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World Bank and IMF announce agreement on debt relief
New York: The World Bank and International Monetary Fund concluded their annual meetings on Monday with an agreement to write off as much as $57.5bn in debt to ease the burden on impoverished countries.

The debt-relief package, an endorsement of the initiative agreed to by the G8 major industrialised countries in July, would wipe out the debts that the poorest of nations owe to the World Bank, IMF and African Development Bank. The proposal is being sent to the executive boards of those institutions for final approval, World Bank president Paul Wolfowitz said.

As many as 38 nations may be eligible for 100 per cent debt forgiveness, the majority of which are in sub-Saharan Africa.

Immediately following the announcement, Wolfowitz said debt relief is only one step in the process and that developing nations still need better trade laws in order to compete and expand their economies. He stressed the importance for progress at the World Trade Organisation meetings in Hong Kong this December.

The 148 member nations of the WTO have been trying since 2001 to reach a new accord that would update rules for global trade — including limiting import tariffs and export subsidies.

The 18 countries that have been approved for the relief programme, and are close to the finalisation of debt forgiveness are Benin, Bolivia, Burkina Faso, Ethiopia, Ghana, Guyana, Honduras, Madagascar, Mali, Mauritania, Mozambique, Nicaragua, Niger, Rwanda, Senegal, Tanzania, Uganda, and Zambia.

Ten other countries, including Chad, Malawi and Sierra Leone, have already met preliminary conditions for participation and are waiting final approval for entry, the World Bank said.

Ten additional nations are also being considered for debt relief, though they haven't met the criteria necessary yet.
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Debut of Dubai financial exchange opens financial gateway to West Asia
Dubai: The new Dubai International Financial Exchange (DIFX) opened for trading on Monday, aiming to become the leading securities market between Western Europe and East Asia. The exchange, fully open to foreign investment, has said it will list five certificates tracking leading stock indices.

The certificates, issued by Deutsche Bank, track the US Standard & Poors' 500 Index, Japan's Nikkei 225, Europe's Dow Jones STOXX 50 and EURO STOXX 50 and Germany's DAX. It will also list global depositary shares of regional mobile phone company Investcom, most likely in October, after the telecoms company completes an initial public offering.

DIFX's debut also marks a milestone for the Dubai International Financial Centre as it strives to become the gateway for global financial investment in the region.

According to DIFX chairman Lynton Jones, the Middle East was a major source of capital with a rapidly growing economy, but it was outside the world's international financial community. Setting up DIFX and DIFC, with their international style rules and regulations, is an attempt to change that.

Trading hours were set from 2:00 pm to 5:00 pm Monday to Friday in order to encourage international investors, especially from Europe where markets are open during that period.
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Oil prices stabilise as Houston refineries escape damage
Oil prices fell by more than $1 a barrel on Sunday after Houston refineries remained out of the line of fire of Hurricane Rita. Plants further east in Port Arthur and Lake Charles took the brunt however.

US crude, open for a special Sunday session, was down 97 cents at $ 63.2 a barrel and London crude fell by 86 cents to $ 61.6 a barrel. On Friday, US crude declined by $ 2.3 to $ 64.3 a barrel as dealers calculated a weakening Rita would veer wide clusters of refineries around Houston, Texas.
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EU to slash sugar prices, as per WTO rules
The European Union plans to cut sugar prices as much as 39 per cent next year to prevent overproduction in the 25-country bloc and to comply with World Trade Organisation rules.

A group of African, Caribbean and Pacific nations say this may destroy some of their sugar industries.

EU says its reform agenda must go on as planned despite the hue and cry because it is bound by the decision of the World Trade Organisation regarding the international sugar market.
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