Germany calls for Greek bond swap save time (AP)

By DAVID McHUGH and GABRIELE STEINHAUSER, AP Business writers David Mchugh and Gabriele Steinhauser, Ap Business writers - Wed Jun 8, 4: 34 pm EST

Frankfurt, Germany - Minister of Finance of the Germany, said the private creditors must share the burden of any financial assistance more high for the Greece under an agreement to prevent, by default on its debts.

In a letter to officials dealing with the debt crisis and obtained by the Associated Press Wednesday, Wolfgang Sch?uble suggested an Exchange that extend repayments of the debt by seven years and Athens to give time to reform its economy.

Such an approach has already been strongly opposed by the ECB in the field, that it could spread unrest through the financial system of the continent, then the ratings agencies have warned, it could be considered as a defect.

In the letter of Mr. Jean-Claude Trichet, the President of the European Central Bank, the Monetary Fund interim management International Director John Lipsky and other finance officials, said bond - so far spared losses that the countries of the euro area were rescue of Greece, the Ireland and Portugal - should be a "substantial and quantified contribution" for the new aid package reviewed by the Governments of the euro and the Monetary Fund International.

The best way to do that, it was said, was to swap the existing Greek bonds for new bonds which could extend their maturity in seven years. Sch?uble is one of the Finance Ministers of the euro area trying to find an agreement on a new package of aid for the Greece in time for the next formal meeting on 20 June.

He said that expect the Greece need for a "substantial" increase in aid.

"At the same time without another disbursement of the funds before July, we face the real risk of the first default unorderly in the euro area," it said.

In the letter, said any deal June 20 "" must include a clear mandate - to Greece, possibly with the IMF - to begin the process to involve Greek bonds holders.""

"Such a result can best be achieved through an exchange of link leading to an extension of Greek sovereign bonds in circulation by seven years, at the same time giving Greece the time needed to fully implement the necessary reforms and regain the confidence of the markets," said.

The idea may face the opposition of the ECB, which has flatly opposed any restructuring of the Greek debt that would bond with less than full value. ECB officials said that such an approach would be inflict losses on the unstable Greek banks which the Government can afford sick bail and could make it more difficult for other countries to borrow money on the bond market because investors would fear the possibility that similar measures.

The ECB has even threatened to ban the use of the obligations of the Greek Government as collateral for Central Bank credit to Greece does what he considers a restructuring of its debt. Rock, which would be the Greek banking system, which is based on the support of the ECB, because banks can not find credit elsewhere.

The Greece received a package of international rescue (161 billion dollars) last year European billion, but is still the difficulty come with money to pay its debts, as it is considered too risky to borrow on the private bond markets.

The risk of Greece running money next year, as banks and investment funds reluctant to buy bonds of the country, which remains stuck in recession and is struggling to reduce its large budget deficit. Some rich nations are opposed to put more money without obtaining the private creditors share the part of the load.

A spokesman of Monetary Affairs Commissioner Olli Rehn of the Union - one of the recipients of the letter - said Wednesday that no decision on the exact nature of the participation of the private sector has been made, but that officials of the euro area are currently seeking a several options, including asking banks and other financial institutions to keep their loans in Greece at its current level or to extend the deadlines for repayment for bonds that they hold.

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Steinhauser contributed Brussels

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FTSE opens flat interest rates calls (AFP)

London (AFP) - shares of London States it in early trade Thursday, as investors awaited the Bank of England interest rate decisions and the Central Bank European.

The benchmark FTSE 100 shares edged top up 0.04% at 5,810.91 points in the opening of markets.

The two central banks will maintain their loan rates key to low levels after political meetings, opting against increases despite the increase in the inflation caused by rising food and energy prices Thursday.

But analysts expect the ECB to report that he will soon lift its key rates.

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Blair calls for European leader elected (AFP)

London (AFP) - former Prime Minister Tony Blair Thursday warned the EU that elle should elect a leader or face to be left in place by the emerging countries.

The Chief of the newspaper The Times, said former Labour party unless the adopted block "strong, collective leadership and direction", he eventually fled in the wake of China, the India and the Brazil.

Blair shrugged off public fears about more passing control in the hands of the institutions of the EU and called for a change in the perception of the role of the block of one as a peacemaker to one as a world superpower.

"For Europe, the essential thing is to understand that the only way you will get support for Europe today is not on the basis of a sort of post-war considers that the EU is necessary for peace," he said.

"For the generation of my children, it is just a bizarre argument." They don? t see as a real threat.

"What they can completely understand, is that in a particular world in which China will become the dominant power of the 21st century, it is reasonable for Europe to combine together, to use its collective weight to achieve the influence", he added.

The former leader source of discord, which was once considered a possible candidate for the position of President of the European Council believes that the responsibility of an elected leader given concerns about concentration of power.

"If you want to have a debate on the direction of Europe it seems to me very difficult to have Europe-wide, except if you have a few ways by which people choose something that is at the European level, in the nature"he says."

"Us have weight and influence a country like Britain needs unless we are part of this European power thus", he added.

Radical proposal for Blair, who admits has "no chance of being accepted at the present time", would see a leader who represents the interests of the EU on the world stage while at the same time chairs the union of the Member States.

Blair urged the completion of the single market and common policies on energy, defence, immigration and organised crime.

With regard to the "Spring of Arabic" uprisings courses, the Middle East Envoy warned that deeply rooted change required to implement to ensure that the disorder is not diverted by extremists.

"This is a situation in which you certainly need a plan," he said.

"If you get a situation where people get the right to vote, but no other change, no job, and then two or three years down the other line say that Islam is the answer." "If our task is not step to be spectators," he warned.

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FTSE opens flat interest rates calls (AFP)

London (AFP) - shares of London States it in early trade Thursday, as investors awaited the Bank of England interest rate decisions and the Central Bank European.

The benchmark FTSE 100 shares edged top up 0.04% at 5,810.91 points in the opening of markets.

The two central banks will maintain their loan rates key to low levels after political meetings, opting against increases despite the increase in the inflation caused by rising food and energy prices Thursday.

But analysts expect the ECB to report that he will soon lift its key rates.

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Trichet calls for the Ministry of Finance of the eurozone (AP)

Frankfurt, Germany - European head of the Central Bank insisted on tighter control EU spending by national Governments to strengthen monetary union against future and even crises proposed the creation of a single Ministry of finance for the 17-nation bloc.

Jean-Claude Trichet has proposed allowing officials of the European Union make decisions spending for countries in financial difficulty if - as the Greece - they have already been rescued and omitted to make progress on reducing their deficits.

"A way this could imagine is for the European authorities have the right to veto some decisions of national economic policy," Trichet said. "The mission could include major posts tax expenditures and the essential elements for the competitiveness of the country."

With the test of integrity of the euro zone debt crisis, Trichet suggested that the only outcome is a closer union of economic policies between the countries of the euro. He even suggested that the euro could in the coming years to have its own Department of supranational finance.

Trichet, who leaves office when his mandate expires on 31 October, made remarks Thursday at Aix-la-chapelle (Germany), that he accepted the City International Charlemagne Prize, recognizing service for unification European.

Proposals for Trichet looking to the future of Europe long term, since they would require a change much time in the basic Treaty of the European Union. But his remarks were a reference in a timely manner to the situation of the Greece.

The Greece took a rescue ($158 billion) European billion last year, but did not meet its deficit and revenue goals. Officials of the Union European and Greek are discussing the terms of a possible second rescue to avoid as the country default on its debts.

Ireland and the Portugal also have need of eurozone Rescue Fund redemptions and the Monetary Fund International.

Trichet said that the only way to protect the common currency of exceedances by Governments is to make a "quantum leap" by strengthening the rules against the excess debt and deficit limits. A series of previous rules are for is ineffective, as they ignored by Governments.

The European Union is working on a set of proposed new rules, but Trichet said that they are not strong enough to prevent individual countries bad habits of others is in difficulty and urged Parliament to strengthen the proposal.

He said "Is looking today in the euro area, we can see clearly that countries which respect the rules of the single currency can flourish and prosper,". "But we also see the contrary." The countries who have not lived in the letter or spirit of the rules have experienced difficulties. Through the contagion, these difficulties have affected other countries "in the monetary union."

"Strengthen rules to prevent unsound policies is therefore an urgent priority."

Greece have had problems over the years of too spent, with bond assuming market lenders that its accession to the euro meant it was a good risk. When he ran into financial difficulty, however, Greece suddenly found that he could no longer borrow on the capital markets.

Longer term, he said, Europe should consider creation of a Ministry of finance in the euro area which would be standing above national ministries and the police.

He would not have a big budget funded by tax revenue, and the national ministries, but would instead monitor the economic performance of countries and keep an eye for the budgets that go off track or economies who lose competitiveness. It should also to the financial regulations of the euro-wide zone.

"In this Union of tomorrow or day after tomorrow, it would be too bold, in the economic field, with a single market, single currency and a single Central Bank, to consider a Ministry of Finance of the Union?" He declared.

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Belarus IMF calls for the rescue of loan (AP)

MINSK, Belarus - Belarus requested the Fund International Monetary loan to help stabilize its economy collapse, the Government said Wednesday it has difficulty in managing the most serious financial crisis since the Soviet collapse.

No there was no indication of the size of the loan, that the Government had requested, but analysts say at least $ 9 billion is needed to keep the economy on track.

Panic spread across the country last week, when the National Bank reduces the value of the Belarusian ruble against the dollar almost by half. The Belarusians have been rushing to buy the goods and the tail for days currency exchange offices to obtain dollars and euros in a desperate attempt to protect their savings.

On Wednesday, the Government issued a decree to the freezing of prices on food such as fish, cheese, tea and coffee and some fruit and vegetables.

The IMF, which has issued loans Belarus amounting to 3.5 billion in 2009-2010 to help it weather the impact of the global financial crisis, studied the country's finances and should produce a report in mid-June.

"This is an SOS signal from the Belarusian Government, which is loss of control of the situation," said Stanislav Bogdankevich, former head of the National Bank.

Observers pin much of responsibility for the financial difficulties of the country on authoritarian President Alexander Lukashenko, who oversaw an increase in social spending before his end re-election last year. The IMF which is cited as a key economic train.

Belarus is in the hope of a loan of 3 billion of the Russia, but the Kremlin has been dragging its feet, insisting on the fact that it will lend money of Minsk if the country decides the implementation for sale some of its major State enterprises.

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Russia calls for stricter nuclear safety rules (AP)

KIEV, Ukraine - President of the Russia argued Tuesday that guidelines international tough could help prevent accidents such as the massive debacle Chernobyl, defending nuclear energy in solemn ceremonies commemorating the 25th anniversary of the worst nuclear accident in history.

Dmitri Medvedev and Ukrainian President Viktor Yanukovych took part in a religious service outside the damaged Chernobyl No. 4 reactor, laying the first stone of a monument workers cleaning and deposit bouquets of red roses to an another monument to the victims of Chernobyl.

Medvedev said that he has invited the leaders of the world to work on the rules of safety of nuclear energy. His economic adviser, Arkady Dvorkovich, said Russia sent its proposals to the leaders of the other countries of the Group of eight Tuesday, and hoped that they would be reviewed at the Summit of the month next in France.

"It is essential that we understand what kind of force humanity is faced with so that our solutions... the challenges of nuclear energy,"Medvedev said."".

On April 26, 1986 accident spread a cloud of radioactive fallout over much of Europe and forced hundreds of thousands from their homes in highly affected areas of the Ukraine, the Belarus and the Western Russia. He left forest and again contaminated agricultural land, offering a warning to the Japanese of the long-term effects of their own nuclear disaster at the nuclear plant of Fukushima Dai-ichi.

The accident has fostered a deep distrust among many others in the affected areas, where the Soviet leaders waited for days inform people of the accident, to evacuate their contaminated areas and to warn them how to reduce health risks. Medvedev called that a major mistake.

"The Government's obligation is to tell the truth to his people." We have to admit that the Government always acted the right way, "he says. "We must all be honest, we must give absolutely clear information about what is going on.

Yanukovych stressed that nuclear accidents such as Chernobyl and the nuclear explosion at Fukushima on any planet, renew appeals for money to build a new, more secure shelter on the damaged reactor. The Ukraine still needs to raise some 300 million dollars to cover the plant, which remains an exclusion zone, a quarter of a century after the disaster.

"Everyone is convinced that disasters have no borders and Fukushima-1 serves as a bitter example that," said Yanukovych. "No nation can only disaster battle."

Despite the dangers, the three countries most affected former Soviet continue to believe that nuclear energy. Vladislav Bochkov, spokesman for the Russian nuclear energy agency, said 11 reactors are currently under construction in Russia. The Ukraine is building two and Belarus is the construction of a reactor.

The Belarus reactor was built near the border with the Lithuania, where demonstrations took place Tuesday by militants who believe that the project is dangerous.

The Kremlin said that Medvedev launches a call to safety standards more stringent for the construction and operation of nuclear power plants, increasing the responsibility of the Governments when dealing with the consequences of possible nuclear accidents and requiring Governments to provide full information on possible nuclear disasters.

The Chernobyl explosion released about 400 times more radiation than U.S. atomic bomb dropped on Hiroshima. World Health Organization of the United Nations said at a Conference in Kiev last week that among the 600 000 people more heavily exposed to radiation, 4 000 cancer deaths more than average are supposed to be finally found.

Artur Tverdokhlebov, 80, a former subway worker, joined some 3,000 victims of Chernobyl at a memorial service at a monument in Kiev.

"Chernobyl is a wound in the soul of our people," said Tverdokhlebov, which was carried emergency clean up the consequences of Chernobyl in May 1986. "The authorities kept secret, which was really happened, nobody tells us nothing about the danger and we ate fish that we took in the River."

Russia, Ukraine and Belarus cut packages of benefits for workers sickened by recent years cleaning and memorial events were eclipsed by their complaints for more assistance. Prime Minister Mykola Azarov promised Tuesday that the benefits for the victims of Chernobyl would continue to pay.

Belarusian President Alexander Lukashenko, who was blacklisted by the European Union, after a violent crackdown on activists of the opposition late last year took no part in the Ukraine memorial events.

It has been suggested that he was not invited.

"Ask Yanukovych this question - why is not this President to their events." "Ask them," Lukashenko told journalists during a visit to the contaminated regions of Chernobyl in Belarus. "Unfortunately, the current Ukrainian leadership is really ugly."

Some observers believe that the Ukraine wanted to mark the anniversary of Chernobyl without Lukashenko to please Brussels seeks EU membership.

The European Commission, last week promised an another European million ($156 million) program to liquidate the consequences of the Chernobyl explosion.

Lukashenko said Belarus also needs Western aid but had no intention to ask.

In recent years on the anniversary of Chernobyl, Belarusian opposition led a March of protest across the capital, Minsk, channeling anger towards authoritarian Government and fears that it seeks to hide the truth about the consequences of the nuclear disaster.

This year, the March was banned and a gathering of evening relegated in a park on the outskirts.

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Anna Melnichuk Kiev, Vasilyeva Nataliya in Moscow and Yuras Karmanau Minsk contributed to this report.

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Fed calls on banks to tighten mortgage rules (AFP)

WASHINGTON (AFP) - the Federal Reserve on Wednesday was asked some of the largest banks to tighten up their procedures for American mortgage and warned fines next, following a scandal over the houses being unfairly regained possession.

The Fed has issued so-called "consent orders" against 14 lenders - including the Bank of America, HSBC, JPMorgan Chase and Wells Fargo - are demanding a better surveillance, standards and documentation.

The banks have said "to the address a pattern of misconduct and negligence" treatment of foreclosure.

The scandal began with the evidence that the staff had signed documents seized pushing forward without proper validation, a practice which is known as "robo-signature."

There is no fine announced Wednesday, but they are expected.

"The Federal Reserve believes pecuniary sanctions in these cases are appropriate and plans to announce monetary penalties".

Banks moved to resume recording 2.87 million US homes in 2010, according to RealtyTrac foreclosure specialist.

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