The Jim Bakker Show

Venezuelan migrant exodus hits 3 million: U.N.

FILE PHOTO: Colombian migration officers check the identity documents of people trying to enter Colombia from Venezuela, at the Simon Bolivar International bridge in Villa del Rosario, Colombia August 25, 2018. REUTERS/Carlos Garcia Rawlins/File Photo

GENEVA (Reuters) – Three million Venezuelans have fled economic and political crisis in their homeland, most since 2015, the United Nations said on Thursday.

The exodus, driven by violence, hyperinflation and shortages of food and medicines, amounts to around one in 12 of the population.

It has accelerated in the past six months, said William Spindler of the U.N. High Commissioner for Refugees (UNHCR), which appealed for greater international efforts to ease the strain on the country’s neighbors.

U.N. data in September showed 2.6 million had fled.

“The main increases continue to be reported in Colombia and Peru,” Spindler said.

Colombia is sheltering 1 million Venezuelans. Some 3,000 more arrive each day, and the Bogota government says 4 million could be living there by 2021, costing it nearly $9 billion.

Oil-rich Venezuela has sunk into crisis under Socialist President Nicolas Maduro, who has damaged the economy through state interventions while clamping down on political opponents.

He has dismissed the migration figures as “fake news” meant to justify foreign intervention in Venezuela’s affairs.

The International Organization for Migration (IOM) and UNHCR said the exodus was straining several neighboring countries, notably Colombia.

“Countries in Latin America and the Caribbean have largely maintained a commendable open-door policy,” said Eduardo Stein, UNHCR-IOM Joint Special Representative for Refugees and Migrants from Venezuela.

“…However, their reception capacity is severely strained, requiring a more robust and immediate response from the international community.”

Regional government officials are to meet in Quito, Ecuador from Nov 22-23 to coordinate humanitarian efforts.

(Reporting by Stephanie Nebehay; editing by John Stonestreet)

Fleeing hardship at home, Venezuelan migrants struggle abroad, too

By Alexandra Ulmer

VILLA DEL ROSARIO, Colombia (Reuters) – Every few minutes, the reeds along the Tachira River rustle. Smugglers, in ever growing numbers, emerge with a ragtag group of Venezuelan migrants – men struggling under tattered suitcases, women hugging bundles in blankets and schoolchildren carrying backpacks. They step across rocks, wade into the muddy stream and cross illegally into Colombia.

This is the new migration from Venezuela.

Venezuelans carry their belongings along a pathway after illegally entering Colombia through the Tachira river close to the Simon Bolivar International bridge in Villa del Rosario, Colombia August 25, 2018. REUTERS/Carlos Garcia Rawlins

For years, as conditions worsened in the Andean nation’s ongoing economic meltdown, hundreds of thousands of Venezuelans – those who could afford to – fled by airplane and bus to other countries far and near, remaking their lives as legal immigrants.

Now, hyperinflation, daily power cuts and worsening food shortages are prompting those with far fewer resources to flee, braving harsh geography, criminal handlers and increasingly restrictive immigration laws to try their luck just about anywhere.

In recent weeks, Reuters spoke with dozens of Venezuelan migrants traversing their country’s Western border to seek a better life in Colombia and beyond. Few had more than the equivalent of a handful of dollars with them.

“It was terrible, but I needed to cross,” said Dario Leal, 30, recounting his journey from the coastal state of Sucre, where he worked in a bakery that paid about $2 per month.

At the border, he paid smugglers nearly three times that to get across and then prepared, with about $3 left, to walk the 500 km (311 miles) to Bogota, Colombia’s capital. The smugglers, in turn, paid a fee to Colombian crime gangs who allow them to operate, according to police, locals and smugglers themselves.

As many as 1.9 million Venezuelans have emigrated since 2015, according to the United Nations. Combined with those who preceded them, a total of 2.6 million are believed to have left the oil-rich country. Ninety percent of recent departures, the U.N. says, remain in South America.

The exodus, one of the biggest mass migrations ever on the continent, is weighing on neighbors. Colombia, Ecuador and Peru, which once welcomed Venezuelan migrants, recently tightened entry requirements. Police now conduct raids to detain the undocumented.

FILE PHOTO: Undocumented Venezuelans migrants stand in line to wait for food to be handed out by a group of Colombians, who fund an informal soup kitchen, outside a makeshift shelter in Pamplona, Colombia August 26, 2018. REUTERS/Carlos Garcia Rawlins

In early October, Carlos Holmes Trujillo, Colombia’s foreign minister, said as many as four million Venezuelans could be in the country by 2021, costing national coffers as much as $9 billion. “The magnitude of this challenge,” he said, “our country has never seen.”

In Brazil, which also borders Venezuela, the government deployed troops and financing to manage the crush and treat sick, hungry and pregnant migrants. In Ecuador and Peru, workers say that Venezuelan labor lowers wages and that criminals are hiding among honest migrants.

“There are too many of them,” said Antonio Mamani, a clothing vendor in Peru, who recently watched police fill a bus with undocumented Venezuelans near Lima.

“WE NEED TO GO”

By migrating illegally, migrants expose themselves to criminal networks who control prostitution, drug trafficking and other rackets. In August, Colombian investigators discovered 23 undocumented Venezuelans forced into prostitution and living in basements in the colonial city of Cartagena.

While most migrants are avoiding such straits, no shortage of other hardship awaits – from homelessness, to unemployment, to the cold reception many get as they sleep in public squares, peddle sweets and throng already overburdened hospitals.

Still, most press on, many on foot.

Some join compatriots in Brazil and Colombia. Others, having spent what money they had, are walking vast regions, like Colombia’s cold Andean passes and sweltering tropical lowlands, in treks toward distant capitals, like Quito or Lima.

Johana Narvaez, a 36-year-old mother of four, told Reuters her family left after business stalled at their small car repair shop in the rural state of Trujillo. Extra income she made selling food on the street withered because cash is scarce in a country where annual inflation, according to the opposition-led Congress, recently reached nearly 500,000 percent.

“We can’t stay here,” she told her husband, Jairo Sulbaran, in August, after they ran out of food and survived on corn patties provided by friends. “Even on foot, we must go.” Sulbaran begged and sold old tires until they could afford bus tickets to the border.

Venezuelan President Nicolas Maduro has chided migrants, warning of the hazards of migration and that emigres will end up “cleaning toilets.” He has even offered free flights back to some in a program called “Return to the Homeland,” which state television covers daily.

Most migration, however, remains in the other direction.

Until recently, Venezuelans could enter many South American countries with just their national identity cards. But some are toughening rules, requiring a passport or additional documentation.

Even a passport is elusive in Venezuela.

Paper shortages and a dysfunctional bureaucracy make the document nearly impossible to obtain, many migrants argue. Several told Reuters they waited two years in vain after applying, while a half-dozen others said they were asked for as much as $2000 in bribes by corrupt clerks to secure one.

Maduro’s government in July said it would restructure Venezuela’s passport agency to root out “bureaucracy and corruption.” The Information Ministry didn’t respond to a request for comment.

“VENEZUELA WILL END UP EMPTY”

Many of those crossing into Colombia pay “arrastradores,” or “draggers,” to smuggle them along hundreds of trails. Five of the smugglers, all young men, told Reuters business is booming.

“Venezuela will end up empty,” said Maikel, a 17-year-old Venezuelan smuggler, scratches across his face from traversing the bushy trails. Maikel, who declined to give his surname, said he lost count of how many migrants he has helped cross.

Colombia, too, struggles to count illegal entries. Before the government tightened restrictions earlier this year, Colombia issued “border cards” that let holders crisscross at will. Now, Colombia says it detects about 3,000 false border cards at entry points daily.

Despite tougher patrols along the porous, 2,200-km border, officials say it is impossible to secure outright. “It’s like trying to empty the ocean with a bucket,” said Mauricio Franco, a municipal official in charge of security in Cucuta, a nearby city.

And it’s not just a matter of rounding up undocumented travelers.

Powerful criminal groups, long in control of contraband commerce across the border, are now getting their cut of human traffic. Javier Barrera, a colonel in charge of police in Cucuta, said the Gulf Clan and Los Rastrojos, notorious syndicates that operate nationwide, are both involved.

During a recent Reuters visit to several illegal crossings, Venezuelans carried cardboard, limes and car batteries as barter instead of using the bolivar, their near-worthless currency.

Migrants pay as much as about $16 for the passage. Maikel, the arrastrador, said smugglers then pay gang operatives about $3 per migrant.

For his crossing, Leal, the baker, carried a torn backpack and small duffel bag. His 2015 Venezuelan ID shows a healthier and happier man – before Leal began skimping on breakfast and dinner because he couldn’t afford them.

He rested under a tree, but fretted about Colombian police. “I’m scared because the “migra” comes around,” he said, using the same term Mexican and Central American migrants use for border police in the United States.

It doesn’t get easier as migrants move on.

Even if relatives wired money, transfer agencies require a legally stamped passport to collect it. Bus companies are rejecting undocumented passengers to avoid fines for carrying them. A few companies risk it, but charge a premium of as much as 20 percent, according to several bus clerks near the border.

The Sulbaran family walked and hitched some 1200 km to the Andean town of Santiago, where they have relatives. The father toured garages, but found no work.

“People said no, others were scared,” said Narvaez, the mother. “Some Venezuelans come to Colombia to do bad things. They think we’re all like that.”

(Additional reporting by Mitra Taj in Lima, Anggy Polanco in Cucuta, Helen Murphy in Bogota and Alexandra Valencia in Quito. Editing by Paulo Prada.)

Vice President Pence to visit Guatemala volcano victims: White House

Rescue workers continue to search for human remains, after the eruption of the Fuego volcano, in San Miguel Los Lotes in Escuintla, Guatemala June 14, 2018. REUTERS/Luis Echeverria

By Roberta Rampton

WASHINGTON (Reuters) – U.S. Vice President Mike Pence plans to visit volcano victims in Guatemala as part of a three-nation trip at the end of the month aimed at building Latin American ties and pressuring Venezuela, a White House official said on Thursday.

Pence is scheduled to head to Brasilia during the last week of June, followed by a stop in the northern Amazonian city of Manaus, which is grappling with refugees who have fled Venezuela’s economic crisis, the official said.

Rescue workers continue to search for human remains, after the eruption of the Fuego volcano, in San Miguel Los Lotes in Escuintla, Guatemala June 14, 2018. REUTERS/Luis Echeverria

Pence has led the U.S. diplomatic push to pressure Venezuelan President Nicolas Maduro, the socialist leader who the Trump administration blames for the deep recession and hyperinflation that have caused shortages of food and medicine in the once oil-rich

nation.

Washington has stepped up economic sanctions against individuals connected to Maduro and refused to recognize his re-election in a May 20 vote. Both countries have expelled each others’ diplomats.

Trump has considered more sanctions on services related to oil shipments from the OPEC member nation, but so far has not opted to act on those.

U.S. Vice President Mike Pence speaks before President Donald Trump during a rally with supporters at North Side middle school in Elkhart, Indiana, U.S., May 10, 2018. REUTERS/Leah Millis

During the past year, Pence has visited leaders in Colombia, Argentina, Chile, Panama and Peru. At the end of June, he will also visit Quito, Ecuador, before stopping in Guatemala.

At least 109 people were killed by a massive eruption of Guatemala’s Fuego volcano on June 3 that buried villagers in scalding ash and left nearly 200 missing.

(Reporting by Roberta Rampton; Writing by Eric Walsh; Editing by Doina Chiacu and Bill Berkrot)

A Venezuelan paradox: Maduro’s critics long for change but won’t vote

A motorcycle passes graffiti painted on a fence in Caracas, Venezuela May 12, 2018. Graffiti reads: "Do not vote, please I beg you". Picture taken on May 12, 2018. REUTERS/Carlos Jasso

By Brian Ellsworth

CARACAS (Reuters) – Months before Venezuela’s opposition coalition called for abstention in Sunday’s presidential election, college student Ana Romano had already decided not to vote.

While volunteering as a witness in October’s election for state governors, Romano said, she lost count of the number of times activists for the ruling Socialist Party walked into voting booths on the pretext of “assisting” voters – a tactic the opposition says is illegal intimidation.

Romano said pro-government workers at the voting center in the rural state of Portuguesa also refused to close its doors at 6:00 p.m. as per regulations, keeping it open for an extra hour while Socialist Party cadres rounded up votes.

Her experience illustrates why some in Venezuela’s opposition say they will boycott Sunday’s presidential vote despite anger at the South American nation’s unraveling under unpopular President Nicolas Maduro.

“It was four of them against me and I was 20 years old: I couldn’t do anything,” Romano said, adding that she did not file an official report because the other poll center workers would not have signed it – and because there was no paper available to do so.

“I don’t want to have anything to do with this upcoming election,” Romano said. “We’ve already made that mistake.”

Reuters could not independently verify details of her account. Venezuela’s National Electoral Council – the government body in charge of organizing elections – did not respond to phone calls seeking comment.

Venezuela, a once-wealthy OPEC nation, is suffering hyperinflation and widespread food shortages as its economy collapses, leading hundreds of thousands to flee into neighboring countries.

Yet, despite popularity ratings languishing around 20 percent, Maduro is expected to secure a second, six-year term in his deeply divided country, in part due to low opposition turnout.

Some opposition members say participation would be pointless in the face of efforts to tilt the playing field in favor of Maduro, a former union leader who was elected in 2013 after the death of his mentor, late socialist leader Hugo Chavez.

They cite tactics ranging from the kind of small-scale election-center tricks described by Romano to the detention of the most prominent opposition leader Leopoldo Lopez, the coercion of government workers to vote for Maduro and the heavy use of state resources in his campaign.

Many in the opposition say there are inadequate guarantees of a free and fair vote: they point to a ban on Western election observers. The government says they would violate its national sovereignty.

The Venezuelan Electoral Observatory, an independent local election monitoring group, has also flagged problems that include an inadequate timeframe to update the electoral register and develop a network of poll center witnesses, and a reduction in real-time audits of results.

Washington, which has imposed sanctions on Maduro’s government, has said it will not recognize the results of Sunday’s vote.

Breaking the opposition boycott is former state governor Henri Falcon. Opposition leaders have attacked Falcon – a former Chavez ally or ‘Chavista’ – as a stooge who is only running to legitimize Maduro’s reelection.

Falcon, an ex-soldier and two-time governor of Lara state, counters that they are ceding power to Maduro without a fight and insists he would win if discontented Venezuelans turned out to vote.

“So now I’m a ‘Chavista’ just because I have common sense, because I take a clear position and because I act responsibly toward my country?” Falcon said when asked recently by reporters about the opposition’s criticism.

Falcon’s camp was not immediately available for comment for this story.

Maduro and allies deny the elections are unfair and insist the fractured opposition was beaten in October because its voters did not participate – an argument supported by statistics showing low turnout in its strongholds.

“We have an advantage, which is the strength of the people. That can’t be called an unfair advantage,” Maduro said last month.

Participation forecasts vary but, in general, pollsters believe turnout for Sunday’s vote will be far lower than the 80 percent in the last presidential elections in 2013, when Maduro narrowly defeated opposition candidate Henrique Capriles, who is banned from running this time.

One survey by respected pollster Datanalisis showed that the number of people who said they were “very likely” to vote – its most accurate indicator of how many people will participate – had fallen close to 30 percent in March.

In the Caracas slum of La Vega, Jose Vasquez, 49, described the election as too unfair to warrant participation.

“It’s like a game in which the referee is a family member of the other team’s captain,” said Vasquez, selling 40 gram (1 oz) bags of coffee and sugar on a small table in the street. “Why would I waste my time?

ELECTORAL OBSTACLE COURSE

During his 14 years as president, Chavez racked up repeated ballot-box victories thanks to his charisma and generous spending of Venezuela’s oil revenues – much of it on popular health and nutrition programs, as well as on his own electoral campaigns.

The opposition has cried fraud in the past without demonstrating evidence of it, including after a 2004 recall referendum that Chavez won.

But October’s vote included one incident that some opposition sympathizers see as a tipping point: election officials manually changed results at several voting centers in Bolivar state to tip the result in favor of the Socialist Party candidate, according to election center witnesses.

The witnesses produced official poll statements from their voting centers showing that the number of votes for the opposition candidate was higher than those reflected in the National Electoral Council figures for those same centers.

The elections council – stacked with Maduro’s supporters – has never clarified the issue and did not answer Reuters questions regarding the incident.

Maduro’s government has never commented.

More commonly, the opposition has complained of obstacles that reduce the likelihood of their supporters voting but are difficult to classify as fraud in a traditional sense – such as last-minute changes to the location of voting centers.

In the central state of Lara, Alfredo Alvarez learned just days before the October vote that the elections council had changed his voting center – along with that of an estimated 700,000 Venezuelans in 200 voting centers in predominantly opposition areas.

Alvarez, a 62-year-old journalist, had to drive around the city of Barquisimeto for several hours because he could not get a clear answer on where he was supposed to vote.

“I had to investigate: I had to go to five different voting centers. Who can vote under those conditions?” asked Alvarez, who said he ultimately cast his ballot in a polling center run by Socialist Party activists that had no opposition witnesses.

“I’ve been voting since 1973, but I’m not voting in this election. Not under these circumstances.”

Election officials said the changes were necessary primarily because of security concerns, given that some of the centers were near the site of violent opposition protests. Those protests had ended nearly three months before.

Electoral Council officials were not immediately available to explain that discrepancy.

(For a graphic on ‘Latin America’s upcoming elections’ click https://tmsnrt.rs/2rAQ4l1)

(Reporting by Brian Ellsworth, additional reporting by Miguel Angel Sulabaran, Maria de los Angeles Ramirez in Puerto Ordaz, and Vivian Sequera in Turmero; Editing by Alexandra Ulmer, Daniel Flynn and Rosalba O’Brien)

Aid reaches all besieged areas of Syria with latest delivery

A boy unloads aid parcels in the rebel-held besieged town of Zamalka, in the Damascus suburbs

BEIRUT (Reuters) – Trucks carrying medical and food aid entered two blockaded towns near Damascus on Wednesday, meaning that humanitarian agencies have now reached all besieged areas of Syria this year, the United Nations said.

The 38-truck convoy carried aid for some 20,000 people the U.N. estimates are living in the rebel-held towns of Zamalka and Irbin, which are being besieged by the government side.

“Today is the first time we are able to move a joint convoy of the United Nations, the Red Cross and Syrian Red Crescent … to these two towns since November 2012, nearly four years ago,” the U.N. resident and humanitarian coordinator Yacoub El Hillo told reporters before the trucks headed in.

“It will mean that since the beginning of this year the U.N., the International Committee of the Red Cross and the Syrian Red Crescent have been able to reach all the besieged areas of Syria,” he added.

The ICRC said the aid included food parcels and wheat flour, hygiene kits and medicine.

The U.N. says there are more than half a million Syrians living in 18 areas across the country that are besieged by warring sides in the five-year conflict. Aid agencies reported deaths from starvation in government-besieged Madaya earlier this year.

Hillo said the delivery to Zamalka and Irbin would last about a month, and called for sieges to be lifted and regular aid access granted.

Aid agencies have repeatedly called for regular access to areas under siege, saying that one-off deliveries quickly run out and that those in need remain blockaded.

(Reporting by John Davison and Firas Makdesi in Damascus; Editing by Gareth Jones)

Drought Protest Turns Violent

MANILA (Reuters) – Philippine police opened fire as a protest by thousands of rice farmers who lost their crops turned violent on Friday, killing one and wounding about a dozen, a leader of a farming group said.

About 6,000 farmers blocked a portion of the main highway in North Cotabato province on the southern island of Mindanao, demanding government assistance after drought linked by some to El Nino hit hundreds of thousands of hectares of farmland.

“Loud bursts of gunfire erupted,” Norma Capuyan, leader of a farmers’ group, told reporters. “There was heavy volume of fire. We ran to a church compound and the police surrounded us.”

A farmer died on the spot and about a dozen others were wounded in the legs and shoulders, Capuyan said, adding the police first tried to disperse them with water cannon but started shooting when they held their ground.

North Cotabato Governor Emmylou Mendoza said about 20 police were wounded when the farmers attacked them with sticks and stones. She said the first shot was fired by the protesters.

The police issued a statement saying it was investigating.

“Any violation of national police rules and regulations shall be meted (out) with the appropriate penalty,” national police spokesman Chief Superintendent Wilben Mayor said in a statement.

The protest began on Wednesday when farmers barricaded the highway in Kidapawan, demanding a dialogue with the governor and the release of 15,000 sacks of rice she had promised to them as relief.

The agriculture ministry said more than 300,000 hectares of farmland had been affected by drought, causing loses of about 5.3 billion pesos ($115.09 million) in rice and corn. It said the effects of El Nino were minimal.

(Reporting by Manuel Mogato and Enrico dela Cruz; Editing by Nick Macfie)

Famine threatens half of Yemen, U.N. agency says

SANAA (Reuters) – Nearly half of Yemen’s 22 provinces on the verge of famine as result of the war there and more than 13 million people need food aid, the U.N. World Food Programme (WFP) says.

Aid groups have blamed curbs imposed by the Saudi-led coalition on access to Houthi-controlled ports for the crisis and also accuse Houthis of preventing supplies from reaching some areas, including the city of Taiz in the southwest.

“From a food security perspective, 10 of Yemen’s 22 provinces are classified as emergency, which is one step before famine,” Adham Musallam, deputy director of the WFP office in the capital Sanaa, said as the agency launched a food voucher program to help the most needy.

Fighting over the past year has displaced about 2.3 million people and left more than half of Yemen’s 26 million population in need of food aid, Musallam said.

“This means that we must not wait until the situation reaches famine but must act now to provide humanitarian aid directly,” Musallam said.

The Houthis took over Sanaa in September 2014, ousting President Abd-Rabbu Mansour Hadi, then seized his temporary headquarters in the southern port city of Aden.

The Saudi-led Arab coalition intervened in March 2015 to try to restore Hadi to power and roll back Houthi gains. More than 6,200 people have been killed in the conflict, half of them civilians.

To counter the food crisis, the WFP has launched a program of emergency food vouchers to provide up to one million people with basic needs eventually.

In Sanaa, which is still under Houthi control, hundreds of people queued for hours to register for the vouchers. Under the program a family of six receives wheat grain, pulses, vegetable oil, salt and sugar provided by the WFP through a local supplier.

But one Sanaa resident expressed concern that the aid might not be sustained.

“We would like to have rations provided for the entire month, not just for a week or five days,” he told Reuters TV.

Many Yemenis have sought refuge in Sanaa after air strikes by the Saudi-led coalition destroyed their homes, especially in northern Yemen, where the Houthis, a Zaydi Shi’ite group, come from.

The United Nations, which had hosted two inconclusive rounds of peace talks in Switzerland last year, is pressing ahead on the diplomatic front for another round of negotiations. A senior Yemeni official said on Tuesday it might take place in Kuwait next month.

“The Yemeni people appreciate the need for humanitarian assistance but what they really need is an end to the war which is more important,” said Radman Hassan, a food voucher recipient.

(Writing by Sami Aboudi, editing by Sylvia Westall and Angus MacSwan)

WFP warns of serious food shortages in besieged Fallujah

LONDON (Thomson Reuters Foundation) – Humanitarian disaster is looming in the western Iraq city of Fallujah, an Islamic State stronghold under siege by security forces, where tens of thousands of people face food shortages, the United Nations World Food Programme (WFP) said on Tuesday.

There is no flour, rice, sugar or oil available in Fallujah and the prices of the little food that is left have risen sharply, the agency quoted Fallujah residents as telling it.

Fuel and cooking oil are no longer available and the price of a kilo of flour leaped to $20 in January, up more than 800 percent from December, the WFP said.

The Iraqi army, police and Iranian-backed Shi’ite militias – backed by air strikes from a U.S.-led coalition – imposed a near total siege late last year on Fallujah, located 30 miles west of Baghdad in the Euphrates river valley.

“The humanitarian situation in Fallujah is dire and residents need immediate assistance,” WFP spokeswoman Marwa Awad told the Thomson Reuters Foundation.

“We are aware that no food is going into the city and that militant groups are controlling the remaining food supplies.”

It has been too dangerous for the WFP to reach the area since September, when it delivered a one-month supply of food to 400 families in Garma, 6 miles from Fallujah, she said.

“We are deeply concerned about the worsening humanitarian situation inside Fallujah where many people require immediate food assistance,” Awad said. “We are ready to help but we are on standby until … the authorities give the green light to go in.”

Of the estimated 30,000 – 60,000 residents of Fallujah, a “significant number” are surviving on potatoes and other local food, after moving towards rural areas on the outskirts of the city, Awad said by phone from Iraq.

“We call on all parties to allow access to prevent a humanitarian disaster,” she said. “Sadly, everyone is focused on Syria and Yemen and the international community is no longer prioritizing Iraq, that’s the problem.”

In January, 32 people were reported to have died from starvation in Syria in areas that had been under siege for months.

Fallujah, a long-time bastion of Sunni Muslim jihadists, was the first Iraqi city to fall to Islamic State, in January 2014, six months before the group swept through large parts of northern and western Iraq and neighboring Syria.

(Reporting by Magdalena Mis, editing by Tim Pearce.)

Yemen’s food crisis deepens as banks cut credit for shipments

LONDON/ABU DHABI (Reuters) – Banks have cut credit lines for traders shipping food to war-torn Yemen, where ports have been battlegrounds and the financial system is grinding to a halt, choking vital supplies to an impoverished country that could face famine.

Lenders are increasingly unwilling to offer letters of credit – which guarantee that a buyer’s payment to a seller will be received on time – for cargoes to a country plagued by a civil war between the government and Houthi militia as well as an al Qaeda insurgency, say banking and trading sources.

“Western international banks no longer feel comfortable processing payments and are not willing to take the risk,” said an international commodities trading source active in Yemen.

“What this means is traders are saddled with even more risks and have to effectively guarantee entire cargoes, usually millions of dollars, before the prospect of getting paid,” said the source, who declined to be named, citing security concerns. “There are just more and more obstacles now to bringing goods into Yemen.”

Traders that procure food for Yemen are mostly smaller, private firms based locally or regionally that buy the goods from international markets. Reuters spoke to several sources who declined to be identified, also citing security concerns.

The situation has worsened rapidly in the past month after Yemen’s central bank stopped providing favorable exchange rates for local traders buying rice and sugar from global markets, say the sources, further hindering trading of food, which accounts for a large proportion of the country’s imports.

The decision to limit such rates to wheat and medicine – deemed more nationally crucial – was a bid to preserve fast-dwindling foreign currency reserves.

The financing difficulties have been one of the factors behind falling shipments to Yemen, according to the sources. In January, around 77 ships berthed at ports in Yemen, according to U.N. data, down from around 100 ships in March last year – when the civil war escalated – and a far cry from the hundreds of ships that called every month in previous years.

The consequences could be grave for the Arab peninsula’s poorest country, which the United Nations says is “on the brink of catastrophe”. It relies on seaborne imports for almost all its food and 21 million out of 26 million people are in need of humanitarian support, with over half the population suffering from malnutrition.

The war has seen a Saudi-led Arab coalition intervene in late March a year ago to seek to restore the internationally recognized government of President Abd-Rabbu Mansour Hadi, battling the Iranian-allied Houthis and forces loyal to former President Ali Abdullah Saleh.

Mohammed AlShamery, an official at Yemen’s sole sugar refinery, in the northern city of Hodaida on the Red Sea, said the credit and currency curbs had added to the problems of bringing cargoes into the country.

The process had already been complicated by deteriorating security as well as inspections of vessels by Arab coalition warships hunting for weapons bound for Houthi fighters.

“You have to be in constant touch with the shippers and reassure them that everything is fine and sometimes send pictures of the area so they know it’s safe,” AlShamery said.

PRICES RISE

A European banking source said some banks had decided to completely withdraw from offering credit lines on food trades to Yemen. “Even if a bank is willing to process a payment, which relates to food, they have to be careful,” the source added.

Trading sources said banks that had been involved in Yemen’s food trade have included Commerzbank, Deutsche Bank and HSBC as well as regional Middle East banks.

Commerzbank and Deutsche Bank declined to comment. HSBC said it continued to support customers trading across the Middle East and North Africa region including Yemen “subject to relevant regulatory and commercial controls”.

Yemeni banks are also feeling the pressure. Aidros Mohammed, an official with state-run National Bank of Yemen, said since the end of last year it had stopped opening letters of credit for the trade of goods in general “as outside banks have stopped dealing with us”.

Watheq Ali Hamed, the manager of a store in Sanaa, said the decision by the central bank regarding rice and sugar purchases would be felt by ordinary Yemenis.

“Prices are already going up because of the war and the rise in the cost of securing the goods,” he said. “The full effects of that decision will be felt going forward. Luckily, we still have some stocks.”

Slowing of imports and rising prices could pose grave problems for Yemen, where areas are at risk of famine.

The country lacks sufficient seasonal rains, has limited access to farming areas and facing rising costs of agricultural supplies, a report by a U.N. food agency said in January.

PORT FLASHPOINTS

More than 6,000 people have been killed – about half of them civilians – in the war, which has seen the Houthis gain control of the capital Sanaa.

Major ports have been flashpoints for fighting including the southern gateway of Aden, which has been gripped by violence since Hadi supporters seized it from Houthi forces in July. There have also been Saudi-led air strikes close to the port of Hodaida.

Adding to the turmoil, Al Qaeda in the Arabian Peninsula (AQAP) has been expanding its presence in Yemen; in February it took control of the southern town of Ahwar, months after seizing the major port city of Mukalla to the east.

Two banking sources in Yemen said restrictions on moving money abroad due to the conflict was adding to trade financing difficulties. “We have a big problem in transferring money abroad … so we cannot open letters of credit for traders to import,” one Yemeni banker said.

Trading and banking sources also said uncertainty over who was in control of Yemen’s central bank – given its headquarters in Sanaa – was adding to lenders’ caution. One Middle East banking source said some institutions were steering clear of transactions while Sanaa was still under Houthi control.

The central bank could not be reached for comment.

A Feb. 11 report by Yemen’s Ministry of Planning and International Cooperation showed total foreign reserves of Yemen’s central bank had slid to $2.1 billion by the end of 2015, from $4.7 billion at the same point in 2014.

The report said a “deterioration of the national currency value and scarcity of foreign exchange” were making it difficult to finance imports.

“In light of the ongoing conflict, the private sector has undergone painful shocks,” Minister of Planning and International Cooperation Mohammed Al-Maitami wrote.

“Hundreds of thousands of workers have lost their jobs and source of income.”

(Additional reporting by Tom Arnold in Dubai, Stephanie Nebehay and Tom Miles in Geneva, Michael Hogan in Hamburg, Michelle Nichols in New York and Arno Schuetze in Frankfurt; Editing by Pravin Char)

Civil war fuels ‘dire’ food situation in Central African Republic

Millions of people in the war-torn Central African Republic are at risk of going hungry because the three-year conflict has disrupted food supplies, two United Nations agencies said Tuesday.

The World Food Programme (WFP) and Food and Agriculture Organization (FAO) issued a joint statement about their newly released report on food security in the African nation, where a civil war erupted in December 2012 and triggered an economic collapse the following year.

The report found that 58 percent of the country’s 4.6 million residents needed immediate humanitarian assistance, as crop production had improved last year but levels were still less than half of what they were before the crisis began. Prices of groundnuts, wheat flour, beef and fish had surged, and two-thirds of people surveyed reported they had less food than in 2014.

“The situation is dire. Half of the population faces hunger,” Bienvenu Djossa, the WFP’s country director in the Central African Republic, said in a statement. “It is crucial that we continue helping the most vulnerable, who need emergency food assistance to survive.”

Total crop production stood at 838,671 metric tons last year, the agencies said in a news release, about 54 percent below its pre-civil-war average. The agencies added killings and lootings have cut the country’s cattle population in half in three years, and goat and sheep populations fell 57 percent in that time. Fishermen are also catching about 60 percent fewer fish than in past years.

The agencies said food prices in the Central African Republic surged even higher after the capital city of Bangui saw an uptick in violence last September. Groundnut prices in the city were up 74 percent from their 2012 levels, while fish prices were up 70 percent and the cost of beef doubled.

The prices of maize and cassava either dropped or remained steady, the report found, but that was largely because the violence disrupted trade activities and kept the products close to Bangui.

The U.N. Refugee Agency says more than 1 million people have been displaced in the conflict.

The WFP and FAO appealed for $175 million for humanitarian efforts in the Central African Republic, as well as nearby countries that are hosting some of the republic’s 470,000 refugees.

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