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World

Ghana to default on most external debt as economic crisis worsens

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  • Ghana suspends payments on Eurobonds, commercial loans
  • Announcement a week after IMF staff-level agreement
  • Eurobonds sink up to 3 cents in dollar

ACCRA, Dec 19 (Reuters) – Ghana on Monday suspended payments on most of its external debt, effectively defaulting as the country struggles to plug its cavernous balance of payments deficit.

Its finance ministry said it will not service debts including its Eurobonds, commercial loans and most bilateral loans, calling the decision an “interim emergency measure”, while some bondholders criticised a lack of clarity in the decision.

The government “stands ready to engage in discussions with all of its external creditors to make Ghana’s debt sustainable”, the finance ministry said.

The suspension of debt payments reflects the parlous state of the economy, which had led the government last week to reach a $3-billion staff-level agreement with the International Monetary Fund (IMF).

Ghana had already announced a domestic debt exchange programme and said that an external restructuring was being negotiated with creditors. The IMF has said a comprehensive debt restructuring is a condition of its support.

The country has been struggling to refinance its debt since the start of the year after downgrades by multiple credit ratings agencies on concerns it would not be able to issue new Eurobonds.

That has sent Ghana’s debt further into the distressed territory. Its public debt stood at 467.4 billion Ghanaian cedis ($55 billion as per Refinitiv Eikon data) in September, of which 42% was domestic.

Ghana external debt by holder type, 2022 Q3, $ billion

It had a balance of payments deficit of more than $3.4 billion in September, down from a surplus of $1.6 billion at the same time last year.

While 70% to 100% of the government revenue currently goes toward servicing the debt, the country’s inflation has shot up to as much as 50% in November.

Ghana has been experiencing what some say is its worst economic crisis in a generation. Last month, more than 1,000 protesters marched through the capital Accra, calling for the resignation of the president and denouncing deals with the IMF as fuel and food costs spiralled.

Its gross international reserves stood at around $6.6 billion at the end of September, equating to less than three months of imports cover. That is down from around $9.7 billion at the end of last year.

The government said the suspension will not include the payments towards multilateral debt, new debts taken after Dec. 19 or debts related to certain short-term trade facilities.

‘NOT COMING OUT OF THE BLUE’

Holders of Ghana’s international bonds confirmed in an emailed statement late on Monday the formal launch of a creditor committee aimed at facilitating the “orderly and comprehensive resolution” of the country’s debt challenges.

Any good faith negotiations, the creditor committee said, would need to avoid unilateral actions and require the timely exchange of detailed economic and financial information between international bondholders, the government and the IMF.

The steering committee was made up of Abrdn, Amundi, BlackRock, Greylock and Ninety One, the group said in its statement.

Kathryn Exum, who co-leads Gramercy’s Sovereign Research department, was hopeful about debt restructuring, noting that it should prove easier for creditors than other recent emerging market restructurings.

“It is more straight forward than the likes of Sri Lanka and Zambia, in the respect that there is not a lot of China debt,” Exum said on Friday in comments anticipating the external restructuring.

One bondholder who requested anonymity said the lack of detail in the announcement could be cause for concern for investors.

Ghana’s external bonds, which are trading at a deeply distressed level of 29-41 cents in the dollar, dropped with the 2034 bond losing more than 3 cents, Tradeweb data showed.

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Nonetheless, some investors said the suspension of external debt payment was expected.

“It is in line with Ghana getting into talks about restructuring with various debt holders, so not coming out of the blue,” Rob Drijkoningen, co-head of emerging market debt at Neuberger Berman, which holds some Ghanaian Eurobonds.

Ghana did pay a Dec. 16 coupon due on a 2049 Eurobond, according to a person familiar with the matter.

It was not immediately clear if the debt service suspension would include a $1 billion 2030 bond that has a $400 million World Bank guarantee .

“We will not be commenting on the specifics of any particular bond or debt owed at this time, but… we are fully engaging all stakeholders,” a finance ministry spokesperson told Reuters.

($1 = 8.5000 Ghanaian cedi)

Reporting by Christian Akorlie and Cooper Inveen; Additional reporting by Rachel Savage, Marc Jones and Jorgelina do Rosario; Writing by Rachel Savage and Cooper Inveen; Editing by Karin Strohecker, Ed Osmond, Arun Koyyur and Aurora Ellis

Our Standards: The Thomson Reuters Trust Principles.

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Biden says U.S. is ‘all in’ on Africa’s future

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WASHINGTON, Dec 14 (Reuters) – President Joe Biden announced an agreement aimed at bolstering trade ties between the United States and Africa on Wednesday after years in which the continent took a back seat to other U.S. priorities as China made inroads with investments and trade.

“The United States is ‘all in’ on Africa’s future,” Biden told African leaders attending a three-day summit in Washington.

Biden’s remarks, and the summit, aim to position the United States as a partner to African countries amid its competition with China, which has sought to expand its influence by funding infrastructure projects on the continent and elsewhere. Chinese trade with Africa is about four times that of the United States, and Beijing has become an important creditor by offering loans with less stringent conditions than Western lenders.

Biden said a new U.S. agreement with the African Continental Free Trade Area will give American companies access to 1.3 billion people and a market valued at $3.4 trillion. He listed companies that had made deals at the summit, including General Electric Co (GE.N) and Cisco Systems Inc (CSCO.O).

“When Africa succeeds, the United States succeeds. Quite frankly, the whole world succeeds as well,” the president said.

Delegations from 49 countries and the African Union, including 45 African national leaders, are attending the three-day summit, which began on Tuesday, the first and is the first of its kind since 2014. Washington has offered $55 billion in support for Africa under the Biden administration for food security, climate change, trade partnerships and other issues.

After his remarks, Biden viewed some of the World Cup semifinal match between Morocco and France with Morocco’s prime minister, Aziz Akhannouch, and other leaders attending the summit, the White House said.

This afternoon, Biden will host leaders facing 2023 elections, including from Gabon and Liberia for a discussion on elections and democratic principles. Then Biden and his wife, Jill, will host African leaders and their spouses at a White House dinner with Vice President Kamala Harris and her husband Doug Emhoff.

The summit is part of a renewed push to boost ties with a continent as China gains influence with trade, investment and lending drives. Beijing has held its own high-level meetings with African leaders every three years for more than two decades.

Some U.S. officials have been reluctant to frame the gathering as a battle for influence. Biden didn’t mention China in his remarks, and Washington has toned down its criticism of Beijing’s lending practices and infrastructure projects.

Biden is expected to announce his support for the African Union’s joining the G20 group of the world’s largest economies as a permanent member during Thursday’s summit events.

U.S. Trade Representative Katherine Tai told African counterparts on Tuesday she wants to improve the continent’s U.S. trade preferences program to boost investment.

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“We are not looking for a relationship that is transactional, that’s extractive, that is burdensome, or leaves various countries in a more fragile, poor state after a deal is done,” State Department spokesman Ned Price told reporters on Monday.

[1/7] U.S. President Joe Biden delivers keynote remarks at a U.S.-Africa Business forum at the 2022 U.S.-Africa Leaders Summit in Washington, U.S., December 14, 2022. REUTERS/Kevin Lamarque

On Wednesday, White House national security spokesman John Kirby highlighted the importance of U.S. investments in Africa and helping countries there play a more active role in the global economy.

“It’s a two-way discussion that we want to have with Africa about trade, investment and opportunities for economic growth,” he told reporters.

At an opening trade forum on Wednesday, African leaders called for more investment.

“Instead of exporting commodities, the U.S. should find an opportunity in investing,” Kenyan President William Ruto said. “They have the machinery, they have the know-how, so that they can produce for the African continent in Africa.”

Ruto cited projections that Africa’s agribusiness sector will more than triple to $1 trillion by 2030 and said U.S. capital can help solve the continent’s physical infrastructure deficit to unlock this growth.

CHINA-AFRICA TRADE

According to a Eurasia Group analysis, in 2021 China-Africa trade, at $254 billion, greatly outstripped U.S.-Africa trade, which stood at $64.3 billion. Those figures are up from $12 billion and $21 billion, respectively, in 2002.

Beijing’s lending to Africa has led to Western charges that China has mired African countries in debt.

Beijing’s ambassador to Washington rejected the idea ahead of the summit, citing a report that African countries owe three times more debt to Western institutions, while noting that Chinese-built hospitals, highways, airports and stadiums are “everywhere” in Africa.

China remains the region’s largest bilateral investor, but its new loan commitments to Africa have declined in recent years.

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It’s not all about economic sway – Washington has been alarmed by China’s efforts to establish a military foothold in Africa, including on the Atlantic coast in Equatorial Guinea.

For their part, many African leaders reject the idea that they need to choose between the United States and China.

“The fact that both countries have different levels of relations with African countries makes them equally important for Africa’s development,” Ethiopia’s U.N. ambassador, Taye Atske Selassie Amde, told Reuters. “However, it should be known each African country has the agency to determine their respective relationship and best interest.”

Additional reporting by David Lawder, Steve Holland and Andrea Shalal in Washington and Michelle Nichols in New York; Editing by Don Durfee, Leslie Adler, Heather Timmons and Jonathan Oatis

Our Standards: The Thomson Reuters Trust Principles.

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Hawaii volcano: Lava from Mauna Loa is less than 4 miles from a key highway. Officials say they have a plan in case the road closes

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CNN
 — 

With the Mauna Loa volcano continuing to erupt on Hawaii’s Big Island, local officials and residents are keeping an eye on the lava flow as it creeps closer to a major roadway and making plans for the possibility that access to the highway could soon be cut off and have a major impact on daily life.

Lava from Mauna Loa was 3.6 miles from Saddle Road, also known as Daniel K. Inouye Highway, as of Wednesday morning, the US Geological Survey said. The crucial roadway is the fastest route linking the east and west sides of the island.

“County officials have been working with the state Department of Transportation on a plan to shut down the Daniel K. Inouye Highway if the lava moves close enough to the road to pose a hazard,” Adam Weintraub, communication director with Hawaii Emergency Management Agency, said in a statement to CNN. “The plans are preliminary and subject to change based on how the lava advances.”

As of Wednesday, the lava was moving into a relatively flat area, “so it is slowing down and spreading out,” Weintraub said.

Emmanuel Carrasco Escalante, who lives in Hilo on the island’s east side, told CNN if the road ends up being shut down, his commute to work would take about four hours round trip – twice as long as normal, not accounting for traffic.

Carrasco Escalante works in landscaping in Kona on the west side of the island and said he usually leaves for work around 3:30 a.m.

If Saddle Road is closed, he’ll have to detour to either the north or south coastal roadways, he said.

“That would add almost two hours, more gas, and more miles so hopefully it (lava) doesn’t cross that road,” Carrasco Escalante told CNN.

The fountains of lava that began pouring from Mauna Loa this week marked the first time it has erupted in 38 years, joining nearby Kilauea, which has been erupting since last year, and creating rare duel volcanic eruptions on the Big Island. At 13,681 feet above sea level, Mauna Loa is the world’s largest active volcano.

The transportation department can provide a six-hour notice of the road’s closure, Weintraub said. “And the staff at the Hawaiian Volcano Observatory say that they can provide at least 24-48 hours advance warning if the lava appears to be threatening the roadway,” he added.

According to the US Geological Survey, the lava’s pace has slowed in the days since the eruption and it could take at least two days for the lava to reach Saddle Road.

In case of emergencies if the road closes, there are hospitals and first responders on each side of the island, Weintraub said, noting there is already “substantial coordination” between hospitals in the state.

Hawaii’s transportation department is monitoring the situation and response plans are in place if the highway must be closed, according to a statement from earlier this week. The department also shared a preliminary plan for the possibility of closure.


Despite the dual eruptions of Mauna Loa and Kilauea just 21 miles apart in Hawai’i Volcanoes National Park, Hawaii Gov. David Ige has maintained it’s still safe to visit the Big Island. And the park has said neither eruption is threatening homes.

“The eruption site is high up the mountain, and it’s in a relatively isolated location,” Ige said.

State health officials, however, have warned of potential air quality issues, including vog, or volcanic smog.

Residents and visitors can expect “vog conditions, ash in the air, and levels of sulfur dioxide to increase and fluctuate in various areas of the state,” the Hawaii health department said.

Volcanic gas, fine ash and Pele’s Hair (strands of volcanic glass) could be carried downwind, the US Geological Survey said. A field team has found Pele’s hairs across older lava flows, the geological survey said Wednesday, adding: “Hairs deposited many km (mi) from active vents by the windblown eruption plume.”

Children, the elderly and those with respiratory conditions should reduce outdoor activities that cause heavy breathing and reduce exposure by staying indoors and closing windows and doors if vog conditions develop, the health department said.

The governor acknowledged the potential for air hazards and said officials are tracking air quality monitors across the island.

“The concern is about dangerous gases from the fissures. And the most dangerous is sulfur dioxide,” Ige said Wednesday. “Observing the volcano should occur at a distance. It’s not safe to get up close.”

While evacuation orders have not been issued, Ige said he signed an emergency proclamation as a “proactive” measure.

More than 3,000 miles to the north, officials in Alaska are also monitoring two erupting volcanoes in their state.

Both the Pavlof Volcano and Great Sitkin Volcano are experiencing low-level eruptions in the remote Aleutian Islands chain, according to Cheryl Searcy, duty scientist at the Alaska Volcano Observatory.

“Pavlof has been erupting for over a year,” Searcy told CNN in a phone interview from Anchorage. “Roughly 15 months of activity, longer than any of the previous eruptions.”

During that time, Pavlof – which stands at 8,261 feet– has not produced a high ash cloud, posing no threat to aviation, Searcy said.

As for the Great Sitkin Volcano, lava is still erupting in its summit crater, according to a report from the state’s volcano observatory. Searcy noted the 5,709-foot Great Sitkin has also been active for quite a while.

Researchers are also keeping an eye on three other volcanoes that have shown signs of unrest, including the Semisopochnoi, Takawangha and Cleveland volcanoes.

Overall, Alaska has more than 40 active volcanoes stretching across the Aleutian Islands chain.



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U.S. appeals court rejects Biden’s bid to revive student debt plan

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Nov 30 (Reuters) – A federal appeals court on Wednesday declined to put on hold a Texas judge’s ruling that said President Joe Biden’s plan to cancel hundreds of billions of dollars in student loan debt was unlawful.

The New Orleans-based 5th U.S. Circuit Court of Appeals rejected the Biden administration’s request to pause a judge’s Nov. 10 order vacating the $400 billion student debt relief program in a lawsuit pursued by a conservative advocacy group.

The decision by Fort Worth, Texas-based U.S. District Judge Mark Pittman was one of two nationally that has prevented the U.S. Department of Education under the Democratic president from moving forward with granting debt relief to millions of borrowers.

The administration has asked the U.S. Supreme Court to similarly lift an order by the St. Louis-based 8th U.S. Circuit Court of Appeals that, at the request of six Republican-led states, had barred it from cancelling student loans.

A three-judge panel of the 5th Circuit in Wednesday’s brief order declined to put Pittman’s ruling on hold while the administration appealed his decision, but the court directed that the appeal be heard on an expedited basis.

The panel included two Republican appointees and one judge nominated by then Democratic President Barack Obama. Pittman was appointed by then Republican President Donald Trump.

The White House had no immediate comment but the administration has said that if the 5th Circuit declined to halt Pittman’s order it would ask the U.S. Supreme Court to intervene.

Biden announced in August that the U.S. government would forgive up to $10,000 in student loan debt for borrowers making less than $125,000 a year, or $250,000 for married couples. Students who received Pell Grants to benefit lower-income college students will have up to $20,000 of their debt canceled.

During the 2020 presidential campaign, Biden promised to help debt-saddled former college students. Biden’s program has drawn opposition from Republicans, who have portrayed it as shifting the burden of debt from wealthy elites to lower-income Americans.

The Congressional Budget Office in September calculated that the debt forgiveness program run would cost taxpayers about $400 billion.

About 26 million Americans have applied for student loan forgiveness, and the U.S. Department of Education had already approved requests from 16 million by the time Pittman issued his ruling.

Biden last week announced his administration would extend a pause on student loan payments to alleviate uncertainty for borrowers while litigation over the debt relief plan plays out.

Pittman had ruled in a lawsuit by two borrowers who were partially or fully ineligible for the loan forgiveness who were backed by the Job Creators Network Foundation, a conservative advocacy group founded by Bernie Marcus, a co-founder of Home Depot.

The judge said it was irrelevant if Biden’s plan was good public policy because the program was “one of the largest exercises of legislative power without congressional authority in the history of the United States.”

Pittman wrote that the HEROES Act – a law that provides loan assistance to military personnel and that was relied upon by the Biden administration to enact the relief plan – did not authorize the program.

Elaine Parker, president of Job Creators Network Foundation, said in a statement the 5th Circuit’s order on Wednesday prevented the administration during the appeal from trying to “get money out the door to debtors and claim victory.”

Reporting by Nate Raymond in Boston; Editing by Tom Hogue, Robert Birsel

Our Standards: The Thomson Reuters Trust Principles.

Nate Raymond

Thomson Reuters

Nate Raymond reports on the federal judiciary and litigation. He can be reached at nate.raymond@thomsonreuters.com.

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U.S. to boost spending on tribal lands, protect Nevada sacred site

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WASHINGTON, Nov 30 (Reuters) – The Biden administration will give Native American tribes more say in managing federal and tribal lands as part of a plan that includes assistance for tribes whose land has been harmed by climate change, the White House said on Wednesday.

President Joe Biden and other Cabinet officials announced the measures at a two-day Tribal Nations Summit, with additional steps focused on providing better access to capital for tribal nations.

Biden also said at the summit that he intends to protect the area surrounding Spirit Mountain in Nevada, known as Avi Kwa Ame to the Fort Mojave tribe, which has been urging the United States to designate the huge swath of land as a national monument.

“I’m committed to protecting this sacred place that is central to the creation story of so many tribes that are here today,” Biden announced during remarks at Tribal Nations summit in Washington.

Biden was met by applause when he commented that he intends to visit tribal lands while in office.

Among the other new actions announced by the administration are efforts to boost purchases of tribal energy and other goods and services, and to revitalize Native languages.

The three signature pieces of legislation passed during Biden’s time in office – laws dealing with infrastructure, climate and COVID-19 relief – have provided nearly $46 billion in funding for tribal communities and Native American people, the White House said.

The actions include new uniform standards for how federal agencies should consult Native American tribes in major decisions that affect their sovereignty, the creation of a new office of partnerships to advance economic development and conservation initiatives and agreements promoting the co-stewardship of federal lands, waters, fisheries and other resources of significance and value to tribes.

“I made a commitment my administration would prioritize and respect nation-to-nation relationships,” Biden said. “I hope our work in the past two years has demonstrated that we’re meeting that commitment.”

The Interior Department also announced it would award $115 million to 11 tribes that have been severely impacted by climate-related environmental threats, and $25 million each to two Alaska tribes and the Quinault Nation in Washington state to help them execute their plans to relocate their villages to safer ground.

Federal agencies will also be instructed to recognize and include indigenous knowledge in federal research, policy, and decision-making, by elevating tribal “observations, oral and written knowledge, practices, and beliefs” that promote environmental sustainability.

The Small Business Administration will announce plans to boost access to financing opportunities, while the Energy Department plans to increase federal agencies’ use of tribal energy through purchasing authority established under a 2005 law unused for more than 17 years.

The administration will also work to deploy electric-vehicle infrastructure in tribal lands, prioritize the replacement of diesel school buses with low or zero emission school buses, and help tribes buy or lease EV fleet vehicles.

As part of that drive, the Interior Department will set a goal to award 75% of contract dollars from Indian Affairs agencies and 10% of the department’s remaining contract dollars to Native-owned businesses. Along with a new Indian Health Service goal of 20% of purchases, the actions could redirect hundreds of millions of dollars to businesses on tribal lands.

The government will also release a draft of a 10-year plan to revitalize Native American languages and which underscores the urgency for immediate action, while formally recognizing the role that the U.S. government played in erasing Native languages.

The administration also announced a new initiative that will aim to widely deploy broadband and other wireless services on tribal lands, helping Native American tribes improve communication services that have lagged those of non-tribal lands.

Reporting by Andrea Shalal, Valerie Volcovici and Jeff Mason in Washington
Additional reporting by Katharine Jackson in Washington
Editing by Robert Birsel and Matthew Lewis

Our Standards: The Thomson Reuters Trust Principles.

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Mauna Loa eruption 2022 – live: Hawaii volcano eruption shifts from summit to rift as shelters open and flights delayed

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Mauna Loa: World’s largest active volcano erupts in Hawaii

Hawaii’s Mauna Loa, the largest active volcano on Earth, has erupted for the first time in nearly four decades.

According to the National Weather Service (NWS), the eruption on the state’s Big Island began at approximately 11.30pm local time on Sunday in Mokuaweoweo, the summit caldera of the volcano.

Footage from US Geological Survey (USGS) webcams at the summit captured fountains of lava spewing from a long fissure and spreading across the caldera floor.

The USGS said the lava flows were initially contained in the summit area and do not pose a threat to communities downslope, but there are fears that could change.

At 7.43am ET on Monday, USGS said that “there is currently no indication of any migration of the eruption into a rift zone”.

The eruption has also already triggered dozens of earthquakes of more than 2.5 magnitudes on the Richter scale, one of them clocking in at 4.2.

The local NWS branch issued an ashfall warning which cautioned that “winds may carry volcanic gas and possibly fine ash and Pele’s hair downwind”.

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Why didn’t Mauna Loa explode like Mount St Helens?

Fifty-seven people died when Washington state’s Mount St Helens erupted in 1980 and blasted more than 1,300ft (400m) off the top of the mountain. Steam, rocks and volcanic gas burst upward and outward. A plume of volcanic ash rose over 80,000ft (24,384m) and rained down as far as 250 miles (400km) away.

Hawaii volcanoes like Mauna Loa tend not to have explosion eruptions like this.

That’s because their magma is hotter, drier and more fluid, said Hannah Dietterich, a research geophysicist at the US Geological Survey’s Alaska Volcano Observatory.

The magma in Mount St Helens tends to be stickier and traps more gas, making it much more likely to explode when it rises.

The gas in the magma of Hawaii’s volcanoes tends to escape, and so lava flows down the side of their mountains when they erupt.

Hawaii’s volcanoes are called shield volcanoes because successive lava flows over hundreds of thousands of years build broad mountains that resemble the shape of a warrior’s shield.

Shield volcanos are also found in California and Idaho as well as Iceland and the Galapagos Islands. Alaska’s Wrangell-St Elias National Park has eight shield volcanoes including Mount Wrangell.

Volcanoes like Mount St. Helens are called composite or stratovolcanoes. Their steep, conical slopes are built by the eruption of viscous lava flows and rock, ash and gas. Japan’s Mount Fuji is another example of a composite volcano.

Oliver O’Connell29 November 2022 06:50

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Watch: World’s largest active volcano erupts in Hawaii for first time in almost 40 years

Mauna Loa, the largest active volcano on the planet, has erupted for the first time in almost 40 years.

Footage shows the sky glowing red as the volcano erupted on Hawaii‘s Big Island.

Dozens of earthquakes, some of more than 2.5 on the richter scale, were triggered by the eruption.

The last eruption at Mauna Loa occurred in 1984.

Mauno Loa: World’s largest active volcano erupts for first time in almost 40 years

Mauna Loa, the largest active volcano on the planet, has erupted for the first time in almost 40 years. Footage shows the sky glowing red as the volcano erupted on Hawaii’s Big Island. The National Weather Service (NWS) said that the eruption began at 11:30pm local time on Sunday, 27 November. Dozens of earthquakes, some of more than 2.5 on the richter scale, were triggered by the eruption. The last eruption at Mauna Loa occurred in 1984. Click here to sign up for our newsletters.

Oliver O’Connell29 November 2022 04:50

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What happens next?

Each eruption since 1843 started at Mauna Loa’s summit. Half the time, the volcano later also began erupting from vents at lower elevations. The other half of the time it only erupted in the summit caldera.

Scientists can’t tell far in advance when and where Mauna Loa will open new vents and erupt.

Vents generally form along the volcano’s rift zone. That’s where the mountain is splitting apart, the rock is cracked and relatively weak and it’s easier for magma to emerge.

An eruption from vents on the southwest rift zone could hit residential communities, coffee farms or coastal villages on the west side of the island. Lava could reach homes in just hours or days.

The west side’s most populous town would be protected from any Mauna Loa eruption by the presence of another active volcano. The broad flanks of that volcano, Hualalai, sit between Mauna Loa’s southwest rift zone and Kailua-Kona and would block any lava heading toward the coastal community.

An eruption from the northeast rift zone could send lava toward the county seat of Hilo or other towns in East Hawaii. It could take lava weeks or months to reach populated areas on this side of the mountain.

Scott Rowland, a geologist at the University of Hawaii at Manoa, said there’s no pattern when it comes to where an eruption will occur.

“Just because the last one was on the northeast rift zone does not mean the next one will be down the southwest rift zone,” he said.

Oliver O’Connell29 November 2022 03:50

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Why doesn’t Mauna Loa erupt like is neighbour Kilauea

Kilauea is well-known for a 2018 eruption that destroyed 700 homes and sent rivers of lava spreading across farms and into the ocean. The eruption of Mauna Loa is different.

Mauna Loa’s eruptions differ from Kilauea’s in part because it is taller. It’s greater height gives it steeper slopes, which allow lava to rush down its hillsides faster than Kilauea’s.

It’s enormous size may allow it to store more magma, leading to larger lava flows when an eruption occurs.

Frank Trusdell, research geologist at the Hawaiian Volcano Observatory, which is part of the U.S. Geological Survey, said data indicates that Mauna Loa has a much larger magma reservoir than Kilauea, which may allow it to hold more lava and rest longer between eruptions than Kilauea.

Oliver O’Connell29 November 2022 02:50

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Seven weeks ago: National park closes access to Mauna Loa due to increased seismic activity

In early October, national park authorities closed Mauna Loa’s summit off as a precautionary measure “due to elevated seismic activity”.

Shweta Sharma reported for The Independent at the time.

Oliver O’Connell29 November 2022 01:50

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Where is Mauna Loa?

Mauna Loa is one of five volcanoes that together make up the Big Island of Hawaii, which is the southernmost island in the Hawaiian archipelago. It’s not the tallest (that title goes to Mauna Kea) but it’s the largest and makes up about half of the island’s land mass.

It sits immediately north of Kilauea volcano, which is currently erupting from its summit crater. Kilauea is well-known for a 2018 eruption that destroyed 700 homes and sent rivers of lava spreading across farms and into the ocean.

Mauna Loa last erupted 38 years ago. In written history, dating to 1843, it’s erupted 33 times.

The Big Island is mostly rural and is home to cattle ranches, coffee farms and beach resorts. It’s about 200 miles (320 kilometers) south of Hawaii’s most populous island, Oahu, where the state capital Honolulu and beach resort Waikiki are both located.

Oliver O’Connell29 November 2022 00:50

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Southwest Airlines cancels Hilo flights in wake of eruption

Southwest Airlines has cancelled at least 10 flights to and from Hilo airport on the Big Island as the eruption of Mauna Loa continues.

The company said in a statement: “The volcanic ash advisory has Southwest adjusting our operation today within Hawaii and we’ll continue reaching to update customers holding reservations on any flights affected by either delays or a cancellation. We have suspended operations in Hilo today, affecting a total 10 interisland departures just on the route between Honolulu and Hilo, and would make further adjustments as necessary.”

A waiver is being offered for customers scheduled to fly to, from or within Hawaii to change their reservation with no changes in fares. The waiver is applicable to bookings Monday and Tuesday.

Aviation officials continue to closely monitor the situation.

Oliver O’Connell28 November 2022 23:50

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One month ago: Hawaii’s Big Island gets warning as huge volcano rumbles

Authorities warned Hawaii residents to prepare one month ago…

Hawaii officials are warning residents of the Big Island that the world’s largest active volcano, Mauna Loa, is sending signals that it may erupt.

Although an eruption isn’t imminent, scientists are on alert because of a recent spike in earthquakes at the volcano’s summit. Experts say it would take just a few hours for lava to reach homes closest to the volcano, which last erupted in 1984.

Oliver O’Connell28 November 2022 22:50

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Mauna Loa: What you need to know

Mauna Loa is one of five volcanoes that together make up the Big Island of Hawaii, which is the southernmost island in the Hawaiian archipelago.

Mauna Loa, rising 13,679 feet (4,169 meters) above sea level, is the much larger neighbor of Kilauea, which erupted in a residential neighborhood and destroyed 700 homes in 2018. Some of its slopes are much steeper than Kilauea’s, so lava can flow much faster when it erupts.

During a 1950 eruption, the mountain’s lava traveled 15 miles (24 kilometers) to the ocean in fewer than three hours.

Here’s what’s happening at Mauna Loa right now.

Oliver O’Connell28 November 2022 22:20

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Eruption shifts to rift zone

The US Geological Survey said that the eruption had migrated to a rift zone — a place where the mountain rock is cracked and relatively weak — making it easier for magma to emerge.

An eruption from the zone could send lava toward the county seat of Hilo or other towns in East Hawaii but it could take the lava weeks or months to reach populated areas.

“We don’t want to try and second-guess the volcano,” Ken Hon, the scientist-in-charge at the Hawaiian Volcano Observatory said. “We have to let it actually show us what it’s going to do and then we inform people of what is happening ASAP.”

Hawaii County Civil Defense announced that it had opened shelters because it had reports of people evacuating from along the coast on their own initiative.

The average Mauna Loa eruption is not typically prolonged, lasting a couple of weeks, Mr Hon said.

“Typically, Mauna Loa eruptions start off with the heaviest volume first,” Mr Hon said. “After a few days, it starts to calm down a little bit.”

Oliver O’Connell28 November 2022 21:50

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Hawaii’s Mauna Loa, the world’s largest active volcano, erupting for first time in almost 40 years

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Hawaii’s Mauna Loa, the world’s largest active volcano, started erupting Sunday night and lava was flowing from its summit by Monday morning, the U.S. Geological Survey said. The lava wasn’t expected to threaten populated areas, officials said.

“Lava flows are not threatening any downslope communities and all indications are that the eruption will remain in the Northeast Rift Zone,” the USGS said in a statement.

At a Monday afternoon press conference, Hawaii Volcano Observatory Scientist in Charge Ken Hon said officials don’t expect the lava flow to reach the Southeast Rift Zone, where there are more inhabitants. 

“As far as we know, in any historic precedence that there has never been an eruption of Mauna Loa that activated both rift zones at the same time or during the same eruption,” Han said. “So we presume at this point that all of the future activity is gonna be on the Northeast Rift Zone and not on the Southeast Rift Zone. So those residents in that area do not have to worry about lava flows.”

In this aerial photo released by the U.S. Geological Survey, the Mauna Loa volcano is seen erupting from vents on the Northeast Rift Zone on the Big Island of Hawaii, Nov. 28, 2022.

U.S. Geological Survey via AP


Mauna Loa has erupted 33 times since 1843, according to the USGS. It last erupted in 1984, when lava spilled down its slopes and came within 4.5 miles of Hilo.

Hon said the lava flow is very similar to the lava flow from the 1984 eruption and could potentially threaten populated areas around Hilo  

“We’re looking for somewhere around a week before we expect lava to get anywhere near that direction,” he said. “We’re hoping that it will parallel the 1984 eruption in becoming more viscous as times goes on and hitting flatter slopes that slow it down, and this actually prevented the lava from getting into Hilo.”

He added that “only a couple of eruptions” have made it into the outskirts and reached Hilo. 

“We’re hoping that while this lava flow will be a big, spectacular event, it occupies a fairly small proportion of the island, and hopefully it will have relatively minor effects on the residents and visitors of the island,” Hon said. 

Still, the agency warned all residents on Hawaii Island who are “at risk from Mauna Loa lava flows” to “review preparedness and refer to Hawai’i County Civil Defense information for further guidance.”

The early stages of an eruption can be dynamic, the agency warned, adding that “lava flows can change rapidly.”

Residents were also warned volcanic gas, ash and thin glass fibers known as Pele’s hair could be carried downwind.

The Hawaiian Volcano Observatory said it was “in close consultation with emergency management partners and will be monitoring the volcano closely to provide further updates on activity.”

Major General Ken Hara, adjutant general for the State of Hawaii, Department of Defense, said Monday afternoon that the Hawaiin Emergency Management Agency had activated its emergency operation center at 1 a.m. Hara added that the Hawaii National Guard was on standby, although nobody had been activated as of 1:15 p.m. local time.

A satellite captured images of Sunday’s eruption from space. The National Oceanic and Atmospheric Administration posted images of the heat signature and release of sulfur dioxide from the volcano.

In response to the eruption, Southwest Airlines canceled 10 interisland flights between Hilo, the island’s biggest city, and Honolulu, the carrier told CBS News. Hawaiian Airlines said it was still operating on the island in Hilo and Kona while monitoring the eruption, and Untied Airlines reported no delays or cancellations Monday morning.

Mauna Loa’s Hawaiian name means “long mountain,” which is fitting as the huge mountain extends roughly 74 miles from its edge along Hawaii Island’s southern coast, to the rim of its summit caldera, or crater, where the eruption began on Sunday evening.

An image taken by a webcam situated along the northwest rim of the summit caldera of Hawaii’s Mauna Loa volcano early on November 28, 2022 shows an eruption which, at the time, was confined to the crater.

USGS


Tucker Reals

Tucker Reals is the CBSNews.com foreign editor, based at the CBS News London bureau.



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Hawaii’s Mauna Loa volcano starts erupting: Live updates

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HONOLULU (AP) — Waves of orange, glowing lava and smoky ash erupted Monday from the world’s largest active volcano and people living on Hawaii’s Big Island were warned to be ready if their communities are threatened.

The eruption of Mauna Loa wasn’t immediately endangering towns, but officials told residents to be ready to evacuate if lava flows started heading toward populated areas.

Many now living in the area weren’t around when Mauna Loa last erupted 38 years ago. The U.S. Geological Survey warned the roughly 200,000 people on the Big Island that an eruption “can be very dynamic, and the location and advance of lava flows can change rapidly.”

Lifelong Big Island resident Bobby Camara, who lives in Volcano Village, said everyone across the island should be alert and keep track of the eruption.

“I think everybody should be a little bit concerned,” he said. “We don’t know where the flow is going, we don’t know how long it’s going to last.”

He said he’s seen three Mauna Loa eruptions in his lifetime and knows that people need to be vigilant.

The eruption began late Sunday night following a series of fairly large earthquakes, said Ken Hon, the scientist-in-charge at the Hawaiian Volcano Observatory.

Gunner Mench, who owns an art gallery in Kamuela, said he awoke shortly after midnight and saw an alert on his phone about the eruption.

Mench and his wife, Ellie, ventured out to film the eruption’s eerie red glow over the island and watched as the lava spilled down the side of the volcano.

“You could see it spurting up into the air, over the edge of this depression,” Mench said.

“Right now it’s just entertainment, but the concern is” it could reach populated areas, he said.

There’s been a surge of development on the Big Island in recent decades — its population has more than doubled, from 92,000 in 1980.

More than a third of the island’s residents live either in the city of Kailua-Kona to the west of the volcano, which has about 23,000 people, and Hilo to the east, with about 45,000. Officials were most worried about several subdivisions about 30 miles (50 kilometers) to the south of the volcano, which are home to about 5,000 people.

A time-lapse video of the eruption from overnight showed lava lighting up one area, moving across it like waves on the ocean.

The U.S. Geological Survey said that the eruption had migrated to a rift zone on the volcano’s northeast flank. Rift zones are where the mountain rock is cracked and relatively weak — making it easier for magma to emerge.

An eruption from the northeast could send lava toward the county seat of Hilo or other towns in East Hawaii but it could take the lava weeks or months to reach populated areas. It’s possible the eruption may later shift to a rift zone on the southwest flank. Lava emerging from this area could reach nearby communities in hours or days.

“We don’t want to try and second-guess the volcano,” Hon said. “We have to let it actually show us what it’s going to do and then we inform people of what is happening ASAP.”

Hawaii County Civil Defense announced that it had opened shelters because it had reports of people evacuating from along the coast on their own initiative.

The average Mauna Loa eruption is not typically prolonged, lasting a couple of weeks, Hon said.

“Typically, Mauna Loa eruptions start off with the heaviest volume first,” Hon said. “After a few days, it starts to calm down a little bit.”

The USGS warned residents who could be threatened by Mauna Loa lava flows to review their eruption preparations. Scientists had been on alert because of a recent spike in earthquakes at the summit of the volcano, which last erupted in 1984.

Portions of the Big Island were under an ashfall advisory issued by the National Weather Service in Honolulu, which said up to a quarter-inch (0.6 centimeters) of ash could accumulate in some areas.

Mauna Loa is one of five volcanoes that together make up the Big Island of Hawaii, which is the southernmost island in the Hawaiian archipelago.

Mauna Loa, rising 13,679 feet (4,169 meters) above sea level, is the much larger neighbor of Kilauea, which erupted in a residential neighborhood and destroyed 700 homes in 2018. Some of Mauna Loa’s slopes are much steeper than Kilauea’s, so lava can flow much faster when it erupts.

During a 1950 eruption, the mountain’s lava traveled 15 miles (24 kilometers) to the ocean in fewer than three hours.

Tourism is Hawaii’s economic engine but Big Island Mayor Mitch Roth predicted few problems for those on vacation during the eruption.

“It will be spectacular where it is, but the chances of it really interrupting the visitor industry — very, very slim,” he said.

For some, the eruption might cut down on some travel time, even if there is more volcanic smog caused by higher sulfur-dioxide emissions.

“But the good thing is you don’t have to drive from Kona over to Hawaii Volcanoes National Park to see an eruption anymore,” Roth said. “You can just look out your window at night and you’ll be able to see Mauna Loa erupting.”

Julia Neal, owner of Pahala Plantation Cottages, said the eruption brings some relief after many preparedness meetings, and much wondering about what the volcano will do.

“It’s exciting,” she said. “It’s kind of a relief that it’s happening and we’re not waiting for it to happen.”

A few future guests from the U.S. mainland called Neal “asking me to make a prediction, which I can’t,” she said. “So I said, just stand by.”

___

Associated Press writers Jennifer Kelleher in Honolulu, Alina Hartounian in Phoenix and Mark Thiessen in Anchorage, Alaska, contributed to this report.

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Business

Crypto lender BlockFi files for bankruptcy, cites FTX exposure

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  • Filing follows weeks after FTX collapse
  • FTX listed as BlockFi’s No.2 creditor
  • Bitcoin down over 70% from 2021 peak

Nov 28 (Reuters) – Cryptocurrency lender BlockFi has filed for Chapter 11 bankruptcy protection, it said on Monday, the latest crypto casualty after the firm was hurt by exposure to the spectacular collapse of the FTX exchange earlier this month.

The filing in a New Jersey court comes as crypto prices have plummeted. The price of bitcoin , the most popular digital currency by far, is down more than 70% from a 2021 peak.

“BlockFi’s Chapter 11 restructuring underscores significant asset contagion risks associated with the crypto ecosystem,” said Monsur Hussain, senior director at Fitch Ratings.

New Jersey-based BlockFi, founded by fintech executive-turned-crypto entrepreneur Zac Prince, said in a bankruptcy filing that its substantial exposure to FTX created a liquidity crisis. FTX, founded by Sam Bankman-Fried, filed for protection in the United States earlier in November after traders pulled $6 billion from the platform in three days and rival exchange Binance abandoned a rescue deal.

“Although the debtors’ exposure to FTX is a major cause of this bankruptcy filing, the debtors do not face the myriad issues apparently facing FTX,” said the first day bankruptcty filing by Mark Renzi, managing director at Berkeley Research Group, the proposed financial advisor for BlockFi. “Quite the opposite.”

BlockFi said the liquidity crisis was due to its exposure to FTX via loans to Alameda, a crypto trading firm affiliated with FTX, as well as cryptocurrencies held on FTX’s platform that became trapped there. BlockFi listed its assets and liabilities as being between $1 billion and $10 billion.

Renzi said that BlockFi had sold a portion of its crypto assets earlier in November to fund its bankruptcy. Those sales raised $238.6 million in cash, and BlockFi now has $256.5 million in cash on hand.

In a court filing on Monday, BlockFi listed FTX as its second-largest creditor, with $275 million owed on a loan extended earlier this year. It said it owes money to more than 100,000 creditors. The company also said in a separate filing it plans to lay off two-thirds of its 292 employees.

Under a deal signed with FTX in July BlockFi was to receive a $400 million revolving credit facility while FTX got an option to buy it for up to $240 million.

BlockFi’s bankruptcy filing also comes after two of BlockFi’s largest competitors, Celsius Network and Voyager Digital , filed for bankruptcy in July citing extreme market conditions that had resulted in losses at both companies.

Crypto lenders, the de facto banks of the crypto world, boomed during the pandemic, attracting retail customers with double-digit rates in return for their cryptocurrency deposits.

Crypto lenders are not required to hold capital or liquidity buffers like traditional lenders and some found themselves exposed when a shortage of collateral forced them – and their customers – to shoulder large losses.

BlockFi’s first bankruptcy hearing is scheduled to take place on Tuesday FTX did not respond to a request for comment.

CREDITOR LIST

BlockFi’s largest creditor is Ankura Trust, a company that represents creditors in stressed situations, and is owed $729 million. Valar Ventures, a Peter Thiel-linked venture capital fund, owns 19% of BlockFi equity shares.

BlockFi also listed the U.S. Securities and Exchange Commission as one of its largest creditors, with a $30 million claim. In February, a subsidiary of BlockFi agreed to pay $100 million to the SEC and 32 states to settle charges in connection with a retail crypto lending product the company offered to nearly 600,000 investors.

Bain Capital Ventures and Tiger Global co-led BlockFi’s March 2021 funding round, according to a press release issued by BlockFi at the time. Both firms did not immediately respond to a request for comment.

In a blog post, BlockFi said its Chapter 11 cases will enable the company to stabilize its business and maximize value for all stakeholders.

“Acting in the best interest of our clients is our top priority and continues to guide our path forward,” BlockFi said.

In its bankruptcy filing, BlockFi said it had hired Kirkland & Ellis and Haynes & Boone as bankruptcy counsel.

BlockFi had earlier paused withdrawals from its platform.

In a filing, Renzi said that Blockfi intends to seek authority to honor client withdrawal requests from its customer wallet accounts, in which crypto assets are held in custody. However, the company did not disclose its plans for how it might treat withdrawal requests from its other products, including its interest-bearing accounts.

“BlockFi clients may ultimately recover a substantial portion of their investments,” Renzi said in the filing.

ORIGINS

BlockFi was founded in 2017 by Prince, who is currently the company’s chief executive officer, and Flori Marquez. Though headquartered in Jersey City, BlockFi also has offices in New York, Singapore, Poland and Argentina, according to its website.

In July, Prince had tweeted that “it’s time to stop putting

BlockFi in the same bucket / sentence as Voyager and Celsius.”

“Two months ago we looked the ‘same.’ They shut down and have impending losses for their clients,” he said.

According to a profile of BlockFi published earlier this year by Inc, Prince was raised in San Antonio, Texas, and financed his college education at the University of Oklahoma and Texas State University with winnings from online poker tournaments. Before starting BlockFi with Marquez, he held jobs at Orchard Platform, a broker dealer, and at Zibby, a lease-to-own lender now called Katapult (KPLT.O).

Marquez previously worked at Bond Street, a small business lending outfit that was folded in to Goldman Sachs (GS.N) in 2017, according to Inc.

Reporting by Hannah Lang in Washington, Niket Nishant and Manya Saini in Bengaluru and Elizabeth Howcroft in London
Additional reporting by Dietrich Knauth, Editing by Megan Davies, Conor Humphries, Matthew Lewis and Anna Driver

Our Standards: The Thomson Reuters Trust Principles.

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US

Hawaii’s Mauna Loa, the world’s largest active volcano, erupting for first time in almost 40 years

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Hawaii’s Mauna Loa, the world’s largest active volcano, started erupting Sunday night, the U.S. Geological Survey said as it raised the alert level for the volcano from an “advisory” to a “warning.”

“At this time, lava flows are contained within the summit area and are not threatening downslope communities,” the USGS said in its alert notice, issued in conjunction with the Hawaiian Volcano Observatory. But it noted that, “based on past events, the early stages of a Mauna Loa eruption can be very dynamic and the location and advance of lava flows can change rapidly.”   

An image taken by a webcam situated along the northwest rim of the summit caldera of Hawaii’s Mauna Loa volcano early on November 28, 2022 shows an eruption which, at the time, was confined to the crater.

USGS


Should the eruption spread outside the walls of Mauna Loa’s summit caldera, or crater, “lava flows may move rapidly downslope.”

For that reason, the agency warned all residents on Hawai’i Island who are “at risk from Mauna Loa lava flows” to “review preparedness and refer to Hawai’i County Civil Defense information for further guidance. “

Mauna Loa has erupted 33 times since 1843, according to the USGS. It last erupted in 1984, when lava spilled down its slopes and came within 4.5 miles of the island’s biggest town, Hilo.

The Hawaiian Volcano Observatory said it was “in close consultation with emergency management partners and will be monitoring the volcano closely to provide further updates on activity.”

Hawaii’s Mauna Loa volcano, in Kailua-Kona, Hawaii, on Nov. 28, 2022, in a screen grab taken from a social media video.

kelly/ @MAGAHAWAII/ via REUTERS


The observatory planned to carry out an overflight of the volcano “as soon as possible” to determine the nature of the eruption and “assess hazards.”

Mauna Loa’s Hawaiian name means “long mountain,” which is fitting as the huge mountain extends roughly 74 miles from its edge along Hawai’i Island’s southern coast, to the rim of the caldera where the eruption began on Sunday evening.

Tucker Reals

Tucker Reals is the CBSNews.com foreign editor, based at the CBS News London bureau.

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