Trains to fog-hit Delhi running up to 2 days late

NEW DELHI: Sudhir Kumar was to appear for a job interview in Delhi on Monday. To make sure he arrived well in time, the resident of Bhagalpur in Bihar had booked himself in a train that was to reach Delhi on Saturday. But the Bhagalpur Garib Rath that he boarded had not arrived in Delhi till Monday morning. The railway website said the train was 48 hours behind schedule.

Like Kumar, the schedules of thousands of passengers have been thrown totally off-track across fog-hit north India and beyond. The delays this season have been more severe then previous years, exposing the Railways' inability to deal with the situation.

"I waited in the station with my wife and children for more than 20 hours before my train, Purvottar Sampark Kranti Express, finally left the New Delhi station... What's really frustrating is that neither the rail enquiry service nor any official could give me updates on when the train would start," said Tarun Sharma, a passenger.

A hapless Railways is waiting for the weather to clear in the fog zone — a 700km stretch between Ghaziabad and Mughalsarai — for the situation to normalize.

On Monday, 16 express trains and another dozen passenger trains were cancelled. Despite that at least seven trains was delayed by over 20 hours and another 16 for more than 10 hours.
The Rewa-Anand Vihar Express was 33 hours late, the Porvortar Sampark Kranti Express by 26 hours, the West Bengal Samparkranti Express also by 26 hours and the Bihar Sampark Kranti by 30 hours. Sources in north central railway said shallow fog was setting in from as early as 10.30pm and in the Kanpur-Tundla stretch (which trains enter early morning in order to reach Delhi), it lifts only around 10.15am.

"It is an unusual situation," said a northern railway spokesperson, denying any lack of preparedness. "Everything is put up on enquiry number 139 and we are monitoring each train real time, through GPS. Every delay is put up on the notice board. We are ensuring none of the restrooms get too overcrowded in this challenging weather. We have placed teams led by mechanical and electrical engineers at all our stations and the station master controls the movements of empty coaches entering the washing line. We are readying trains for the return journey within five hours even as the minimum primary and secondary maintenance requires at least four to six hours,'' said the spokesperson.

Railway employees deployed at the stations felt the failure of the fog safety device to take off has proved. The Railways' preparation to run trains safely in foggy conditions depended on this device.

The GPS-based fog safe device though has failed to produce the desired results during trials in the past two years. The trials were carried out in trains in the Delhi-Ambala section last winter, which is known for its dense fog cover.

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Organ donations fall in Germany after scandal


BERLIN (AP) — Organ donations have dropped sharply in Germany following a scandal over alleged corruption at several transplant clinics.


The German Foundation for Organ Transplantation says the number of organs donated fell almost 13 percent to 3,917 last year, the lowest figure in a decade.


Several German clinics are being investigated over allegations that doctors manipulated waiting lists to help some patients appear sicker than they were and so receive transplants sooner.


The foundation said Monday that the scandal had "massively shaken" the public's faith in the transplant system.


Some 12,000 people in Germany require organ transplants each year.


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GOP Leader McConnell: 'Tax Issue Is Finished'


Jan 6, 2013 10:19am







abc mitch mcconnell this week jt 130106 wblog Sen. Mitch McConnell: The Tax Issue Is Finished

                                                                                                            (Image Credit: ABC News)


Senate Republican Leader Mitch McConnell. R-Ky., Sunday said he will not accept any new revenue in future deals with congressional Democrats and President Obama.


“The tax issue is finished.  Over. Completed,” McConnell told me on “This Week.” “That’s behind us. Now the question is what are we going to do about the biggest problem confronting our country and that’s our spending addiction.


“We didn’t have this problem because we weren’t taxing enough,” McConnell added.


He blamed Obama and Democrats for waiting to resolve budget issues until the last minute.


Read a transcript of the full interview with Sen. Mitch McConnell HERE.


“Why we end up in these last-minute discussions is beyond me. We need to function,” McConnell said. “I mean, the House of Representatives, for example, passed a budget every year.  They’ve passed appropriation bills.


“The Senate Democratic majority and the president seem to like these last-minute deals.”


McConnell said that the biggest issue facing the country in the next year is the deficit and spending. And he predicted that the issue would occupy the congressional agenda in the first three months of the year, overtaking Obama’s other priorities, including gun control.


“But the biggest problem we have at the moment is spending and debt,” McConnell said. “That’s going to dominate the Congress between now and the end of March.  None of these issues, I think, will have the kind of priority that spending and debt are going to have over the next two or three months.”


On the expected nomination of former Sen. Chuck Hagel, R-Neb., as the secretary of Defense by Obama, McConnell said he would evaluate Hagel’s past statements before determining whether he could support his nomination in the Senate.


“I’m going to take a look at all the things that Chuck has said over the years and review that, and in terms of his qualifications to lead our nation’s military,” McConnell said. “The question we will be answering if he’s the nominee, is do his views make sense for that particular job?  I think he ought to be given a fair hearing, like any other nominee, and he will be.”


McConnell, who in 2008 praised Hagel for his clear voice and stature on foreign policy and national security, now says he will reserve judgment on his possible nomination until after a Senate confirmation hearing.


“I’m going to wait and see how the hearings go and see whether Chuck’s views square with the job he would be nominated to do,” he added.


Like “This Week” on Facebook here. You can also follow the show on Twitter here.



SHOWS: This Week







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Assad "peace plan" greeted with scorn by foes


BEIRUT (Reuters) - Syrian President Bashar al-Assad rejected peace talks with his enemies on Sunday in a defiant speech that his opponents described as a renewed declaration of war.


Although the speech was billed as the unveiling of a new peace plan, Assad offered no concessions and even appeared to harden many of his positions. He rallied Syrians for "a war to defend the nation" and disparaged the prospect of negotiations.


"We do not reject political dialogue ... but with whom should we hold a dialogue? With extremists who don't believe in any language but killing and terrorism?" Assad asked supporters who packed Damascus Opera House for his first speech since June.


"Should we speak to gangs recruited abroad that follow the orders of foreigners? Should we have official dialogue with a puppet made by the West, which has scripted its lines?"


It was his first public speech to an audience in six months. Since the last, rebels have reached the capital's outskirts.


George Sabra, vice president of the opposition National Coalition, told Reuters the peace plan Assad put at the heart of his speech did "not even deserve to be called an initiative":


"We should see it rather as a declaration that he will continue his war against the Syrian people," he said.


"The appropriate response is to continue to resist this unacceptable regime and for the Free Syrian Army to continue its work in liberating Syria until every inch of land is free."


The speech was seen by many as a response to U.N. mediator Lakhdar Brahimi, who has been meeting U.S. and Russian officials to try to narrow differences between Washington and Moscow over a peace plan. Brahimi also met Assad in Syria late last month.


"Lakhdar Brahimi must feel foolish after that Assad speech, where his diplomacy is dismissed as intolerable intervention," said Rana Kabbani, a Syrian analyst who supports the opposition.


The United States, European Union, Turkey and most Arab states have called on Assad to quit. Russia, which sells arms to and leases a naval base from Syria, says it backs a transition of power but that Assad's departure should not be a precondition for any talks.


REPETITIONS


Assad's foreign foes were scornful and dismissive of the speech: "His remarks are just repetitions of what he's said all along," said Turkish Foreign Minister Ahmet Davutoglu.


"It seems he's locked himself up in a room and only reads the intelligence reports presented to him."


British Foreign Secretary William Hague said "empty promises of reform fool no one". In a Twitter message, he added: "Death, violence and oppression engulfing Syria are of his own making."


EU foreign affairs chief Catherine Ashton said Brussels would "look carefully if there is anything new in the speech, but we maintain our position that Assad has to step aside and allow for a political transition".


The 47-year-old Assad, tall and mustachioed, in a business suit and tie, spoke confidently for about an hour before a crowd of cheering loyalists, who occasionally interrupted him to shout and applaud, at one point raising their fists and chanting: "With blood and soul we sacrifice for you, oh Bashar!"


At the end of the speech, supporters rushed to the stage, mobbing him and shouting: "God, Syria and Bashar is enough!" as a smiling president waved and was escorted from the hall past a backdrop showing a Syrian flag made of pictures of people whom state television described as "martyrs" of the conflict so far.


"We are now in a state of war in every sense of the word," Assad said in the speech, broadcast on Syrian state television. "This war targets Syria using a handful of Syrians and many foreigners. Thus, this is a war to defend the nation."


Independent media are largely barred from Damascus.


Giving the speech in the opera house, in a part of central Damascus that has been hit by rebel attacks, could be intended as a show of strength by a leader whose public appearances have grown rarer as the rebellion has gathered force.


Critics saw irony in the venue: "Assad speech appropriately made in Opera House!" tweeted Rami Khouri, a commentator for Lebanon's Daily Star newspaper. "It was operatic in its other-worldly fantasy, unrelated to realities outside the building."


DEATHS


The United Nations says 60,000 people have been killed in the civil war, the longest and bloodiest of the conflicts to emerge in two years of revolts in Arab states.


Rebels now control much of the north and east of the country, a crescent of suburbs on the outskirts of the capital and the main border crossings with Turkey in the north.


But Assad's forces are still firmly in control of most of the densely populated southwest, the main north-south highway and the Mediterranean coast. The army also holds military bases throughout the country from which its helicopters and jets can strike rebel-held areas with impunity, making it impossible for the insurgents to consolidate their grip on territory they hold.


Assad, an eye doctor, has ruled since 2000, succeeding his late father Hafez, who had seized power in a 1970 coup.


The rebels are drawn mainly from Syria's Sunni Muslim majority, while Assad, a member of the Alawite sect related to Shi'ite Islam, is supported by some members of religious minorities who fear retribution if he falls.


The conflict has heightened confrontation in the Middle East between Shi'ite Iran and Sunni Arab rulers, particularly those in the Gulf who are allied with the West against Tehran.


The plan unveiled in Sunday's speech could hardly have been better designed to ensure its rejection by the opposition. Among its proposals: rebels would first be expected to halt operations before the army would cease fire, a certain non-starter.


Assad also repeatedly emphasized rebel links to al Qaeda and other Sunni Islamist radicals. Washington has also labeled one of the main rebel groups a terrorist organization and says it is linked to the network founded by Osama bin Laden.


Diplomacy has been largely irrelevant so far in the conflict, with Moscow vetoing U.N. resolutions against Assad.


U.N. mediator Brahimi has been trying to bridge the gap, meeting senior U.S. and Russian officials to discuss his own peace proposal, which does not explicitly mention Assad's fate.


National Coalition spokesman Walid Bunni said Assad's speech appeared timed to prevent a breakthrough in those talks, by taking a position that could not be reconciled with diplomacy.


"The talk by Brahimi and others that there could be a type of political solution being worked out has prompted him to come out and tell the others 'I won't accept a solution'," Bunni said, adding that Assad feared any deal would mean his downfall.


(Additional reporting by Suleiman al-Khalidi in Amman, Gulsen Solaker in Ankara and Tim Castle in London; Writing by Peter Graff; Editing by Alastair Macdonald)



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Global regulator eases liquidity rules for banks






BASEL: The world's top banking regulatory body on Sunday eased the first global liquidity rules scheduled to start applying to banks in 2015 and aimed at improving their ability to survive financial crises.

The Basel Committee on Banking Supervision said at a press conference that it had widened the definition of the easy-to-sell assets that banks will have to hold to survive periods of stress.

The Basel III standards had been initially proposed in 2010 but banks and financial institutions have since lobbied intensely to make the rules more flexible and result in lower costs for the sector.

The details of the Liquidity Coverage Ratio (LCR), which was drafted to avoid a repeat of the 2008 banking crisis and unanimously endorsed on Sunday by the Basel group's top oversight body, give the banks a reprieve.

Its provisions include a much broader definition of the minimum assets every bank needs to hold, making it less costly for them to maintain the required buffer.

"The changes to the definition of the LCR, developed and agreed by the Basel Committee over the past two years, include an expansion in the range of assets eligible as HQLA (high quality liquid assets)," the committee said.

The new LCR's full details will also be fully implemented only in 2019, instead of 2015 as initially proposed.

"Specifically, the LCR will be introduced as planned on 1 January 2015, but the minimum requirement will begin at 60%, rising in equal annual steps of 10 percentage points to reach 100% on 1 January 2019," the Basel group announced.

Mervyn King, Chairman of the Basel group's top oversight body and Governor of the Bank of England, described the agreement announced Sunday as "a very significant achievement."

"For the first time in regulatory history, we have a truly global minimum standard for bank liquidity," said King.

The Basel Committee brings together representatives regulators from 27 nations.

"Importantly, introducing a phased timetable for the introduction of the LCR, and reaffirming that a bank's stock of liquid assets are usable in times of stress, will ensure that the new liquidity standard will in no way hinder the ability of the global banking system to finance a recovery," King said.

Stefan Ingves, chairman of the Basel Committee and of Sweden's Sveriges Riksbank, said the global regulator could now focus on the Net Stable Funding Ration, another pillar of the Basel III reforms.

"The completion of this work will allow the Basel Committee to turn its attention to refining the other component of the new global liquidity standards, the Net Stable Funding Ratio, which remains subject to an observation period ahead of its implementation in 2018," he said.

- AFP/jc



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Telangana decision awaits 'nudge' from Rahul Gandhi

HYDERABAD: With the January 28 self-imposed deadline for the Centre to decide on Telangana looming, all attention is on Congress general secretary Rahul Gandhi, who is supposed to come back to Delhi on Monday from a foreign tour. Rahul Gandhi is expected to nudge the decision making process on Tuesday. Sources in the Congress said that CM N Kiran Kumar Reddy and PCC chief Botsa Satyanarayana were called to Delhi for consultation, and they were waiting for the confirmation.

"There are certain issues related to state politics that need to be discussed with the party high command. I am waiting for the confirmation before leaving for Delhi," Botsa Satyanarayana said. While the political circle is talking about the possibility of Rahul Gandhi attending a Congress core committee meeting on Telangana on Tuesday, where a decision would be taken, Botsa declined to confirm the news.

Sources said the Congress high command had started deliberating on the Telangana issue weighing different options. Due to vehement opposition from pro-Telangana forces for creating a development council for T and awarding special package, the Centre is understood to have put it on the back-burner. The sources said there were parlays on the future of Hyderabad in case the state is divided and Telangana state is formed, and the CM and Botsa would be consulted on the issue before the core committee meeting.

The sources added that the Congress high command was also contemplating on the option of postponing the decision on Telangana till the AICC session to be held at Jaipur on January 20, as some of the national leaders wanted to discuss the issue at a two-day Chintan Shivir (brainstorming session) starting January 18 ahead of the AICC session.

"All depends on Rahul Gandhi and Sonia Gandhi who have consulted the state leaders from Telangana and Seemandhra, and taken their views on the issue. We hope things will be cleared in a week's time before this Sankranthi," said a Congress leader.

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Your medical chart could include exercise minutes


CHICAGO (AP) — Roll up a sleeve for the blood pressure cuff. Stick out a wrist for the pulse-taking. Lift your tongue for the thermometer. Report how many minutes you are active or getting exercise.


Wait, what?


If the last item isn't part of the usual drill at your doctor's office, a movement is afoot to change that. One recent national survey indicated only a third of Americans said their doctors asked about or prescribed physical activity.


Kaiser Permanente, one of the nation's largest nonprofit health insurance plans, made a big push a few years ago to get its southern California doctors to ask patients about exercise. Since then, Kaiser has expanded the program across California and to several other states. Now almost 9 million patients are asked at every visit, and some other medical systems are doing it, too.


Here's how it works: During any routine check of vital signs, a nurse or medical assistant asks how many days a week the patient exercises and for how long. The number of minutes per week is posted along with other vitals at the top the medical chart. So it's among the first things the doctor sees.


"All we ask our physicians to do is to make a comment on it, like, 'Hey, good job,' or 'I noticed today that your blood pressure is too high and you're not doing any exercise. There's a connection there. We really need to start you walking 30 minutes a day,'" said Dr. Robert Sallis, a Kaiser family doctor. He hatched the vital sign idea as part of a larger initiative by doctors groups.


He said Kaiser doctors generally prescribe exercise first, instead of medication, and for many patients who follow through that's often all it takes.


It's a challenge to make progress. A study looking at the first year of Kaiser's effort showed more than a third of patients said they never exercise.


Sallis said some patients may not be aware that research shows physical inactivity is riskier than high blood pressure, obesity and other health risks people know they should avoid. As recently as November a government-led study concluded that people who routinely exercise live longer than others, even if they're overweight.


Zendi Solano, who works for Kaiser as a research assistant in Pasadena, Calif., says she always knew exercise was a good thing. But until about a year ago, when her Kaiser doctor started routinely measuring it, she "really didn't take it seriously."


She was obese, and in a family of diabetics, had elevated blood sugar. She sometimes did push-ups and other strength training but not anything very sustained or strenuous.


Solano, 34, decided to take up running and after a couple of months she was doing three miles. Then she began training for a half marathon — and ran that 13-mile race in May in less than three hours. She formed a running club with co-workers and now runs several miles a week. She also started eating smaller portions and buying more fruits and vegetables.


She is still overweight but has lost 30 pounds and her blood sugar is normal.


Her doctor praised the improvement at her last physical in June and Solano says the routine exercise checks are "a great reminder."


Kaiser began the program about three years ago after 2008 government guidelines recommended at least 2 1/2 hours of moderately vigorous exercise each week. That includes brisk walking, cycling, lawn-mowing — anything that gets you breathing a little harder than normal for at least 10 minutes at a time.


A recently published study of nearly 2 million people in Kaiser's southern California network found that less than a third met physical activity guidelines during the program's first year ending in March 2011. That's worse than results from national studies. But promoters of the vital signs effort think Kaiser's numbers are more realistic because people are more likely to tell their own doctors the truth.


Dr. Elizabeth Joy of Salt Lake City has created a nearly identical program and she expects 300 physicians in her Intermountain Healthcare network to be involved early this year.


"There are some real opportunities there to kind of shift patients' expectations about the value of physical activity on health," Joy said.


NorthShore University HealthSystem in Chicago's northern suburbs plans to start an exercise vital sign program this month, eventually involving about 200 primary care doctors.


Dr. Carrie Jaworski, a NorthShore family and sports medicine specialist, already asks patients about exercise. She said some of her diabetic patients have been able to cut back on their medicines after getting active.


Dr. William Dietz, an obesity expert who retired last year from the Centers for Disease Control and Prevention, said measuring a patient's exercise regardless of method is essential, but that "naming it as a vital sign kind of elevates it."


Figuring out how to get people to be more active is the important next step, he said, and could have a big effect in reducing medical costs.


___


Online:


Exercise: http://1.usa.gov/b6AkMa


___


AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner


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City Answers Gang-Rape Cover-Up Allegations












As Steubenville, Ohio, prepares for the high-profile rape trial of two high school football players, officials, battling allegations of a cover-up, announced the creation of a new website today to debunk rumors and create what they said would be a transparent resource for the community.


"This site is not designed to be a forum for how the Juvenile Court ought to rule in this matter," the website, called Steubenville Facts, said.


A timeline of the case, beginning with the alleged gang rape of a 16-year-old girl at a party on Aug. 11-12, 2012, is posted on the site. Summaries of Ohio law relating to the case and facts about the local police force including statistics on how many graduated from Steubenville schools, is included.






Steubenville Herald-Star, Michael D. McElwain/AP Photo







The case gained national attention last week when hacking collective Anonymous leaked a video of Steubenville high school athletes mocking the 16-year-old female victim and making crude references to the alleged rape.


Anonymous has called for more arrests, however Steubenville Police have said their hands are tied.


"Steubenville Police investigators are caring humans who recoil and are repulsed by many of the things they observe during an investigation," the website said, addressing the video. "Like detectives in every part of America and the world, they are often frustrated when they emotionally want to hold people accountable for certain detestable behavior but realize that there is no statute that allows a criminal charge to be made."


Occupy Steubenville, a grassroots group, estimated 1,300 people attended a rally today outside the Jefferson County Courthouse, where rape victims and their loved ones gathered to share their stories.


The father of a teenage rape victim was met with applause when he shared his outrage.


"I've tried to show my girl that not all men are like this, but only a despicable few," he said. "And their mothers that ignore the truth that they gave birth to a monster."


Authorities investigated the case and charged two Steubenville high school athletes on Aug. 22, 2012.


The teenagers face trial on Feb. 13, 2013 in juvenile court before a visiting judge.


Attorneys for the boys have denied charges in court.



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Venezuela lawmakers elect Chavez ally as Assembly chief


CARACAS (Reuters) - Venezuelan lawmakers re-elected a staunch ally of Hugo Chavez to head the National Assembly on Saturday, putting him in line to be caretaker president if the socialist leader does not recover from cancer surgery.


By choosing the incumbent, Diosdado Cabello, the "Chavista"-dominated legislature cemented the combative ex-soldier's position as the third most powerful figure in the government, after Chavez and Vice President Nicolas Maduro.


"As a patriot ... I swear to be supremely loyal in everything I do, to defend the fatherland, its institutions, and this beautiful revolution led by our Comandante Hugo Chavez," Cabello said as he took the oath, his hand on the constitution.


He had earlier warned opposition politicians against attempting to use the National Assembly to "conspire" against the people, saying they would be "destroyed" if they tried.


Thousands of the president's red-clad supporters gathered outside parliament hours before the vote, many chanting: "We are all Chavez! Our comandante will be well! He will return!"


If Chavez had to step down, or died, Cabello would take over the running of the country as Assembly president and a new election would be organized within 30 days. Chavez's heir apparent, Maduro, would be the ruling Socialist Party candidate.


Chavez, who was diagnosed with an undisclosed form of cancer in his pelvic area in mid-2011, has not been seen in public nor heard from in more than three weeks.


Officials say the 58-year-old is in delicate condition and has suffered multiple complications since the December 11 surgery, including unexpected bleeding and severe respiratory problems.


Late on Friday, Maduro gave the clearest indication yet that the government was preparing to delay Chavez's inauguration for a new six-year term, which is scheduled for Thursday.


'CHAVEZ IS PRESIDENT'


Maduro said the ceremony was a "formality" and that Chavez could be sworn in by the Supreme Court at a later date.


The opposition says Chavez's absence would be just the latest sign that he is no longer fit to govern, and that new elections should be held in the South American OPEC nation.


Brandishing a copy of the constitution after his win in the Assembly, Cabello slammed opposition leaders for writing a letter to foreign embassies in which they accused the government of employing a "twisted reading" of the charter.


"Get this into your heads: Hugo Chavez was elected president and he will continue to be president beyond January 10. No one should have any doubt ... this is the constitutional route," he said as fellow Socialist Party lawmakers cheered.


The opposition sat stony-faced. One of their legislators had earlier told the session that it was not just the head of state who was ill, "the republic is sick."


Last year, Chavez staged what appeared to be a remarkable comeback from the disease to win re-election in October, despite being weakened by radiation therapy. He returned to Cuba for more treatment within weeks of his victory.


Should the president have to step down after 14 years in office, a new vote would probably pit Maduro, a 50-year-old former bus driver and union leader, against opposition leader Henrique Capriles, the 40-year-old governor of Miranda state.


Capriles lost to Chavez in October's presidential election.


"I don't think Maduro would last many rounds in a presidential race. He's not fit for the responsibility they have given him," Capriles said after the vice president's appearance on state television.


Chavez's condition is being watched closely by leftist allies around Latin American who have benefited from his oil-funded generosity, as well as investors attracted by Venezuela's lucrative and widely traded debt.


The country boasts the world's biggest crude reserves. Despite the huge political upheaval Chavez's exit would cause, the oil industry is not likely to be affected much in the short term, with an extension of "Chavismo" keeping projects on track, while a change in parties could usher in more foreign capital.


(Additional reporting by Deisy Buitrago; Editing by Vicki Allen)



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IMF chief praises Malawi reforms for economic recovery






LILONGWE, Malawi: IMF chief Christine Lagarde on Saturday praised Malawi's President Joyce Banda for "bold" economic recovery reforms, saying the measures will lead to a turn-around despite their unpopularity.

"Notwithstanding the current hardships, many of my interlocutors were confident the ongoing reforms will turn the economy around, an optimism that I share," said Lagarde, wrapping up an official visit to Malawi.

During her trip, Lagarde has praised the reforms which she said had restored stability after Banda inherited a serious crisis characterised by foreign exchange shortages that crippled key imports such as fuel.

Banda has overseen the devaluation of the kwacha currency by 50 percent, the easing of foreign exchange restrictions, and the raising of fuel prices and cutting of subsidies since taking office last April.

Criticised at home for floating the currency under pressure from the International Monetary Fund, she has assured that "there will be no backtracking".

"I welcome government efforts to address unforeseen challenges through her continued commitment to economic reforms," Lagarde, the fund's managing director, said in a statement.

She said the country had already made "significant progress" in addressing serious imbalances that were hampering economic growth just a few months ago.

Lagarde said during meetings with Banda, she stressed the "need to stay the course, while putting in place social protection programmes to alleviate the impact of adjustment measures on the poorest households."

She said Malawi's recent economic situation has been difficult, adding that drought and lower than expected foreign exchange earnings had "dampened growth and contributed to a spike in inflation in 2012."

Earlier on Saturday Lagarde stressed the need for Malawi to diversify its economy, saying a reliance on agriculture left the country and its economic recovery vulnerable.

"Following these reforms, the economic wheels started spinning again. But progress is threatened anew by a slump in agriculture," she said, with the sector accounting 30 percent of GDP and tobacco nearly half of export earnings.

The fund has halved its 2012 growth forecast for the impoverished nation to around two percent but predicts a rate of 5.5 percent this year.

Private sector investment must be made easier and poor infrastructure in areas such as electricity and transport upgraded, she said, with Malawi scoring 129 out of 144 countries in the World Economic Forum's Global Competitiveness Index.

The IMF, one of the main backers of the country's reforms, gave Malawi a three-year $157 million loan package in June after ties had broken down amid a spree of global aid suspensions under president Bingu wa Mutharika.

In 2011, the global lender suspended a $79.4 million credit facility during the administration of the late leader who died last year.

Donors provide up to 40 percent of the development budget and salaries for nearly 170,000 civil servants.

Under Mutharika, relations with the IMF had become tense after he refused to devalue the currency as the global lender had advised, arguing it would trigger inflation and hurt the poor. In Malawi, 39 percent of the 13 million population live on less than a dollar a day.

Several key donors, including former colonial power Britain, suspended aid, citing concerns about growing authoritarian tendencies in Mutharika's government.

- AFP/de



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