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British PM Sunak remains adamant over migration deal with Rwanda

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British Prime Minister, Rishi Sunak, has remained adamant on the controversial migration deal, promising to start sending asylum seekers to Rwanda within 10 to 12 weeks.

This would happen after parliament passed long-awaited legislation that would make it easier to remove people who come to Britain illegally.

The Supreme Court ruled the policy illegal in November, but Sunak says the new law is more important than any legal issues. This is how he plans to keep his promise to stop people coming across the Channel in small boats.

Sunak also said he would stop people from taking small boats across the Channel, which is a dangerous route that goes for about 20 miles (32 km). Last year, more than 29,000 people came this way. In 2022, a record 45,775 refugees came this way.

For many Britons, leaving the European Union in 2016 meant taking back control of Britain’s borders and stopping people from freely moving into the country but reports show the situation remains a problem. There have been 6,265 people found so far this year, which is almost 25% more than the same time last year.

Former Prime Minister Boris Johnson agreed to the plan in April 2022. It sends anyone who came to Britain illegally after January 1, 2022, to Rwanda, which is about 4,000 miles (6,400 km) away.

Nevertheless, European courts stopped the first flight of people being sent back to their home countries in June 2022. The Supreme Court then supported a decision that the plan was illegal because migrants could be sent back to their home countries or to other countries where they would be mistreated.

Sunak said that the government had reserved commercial charter planes, ready an airfield, and trained staff to take migrants to Rwanda. He said that the first flight would leave in 10 to 12 weeks, but his party thinks that the new law doesn’t go far enough to stop asylum seekers from being able to appeal against being sent back to their home country.

Because of the law, British courts won’t be able to decide if Rwanda is safe, but they might have to decide on specific cases on their own, though only for very narrow reasons.

“If it ever comes to a choice between our national security — securing our borders — and membership of a foreign court, I’m, of course, always going to prioritise our national security,” Sunak said.

Britain has already paid Rwanda more than 200 million pounds ($304 million), and it could cost more than 600 million pounds to resettle about 300 people. At this point, about 50,000 people could be sent there, but it’s still unclear how many people Rwanda can hold.

Musings From Abroad

World Bank doubts Ethiopia-IMF debt assessment

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Some officials of the World Bank have questioned if the study supporting Ethiopia’s debt restructuring may be “faulty” after criticising an evaluation of the country’s finances done with the International Monetary Fund (IMF).

World Bank consultant, Brian Pinto, and its head economist, Indermit Gill, evaluated the July Debt Sustainability Analysis (DSA), which was created by the IMF and employees of the International Development Association (IDA), the World Bank’s fund for the world’s poorest countries, in an internal document seen by Reuters.

According to the authors, Ethiopia is experiencing a short-term cash shortage rather than a long-term solvency problem, which is a source of conflict between the government and holders of its $1 billion international bond that is in default, based on the DSA.

“We found that the bondholders have interpreted the DSA correctly, but the DSA itself may be faulty,” Pinto and Gill wrote in the paper from earlier this month. “The disagreements about Ethiopia’s debt sustainability will be repeated as other countries become debt distressed.”

A World Bank representative responded to a question regarding the paper by saying, “We generally don’t comment on internal deliberations between the World Bank and the IMF or any of our partner institutions.”

As part of the most recent review of the Fund’s loan program, Ethiopian State Finance Minister Eyob Tekalign told Reuters that the DSA had just been reviewed by IMF and World Bank teams and that the status had not changed significantly.

Without providing further details, an IMF representative acknowledged that its officials travelled to Ethiopia in November for the second review of the Fund’s loan program and added that every review incorporates an update to the DSA. Regarding the memo, the spokeswoman remained silent.

A request for comment from Pinto and Gill was not answered. There has been a tense confrontation between Ethiopian officials and bondholders.

The main point of contention is whether, as bondholders contend, Ethiopia is experiencing a liquidity shortage that may be resolved by rescheduling debt or if it is experiencing longer-term financial issues that necessitate haircuts, or debt write-downs.

According to the DSA, certain statistics on exports indicated pressures on both liquidity and solvency.

It was reported in October that the DSA indicated a solvency problem and that writedowns were inevitable. Investors have criticised a government proposal that suggests an 18% haircut in addition to rejecting the evaluation.

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Musings From Abroad

Swiss company Mercuria partners Zambia’s IDC in new metals trading firm

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According to a statement released by Swiss commodities trader, Mercuria, on Thursday, it has established a metals trading arm with Zambia, the second-largest producer of copper in Africa.

The trading unit is jointly owned by Mercuria and an arm of Zambia’s Industrial Development Company (IDC), and its purpose is to allow Zambia to engage directly in the minerals trading market.

The joint venture “envisages the establishment of a vehicle to market and trade Zambian copper by mutual leverage,” according to a statement from Cornwell Muleya, the CEO of IDC.

The southern African nation wants to increase copper output to roughly 3 million metric tonnes within the next ten years, and in 2023, it produced roughly 698,000 tonnes of copper, down from 763,000 metric tonnes the year before.

In June, the Zambian government announced that it would establish a minerals trading unit.

Investors including First Quantum Minerals and Barrick Gold are ramping up production, with output set to receive a further boost once Vedanta Resources’ Konkola Copper Mines restart activity.

“Our joint venture with IDC marks a significant milestone for Zambia as it positions itself more strategically in the global minerals market,” Kostas Bintas, Mercuria’s global head of metals and minerals, said in the statement.

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