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Kerrey decides not to speak at Jesuit college’s ceremonies

Former Democratic Sen. Bob Kerrey says he has decided not to address graduates and their families at a Jesuit college in Omaha because he doesn't want his support for abortion rights to be a distraction.

Kerrey told Creighton University's president, the Rev. Daniel Hendrickson, in a letter that the May 18 commencement "should be a moment of celebration and not disrupted by politics."

The state Republican Party's executive director, Ryan Hamilton, said last week that Creighton should find a different speaker and "take a stand for their pro-life values."

Kerrey says he supports Roe v. Wade, the 1973 U.S. Supreme Court decision that legalized abortion.

Hendrickson told the campus that he appreciated Kerry's desire not to shift the focus away from students.

Kerrey also served as Nebraska's governor.

Source: Fox News National

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Ohio church apologizes after shocking video shows youth pastor asking kids to cut him in Easter lesson

A church in Pataskala, Ohio apologized after a disturbing video surfaced showing a youth pastor asking kids to spit on him, slap him, and then cut him with a steak knife in an Easter message gone wrong.

"The illustration went too far," Justin Ross, the lead pastor of Impact City Church, explained in a video on Facebook, "and it was inappropriate for the audience that we had, that was students."

THESE EASTER EGGS SHOW KIDS THE 'TRUE MEANING' OF THE HOLIDAY

Part-time youth pastor Jaddeaus Dempsey says he was trying to illustrate what happened to Jesus leading up to the crucifixion, so he asked the students to spit on him and they lined up and did so. Then to slap him, as several students expressed that it was "enough," but then he picked up a knife and asked them to cut him.

"Are you serious?" a student asked, as screams are heard in the background. Dempsey responded: "I'm very serious."

One kid, holding the knife, says, "I cannot do this," and hands the knife to another student.

CALIFORNIA EDUCATOR WARNS OF 'FAR-LEFT' AGENDA BEING PUSHED ON KIDS IN CLASSROOMS

The next student brought the knife to his back as "light" as he could.

Dempsey told him to bring blood so the student tried again, saying he could see blood. Then the video stops.

Many students were taking videos and posting them on social media. One of them was posted by Lola Hatfield, who called it "disturbing."

WARNING: DISTURBING VIDEO CONTENT

Mandy, one of the parents whose kid was handed a knife, told 10 WBNS she was "appalled."

"I was disturbed," she said. "It was disturbing."

AMERICAN CHRISTIAN MISSIONARY GUNNED DOWN IN PARAGUAY

Mandy and her husband Josh rushed to pick up their son from the church and noticed he was upset and thought he was in trouble.

Josh told him he wasn't upset with him but "the things that happened here wasn't okay."

YOUNG BOY CREDITS THIS CHRISTIAN CHILDREN'S SHOW WITH SAVING HIM FROM SUICIDE

The lead pastor agreed, in a video apology, that the reactions to the incident were appropriate.

"Many of you were disgusted. Many of you were hurt by this. Many of you were very confused on why this would be taking place at a church and a youth event, and we agree," Ross said. "It was inappropriate for this audience and there's really no excuse for why it happened."

BOY WHO INSPIRED FAITH SURVIVAL STORY 'BREAKTHROUGH' SAYS 'GOD STILL DOES THE IMPOSSIBLE'

But he said the intent behind it, which was not seen on social media, is important to clear up.

"After Jaddeaus allowed them to spit on him, slap him, and cut him, he sat them down and explained to them about this guy named Jesus, who thousands of years ago, he was put on trial for a crime that he didn't commit, and he was beaten, he was broken, he was whipped, he was crucified, and he died as an innocent man."

The pastor explained that Jesus could've stopped it at any point but "chose to take the debt we call sin."

Jesus did it out of love, the pastor explained, adding that the youth pastor was trying to "share" in Jesus' pain.

MILLENNIALS CREATE BIBLE FOR THE INSTAGRAM GENERATION

Dempsey said some students felt bad and he told them it was completely his idea.

"It was completely my idea. Not Justin, not any of the other leaders, including my own wife, knew the illustration that I was about to perform," Dempsey said. "I crossed the line, and it was over the top and it was just not appropriate. It was in bad judgment. I'm so sorry for misrepresenting the community, the church, the parents, the students, anybody that I hurt. It was not my intention."

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The goal was to show the students how much Jesus loved them, the youth pastor explained.

"In no way do we condone that students or anyone else should spit on someone, should slap them, or use a weapon to harm anyone or harm themselves," Ross said, "and we have a lot to evaluate to ensure that a situation like this doesn't happen again."

Source: Fox News National

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Indonesia president’s campaign chief warns on fake news, undecided voters

Election campaign chief Thohir, talks during a media briefing in Jakarta
Chief of Indonesia's presidential election campaign for Joko Widodo, Erick Thohir, talks during a media briefing in Jakarta, Indonesia, February 27, 2019. REUTERS/Willy Kurniawan

February 27, 2019

By Ed Davies

JAKARTA (Reuters) – The head of Indonesian President Joko Widodo’s re-election campaign said on Wednesday supporters should not be complacent over the incumbent’s lead in opinion polls, given the high number of undecided voters and threat of fake news.

Widodo enjoys a double-digit lead in most opinion polls over retired general Prabowo Subianto ahead of the April 17 election, which is a repeat of the bitterly fought race in 2014.

“Right now we need to focus on undecided voters,” said Erick Thohir, a billionaire businessman picked as campaign chief after he organized the Asian Games hosted by Indonesia last year.Speaking to a group of foreign journalists, Thohir put the number of undecided voters at 12 to 15 percent of the electorate in the world’s third-biggest democracy.

Thohir, who controls media and entertainment assets along with stakes in soccer and basketball clubs around the world, said many of the undecided were young and first-time voters.

Widodo was polling well in the most populous island of Java, and gaining ground in battleground provinces such as West Java and Banten where he struggled in 2014, Thohir said.

“We’re still confident in West Java we can win,” he said, but he added the campaign was struggling in parts of Sumatra island, including West Sumatra and Aceh.

Thohir said it was important not to underestimate the impact of fake news, often circulated on social media, and said the campaign had learned from the 2016 U.S. elections that there was a need to push back in these situations.

“This is why … when there is fake news we need to make a strong statement,” he said.

Indonesian election watchdogs have reported a spike in fake news during the campaign amid concerns about the impact in a country of avid social media users.

“Mr Jokowi is one of the victims in the last few years,” said Thohir, referring to the president’s nickname.

Widodo has been falsely accused in rumors often spread online of being Christian, having Chinese ancestry or being a communist.

All are sensitive accusations in the Muslim-majority country where the communist party is banned and suspicions linger over the wealth of its ethnic Chinese community and the influence of Beijing.

The two main presidential campaigns have promised to run a clean race.

Thohir, 48, who has been touted as a potential future minister, said he would not seek a cabinet job if Widodo won and looked forward “to going back to reality” as a businessman after the election.

(Editing by Darren Schuettler)

Source: OANN

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From bombers to Big Macs: Vietnam a lesson in reconciliation

The Vietnamese capital once trembled as waves of American bombers unleashed their payloads, but when Kim Jong Un arrives here for his summit with President Donald Trump he won't find rancor toward a former enemy. Instead the North Korean leader will get a glimpse at the potential rewards of reconciliation.

By the time the Vietnam War ended in 1975, tens of thousands of tons of explosives had been dropped on Hanoi and nearly two decades of fighting had killed 3 million Vietnamese and more than 58,000 Americans. Vietnam, though victorious, lay devastated by American firepower, with cities in ruins and fields and forests soaked in toxic herbicides and littered with unexploded ordnance.

Despite the conflict's savagery, what followed was a remarkable rapprochement between wartime foes and it took merely 20 years to restore full relations.

Now some hope Vietnam will offer Kim a road map for his own detente with the United States and that the formerly besieged capital city will be the site of a dramatic resolution to one of the last remaining Cold War conflicts.

While North Korea remains America's sworn enemy 65 years after the Korean War fighting ceased, Vietnam today stands as a burgeoning partner which even buys lethal U.S. weaponry. Bilateral trade has soared by 8,000 percent over the last two decades and billions of dollars in American investment flows into one of the world's best performing economies.

And while North Koreans are still taught to loathe Americans by their country's propaganda machine, in Vietnam there is little animosity.

"I was born after the war and only hear war stories from American films or books," said Dinh Thanh Huyen, a 19-year-old university student who was waiting in line at a crowded McDonald's in Hanoi. She said she was happy the former enemies have moved on. "History is for us to learn from, not to hold grudges."

Kim could take note of the history of win-win rapprochement and how Vietnam's communist leaders have allowed a capitalistic economy and an open door to the U.S. and other outsiders, all while not sacrificing their tight grip on power. Or he could allow it all to pass him by as he narrows his focus for the Feb. 27-28 summit on tit-for-tat bargaining over nuclear arms and economic sanctions.

U.S. Secretary of State Mike Pompeo spoke in Hanoi last year about "the once-unimaginable prosperity and partnership" the U.S. has come to enjoy with Vietnam and noted Vietnam was able maintain its form of government.

"I have a message for Chairman Kim Jong Un: President Trump believes your country can replicate this path. It's yours to seize the moment," he said. "This can be your miracle in North Korea as well."

To be sure, Vietnam remains a one-party state with a poor human rights record where even moderate critics and dissenters are frequently jailed.

Since the first Trump-Kim summit last June in Singapore, a few small steps have already been taken along a timeline forged by the U.S.-Vietnamese thaw, including Pyongyang turning over remains of U.S. servicemen killed in the Korean War, the first such hand-over in more than a decade.

It was the same missing in action issue that heralded U.S.-Vietnamese reconciliation, with the repatriation of American war dead creating an environment for improvement in relations in other areas.

Next came step-by-step lifting of economic sanctions, as Washington encouraged Vietnam's so-called "doi moi" reform, initiatives launched in 1986 to shed a state-run economy in favor of a market-oriented one open to foreigners.

North Korea has already shown interest in Vietnam's reforms, sending students and official delegations who returned home with favorable reports. Having enjoyed close relations with North Korea since 1950, Vietnam could be the ideal go-between in nudging Pyongyang to re-engineer its disastrous economy and turn foes to friends.

"Vietnam's model of development 'doi moi' is an important factor in the United States' larger strategy of drawing North Korea out of its self-imposed isolation as part of the larger process of denuclearizing," said Carlyle Thayer, a political scientist at The University of New South Wales.

But Thayer and other experts share strong reservations about how much of the U.S.-Vietnamese "miracle" can be duplicated. There are stark differences in the way the North Korea responded once the fighting stopped.

The North slammed shut its doors and slid into a Cold War bunker — and it remains one of the world's most isolated nations. Vietnam, however, chose to put behind its tragic past and move forward.

Not long after the war, American journalists and official U.S. delegations were allowed entry to a poor, shabby Hanoi, its lovely French colonial buildings moldering from neglect. The only clothes many men had were the baggy green uniforms and pith helmets of the North Vietnamese army. Suspicion was palpable and Westerners, including journalists, were assigned minders to keep tabs on them.

Expecting a hostile reception, the Americans were stunned at the lack of animosity displayed by the average Vietnamese, even those who had lost loved ones to U.S. bombs. Returning American veterans were often signaled out for especially warm welcomes, sometimes tearfully embracing their onetime battlefield enemies while exchanging stories of suffering.

Making such scenes possible were a set of special circumstances. Some were geo-political: Vietnam badly needed a counter-balance that the U.S. could provide to its perennial enemy — neighboring China.

This has taken on special urgency in recent years as Beijing moves aggressively to claim large swaths of the South China Sea. Telling are the exchanges between the U.S. and Vietnamese coast guards and the provision of U.S. patrol boats. Last year the USS Carl Vinson, an American aircraft carrier, made a historic port call in Vietnam, the first of its kind since the war ended.

Vietnam also no longer faced a threat from the United States, whereas North Korea perceives that it does, making abandonment of its nuclear program difficult, perhaps even in exchange for the lifting of economic sanctions.

But an underlying human element was also at work.

"During the Vietnam War Hanoi always drew a distinction between the peace-loving American people and the imperialist American government," Thayer said. "There was a basis for future reconciliation."

The face-to-face encounters that followed, serving to ease mutual hostility, never occurred with North Korea. Instead, generations of North Korean children sat in classrooms looking at posters of Americans portrayed as big nosed goblins. A massive anti-American rally loomed large on the annual calendar.

"The Vietnamese saw over the years of our war that many American people and veterans spoke out against the war," said Bob Mulholland, a prominent Vietnam combat veteran.

And there were powerful advocates of reconciliation, including Sens. John Kerry and the recently deceased John McCain as well as other veterans who quietly returned to Vietnam to help the shattered country.

Although the Vietnam War has begun to fade from the collective memory in both countries, it is not the "forgotten war" that the Korean conflict has long been known as. With peace and greater prosperity have come fresh connections forged by a younger generation.

Near the McDonald's in Hanoi's old quarter, not far from a Starbucks, the area is closed to traffic each weekend and entertainers, including American buskers, take to streets now strung with U.S. and North Korean flags. Vietnamese youth can be seen mingling with young American travelers.

Just a short stroll away, tourist Brian Walker was taking in Hanoi's Military War Museum, fronted by the wreckage of an American B-52 shot down while bombing the city.

"For many Americans, it may be a country of a bloody war that we took part in," said 28-year-old social worker from New York City. "But coming here, all I see is people with big smiles, good food and a beautiful landscape."

___

Gray reported from Bangkok.

Source: Fox News World

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Self-styled Slovenian militia leader sentenced to prison

A court in Slovenia has sentenced a right-wing politician to eight months in prison for organizing a self-style militia that was filmed posing with weapons like axes and rifles.

The court in the northeastern town of Maribor ruled Friday that Andrej Sisko incited subversion of constitutional order with his group.

Video and photos of dozens of Sisko's masked men training in a field shocked predominantly-moderate Slovenia when they appeared on social media last year.

Sisko, a former presidential candidate and a soccer fan leader, is known for his anti-immigrant views.

The Maribor court also sentenced the person who filmed the militia video to a three-month suspended prison term.

Source: Fox News World

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NHL roundup: Flames down Ducks, extend hot streak

NHL: Anaheim Ducks at Calgary Flames
Feb 22, 2019; Calgary, Alberta, CAN; Calgary Flames left wing Andrew Mangiapane (88) celebrates with temmates after scoring a goal during the third period against the Anaheim Ducks at Scotiabank Saddledome. Mandatory Credit: Sergei Belski-USA TODAY Sports

February 23, 2019

Andrew Mangiapane scored the game-winning goal late in the third period, and TJ Brodie collected a goal and an assist as the host Calgary Flames won their fourth consecutive game, defeating the Anaheim Ducks 2-1 on Friday night.

Goalie Mike Smith made 25 saves for the Flames, who strengthened their hold on the top spot in the Western Conference.

Mangiapane broke the tie with 3:29 remaining in regulation. He tried to make a pass on a two-on-one rush only to see it blocked, but the puck came back to the speedy rookie, and he promptly buried a short-side offering for his third goal of the season, all in his past seven games.

Brodie and Anaheim’s Derek Grant scored in the second period. Ducks goalie Ryan Miller made 26 saves.

Blue Jackets 3, Senators 0

Sergei Bobrovsky made 22 saves to record his fourth shutout of the season as Columbus skated to a win over host Ottawa, hours after acquiring pending unrestricted free agent forward Matt Duchene from its opponent.

Josh Anderson scored his seventh goal in 11 games for the Blue Jackets. Cam Atkinson netted his team-leading 33rd tally and Oliver Bjorkstrand also scored to help Columbus snap a two-game skid. Duchene had three shots on goal against his former team.

Ottawa rookie forward Brady Tkachuk fell on Bobrovsky late in the second period to raise tensions between the teams. The two-time Vezina Trophy recipient barely was tested the rest of the way en route to his 28th career shutout.

Avalanche 5, Blackhawks 3

J.T. Compher had two goals and an assist, including a tiebreaking goal on a breakaway with 5:22 remaining in the third period as Colorado held on for a win at Chicago.

Carl Soderberg also scored twice for the Avalanche, who won their third consecutive game. Gabriel Landeskog added a goal and an assist for Colorado.

The loss spoiled a historic night for Blackhawks forward Patrick Kane, who tallied at least one point for the 20th game in a row. Kane owns the two longest point streaks by a U.S.-born player in NHL history, including his 26-game streak during the 2015-16 season.

Wild 3, Red Wings 2

Devan Dubnyk made 26 saves to lift Minnesota to a win at Detroit, the first time since Jan. 23 that the Wild followed up a win with another victory. Minnesota had lost nine of its previous 11 games, going 2-6-3 in that span.

Luke Kunin had a goal and an assist for the Wild, who also got tallies from Jordan Greenway and Eric Staal.

Tyler Bertuzzi and Anthony Mantha had goals for the Red Wings, with Dylan Larkin assisting on both plays.

–Field Level Media

Source: OANN

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U.S. envoy says Venezuela oil production dropping steadily

FILE PHOTO: United States diplomat Elliott Abrams takes notes during a meeting of the U.N. Security Council called to vote on a U.S. draft resolution calling for free and fair presidential elections in Venezuela at U.N. headquarters in New York
FILE PHOTO: United States diplomat Elliott Abrams takes notes during a meeting of the U.N. Security Council called to vote on a U.S. draft resolution calling for free and fair presidential elections in Venezuela at U.N. headquarters in New York, U.S., February 28, 2019. REUTERS/Lucas Jackson

March 15, 2019

WASHINGTON (Reuters) – The U.S. special representative for Venezuela said on Friday that Venezuela’s oil exports have been dropping steadily by roughly 50,000 barrels per month and production is likely to dip below a million barrels a day within a “month or two.”

“They are heading down toward a million now, and in a month or two will be below a million” barrels per day, U.S. envoy Elliott Abrams told a news briefing, adding that the decline seen in recent days could partly be attributed to the blackouts that had crippled the country. “It’s a steady decline.”

The OPEC member’s oil production has dwindled in the last two decades, from more than 3 million bpd at the beginning of the century to between 1.2 million and 1.4 million bpd by late 2018. Most of the crude it produces now is heavy or extra heavy.

(Reporting by Lesley Wroughton; Writing by David Alexander)

Source: OANN

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Venezuela's Foreign Affairs Minister Jorge Arreaza talks to the media during a news conference in Caracas
Venezuela’s Foreign Affairs Minister Jorge Arreaza talks to the media during a news conference in Caracas, Venezuela April 8, 2019. REUTERS/Manaure Quintero

April 26, 2019

WASHINGTON (Reuters) – The U.S. Treasury Department on Friday imposed sanctions on Venezuela’s foreign minister and a Venezuelan judge, according to a statement on the department’s website.

Foreign Minister Jorge Arreaza and a judge, Carol Padilla, were targeted over the ongoing crisis in Venezuela, the Treasury Department said, the latest in a list of officials blacklisted by U.S. authorities for their role in President Nicolas Maduro’s government.

(Reporting by Susan Heavey, Makini Brice and Lesley Wroughton; Editing by Chizu Nomiyama)

Source: OANN

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Avengers fans gather at the TCL Chinese Theatre in Hollywood to attend the opening screening of
Avengers fans gather at the TCL Chinese Theatre in Hollywood to attend the opening screening of “Avengers: Endgame” in Los Angeles, California, U.S., April 25, 2019. REUTERS/Mike Blake

April 26, 2019

LOS ANGELES (Reuters) – Marvel Studios superhero spectacle “Avengers: Endgame” hauled in a record $60 million at U.S. and Canadian box offices during its Thursday night debut, distributor Walt Disney Co said.

Global ticket sales for the film about Iron Man, Hulk and other popular characters reached $305 million for the first two days, Disney said.

(Reporting by Lisa Richwine; Editing by Chizu Nomiyama)

Source: OANN

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Funeral of journalist Lyra McKee in Belfast
Labour Party leader Jeremy Corbyn attends the funeral service for murdered journalist Lyra McKee at St Anne’s Cathedral in Belfast, Northern Ireland April 24, 2019. Brian Lawless/Pool via REUTERS

April 26, 2019

LONDON (Reuters) – The leader of Britain’s opposition Labour Party, Jeremy Corbyn, said on Friday he had turned down an invitation to a state dinner which will be part of U.S. President Donald Trump’s visit to Britain in June.

“Theresa May should not be rolling out the red carpet for a state visit to honor a president who rips up vital international treaties, backs climate change denial and uses racist and misogynist rhetoric,” Corbyn said in a statement.

He said maintaining the relationship with the United States did not require “the pomp and ceremony of a state visit” and he said he would welcome a meeting with Trump “to discuss all matters of interest.”

(Reporting by Andy Bruce; Writing by William Schomberg)

Source: OANN

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A bedridden 67-year-old woman and more than a dozen animals were rescued Thursday after a welfare check found that they were living in a home filled with trash, urine, and feces, Florida police said.

Pinellas County sheriff’s deputies said when they arrived at the home in Dunedin around 7:20 p.m. Thursday, they could smell the odor of rotting trash and animal feces as they walked up to the driveway.

“Inside the residence, the odor of feces and urine was so overwhelming that deputies had to don masks,” the sheriff’s department said in a statement.

FLORIDA SHERIFF ON BORDER CRISIS AFTER MAJOR DRUG BUST: ‘IT MAKES ME ABSOLUTELY CRAZY’

Walking throughout the residence, the deputies found 10 emaciated dogs and puppies living in bins filled with their own feces, five large Macaw birds flying freely, rats, bugs and overall squalor.

Puppies discovered living in their own feces inside a Florida home that was filled with trash, urine, and feces.

Puppies discovered living in their own feces inside a Florida home that was filled with trash, urine, and feces. (Pinellas County Sheriff’s Office)

Deputies said due to the large amounts of trash in the home, they had to clear a path to reach the victim’s bedroom.

“None of the home’s toilets were working and all were found to be overflowing with feces,” deputies said. “The only working sink was located on the opposite end of the house from the victim’s bedroom.”

They said there was no food or water for the victim or the animals.

FLORIDA MAN IN EASTER BUNNY COSTUME CAUGHT IN VIRAL BRAWL IS WANTED IN NEW JERSEY, HAS HISTORY OF ARRESTS

The victim was transported to a local hospital for injuries that were non-life threatening, while the animals were transported to shelters.

The woman’s caretaker, Richard Lawrence Goodwin, 65, was arrested and charged with abuse and neglect of an elderly person, disabled person, and cruelty to animals.

Richard Goodwin, 69, was arrested for abuse and neglect of an elderly and disabled person after deputies found she was living in deplorable conditions.

Richard Goodwin, 69, was arrested for abuse and neglect of an elderly and disabled person after deputies found she was living in deplorable conditions. (Pinellas County Sheriff’s Office)

The sheriff’s department said this was Goodwin’s second arrest for abuse and neglect of the same victim. He was previously arrested in May 2018.

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Neighbor Victoria Muenzerbeer told FOX 13 that Goodwin and the victim were hoarders and the conditions inside the home were horrible years ago when she visited once.

“I went in and it was absolutely, a human being couldn’t live there,” she said. “The kitchen wasn’t usable and part of the wall was falling in.”

Source: Fox News National

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Libyan Minister of Economy Ali Abdulaziz Issawi speaks during an interview with Reuters in Tripoli
Libyan Minister of Economy Ali Abdulaziz Issawi speaks during an interview with Reuters in Tripoli, Libya April 25, 2019. REUTERS/Hani Amara

April 26, 2019

By Ulf Laessing

TRIPOLI (Reuters) – Libya’s U.N.-recognized government has budgeted up to 2 billion dinars ($1.43 billion) to cover costs of a three-week-old war for control of the capital, such as treatment for the wounded, to be funded without new borrowing, the economy minister said.

Ali Abdulaziz Issawi suggested the government hoped for business to continue more or less as usual despite the assault on Tripoli, in the country’s northwest, by forces tied to a parallel administration based in the eastern city of Benghazi.

Once Africa’s third largest producer of oil, Libya has been riven by factional conflict since the fall of Muammar Gaddafi in 2011, with the country now broadly split between eastern-based forces under Khalifa Haftar and the U.N.-backed government in Tripoli, in the west, under Prime Minister Fayez al-Serraj.

Still, with Haftar’s Libyan National Army forces unable so far to pierce defenses in Tripoli’s southern suburbs, normal life and business activities continue in much of the capital and western coastal towns.

Issawi, in an interview with Reuters in his Tripoli office, also said Libya’s commercial ports and wheat imports were still functioning normally, although some roads have been blocked.

He said the Serraj government estimates it will spend up to 2 billion dinars extra on medical treatment for wounded, aid for displaced people and other “emergency” war costs.

He said this was not military spending but analysts believe that the sum will also cover expenditures such as pay for allied armed groups or food for fighters.

“We could actually spend less,” he added, in comments that gave the first insight into the economic impact of the fighting.

Issawi said the Tripoli government, which controls little territory beyond the greater capital region, would not incur new debt to fund the war costs, sticking to a plan to post a 2019 budget without a deficit.

Tripoli derives revenue largely from oil and natural gas production, interest-free loans from local banks to the central bank, and a 183 percent surcharge on foreign exchange transactions conducted at official rates.

But with centralized tax collection greatly diminished, public debt has piled up – to 68 billion dinars in the west, including unpaid state obligations such as social insurance.

Some analysts expect Serraj’s government will be forced to raise new debt if the war for control of Tripoli drags on.

With much of Libya dominated by armed factions that also act as security forces, the public wage bill for both the western and eastern administrations has soared as fighters have been made public employees in efforts to buy their loyalty.

The east has sold bonds worth 35 billion dinars outside the official financial system as the Tripoli central bank does not fund the parallel government apart from some wages.

Despite its limited reach, the Tripoli government still runs an annual budget of around 46.8 billion dinars, mainly for public salaries and fuel subsidies.

“This year we cannot finance via debt…we will not borrow (by agreement with the central bank),” Issawi said.

According to International Monetary Fund data, Libya’s central government debt-to-GDP ratio is 143 percent, making it one of the most heavily indebted in the world on that measure.

Issawi declined to say what parts of the budget would be trimmed to support the extra outlay for war costs.

However, with some 70 percent of the budget allocated to public wages, fuel subsidies and other welfare benefits, a portion devoted to infrastructure is most likely to be axed.

Widespread lawlessness has meant there have been no major infrastructural projects since 2011, when a NATO-backed uprising overthrew dictator Muammar Gaddafi, leaving schools, hospitals and roads in acute need of restoration.

FOREX SURCHARGE

Issawi said the government planned to raise as much as 30 billion dinars by the end of 2019 from hard currency deals after imposing in September a 183 percent surcharge on commercial and private transactions done on the official rate of 1.4 to the U.S. dollar. That fee has effectively devalued the official rate to 3.9, much closer to the black market equivalent.

Some 17 billion dinars have been raised since then, with hard currency allocated for import credit letters now issued without delays, Issawi said. The forex fee has helped the government forecast a budget in the black for 2019.

Despite the narrowing spread between the two rates, the black market continues to thrive. Dozens of traders remained at their favorite spot behind the central bank headquarters in Tripoli when Reuters reporters visited it last week.

But traders said it could take time for the Serraj government to register the extra forex receipts as official banking channels were taking up to six months to approve import financing, keeping the black market in play for dealers.

Issawi said authorities planned to lower the forex fee from 183 percent, without saying when. The black market rate has dropped from 6 to around 4.1 since September but it has hardly moved of late as demand for black market cash remains high.

The Tripoli government has stopped subsidizing food and bread, which used to be cheaper than drinking water in Libya. Wheat imports are now being arranged by private traders and there are surplus stocks of flour at the moment, Issawi said.

(Reporting by Ulf Laessing in Tripoli with additional reporting by Karin Strohecker in London; Editing by Mark Heinrich)

Source: OANN

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