New child soldier fears in C. African Republic

BANGUI, Central African Republic (AP) — The U.N. children's agency says it's concerned about a growing number of children being recruited by armed groups in Central African Republic as President Francois Bozize's government faces a rebellion in the north.
UNICEF said Friday it has received "credible reports that rebel groups and pro-government militias are increasingly recruiting and involving children in armed conflict."
Souleymane Diabate, UNICEF Representative for Central African Republic, said children who have become separated from their families amid the instability are at the greatest risk.
UNICEF estimates that even before the latest crisis here some 2,500 children were part of armed groups in the country long plagued by rebellions. Rebels have seized 10 towns in a month's time.
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Bolivia expropriates Spanish energy subsidiaries

LA PAZ, Bolivia (AP) — President Evo Morales nationalized the Bolivian electricity distribution subsidiaries of the Spanish energy company Iberdrola in a public ceremony Saturday.
Morales issued a decree allowing the takeover of shares in Empresa de Electricidad de La Paz (Electropaz) and Empresa de Luz y Fuerza de Oruro (Elfeo), which supply energy in this Andean nation.
Soldiers guarded the installations of the electricity distribution companies, marked with signs reading: "Nationalized."
In the ceremony at Bolivia's government palace, Morales also announced the expropriation of an investment management company and a service provider belonging to the Spanish energy giant.
Morales said he had "been forced to take this step" to ensure that electric service rates remain "equitable" in the regions of La Paz and Oruro.
The Spanish government said in a statement that it regretted Bolivia's decision to nationalize companies that included "Spanish, Argentine and American companies among its shareholders."
Spain said it hoped "the process of assessing the value of the nationalized company is done with high standards of objectivity that would establish the just compensation to which shareholders are entitled."
Telephone calls and emails seeking comment from Iberdrola in Spain were not immediately answered.
The decree read by Morales calls for Iberdrola to receive indemnification after an independent firm is hired within 180 days to determine the value of the nationalized shares.
Morales in May also nationalized Transportadora de Electricidad belonging to Spanish company Red Electrica, which controlled 74 percent of energy transmission in Bolivia.
In his first year in office in 2006, the Bolivian president nationalized the oil industry through a renegotiation of contracts with a dozen oil companies, including Repsol, Petrobras, BG and Total.
In 2009 Morales transferred to state control the country's largest telephone operator, which had been controlled by Italy's ETI, and in 2010 he did the same with the four largest power generators, which had belonged to French-owned Suez, Rurelec of Britain and Bolivian shareholders.
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Mexico City orders prison in animal cruelty cases

MEXICO CITY (AP) — Mexico City lawmakers have approved prison terms for animal cruelty, previously considered a civil offense sanctioned with fines and detentions.
The capital's legislative assembly unanimously agreed that people who intentionally abuse and cause animals harm will face up to two years in prison and pay up to $500. If the animal is killed, they can face up to four years in prison and a $2,000 fine.
Antonio Padierna, president of the assembly's law enforcement and justice committee, said late Friday that if animals are killed for food, the death must be quick and not cause pain.
The lawmakers agreed current administrative laws weren't doing enough to end animal cruelty. In Mexico City, animals are sometimes killed by being burned, beaten or shot.
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Argentina to court: revert order on debt holdouts

BUENOS AIRES, Argentina (AP) — Argentina is asking a US appeals court to reverse an order for the country to pay $1.33 billion to "holdout" creditors who refused to join two swaps for the country's defaulted debt.
Argentine government lawyers said in papers filed late Friday that the order violates the country's sovereignty. The lawyers said the order also threatens service on at least $24 billion of the county's restructured sovereign debt, impairs the rights of third parties and puts global debt markets at risk.
"The Amended Injunctions have no basis in law, are inequitable, and threaten to wreak havoc on countless innocent third parties, which have already suffered losses due to the plunge in their bonds' value provoked by the insecurity that the Amended Injunctions have created in the market for Argentina's New York law-governed bonds," the briefing said.
"This harm to private and sovereign creditors, as well as to New York law and New York as a place to do business, will only grow if the Amended Injunctions are affirmed. "
The U.S. 2nd Circuit Court of Appeals in New York ordered the country on Oct. 26 to pay the holdouts an equal amount whenever it makes payments on other debt that has been restructured since the country's economic collapse 11 years ago.
It agreed with U.S. District Judge Thomas Griesa, who ruled that with more than $40 billion in foreign reserves, Argentina can afford to pay. The ruling gave Argentina a difficult choice: pay all bondholders equally, or pay none of them and risk going into default.
The court then returned the case to Griesa who ordered Argentina to pay the $1.33 billion into escrow for holders of its defaulted debt and banned banks and other third parties from intervening. Griesa based his ruling on the principle of "pari passu," or equal footing, which says debtors can't pick and choose between creditors.
President Cristina Fernandez called Griesa's ruling "judicial colonialism," and Argentina sidestepped the impending economic chaos when the order was suspended by the appeals court on Nov. 28.
But just the threat of the payment deadline set by Griesa had harsh outcomes. In the week after he issued his order, the cost of maintaining Argentina's overall debt soared in trading on U.S. and European bond markets and the cost of insuring those debts spiked.
"A court can arguably enjoin a foreign state from engaging in a commercial activity within the United States. But it cannot issue an order to force or preclude a foreign sovereign to act or not act within the limits of that sovereign's own territory," Argentina's brief said.
"By dictating to Argentina that it cannot pay moneys it owes to the exchange bondholders in a funds transfer in its own country, and commanding that it make a payment (including via escrow) to holdout creditors that it is precluded from paying under its own laws, the Amended Injunctions violate this fundamental principle."
Argentina, however, said it's willing to make concessions. To end the lengthy dispute, government lawyers said the country is willing to ask Congress to give holdout creditors the same treatment as those who joined a 2010 debt swap.
"The only definitive and equitable solution to pari passu claims that would bring legal and economic certainty is to treat plaintiffs and all other similarly situated claimants equitably on the same terms as participants in (Argentina's) 2010 Exchange Offer," the brief said.
The new arguments are part of the final stage of Argentina's legal battle with NML Capital Ltd., the investment fund that brought the case and that specializes in suing over unpaid sovereign debts.
The US government filed an "amicus," or friends of the court brief, late Friday backing Argentina's request for a rehearing in the case citing that the appeals court order affects US-Argentina relations, threatens the solution of future debt crises and blocks the legal immunity given to a sovereign country. It also says that it potentially blemishes the role of New York as financial center.
Argentina tarnished its reputation worldwide by engaging in the biggest sovereign debt default in history a decade ago. Since then, the government has restructured about 92 percent of its world record $95 billion debt default.
But Fernandez refuses to pay the holdouts calling NML Capital and others "vulture funds" for buying debt for pennies on the dollar in 2002, when Argentina's economy was in ruins and now wanting to collect in full.
The fiery, center-left leader says it was their loss for refusing two opportunities to swap defaulted bonds for new, less valuable bonds that the state has reliably paid since 2005.
NML Capital fund, run by billionaire Paul Singer and other plaintiffs, slammed Argentina's arguments late on Friday.
"With more than $43 billion in foreign currency reserves and tens of billions of dollars in additional resources, Argentina has the overwhelming capacity to pay the $1.3 billion it owes in this matter," Peter Truell, spokesman for NML's parent company Elliott Management Corp., told the Associated Press in e-mail.
"Today's filing by the Republic once again demonstrates Argentina's irrational persistence in evading its contractual obligations and the orders of US courts."
Oral arguments in the case are scheduled for Feb. 27 before the U.S. 2nd Circuit Court of Appeals in New York.
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Venezuelan VP heads to Cuba to visit ailing Chavez

HAVANA (AP) — Venezuela's vice president arrived in Havana to visit President Hugo Chavez as he recovers from cancer surgery, Cuban official media said early Saturday.
Communist Party newspaper Granma published online a photo of Vice President Nicolas Maduro being greeted at the airport in the Cuban capital by the island's foreign minister, Bruno Rodriguez.
"From there, (Maduro) went directly to the hospital where President Hugo Chavez Frias is receiving treatment to greet his family members and Venezuelan Science and Technology Minister Jorge Arreaza Monserrat, and to discuss with doctors the adequate moment to visit the President the same day," the paper said.
Granma added that Maduro was accompanied by Venezuelan Attorney General Cilia Flores.
The previous night in Caracas, Venezuela, Maduro did not specify how long he would be away but said Energy Minister Hector Navarro would be in charge of government affairs in the meantime.
Maduro's trip comes amid growing uncertainty about Chavez's health.
The Venezuelan leader has not been seen or heard from since undergoing his fourth cancer-related surgery Dec. 11, and government officials have said he might not return in time for his scheduled Jan. 10 inauguration for a new six-year term. There have been no updates on Chavez's condition since Maduro announced Monday night that he had received a phone call from the president who was up and walking.
Maduro is the highest ranking Venezuelan official to visit Chavez since the surgery. Bolivian President Evo Morales traveled to Cuba last weekend in a quick trip that only added to the uncertainty surrounding Chavez's condition. Morales has not commented publicly on his visit or even confirmed that he saw Chavez while he was there.
Earlier Friday, Maduro read a New Year message from Chavez to Venezuelan troops, though it was unclear when the president composed it.
"I have had to battle again for my health," Chavez said in the message. He expressed "complete faith in the commitment and loyalty that the revolutionary armed forces are showing me in this very complicated and difficult moment."
A group of opposition candidates demanded Friday that Maduro provide an official medical report on Chavez's health. Lawmaker Dinorah Figuera said the country needs "a medical report from those who are responsible for the diagnosis, evaluation and treatment of the president."
"The Venezuelan people deserve official and institutional information," Figuera told Venezuelan media.
Before leaving for Cuba, Chavez acknowledged the precariousness of his situation and designated Maduro as his successor, telling supporters they should vote for the vice president if a new presidential election was necessary.
A legal fight is brewing over what should happen if Chavez, who was re-elected in October, cannot return in time for the inauguration before the National Assembly.
National Assembly Diosdado Cabello insisted Monday that Venezuela's constitution allows the president to take the oath before the Supreme Court at any time if he cannot do it before the legislature on Jan. 10.
Opposition leaders argue the constitution requires that new elections be held within 30 days if Chavez cannot take office Jan. 10. They have criticized the confusion over the inauguration as the latest example of the Chavez government's disdain for democratic rule of law and have demanded clarity on whether the president is fit to govern.
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Fixed mortgage rates rise above record lows

WASHINGTON (AP) — Fixed mortgage rates rose slightly this week off their record lows. The year ends much like it began, with few people able to take advantage of the best rates in history.
Freddie Mac says the average on the 30-year home loan increased to 3.95 percent from 3.91 percent. Last week's rate was the lowest average on records dating to the 1950s.
The average on the 15-year fixed mortgage rose to 3.24 percent. That's up from 3.21 percent, also a record low.
Rates have been below 5 percent for all but two weeks in 2011. Even so, this year is shaping up to be one of the worst ever for home sales.
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Fixed mortgage rates end year above record lows

WASHINGTON (AP) — Fixed mortgage rates rose slightly this week off their record lows. The year ends much like it began, with few people able to take advantage of the best rates in history.
Freddie Mac said Thursday that the average on the 30-year home loan increased to 3.95 percent from 3.91 percent. Last week's rate was the lowest average on records dating to the 1950s.
The average on the 15-year fixed mortgage rose to 3.24 percent. That's up from 3.21 percent, also a record low.
Rates have been below 5 percent for all but two weeks in 2011. Even so, this year is shaping up to be one of the worst ever for home sales.
Previously occupied homes are selling just slightly ahead of last year's dismal pace. And new-home sales appear headed for their worst year on records going back half a century.
Next year could be better. More than 5 percent of households said this month they plan to purchase a home within the next six months, according to the Conference Board.
Builders are also hopeful that the low rates could boost sales next year. Low mortgage rates were cited as a key reason the National Association of Home Builders survey of builder sentiment rose in December to its highest level in more than a year.
But so far, rates are having no major impact. Mortgage applications have fallen slightly in recent weeks, according to the Mortgage Bankers Association.
High unemployment and scant wage gains have made it harder for many people to qualify for loans. Many Americans don't want to sink money into a home that they fear could lose value over the next few years.
To calculate the average rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week. The average rates don't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for the 30-year loan was unchanged at 0.7; the average on the 15-year fixed mortgage was unchanged at 0.8.
For the five-year adjustable loan, the average rate rose to 2.88 percent from 2.85 percent. The average on the one-year adjustable loan ticked up to 2.78 percent from 2.77 percent.
The average fees on the five- and one-year adjustable-rate loans were unchanged at 0.6.
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Credit score focus of new celeb-backed debit card

NEW YORK (AP) — Personal finance media personality Suze Orman is thinking big. She's the   first out of the gate in the fast-growing prepaid debit card market with a card that aims to help its users build a credit score. It's a gamble that could pay off, if it can help create a way measure the creditworthiness of millions who function outside the traditional financial system.
The latest in a string of celebrities to put their stamp on a prepaid card, Orman will likely avoid the criticism about high fees lobbed at earlier offerings, such as those of hip-hop mogul Russell Simmons and reality show stars the Kardashians. Orman's card costs $3 to obtain, and then just $3 a month, rivaling the hugely popular Walmart MoneyCard.
Although some will question how Orman will recoup the more than $1 million she has invested in the card when charging that little, the real twist isn't the low fee structure. Orman is working with credit reporting agency TransUnion to create a new kind of credit score for users of "The Approved" prepaid MasterCard, one that's based on their spending habits.
Right now, using debit cards — both the prepaid kind and those tied to bank accounts — does not influence an individual's credit score, which is calculated with data related to borrowing. If Orman's experiment is successful, this new type of score could be a game-changer for the estimated 60 million Americans who do most or all of their personal business in cash or with cash alternatives like prepaid cards.
The TV adviser said she approached several companies, urging them to agree to develop such a score, and TransUnion ultimately agreed to gather spending data for 18 to 24 months. It will use that data to try to come up with a formula that works as a way to predict whether the user is a good risk for lenders.
"This is truthfully a work in progress," said Orman.
Banks and other lenders are interested in creating ways to measure how prepaid cards are used, because of the huge market they represent. Consumers loaded an estimated $70.7 billion onto prepaid cards in 2011, up from $2.7 billion in 2005, according to consultancy Mercator Advisory Group.
Mercator projects the market will top $120 billion this year if adoption continues at the same pace.
In general, users can be divided into three groups. The first subset is those caught up in the economy — people who had good credit until it was damaged by events like unemployment or foreclosure. Second are those who have not yet built credit histories, mainly the young and recent immigrants. The third group avoids banks, often because of negative experiences, such as racking up high overdraft fees.
"Wouldn't it be fabulous if, for the first time in history, people are literally rewarded for spending cash, versus penalized, in my opinion, for doing so?" Orman said.
The problem with traditional credit scores from FICO Inc. and its competitors is that they measure how well individuals keep up with their payments, but don't pay any attention to their overall financial health, she said. "Scoring doesn't question where the money is coming from to make payments."
Prepaid cards have already filled some of the void for those who don't use banks, especially because they can be used to receive paychecks via direct deposit. But because they don't contribute to credit scores, the cards can't help users get a mortgage, a car loan or a credit card.
Not having a credit score, or having a low one, also drives up the cost of living in other ways. Lower scores can mean higher car insurance rates, higher rent, difficulty getting a job and paying higher interest rates for any credit available. People with little credit history — known as a "thin file" in the industry — are also the most likely to use alternative services like payday lenders, check cashing stores and bill pay services. These are expensive options when compared with credit cards and banks.
FICO Inc. and other companies use data tied to borrowing to determine a score meant to measure the likelihood an individual will pay back future loans. FICO's 300-to-850 scale is based on an individual's history making payments on loans, the percentage of available credit that is being used and how long the individual has used credit, among other data.
Those with thin credit files have a better chance of having their creditworthiness reflected by FICO's "expansion score," which factors in data like utility bill payments and rent payments. FICO CEO Mark Greene said the expansion scores have shown that the population without traditional scores mirrors to the larger population in terms of credit risk. Other credit score providers are beginning to provide measures based on utility payments and other nontraditional data.
One big difference for developing a prepaid score, however, is that these alternatives still measure how well individuals meet obligations, not how they spend the rest of their income.
"Spending is not actually a great indicator of the thing that we're trying to measure, which is the likelihood you're going to pay your bill," Greene said. "We need to be careful about how we approach that issue."
Another issue a prepaid-linked score must address is the fact that the typical reloadable card is used for just three to four months, said Brian Riley, who analyzes the card market for the consultant The Tower Group.
That timeframe is likely to expand, however, because more users are beginning to have their paychecks deposited to reload prepaid cards. Adding rewards and services, and cutting fees, may also increase customer loyalty.
Orman is adamant that her card will carry only a $3-per-month fee for users who load at least $20 per month onto it. Fees will rise only if the user uses ATMs outside the network it is linked to when withdrawing cash. Consumers who use The Approved Card will also get daily text messages updating their balance, along with one after each purchase, and other free services like ID theft monitoring, credit monitoring and free credit reports from TransUnion.
The media star, whose new show on the Oprah Winfrey Network premieres Monday, said she knows creating the score will be an uphill battle, but believes that if successful, it will help both lenders and borrowers. "You've got to start it somewhere, and this is the beginning of that process."
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Rate on 30-year mortgage drops to record 3.89 pct.

Fixed mortgage rates fell once again to a record low, offering a great opportunity for those who can afford to buy or refinance homes. But few are able to take advantage of the historic rates.
Freddie Mac said Thursday the average rate on the 30-year fixed mortgage fell to 3.89 percent. That's below the previous record of 3.91 percent reached three weeks ago.
Records for mortgage rates date back to the 1950s.
The average on the 15-year fixed mortgage ticked down to 3.16 percent. That's down from a record 3.21 percent three weeks ago.
Mortgage rates are lower because they track the yield on the 10-year Treasury note, which fell below 2 percent. They could fall even lower this year if the Fed launches another round of bond purchases, as some economists expect.
Average fixed mortgage rates hovered around 4 percent at the end of 2011. Yet many Americans either can't take advantage of the rates or have already done so.
High unemployment and scant wage gains have made it harder for many people to qualify for loans. Many don't want to sink money into a home that they fear could lose value over the next few years.
Mortgage applications have fallen slightly on a seasonally adjusted basis over the past four weeks, according to the Mortgage Bankers Association.
Frank Nothaft, Freddie Mac's chief economist, said that until hiring picks up and unemployment drops significantly, the impact of lower mortgage rates will remain muted.
Previously occupied homes are selling just slightly ahead of 2010's dismal pace. New-home sales in 2011 will likely be the worst year on records going back half a century.
Builders hope that the low rates could boost sales next year. Low mortgage rates were cited as a key reason the National Association of Home Builders survey of builder sentiment rose in December to its highest level in more than a year.
But so far, they have had little impact on the depressed housing market.
To calculate the average rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week. The average rates don't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for the 30-year loan fell to 0.7 from 0.8; the average on the 15-year fixed mortgage was unchanged at 0.8.
For the five-year adjustable loan, the average rate declined to 2.82 percent from 2.86 percent. The average on the one-year adjustable loan fell to 2.76 percent from 2.80 percent.
The average fee on the five-year adjustable loan rose was unchanged at 0.7; the average on the one-year adjustable-rate loan was unchanged at 0.6.
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First Person: What My College Degree Means to Me

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My college degree helped me pursue a successful 30-year career in advertising and public relations. However, it only happened after I realized I had not made the right decision in choosing my college major.
Pursuing The Major Course I Wanted
It all began when I had earned four years of tuition under the GI Bill of Rights by serving in the U.S. Navy. Ever since childhood, I had wanted to be an artist, and that was my chance to enroll as a fine arts freshman at the Philadelphia Museum College of Art (now the University of the Arts).
An Enjoyable Fine Arts Education
Throughout my undergraduate years, I appreciated the challenges and encouragement of the school's excellent teaching staff. My courses consisted of drawing, painting, sculpture and other fine arts classes. Some of my paintings were accepted for exhibition at local galleries. I was graduated with top honors and the degree of bachelor of fine arts.
Then it was time for me to earn a living from what I had learned in four years of college. I made the rounds of the many galleries in Philadelphia and New York selling my art, and had some moderate success. However, the sales were few and far between, and my income wasn't nearly enough to support myself.
Had I Made an Error in Judgment?
After a year, I came to the conclusion that I had chosen a field that, while traditionally attractive, wasn't practical in the reality of today's business world. While I hadn't wasted my four years of fine arts studies, they had not prepared me for the necessity of making a living.
I had several choices. I could go on painting, get some kind of part-time job to pay my bills, and hope I'd eventually become a successful exhibiting artist. The other choice was to go back to college and major in practical business subjects.
Fortunately, an application I'd sent to the University of Pennsylvania earned me a lab assisantship and free tuition at the Annenberg Graduate School of Communications there. I majored in mass communications and public relations, with a minor in graphic arts. After two years, and armed with a much more practical resume, I began another job search.
A Favorable Career Turn
Another fortunate opportunity coincided with earning my Master of Arts in Communications degree. Prudential Financial, Inc. was just establishing an Eastern regional office in a Philadelphia suburban area, and hiring a staff of more than 3,000 employees. I applied for the newly-created position of Public Relations and Advertising Manager, and was hired to direct the 30-person creative staff.
I recently retired after 30 years with Prudential. Today I consider my education choices and experiences may be of value to college students in the same situation I was after earning my bachelor's degree. Looking back, I had not realized then the impracticality of attempting a fine arts path in the real world where income opportunities are very limited.
Business-related degrees are essential in finding practical career promises. I believe my decision to enhance my education goals beyond fine arts to communications offered me those opportunities. For today's students, armed with the right credentials and personal determination, there's no limit to the heights that talent, hard work and ambition can earn for them.
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