India Twitter backlash over confusing graphic

Crowds protest against a fuel price hike in Kolkata on Monday. (AFP)
Updated 11 September 2018
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India Twitter backlash over confusing graphic

  • Social media outcry over misleading graphic
  • Fuel price hike provokes popular anger

NEW DELHI: The rising price of fuel has hurt the Indian economy in general and low earners in particular and while past governments have usually cut fuel taxes when international oil prices risen, the Modi’s administration has so far blamed global factors, such as Turkey’s economic crisis.
As Indians’ anger grows over record fuel prices, the ruling party is getting advice on social media to seek lessons in mathematics and graphic design after it posted a bar-chart graphic that showed fuel prices lower than in prior years.
Prime Minister Narendra Modi is facing criticism for not doing enough to cut fuel taxes that account for more than a third of retail petrol and diesel prices, which have soared to record highs this month.
Twitter users on Tuesday derided Modi’s Bharatiya Janata Party (BJP) over the graphic, which showed the price of petrol in New Delhi, the capital, at 80.7 rupees a liter, while using an arrow showing a drop of 13 percent, rather than a rise, to compare it to a price of 71.4 rupees four years ago.
Titled “Truth of Hike,” the graphic included Modi’s picture and used four bars to show petrol price rises since 2004, but represented the current, higher price with a smaller bar.
The post was retweeted 2,100 times, attracted 3,200 comments and figured on primetime news shows after it was posted late on Monday, becoming the butt of jokes on social media, with some users questioning how 80 rupees could be less than 70.
Amit Malviya, the chief of the BJP’s information technology cell, said the graphic was not being interpreted correctly and was aimed only at showing that the 13 percent increase since 2014 was lower than in previous years.
“It may sound paradoxical, but that is what it is,” Malviya told Reuters.
Twitter users were unconvinced.
Zaineb Hakim joked on the social network, “Based on this graph, you are all entitled to a full refund from the mathematics department of the school you graduated from, assuming you did attend one.”
Another user, Jas Oberoi, wrote, “Modiji needs to spend taxpayers’ money on a better infographic provider. This is outrageous,” referring to the prime minister with a honorific suffix.
Past governments have usually cut fuel taxes when international oil prices shot up, but Modi’s administration has so far blamed global factors, such as Turkey’s economic crisis.
The fuel price hike has also furnished ammunition for the opposition Congress party to criticize Modi ahead of general elections next year. On Monday, protests against the high prices shut down many businesses, government offices and schools.
The Congress countered the BJP’s graphic with its own, showing a crying Bollywood actor looking at the graphic and retweeting inverted versions of the BJP chart.


Abu Dhabi said to study restructuring options for $1.2bn Etihad-linked bonds

Updated 19 September 2018
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Abu Dhabi said to study restructuring options for $1.2bn Etihad-linked bonds

  • Bonds issued through SPV with other airlines
  • Etihad asks Abu Dhabi government for help

DUBAI: The government of Abu Dhabi is looking at proposals to restructure some $1.2 billion of troubled bonds that were issued by Abu Dhabi state-owned carrier Etihad Airways in partnership with other airlines, sources familiar with the matter said.
Etihad issued $700 million of bonds through a special purpose vehicle (SPV) called Equity Alliance Partners (EAP) in 2015, and $500 million in 2016. Proceeds of the paper went to Etihad and other airlines it partially owned at the time, including Alitalia and Air Berlin, which are now both insolvent.
The notes were seen as strengthening Etihad's partnerships with those airlines after it spent billions of dollars in acquisitions.
The EAP bonds have been trading at a significant discount for over a year, however, after Alitalia entered special administration and Air Berlin filed for bankruptcy.
Etihad has no legal responsibility to bail out the portion of the bonds which benefited the two European airlines as the notes have no cross-default provision.
But with over $500 million of the paper held by United Arab Emirates investors, it has asked the Abu Dhabi Department of Finance to find a way to reduce losses for investors and limit any damage to the reputation of the local debt market, sources familiar with the matter said.
The department is now working with a financial adviser to find restructuring solutions, said the sources. One option being discussed could involve adjusting the structure of the paper to obtain a better credit rating. Rating agency Fitch has been involved in some of the discussions, the sources said.
Etihad declined to comment while a spokesman for the Abu Dhabi Department of Finance did not respond to a request for comment. Fitch declined to comment.
Any type of restructuring would require bondholders’ approval.
Etihad agreed to cover Alitalia’s portion of the debt, equivalent to around $230 million, at maturity through an agreement between the airlines which was signed before Alitalia entered special administration. But Air Berlin’s portion, of roughly the same amount, has no such guarantee.
Any intervention by the Abu Dhabi government, which could materialise before the end of this year, might see Abu Dhabi inject around $200-300 million into the issuing vehicle, said the sources.
This amount would be applied towards a partial early redemption of the notes at a discount of around 15 percent to par value for note holders seeking an early exit, the sources said. That would imply a write-off of Air Berlin’s obligation under the structure, while Alitalia’s debt would be honoured.
Creditors unwilling to exit at a discount might swap their notes into new instruments with a higher credit rating. The notes could feature a credit enhancement in the form of a guarantee of the obligations of Air Serbia and Air Seychelles, which are part of the borrowing structure, the sources said.
The first tranche of the notes, due 2020, is rated CC by Fitch, while the second tranche due 2021 is rated C.
With an Abu Dhabi intervention, the notes would become investment grade because of the oil-rich emirate's strong credit profile, so any capital injection by the government could be partially offset by a reduction in interest payments.
Last month, the SPV said it received a bid of just over $4 million in cash for the debt obligations of Alitalia and Air Berlin across the two EAP bond tranches.
The bid included around $6 million that would become payable to the SPV in case of recovery of an equivalent amount from the obligations, and a payment of 60 percent of money recovered after a 35 percent recovery threshold was reached.
The bid had an expiry date of Aug. 31; the SPV asked the bidder to extend the deadline to give note holders time to review terms. Since then, the SPV has given no update on the bidding process.