Day: June 15, 2023

Heavy fighting in Sudan between the army and paramilitary Rapid Support Forces (RSF) reached a two-month grim mark on Thursday, with clashes still ongoing in the capital and surrounding areas. At least 958 people have been killed and 4,746 others have been injured since April 15, when a conflict broke out in the capital Khartoum and other cities between the Sudanese Armed Forces (SAF) and the RSF, which the military had declared a rebel group. The power struggle between army chief General Abdel Fattah al-Burhan and RSF commander General Mohamed Hamdan ‘Hemedti’ Dagalo has brought the country to the brink of civil war. It comes after the country has grown increasingly unstable politically and economically following military coups in 2019 and 2021, as well as protests in 2018 over soaring living costs. At least 9 million people require humanitarian aid, and over 2 million people have been displaced, and more than half a million Sudanese have fled to neighboring countries due to the continuous armed clashes despite cease-fire decisions and threats of international sanctions, according to the UN. Peace negotiations initiated by the US and Saudi Arabia for the Sudan crisis were inconclusive, and the cease-fire decisions were repeatedly overturned. The following is a timeline of significant events since the beginning of the conflict. April 13: The Rapid Support Forces (RSF) make the first move, sending a large troop to the Merowe Airport and military base in the north, sparking the clashes. April 15: Tensions between the Sudanese army and the RSF escalate into a full-fledged armed conflict. April 17: UN announces to cease operations in the country. April 23: More than 50 countries begin evacuation process. April 28: Army chief General Abdel Fattah al-Burhan declines to meet with RSF commander General Mohamed Hamdan ‘Hemedti’ Dagalo. April 29: Clashes continue despite five cease-fires agreements. May 3: UN Secretary-General Antonio Guterres calls for urgent action to resolve crisis. May 26: Sudan’s defense minister asks retired soldiers and people who can handle a gun to take up arms. June 1: US imposes sanctions and visa restrictions on two sides of armed forces. June 8: Government declares UN representative in Sudan ‘persona non grata.’ Al-Burhan’s special representative says they will be pleased with whatever role Trkiye takes on. June 10: Al-Burhan says they ‘are in favor of any solution that ends the conflict.’ June 12: UN says it will not take the lead in resolving the Sudan crisis. June 13: Government official announces that an agreement reached with the mediators regarding meeting between al-Burhan and Dagalo.

Source: Anadolu Agency

The UN chief cautioned on Thursday that the global response to climate change “remains pitiful,” and emphasized that the world is rapidly heading towards a disaster. “Current policies are taking the world to a 2.8 degree temperature rise by the end of the century. That spells catastrophe. Yet the collective response remains pitiful,” said Secretary-General Antonio Guterres at a press briefing. Guterres said he is “very worried” about the world’s stance on climate change, and that countries are far off-track in meeting climate promises and commitments. “I see a lack of ambition. A lack of trust. A lack of support. A lack of cooperation. And an abundance of problems around clarity and credibility,” he added. He criticized the fact that the human rights of climate activists are being trampled and the vulnerable suffers the most. “We are hurtling towards disaster, eyes wide open – with far too many willing to bet it all on wishful thinking, unproven technologies and silver bullet solutions,” said the UN chief. Criticizing the countries for undermining the climate agenda, Guterres urged all nations to “rebuild trust based on climate justice” and “accelerate the just transition to a green economy”. Limiting the rise in global temperature to 1.5 degrees Celsius is still possible, Guterres noted.

Source: Anadolu Agency

Secretary-General Antonio Guterres said on Thursday that the UN is committed to providing international support to countries hosting refugees. “We are totally committed to mobilize international support to the refugee-hosting countries,” Guterres said at a press briefing. He was responding to a question by an Anadolu reporter regarding whether the UN would provide assistance to nations, including Trkiye, that host Syrians and call for international cooperation to ensure their safe and dignified return. In order for the refugees to return to their countries, they must first be guaranteed that they will not be “persecuted,” said Guterres. The UN is currently engaged in discussions with the authorities of these countries on these matters, and the international community should lend support to projects aimed at facilitating the integration of returning refugees into the societies they go back to, Guterres stated. ‘Europe should define an effective migration policy’ Referring to the capsized fishing boat carrying irregular migrants off the Peloponnese in Greece, Guterres said, “I was terribly shocked and impressed by the horrible events that took place close to the Greek coasts.” “It is time for people to recognize that migration is inevitable,” he said. Guterres stated the world needs migration but migration needs to be done in a regular and orderly way. “If countries do not engage in creating the conditions for an orderly and regular migration, migrants will be in the hands of smugglers and traffickers and the consequences will be as tragic as we have seen yesterday (in the Greek coast),” Guterres warned. Concerning the capsized boat, Guterres said: “This is not a Greek problem. This is a European problem. I think it’s time for Europe to be able in solidarity, to define an effective migration policy for these situations to not happen again”.

Source: Anadolu Agency

Risks to debt sustainability were contained in 2022 despite a weakened macroeconomic outlook, according to the chapter on Cyprus in the annual report of the European Stability Mechanism, which was published on Thursday. The report also records a strong growth of the Cypriot economy, partially due to a smaller than expected impact of the war in Ukraine. Furthermore, the ESM notes that the reduction of non-performing loans (NPL) has slowed down, and that the government’s reform efforts could contribute to the country’s growth. In the overall summary of the report, the Cypriot economy is found to have “recorded strong growth in 2022, partially due to the smaller-than-expected negative impact of the war in Ukraine.” The government budget balance was found to have moved into a surplus as pandemic-related fiscal support ended and energy-related spending remained limited. Sovereign financing conditions deteriorated throughout the year, it is also noted. In the banking sector, “profitability improved but NPL reduction slowed” and “risks to debt sustainability and repayment capacity were contained, despite a weakened macroeconomic outlook”. Finally, the government’s continued reform efforts, “supported by the implementation of the recovery and resilience plan, could raise the country’s growth potential and further promote financial stability.” Chapter on Cyprus from 2022 ESM report As noted in the report, Cyprus’ GDP grew swiftly in 2022, confirming the resilience of the economy despite the challenging economic and geopolitical environment. Real economic activity grew by 5.6% in 2022, above the euro area average and largely driven by robust domestic demand, in particular private consumption, and to a lesser extent external demand. The economic fallout from Russia’s invasion of Ukraine and subsequent sanctions imposed on Russia had less impact than expected. Exposure to Russian energy imports was limited, while the tourism sector coped well with the loss of Russian tourists and saw demand approaching pre-pandemic levels, it is added. The labor market remained strong overall, with an unemployment rate of 7.4% in December 2022. Cyprus received its first disbursement of pound 85 million under the EU’s Recovery and Resilience Facility in December. Strong economic activity, prudent fiscal policy, and the end of pandemic-related support contributed to turning the 2021 fiscal deficit into a surplus of 2.1% of GDP in 2022. Higher revenues and contained energy-related expenditure pushed the primary surplus to 3.6% in 2022. In the high-inflation environment, this contributed to a sharp fall in the public debt-to-GDP ratio to 86.5% in 2022, the report says. Cyprus’ credit ratings improved in 2022 due to better-than-expected economic and fiscal results, proven resilience to external shocks, support from the Recovery and Resilience Facility, and the positive medium-term economic outlook. All major rating agencies assigned an investment grade to Cyprus, except for Moody’s, which nevertheless changed its outlook to positive. Still, Cyprus faced a more challenging market environment in 2022. Yields increased throughout the year as inflation rose and monetary policy began to tighten financing conditions. It is also noted that Cyprus’ banking sector remains resilient. The direct negative effects of Russia’s invasion of Ukraine were primarily concentrated on one Cypriot bank, which decided to voluntarily phase out its banking business following the impact of geopolitical risks on its operations. The volume of outstanding NPLs stabilized in 2022, following considerable reductions over the past few years. In the medium term, the excess liquidity in the system and a further slowdown in NPL workouts could limit banks’ overall profitability gains. The government launched several policy initiatives to address high private sector indebtedness and avoid the build-up of new NPLs. This has become even more urgent in the current high interest rate environment. Cyprus’ economic activity is forecast to lose momentum and grow by 1.6% in 2023, while headline inflation is expected to decline to 4%. Downside risks relate to persistently high inflation weighing on domestic demand, accompanied by a further tightening of financial conditions. The ESM’s assessment of market distress indicates that Cyprus would retain the capacity to repay all obligations due to the ESM over the coming 12 months. An adequate cash buffer helps limit the risk of short term market stress. Over the medium to long term, Cyprus faces moderate risks to the sustainability of public debt and its repayment capacity. To mitigate these risks, Cyprus has committed to fiscal prudence and implementing the investments and reforms foreseen under its recovery and resilience plan. Macro-critical reform priorities include facilitating the transition to a diversified, green, and digital economy, as well as further improving the operational and legal environment for non-bank financial institutions (credit acquirers and servicers). The recurring challenges to and the partial suspensions of the foreclosure framework continue to pose risks to further NPL reduction.

Source: Cyprus News Agency