MUMBAI, May 10 - Indian overnight call money rates eased slightly on Monday, amid comfortable liquidity conditions and despite strong demand for funds at the beginning of the fresh reporting cycle.

The overnight cash rate ended at 3.75/85 percent, lower than Friday's close of 3.90/4.0 percent. The overnight weighted average call money rate was at 3.89 percent. Volume in overnight cash rates were a high 126.44 billion rupees.

Banks parked only 294 billion rupees with the central bank at its reverse repo auction on Monday, compared with 417.85 billion rupees on Friday.

"Cash is ample and people prefer to see how liquidity pans out for the week. So they don't prefer to park the entire surplus in reverse repo," said a dealer.

The CBLO rate was at 3.65 percent and the weighted average rate was at 3.73 percent.

Dealers said there are no concerns on liquidity as government is expected to spend in a big way, as reflected in its borrowings under the ways and means advances from the Reserve Bank of India .

The government borrowed 288.68 billion rupees from the central bank in the week ending April 30 from the bank's ways and means advances and in the previous week it had borrowed 313.49 billion rupees, central bank data showed.

RBI deputy governor Subir Gokarn also assured that there will not be any significant pressure on liquidity in the first half of the current financial year despite high government borrowing and credit offtake.

The European Union has cobbled a last ditch, $960 billion safety net for financially struggling members, hoping to calm fears that the Greek financial crisis will spread to other countries using the euro currency.

European Union finance ministers worked through the night to come up with a massive financial backstop for other weaker economies in the 16-nation eurozone. They wanted to announce the measure before financial markets opened for business this week.

The package includes about $75 billion of loans available from the European Commission, the EU's executive arm, to troubled countries; almost $570 billion more backing through bilateral loans and $315 billion from the International Monetary Fund. It follows a worldwide stock market plunge late last week on fears that the Greek financial crisis might spread to other shaky EU economies, notably those of Spain and Portugal.

At a press conference early Monday, EU Monetary Affairs Commissioner Olli Rehn recognized the problem posed for the nations sharing the euro currency.

"This has clearly been a systemic challenge for financial stability in the euro area," said Rehn. "It is not an attack on one or another individual member state, it is a threat to financial stability of the euro area and the European Union."

Greece's skyrocketing public deficit and debt has sparked international concern that it may default on its loan payments. Financial ratings agencies have downgraded its ratings, along with those of Portugal and Spain. But other European economies are also sending troubling signals, notably Britain which is projected to have a 12 percent deficit this year.

Critics fault the EU for its slow and divided response in dealing with the Greek crisis, notably from the German government which was reluctant to lend Athens money without it first agreeing to further austerity measures.

Berlin ultimately signed onto a massive rescue package for Athens, cobbled by the EU and the IMF. But the idea of shoring up Greece is deeply unpopular in Germany, and Chancellor Angela Merkel's party lost a regional election on Sunday.

Micro lending for small businesses is common in some countries, especially in the developing world.

But with the economic recession, micro lending is growing in the United States because it's difficult to get a bank loan to start a small business, especially for people with low incomes.

A private group is lending money to low income people in Washington so they can follow their dream. The loans range from $500 to $50,000.

Fidel Garcia is the owner of Capital Pilates and Patrick Carl is co-owner of the Capital City Diner. Both were able to start businesses in Washington with a small loan from the Latino Economic Development Corporation.

Garcia is a Cuban immigrant who opened his pilates exercise studio in November in an upscale neighborhood after retiring as a professional ballet dancer.

He applied for loans at many banks but was turned down. Then he went to LEDC and got $10,000. "It was a great help, because at that point, I really needed that money to help (buy) equipment, and with the rent. And I am very thankful to them because I really needed that extra push that they gave me," he said.

Patrick Carl and his business partner say LEDC let them borrow $35,000. "They walked you through the process like you were family. It wasn't so business-like that it was uncomfortable or difficult or surprising. It was just helpful," he said.

The Latino Economic Development Corporation began the lending program more than 10 years ago to help Hispanics, but now provides loans to anyone with a low income.

"We look to see how much a client can afford to pay and that's how we determine how much they get -- how much a client has available after they've paid all of their expenses to be able to take on a new debt," said Charlene Van Dijk, the lending manager.

She says more than half the clients are Latino. "There's a huge immigrant population in Washington. We have a bunch of Ethiopian clients. We have clients from Southeast Asia."

LEDC is often the last stop for people with low incomes who want to set up small businesses. "We've worked with an accounting firm, an autopsy service, and a lot of on-line services, companies that are starting on-line businesses," she said.

Financing is also given to restaurants like the Capital City Diner, which was constructed in the 1940s. The diner was moved by truck from a small town in New York to a low income neighborhood in Washington.

"We bought the entire restaurant, the entire building, plates, dishes. We found the diner on E-bay. We live in the neighborhood and there's no place for breakfast. There's no sit-down restaurants and it seemed like a good opportunity for us," said Patrick Carl, co-owner, Capital City Diner.

Capital City Diner opened two months ago, and like Garcia's pilates studio, business is booming. "On any given day, you can have a rich person next to a poor person. It could be anybody who can walk in because everyone wants good food at good prices in a comfortable atmosphere," he said.

Garcia says after he pays off his loan, he plans to apply for another small loan from LEDC. "Because the studio has to grow. And there are a lot of people who want to take classes," he said.

Last year, LEDC handed out $600,000 in small loans. Only one client has not repaid a loan, after he lost a job that helped support his business.

The U.S. economy created 290,000 jobs in April, the most in any month in the past four years. U.S. President Barack Obama says the Labor Department's latest employment numbers are an encouraging sign.

President Obama says the U.S. economy has come a very long way since he took office early last year.

"We now know that the economy has been growing for the better part of a year, and this steady growth is starting to give businesses the confidence to expand and to hire new people," said President Obama.

While April was the fourth straight month that the economy has had a net gain in jobs, the unemployment rate edged up to 9.9 percent, from 9.7 percent in March.

The Labor Department says more than 800,000 people who had given up looking for work are trying again, and Mr. Obama says that is also a good sign.

"Given the strength of these job numbers, this may seem contradictory, but this increase is largely a reflection of the fact that workers who had dropped out of the workforce entirely are now seeking jobs again, encouraged by better prospects," said Mr. Obama.

Opposition Republicans blame the Obama administration for an unemployment rate they say is unacceptably high. A statement from Republican Congressman Mike Pence says the Democrats' "policies of taxing, spending and bailouts are having a chilling effect on job creators across the country."

15.3 million Americans were unemployed in April. The president acknowledges that putting them back to work will take time.

"Over the course of this recession, more than 8 million jobs were lost," said the president. "So there are a lot of people out there who are still experiencing real hardship. We have got to be mindful that today's job numbers, while welcome, leave us with a lot of work to do. It is going to take time to achieve the strong and sustained job growth that is necessary."

Analysts do not expect hiring to increase enough in the coming months to bring the jobless rate down significantly.

But the experts say the high number of jobs added last month shows that businesses are feeling more confident in the U.S. economic recovery.

Factory production increased in April at the fastest pace in almost six years, and consumer spending was up in March by the largest amount in five months.

Millions of passengers have been stranded after a huge ash cloud spread from an Icelandic volcano toward Europe since Wednesday, April 14. Volcanic ash presents a particular challenge not only to airline passengers, but also to the travel industry, and the countries affected by the plume.

Air traffic controllers in Europe canceled more than 16,000 flights Friday because of the huge plume of ash from the Eyjafjallajokull volcano. The cloud drifted toward Europe and is predicted to cover as far north as northern Italy, Britain, the Scandinavian countries, Romania, Hungary, Slovenia, Croatia, and Switzerland.

The canceled flights are costing the airlines an estimated $200 million per day, and passengers are stranded at major airports including Frankfurt, London, and Rome.

Bill Miller is a Senior Vice President with CheapOair travel company, and he told VOA that the $200 million is a conservative estimate and the impact could be felt industry wide.

"Certainly at Heathrow British Airways has a very large presence, as do a lot of North-American based carriers. And in Frankfurt you've got Lufthansa that has a massive operation there. Europe is unique in that they have a lot of low-cost carriers. You've got Easy Jet operating out of Luton airport in London. Some other low-cost carriers throughout Europe. You know, there's like 30,000 flights a day in Europe and I believe about half of them have been canceled as of today," he said.

The ash cloud even trapped Norwegian Prime Minister Jens Stoltenberg, who was stuck in New York after his flight home was canceled. Mr. Stoltenberg used his Apple iPad electronic device to run his government while he made his way home.

The difficulty with volcanic ash is that it is more like small particles of glass rather than the ash left over from a fire. The pumice and other minerals can severely damage aircraft engines, control surfaces and navigation equipment.

Bill Burton is a geologist with the U.S. Geological Survey based outside Washington. He told VOA that volcanic ash is uniquely destructive to aircraft. "It's like sandblasting your aircraft if you fly in the middle of it. So millions of tiny hard pieces are flying into your jet engine. And they are abrading the engine and any forward facing surfaces including windshields. The silica in the ash can also melt and then re-solidify within the engine so you can actually coat the parts of your jet engine. And all of those things can be disastrous," he said.

In 1989, a KLM airlines 747 with 231 passengers aboard lost power to all four of its engines after flying through an ash cloud from the Redoubt Volcano in Alaska. The plane plunged from 27,000 to 13,000 feet before the pilots were able to re-start the engines and finish the flight to Anchorage Alaska.

And volcanic ash also can be toxic to humans, animals and plant life - not only from inhaling the particulates, but as Bill Burton said, from acid rain caused by the sulfur in the ash. "One of the main constituents of the (volcanic) gases is sulfur. And that comes out and oxidizes into sulfur dioxide and that combines with water to form sulfuric acid droplets. And those droplets can then be the source of acid rain. They also can block the sunlight to contribute to climate change, climate cooling in this case," he said.

The Volcanic Ash Advisory Center in London says that the high atmospheric pressure over the Atlantic is dictating that the wind strengths and the cloud will stay in northern Europe. However, should the pressure change, the cloud could move more toward the Mediterranean.

Bill Miller of CheapOair says that many airlines are keeping travelers informed. But he said travelers need to be patient. "It's a volcano, so nobody can really accurately predict what is going to happen. How long it is going to take. There are some airports that are already shut down all the way through Monday (April, 19). So I think the traveling public needs to make sure that they are aware of what communications channels to stay tuned into," he said.

Miller told VOA that some insurers are covering the tickets for canceled flights. And while airlines are losing millions of dollars to lost tickets, Miller said they are also not spending money for fuel, flight crews, and other expenses. While that is small comfort for stranded travelers, for now, there is nothing to do but wait.

Millions of passengers have been stranded after a huge ash cloud spread from an Icelandic volcano toward Europe since Wednesday, April 14. Volcanic ash presents a particular challenge not only to airline passengers, but also to the travel industry, and the countries affected by the plume.

Air traffic controllers in Europe canceled more than 16,000 flights Friday because of the huge plume of ash from the Eyjafjallajokull volcano. The cloud drifted toward Europe and is predicted to cover as far north as northern Italy, Britain, the Scandinavian countries, Romania, Hungary, Slovenia, Croatia, and Switzerland.

The canceled flights are costing the airlines an estimated $200 million per day, and passengers are stranded at major airports including Frankfurt, London, and Rome.

Bill Miller is a Senior Vice President with CheapOair travel company, and he told VOA that the $200 million is a conservative estimate and the impact could be felt industry wide.

"Certainly at Heathrow British Airways has a very large presence, as do a lot of North-American based carriers. And in Frankfurt you've got Lufthansa that has a massive operation there. Europe is unique in that they have a lot of low-cost carriers. You've got Easy Jet operating out of Luton airport in London. Some other low-cost carriers throughout Europe. You know, there's like 30,000 flights a day in Europe and I believe about half of them have been canceled as of today," he said.

The ash cloud even trapped Norwegian Prime Minister Jens Stoltenberg, who was stuck in New York after his flight home was canceled. Mr. Stoltenberg used his Apple iPad electronic device to run his government while he made his way home.

The difficulty with volcanic ash is that it is more like small particles of glass rather than the ash left over from a fire. The pumice and other minerals can severely damage aircraft engines, control surfaces and navigation equipment.

Bill Burton is a geologist with the U.S. Geological Survey based outside Washington. He told VOA that volcanic ash is uniquely destructive to aircraft. "It's like sandblasting your aircraft if you fly in the middle of it. So millions of tiny hard pieces are flying into your jet engine. And they are abrading the engine and any forward facing surfaces including windshields. The silica in the ash can also melt and then re-solidify within the engine so you can actually coat the parts of your jet engine. And all of those things can be disastrous," he said.

In 1989, a KLM airlines 747 with 231 passengers aboard lost power to all four of its engines after flying through an ash cloud from the Redoubt Volcano in Alaska. The plane plunged from 27,000 to 13,000 feet before the pilots were able to re-start the engines and finish the flight to Anchorage Alaska.

And volcanic ash also can be toxic to humans, animals and plant life - not only from inhaling the particulates, but as Bill Burton said, from acid rain caused by the sulfur in the ash. "One of the main constituents of the (volcanic) gases is sulfur. And that comes out and oxidizes into sulfur dioxide and that combines with water to form sulfuric acid droplets. And those droplets can then be the source of acid rain. They also can block the sunlight to contribute to climate change, climate cooling in this case," he said.

The Volcanic Ash Advisory Center in London says that the high atmospheric pressure over the Atlantic is dictating that the wind strengths and the cloud will stay in northern Europe. However, should the pressure change, the cloud could move more toward the Mediterranean.

Bill Miller of CheapOair says that many airlines are keeping travelers informed. But he said travelers need to be patient. "It's a volcano, so nobody can really accurately predict what is going to happen. How long it is going to take. There are some airports that are already shut down all the way through Monday (April, 19). So I think the traveling public needs to make sure that they are aware of what communications channels to stay tuned into," he said.

Miller told VOA that some insurers are covering the tickets for canceled flights. And while airlines are losing millions of dollars to lost tickets, Miller said they are also not spending money for fuel, flight crews, and other expenses. While that is small comfort for stranded travelers, for now, there is nothing to do but wait.