position about the need for "a new, modern regulatory framework" and also welcomed the opportunity to participate in the talks.

State Secretary Bence Tuzson, however, told Hungarian state news wire MTI that Uber would not be invited to the talks and that it could be banned if it did not respect the laws. Since Monday, dozens of taxi drivers have been blocking off several lanes of a key intersection in downtown Budapest demanding that authorities ban Uber.

Latvia marks 25th anniversary of resistance to Soviet rule

January 20, 2016

RIGA, Latvia (AP) — With flowers and torches, Latvians on Wednesday marked the 25th anniversary of building barricades across the country to defend against Soviet attempts to quash the small Baltic nation's quest for independence.

Hundreds of people gathered in Riga's old town, where white-striped burgundy Latvian flags flapped from buildings and on rooftops of the freezing capital. They huddled next to bonfires at Cathedral Square and outside Parliament, where in 1991 sandbags were erected to ward off a feared attack by Soviet troops.

This time Latvian soldiers marched beside people holding torches and waving flags in the snowy afternoon. In 1991, more than 15,000 people across the country participated in erecting barricades, including former policeman Renars Zalais, who was wounded in an attack by elite Soviet commandos against the Latvian Interior Ministry. He said the real barricades "were the Latvian people themselves" who helped guarantee the country's independence, which it gained later that year.

Led by Prime Minister Laimdota Straujuma, officials and lawmakers, Latvians laid wreaths at the central Freedom Monument during Wednesday's solemn celebration. Some Latvians are wary of a new perceived threat as neighboring Russia has been increasing its military presence in the region — and violating Baltic airspace — since it annexed Crimea in 2014.

Andris Vitolins, an artist who painted slogans on barricades and buildings as a teenager, says he would not hesitate to protect his country again. "If we had a situation right now that we had to protect our country, I would come and join ... We have such a crazy neighbor (Russia), it would be just like defending your house or your apartment," he told The Associated Press. "If anyone wants to break in, then there is no other way but to fight."

Wednesday's gathering was part of a series of events this year in the three Baltic countries of Latvia, Lithuania and Estonia to commemorate the end in 1991 of nearly 50 years of Soviet occupation.

Associated Press writer Matti Huuhtanen, who reported on the events in Riga in 1991 for the AP, contributed to this story from Helsinki.

Israeli minister calls for independent Kurdistan

Thursday, 21 January 2016

Israeli Justice Minister Ayelet Shaked has called for the establishment of an independent Kurdish state, Israel’s Yediot Ahronot newspaper reported.

“We must openly call for the establishment of a Kurdish state that separates Iran from Turkey, one which will be friendly towards Israel,” Shaked said at the annual INSS security conference in Tel Aviv.

“We are witnessing the disintegration of nation-states. We Kurds and Jews have a long history. We have common interests in trying to stop the Islamic State. The Kurds are fighting Daesh with all their might,” she added.

Shaked stressed the need for Israel to build cultural, economic and political relations with the Kurds in Iraq and Turkey.

The minister said that Israel explicitly declares its support for “the aspirations of the Kurdish people in the autonomous territories in northern Syria and Iraq”, adding that “the Kurdish people are partners with the Israeli people”.

Source: Middle East Monitor.
Link: https://www.middleeastmonitor.com/news/middle-east/23453-israeli-minister-calls-for-independent-kurdistan.

Iran: 'We have no intention of restoring relations with US'

Thursday, 21 January 2016

Iran has no intention to restore relations with the United States, adviser of the Iranian Shura Council Chairman Hussein Shaykh Al-Islam said, noting that there are mediators seeking to normalize Iranian-Saudi relations, the Anadolu Agency reported.

Al-Islam said that the reason that Iran does not want to restore relations with the US is that there are “very big problems between the two countries.” He described these problems as “bigger than the nuclear issue.”

Relations between Washington and Tehran severed at the end of the 1970s after a number of university students stormed the American embassy in Tehran in the wake of the Iranian Revolution.

On 16 January, the EU and the US lifted economic sanctions placed on Iran due to its nuclear program. This came as a result of a commitment by Tehran to the demands of the nuclear agreement reached on 14 July 2015.

Regarding relations between Iran and Saudi Arabia, Al-Islam said: “Saudi Arabia is our neighbor and it severed the ties, not us,” noting that there are “initiatives being done by a number of countries, including Pakistan and China to normalize our mutual relations.”

Source: Middle East Monitor.
Link: https://www.middleeastmonitor.com/news/middle-east/23456-iran-we-have-no-intention-of-restoring-relations-with-us.

Algeria introducing ratings system for financial sector

Global Arab Network
Ahmed Gamal

Global Arab Network - A new ratings system for Algeria’s financial sector along with increased regulatory oversight, are expected to keep the country’s banks functioning smoothly and help further reduce the vulnerability of the sector to both exogenous and domestic crises, Global Arab Network reports according to OBG.

The Algerian banking system came through the recent international financial turmoil relatively unscathed and is characterized by both profitability and a high degree of liquidity, according to the International Monetary Fund (IMF). Nevertheless, in order to ensure the continued healthy functioning of the sector as it expands and as international banks enter the country, the government has stepped up the powers of the Bank of Algeria, the central bank, to monitor financial institutions.

In a further step, Mohamed Laksaci, the governor of the Bank of Algeria, announced plans in late June to launch a new ratings system as part of efforts to monitor the financial health of Algerian banks to better assure the stability of the sector.

Under the system, which is to be launched before the end of this year, the central bank will monitor the solvency of each bank and financial institution in the country based on a wide range of indicators and ratings, such as solvency ratios and liquidity and risk management ratings, to anticipate potential weaknesses and prevent the emergence of crises in the sector. Laksaci described the system as representing a more operational approach to the supervision of financial risk in the country.

The Bank of Algeria has been working on establishing the new regime for the last three years together with the IMF and the US Department of the Treasury. Under the new system, which is also reportedly aimed at detecting money laundering and other illicit activities, the various bodies responsible for overseeing the financial sector – including the central bank, the Banking Commission and the insurance and capital market regulators – will step up information sharing. Legislative changes made in August 2010 gave the Bank of Algeria greater power to monitor local institutions and carry out investigations at banks and other financial establishments.

Overall, the banking sector is moving forward at a healthy pace: in its most recent Algeria Article IV consultation, published in February, the IMF noted that the sector was characterized by high levels of liquidity, in part thanks to oil receipts, and well-capitalized, profitable banks. It also noted a substantial fall in the non-performing loan (NPL) ratio, from a peak of 22.1% in 2007 to 14.9% as of June 2010, though it noted ongoing substantial NPL levels in public banks.

However, the report also pointed to low lending levels in the sector due to credit risk. Local businesses complain that access to credit remains difficult and expensive in the country, and Algeria ranked 138th out of 183 countries in the “getting credit” category of the World Bank’s 2011 Doing Business rankings.

To combat this, Algerian President Abdelaziz Bouteflika said in early August that the government intended to develop the small and medium-sized enterprise (SME) sector, create jobs and promote and diversify local investment through banking and financial reform measures. To increase lending, the government is planning to launch a credit registry this year that will help banks better assess the ability of customers to repay loans. Measures to make mortgages available to individuals and to increase the level of credit to SMEs are also under way. The government is also taking measures to improve the availability and cost of credit, while foreign investment in the sector is helping it to expand.

Efforts to increase loans in general, and to SMEs in particular, are already having an impact. Lending to the economy grew at an effective rate of 16% in 2010, to AD3.27trn (€31.8bn), following similar growth levels in the three previous years. Bank loans to SMEs grew by 29% to AD830bn (€8bn), or 25.4% of total lending to the economy. Medium- and long-term loans as a share of all loans rose from 57% in 2009 to 60% in 2010.

With a new ratings system forthcoming and efforts to increase lending opportunities under way, the government is taking a pro-active stance at maintaining the banking sector’s stability, which should lead to even stronger and healthier banks.

Source: Global Arab Network.
Link: http://www.english.globalarabnetwork.com/2011101012157/Finance/algeria-introducing-ratings-system-for-financial-sector.html.

Japan FM says Russia key to resolving Syria, N. Korea issues

January 19, 2016

TOKYO (AP) — Japan's foreign minister pledged Tuesday to continue talks with Russia even though the two countries still lack a World War II peace treaty, saying Moscow is key to resolving international threats from Syria and North Korea.

Fumio Kishida also announced $350 million in new aid to help stabilize Syria and its neighboring countries amid the region's massive refugee crisis, following $810 million in earlier humanitarian support.

Kishida said in a speech in Tokyo that a diplomatic dialogue between Japan and Russia is indispensable, even though a territorial dispute has prevented them from technically ending their World War II hostilities. He said the two sides are seeking to hold summit talks "at the most appropriate time" this year.

Media reports say Prime Minister Shinzo Abe might visit Russia in April for talks with President Vladimir Putin ahead of a Group of Seven leaders' meeting in Japan in May. "The international community is faced with various challenges, and Russia's constructive role is essential in resolving the problems," Kishida said, citing North Korea, Syria and the threat of terrorism. "In that context, political dialogue, especially at a political level, is indispensable."

Japan and Russia never signed a post-World War II peace treaty because of conflicting claims over islands north of the Japanese island of Hokkaido. The Soviet Union seized the four island groups in 1945.

Abe has sought to make progress on the territorial issue with Russia, but possible plans for a visit by Putin to Japan were put off following the Ukraine conflict and other issues. Outlining Japanese diplomacy for this year, Kishida expressed hope to visit China in the spring for talks with his counterpart, Wang Yi, to improve relations and resume high-level economic talks that have been stalled since 2010.