Lending – WLAN Secure http://w-lansecure.biz/ Wed, 28 Apr 2021 12:04:14 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.1 https://w-lansecure.biz/wp-content/uploads/2021/04/default.png Lending – WLAN Secure http://w-lansecure.biz/ 32 32 The Egyptian Mortgage Fund, a partner of Crédit Agricole to support low and middle income people https://w-lansecure.biz/the-egyptian-mortgage-fund-a-partner-of-credit-agricole-to-support-low-and-middle-income-people/ https://w-lansecure.biz/the-egyptian-mortgage-fund-a-partner-of-credit-agricole-to-support-low-and-middle-income-people/#respond Wed, 07 Apr 2021 23:13:51 +0000 https://w-lansecure.biz/the-egyptian-mortgage-fund-a-partner-of-credit-agricole-to-support-low-and-middle-income-people/ The Egyptian Social Housing and Mortgage Fund and Crédit Agricole Egypt have signed a cooperation agreement to support low and middle income citizens. The agreement is part of the initiative set up by the Central Bank of Egypt (CBE) to provide mortgage financing. The agreement was signed by Mai Abdel Hamid, CEO of the Social […]]]>


The Egyptian Social Housing and Mortgage Fund and Crédit Agricole Egypt have signed a cooperation agreement to support low and middle income citizens.

The agreement is part of the initiative set up by the Central Bank of Egypt (CBE) to provide mortgage financing.

The agreement was signed by Mai Abdel Hamid, CEO of the Social Housing and Mortgage Fund, and Walie Lotfy, Deputy CEO of Crédit Agricole Egypt. It took place in the presence of high representatives from both sides.

The agreement is part of Crédit Agricole Egypt’s strategy to serve the market and increase customer satisfaction. This will be done through its various innovative banking products and by capitalizing on the CBE’s initiative to provide mortgage financing to low and middle income.

When signing the cooperation protocol, Abdel Hamid said: “The CBE initiative has succeeded in getting more banks to promote social housing projects.”

She added, “The initiative started with four banks serving 800 clients per month and now 22 banks offer mortgage products for 8,000 to 10,000 low and middle income clients per month.”

Abdel Hamid also stated that Crédit Agricole Egypt demonstrates great professionalism in handling all cases entrusted to the bank, and the fund looks forward to continued cooperation with the bank in the coming period.

For his part, Lotfy said: “This agreement follows the CBE’s initiative to provide mortgage financing, which allows more citizens to buy suitable housing with a repayment period of up to 20 years. at a low interest rate. ”

It is also part of the presidential initiative to provide adequate housing for all Egyptians, he noted.

Thus, Crédit Agricole Egypt has taken advantage of mortgage finance through its network and its dedicated subsidiary, the Egyptian Housing Finance Company (EHFC), one of the oldest companies in the field of mortgage financing in Egypt.

“The mortgage loan is really seen as an investment for consumers to own property, which is a great long-term savings asset,” Lotfy said, “There are still huge opportunities in Egypt in this sector. , especially since the CBE has facilitated the procedures to obtain mortgages so as to obtain the best interest of the client, banks and real estate developers, as evidenced by the construction of 450,000 homes since the launch of the initiative .

Commenting on this collaboration, Crédit Agricole Egypt CEO Jean-Pierre Trinelle declared: “We are developing the mortgage financing product, benefiting from the expertise of the Crédit Agricole Group being the market leader in this field in France.”

“This agreement allows us to extend our services to different customer segments in full support of Crédit Agricole’s ambition to actively serve society and the local economy”, he added, “We are always concerned about ensure that Crédit Agricole Egypt is part of the Centrale. The initiatives of the Bank of Egypt strengthening the capacities of clients on the one hand and stimulating the dynamism and growth of the market on the other hand. “

Under the Middle Income Mortgage Financing Program, the maximum monthly household income has been set at EGP 14,000 and EGP 10,000 for individuals. For low-income citizens, the monthly income threshold is 4,500 EGP for individuals and 6,000 EGP for households. The value of mortgage financing reached EGP 33 billion with an average financing of EGP 100,000 per unit.





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$ 6.2 billion in overpayments for unemployment assistance, according to the agency https://w-lansecure.biz/6-2-billion-in-overpayments-for-unemployment-assistance-according-to-the-agency/ https://w-lansecure.biz/6-2-billion-in-overpayments-for-unemployment-assistance-according-to-the-agency/#respond Wed, 07 Apr 2021 23:13:51 +0000 https://w-lansecure.biz/6-2-billion-in-overpayments-for-unemployment-assistance-according-to-the-agency/ The government overpaid $ 6.2 billion in two unemployment insurance programs in the first year of the pandemic, according to a surveillance report released Tuesday. Millions of Americans have lost their jobs as the coronavirus slammed the economy in the spring of 2020, forcing many to rely on jobless benefits and straining state unemployment systems. […]]]>


The government overpaid $ 6.2 billion in two unemployment insurance programs in the first year of the pandemic, according to a surveillance report released Tuesday.

Millions of Americans have lost their jobs as the coronavirus slammed the economy in the spring of 2020, forcing many to rely on jobless benefits and straining state unemployment systems. In March 2020, Congress passed legislation that expanded and supplemented regular unemployment benefits, including a new program called Pandemic Unemployment Assistance, which extended assistance to workers excluded from their state’s systems, such as workers self-employed and construction workers.

The Government Accountability Office report states that the Department of Labor reported that “states have identified more than $ 3.6 billion in PUA overpayments from March 2020 to February 2021.” In addition, states have identified $ 2.6 billion in regular unemployment insurance overpayments in the last three quarters of 2020.

The report notes that “overpayments do not necessarily result from fraud, although some may be”. States generally have to compel people to repay overpayments, but they can also waive this requirement if they find that a person has been “no-fault”.

[CORONAVIRUS: Click here for our complete coverage » arkansasonline.com/coronavirus]

For example, in October, the Colorado Department of Labor and Employment forgave 9,000 Coloradans $ 1.4 million in overpayments in the event of an unemployment pandemic after recognizing that confusing forms for construction workers may have led some people to overestimate their income.

The figures reported by GAO represent a much higher overpayment amount than previously known. When GAO addressed the issue in a January report, it found that Department of Labor data showed $ 1.1 billion in UI overpayments in the event of a pandemic between March and December 2020, and he recommended that the agency collect data from states.

GAO’s January report also reiterated and expanded on concerns about fraud in an emergency relief program run by the Small Business Administration called the Economic Injury Disaster Loan Program, which offers up to $ 10,000. businesses and non-profit organizations. By the end of December, the agency had approved 3.6 million low-interest loans worth $ 197 billion.

GAO reported that the Small Business Administration’s independent auditor said in December that the agency “was unable to provide adequate documentation to support a significant number of transactions and account balances related to EIDL in due to inadequate processes and controls. “

The auditor also found more than 6,000 loans worth more than $ 212 million “made to potentially ineligible borrowers,” the Government Accountability Office found.

Between May 2020 and February, the Justice Department announced charges against more than 50 defendants in more than 30 economic disaster loan fraud cases, GAO said. In February, at least five people had pleaded guilty to federal charges of program fraud.

The Small Business Administration told the watchdog that it is working to better document its processes and controls for future audits, and that it agrees with a GAO recommendation to put in place a monitoring plan. disaster loans.



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Bank lending to MSMEs drops 17% in 2020 https://w-lansecure.biz/bank-lending-to-msmes-drops-17-in-2020/ https://w-lansecure.biz/bank-lending-to-msmes-drops-17-in-2020/#respond Wed, 07 Apr 2021 23:13:51 +0000 https://w-lansecure.biz/bank-lending-to-msmes-drops-17-in-2020/ Lawrence agcaoili (The Philippine Star) – April 7, 2021 – 12:00 a.m. MANILA, Philippines – Bank lending to micro, small and medium enterprises (MSMEs) fell 17% to 480.5 billion pesos in 2020, from 579.13 billion pesos in 2019 as the sector was hit by closures massive due to strict mobility and quarantine restrictions amid the […]]]>


Lawrence agcaoili (The Philippine Star) – April 7, 2021 – 12:00 a.m.

MANILA, Philippines – Bank lending to micro, small and medium enterprises (MSMEs) fell 17% to 480.5 billion pesos in 2020, from 579.13 billion pesos in 2019 as the sector was hit by closures massive due to strict mobility and quarantine restrictions amid the pandemic, according to the Bangko Sentral ng Pilipinas (BSP).

The amount, which only amounted to a 5.71 percent compliance rate, continued to be below the 10 percent threshold required by Republic Act 6977 or the Magna Carta for MSMEs.

The law obliges banks to allocate 8% of their total loan portfolio to micro and small enterprises and 2% to medium enterprises.

BSP data showed that the total credit allocation of the banking system to micro and small enterprises decreased by 18.5% to 186.12 billion pesos in 2020 from 228.36 billion pesos in 2019 and is remained below the prescribed eight percent, as it represented only 2.21 percent compliance. .

Likewise, funds allocated to medium-sized enterprises fell 16 percent to 294.38 billion pesos from 350.77 billion pesos. This resulted in a compliance rate of 3.5%, exceeding the required 2%.

The industry’s total loan portfolio increased slightly by 3.3% to reach 8.42 billion pesos in 2020, from 8.15 billion pesos in 2019. This means that allocations for the MSME sector are expected to have increased. reached 841.26 billion pesos.

MSMEs play an important role, contributing 35.7 percent of the total value added of the economy and accounting for 99.5 percent of all establishments. The sector employs 62.8 percent of the total labor force.

However, MSMEs are unable to reach their full potential due to difficulty in accessing credit and finance, especially now that banks are risk-averse due to uncertainties caused by the COVID-19 pandemic.

PASB has adopted regulatory relief measures to reduce the financial burden on MSMEs. The Monetary Board approved the temporary relaxation of the credit risk weight assigned for loans to MSMEs in the calculation of the risk-based capital adequacy framework to 50% from 75%.

A lower credit risk weight would allow banks to lend more to the MSME sector than reserving the amount to comply with capital requirements.

The regulator also approved the inclusion of loans to MSMEs within banks’ compliance with reserve requirement ratios to ensure adequate liquidity and credit in the financial system.

The BSP reduced the RRR of universal and commercial banks by 200 basis points and of medium and small banks by 100 basis points last year. It also reduced the minimum liquidity ratio (MLR) for autonomous medium and small banks to 16 percent from 20 percent to free up more funds for loans.

The Monetary Board also cut interest rates by 200 basis points this year, taking the overnight repo rate to a historic low of 2%.

According to the BSP, action is needed to mitigate the risk of financial sector volatility in light of ongoing global developments. It would also reduce borrowing costs for affected businesses and households.



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Magnetic business financing aficionado https://w-lansecure.biz/magnetic-business-financing-aficionado/ https://w-lansecure.biz/magnetic-business-financing-aficionado/#respond Wed, 07 Apr 2021 23:13:51 +0000 https://w-lansecure.biz/magnetic-business-financing-aficionado/ A business finance specialist, Mr. Subodh Bajpai, engages with the country’s entrepreneurial and small business community by bridging the gap between lenders and borrowers. In due course, he became a savior for hundreds of businesses, helping them overcome the impact of Covid-19 using much-needed finances ranging from Rs 5 lakh to Rs 500 crore. Considering […]]]>


A business finance specialist, Mr. Subodh Bajpai, engages with the country’s entrepreneurial and small business community by bridging the gap between lenders and borrowers. In due course, he became a savior for hundreds of businesses, helping them overcome the impact of Covid-19 using much-needed finances ranging from Rs 5 lakh to Rs 500 crore.

Considering that the first step towards entrepreneurship is discovering a business idea – no business idea can last and survive without funding – Mr. Bajpai is one of those visionaries who help these businesses providing them with funds through fundraising. It is through his firm “Haitch Holdings”, Mr. Bajpai has extraordinary expertise in granting loans up to Rs 5 crore in a few days of receipt of requests.

Taking into account that modern formal financial systems, including banks and NBFCs, are governed by their own set of regulations, Mr. Bajpai says: “Lenders mainly depend on collateral, referrals or guarantees to make a decision. loan, but due to lack of any of these, most genuine loan seekers do not get any funding from lending institutions. However, “when the banks say no, we say yes,” observes Bajpai, adding: “I believe in giving wings to stressed start-ups and emerging entrepreneurs to help them implement their ideas into reality. believing in their business ideas and arranging the adequate funding for them. m Bajpai also helps NBFCs raise money for contingencies.

Mr. Bajpai also supports people, including political parties and NGOs in their fundraising efforts, in addition to helping businesses raise funds through equity financing. While it helps people find the right fit when needed, it also helps businesses raise funds through private finance on an emergency basis.

Commenting on the current financing scenario in India, Mr. Bajpai said, “Despite the progress made by the banking sector and the formal financial sector, India continues to be a country in need of credit as more and more entrepreneurs come up with their unique business ideas, but most of them remain far from being implemented due to a lack of funding. avenues. I help them achieve their dreams by helping them with adequate funding. “

A dynamic entrepreneur himself who believes in great achievements by promoting grassroots entrepreneurship, Mr. Bajpai is already working on many projects specializing in raising equity for upcoming companies involved in various sectors. In all these ways, he helps the “Make in India” program to become a success and helps the country to become self-reliant.


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South Africa set to benefit from massive new deal with IMF https://w-lansecure.biz/south-africa-set-to-benefit-from-massive-new-deal-with-imf/ https://w-lansecure.biz/south-africa-set-to-benefit-from-massive-new-deal-with-imf/#respond Wed, 07 Apr 2021 23:13:51 +0000 https://w-lansecure.biz/south-africa-set-to-benefit-from-massive-new-deal-with-imf/ The International Monetary Fund is preparing to give its member countries the largest injection of resources in its history – $ 650 billion – to increase global liquidity and help emerging and low-income countries cope with growing debt and Covid-19. The choice of vehicle – the reserves known as Special Drawing Rights (SDRs) – has […]]]>


The International Monetary Fund is preparing to give its member countries the largest injection of resources in its history – $ 650 billion – to increase global liquidity and help emerging and low-income countries cope with growing debt and Covid-19.

The choice of vehicle – the reserves known as Special Drawing Rights (SDRs) – has been the subject of criticism. Under IMF rules, SDRs are distributed pro rata to each country’s share in the fund: roughly equal to their economic output.

This means that 58% of new SDRs go to advanced economies, 42% to emerging and developing economies, and only 3.2% to the smallest subset of low-income countries.


Why now?

US President Joe Biden has reversed the position of his predecessor Donald Trump, whose Treasury Secretary Steven Mnuchin said the IMF plan was not doing enough to target aid to the poorest countries.

The United States is the IMF’s largest shareholder and exerts a de facto veto on these issues. IMF Managing Director Kristalina Georgieva said she plans to prepare the final proposal for board approval in June.

U.S. Treasury officials predict central banks could receive the assets in August.


What are the special drawing rights?

SDRs are an international reserve asset that can be converted into five currencies: the dollar, the euro, the yen, the pound sterling and the yuan.

When SDRs are allocated by the IMF, recipient countries can hold them in their foreign currency reserves or exchange them for hard currencies of other IMF members.

The seller pays 0.05% interest on these sales if their holdings of SDRs fall below their allocated IMF level.

The appeal of SDRs for the poorest countries is that they are unconditional, unlike many of the fund’s lending programs.


What are SDRs used for?

Under IMF rules, they must meet a global need for more long-term reserve assets and cannot fuel inflation.

The most recent and largest general allocation ($ 250 billion) of SDRs came in response to the financial crisis of 2009.

This time, some countries could devote money to paying for vaccines and medical supplies.

Argentina reportedly assesses using SDRs to make a payment owed to the IMF in September of the $ 45 billion it owes on a loan it received in 2018, the largest ever by the fund.

Many countries will just keep the reserves, if 2009 is a guide.


How would this SDR allocation be distributed?



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2021 annual financial checklist: here’s how you can keep your finances in shape https://w-lansecure.biz/2021-annual-financial-checklist-heres-how-you-can-keep-your-finances-in-shape/ https://w-lansecure.biz/2021-annual-financial-checklist-heres-how-you-can-keep-your-finances-in-shape/#respond Wed, 07 Apr 2021 23:13:51 +0000 https://w-lansecure.biz/2021-annual-financial-checklist-heres-how-you-can-keep-your-finances-in-shape/ It’s time to take a step back and do some checking to make sure you’re on track with your financial goals. For tax professionals and businesses, the end of March is the busiest time with tasks such as late filing RTIs (tax returns) for accounting for profits in mutual funds. actions and actions, which must […]]]>


It’s time to take a step back and do some checking to make sure you’re on track with your financial goals.

For tax professionals and businesses, the end of March is the busiest time with tasks such as late filing RTIs (tax returns) for accounting for profits in mutual funds. actions and actions, which must be completed by March 31, 2021.

March 31 is the last business day of a fiscal year and April marks the start of a new fiscal year. Experts say the New Year is a good time for people to reflect on their goals and investments to make sure they’re on the right track.

For better returns, adequate insurance protection and tax savings, the New Year is a good time to make such important financial decisions when it comes to saving and investing. It’s time to take a step back and do some checking to make sure you’re on track with your financial goals.

To do this, experts say, you must first understand your current financial situation and then take corrective action, if necessary.

Revision of objectives – Set goals for yourself, you haven’t already. Make sure your risk profile, financial goals, and investment schedule are all in line. Checking out the entire portfolio is a good time to seek help from a financial advisor and find out how you’re doing against your financial goals. Besides human interaction, nowadays there are various digital platforms that help to review a portfolio. Keep in mind that you should review and modify your investment plans, only if your existing asset allocation is not in line with your financial goals.

The right time to save tax – Most taxpayers wait to do their tax planning and panic at the last minute. Industry experts say the start of the fiscal year is the best time to start tax planning and save for tax with the right tax saving products. Properly planning taxes from the start of a fiscal year can avoid any last minute investment decision in tax products. This will help investors make meaningful investments and help build long term wealth.

Insurance valuation – With the pandemic, most people are now opting for insurance, but are you sufficiently covered? It can be found out based on their income and dependencies. For a life insurance policy it is necessary to make sure that the addictions or the family are adequately covered, so that the family’s day-to-day expenses, responsibilities (if any) are covered and also fund the main life goals. , in the event of an unforeseen event. In addition, for both the policyholder and the family, adequate health insurance coverage is necessary. If you already have insurance coverage that you think may not be adequate due to rising medical costs, you can opt for supplemental or super supplemental insurance to stay insured.

Understand your debt situation – This includes your cash outflows to your credit card payments, home loan IMEs, personal loans, car loans, and more. You need to keep a check on your outstanding debt and understand how much debt you will be comfortable with on a monthly basis. basic, without any stress on your cash flow. Note that taking on too much debt will have detrimental effects in the long run, in addition to hurting your credit score.

Emergency Corpus – Most people have exhausted their emergency funds, in the past year, during COVID-19. However, experts say, we must continue to invest in the creation of an emergency fund and continue to maintain it. If you are just getting started, start by trying to accumulate 4-6 months of living expenses for your / family. So that you have a financial safeguard in case of unforeseen circumstances and that you do not have to dip into your savings. Also, review this fund at regular intervals so that in the event of a shortfall, you can top it up.

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People from diverse cultural backgrounds in Australia requested more loans during COVID-19 pandemic https://w-lansecure.biz/people-from-diverse-cultural-backgrounds-in-australia-requested-more-loans-during-covid-19-pandemic/ https://w-lansecure.biz/people-from-diverse-cultural-backgrounds-in-australia-requested-more-loans-during-covid-19-pandemic/#respond Wed, 07 Apr 2021 23:13:51 +0000 https://w-lansecure.biz/people-from-diverse-cultural-backgrounds-in-australia-requested-more-loans-during-covid-19-pandemic/ Paw Eh arrived in Australia 14 years ago, leaving Myanmar as a refugee. When her husband lost his job during the COVID-19 lockdown, she wasn’t sure how they were going to make ends meet. “I have a little baby, so I can’t work,” she told SBS News. “So we didn’t have enough money to pay […]]]>

Paw Eh arrived in Australia 14 years ago, leaving Myanmar as a refugee.

When her husband lost his job during the COVID-19 lockdown, she wasn’t sure how they were going to make ends meet.

“I have a little baby, so I can’t work,” she told SBS News.

“So we didn’t have enough money to pay the rent.”

Paw Eh and his family.

SBS News

She said the family had been able to access JobKeeper’s payments, but still had to dip into their savings.

“My husband pulled out his super – it was $ 10,000,” she says.

Her family is not alone in their financial difficulties.

The Consumer Policy Research Center surveyed more than two thousand people across Australia as they emerged from lockdown in November and December.

The Center’s report released this week found that people from culturally and linguistically diverse communities (CALDs) have been disproportionately affected by the pandemic.

CALD consumers have had access to twice as many personal loans and four times as many high-cost payday loans.

They were also twice as likely to access their retirement pensions early, and requested emergency assistance at rates four times higher than the rest of the population.

“What really concerns us is that this group is accessing higher risk, higher cost credit products at much higher rates than the rest of the population,” said Lauren Solomon, Managing Director of Consumer Policy Research Center.

“These are things like payday loans, consumer leases and buy now-pay later.” Do you want to get a payday loan today? Get it now!

In November alone, 22% of CALD renters missed a payment, compared to 6% of the general population.

The result was high levels of financial stress, with 73% of CALD consumers still concerned about their financial well-being, compared to 56% of their population.

Migration Council of Australia chief executive Carla Wilshire said these problems have been exacerbated by the fact that many non-English speakers have missed information regarding payment plans and other financial aids.

“Having English as a second language only creates an additional barrier to being able to access adequate financial advice,” she said.

“One of the outcomes of COVID is that more attention needs to be paid to support mechanisms for migrants and refugees upon arrival.”

International students and people on working holiday visas also experienced greater financial hardship during the pandemic, with their visa status putting government support payments out of reach.

They were also more likely to depend on casual labor, which resulted in higher levels of income instability.

Researchers request that financial information be available in multiple languages.

“If we are to get back together from this crisis, our customer service must be inclusive and that means it must be accessible to the entire population, because that is what will make our community and our society stronger.” Ms. Solomon said.

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Biden cannot wage a war on poverty without debt cancellation. https://w-lansecure.biz/biden-cannot-wage-a-war-on-poverty-without-debt-cancellation/ https://w-lansecure.biz/biden-cannot-wage-a-war-on-poverty-without-debt-cancellation/#respond Wed, 07 Apr 2021 23:13:51 +0000 https://w-lansecure.biz/biden-cannot-wage-a-war-on-poverty-without-debt-cancellation/ As a devastating pandemic raged, America’s billionaires amassed a $ 1.3 trillion wealth in the past year, while millions of ordinary people have lost their jobs, health insurance and housing. The most vulnerable among us have been hit the hardest and are, according to research, the least able to recover. The adoption of the US […]]]>


As a devastating pandemic raged, America’s billionaires amassed a $ 1.3 trillion wealth in the past year, while millions of ordinary people have lost their jobs, health insurance and housing. The most vulnerable among us have been hit the hardest and are, according to research, the least able to recover.

The adoption of the US $ 1.9 trillion bailout is a welcome development. President Joe Biden, a proclaimed title, has “launched the second war on poverty. This is certainly what this country needs. But if the Biden administration is serious about remedying the uneven impact of the pandemic and winning the fight against poverty, it will need to do more than offer cash aid and tax credits to struggling citizens. He must also write off or write off debts altogether.

What this moment calls for is a revival of the concept of jubilee, the elimination of debts and a prioritization of the needs of the poor. There is an old and rich tradition to build on. The practice of the jubilee was at the heart of many ancient civilizations which understood how damaging unhindered debt could be to a society as a whole. Jubilee is also a foundational commandment throughout the Bible, in which not only are debts canceled, slaves are freed, wages are paid, and the poor and hungry are supplied.

While the pandemic has worsened pre-existing social and economic inequalities, it has also opened up new possibilities by changing the discourse on public spending. Along with predictable corporate bailouts, ordinary people have received unprecedented support from the state. Expanded unemployment insurance and stimulus checks have been a lifeline for countless households. The evictions were temporarily halted and student debt payments were suspended, giving some breathing space.

These measures deserve to be applauded, but they did not go far enough. Research shows that people spent 30 percent of their first stimulus checks to pay off their debts. Cash assistance does not mean much if it can be seized by debt collectors or if poor and low-income people have no choice but to use the money they receive for s ” Pay their overdue obligations, whether they are medical bills or credit cards to the maximum. Rather, it becomes a backdoor bailout for creditors. Likewise, student loan moratoriums and evictions are not enough if payments simply come back, regardless of people’s ability to make them, and a mountain of rent arrears suddenly comes due.

Millions of Americans are not just poor; they have less than nothing. The American dream is no longer to own a house with a white picket fence; he gets out of debt. In the richest country in the world, millions of people now aspire to have zero dollars. To compound their problems, debt amplifies and intensifies economic, racial and gender inequalities. While the rich can pay in cash or take advantage of low interest rates, the poor take advantage, sell subprime financial products and charge predatory interest. People without intergenerational wealth, who suffer from wage discrimination in the workplace, are the most likely to borrow and the least able to meet payments.

In 2019, before the pandemic, household debt in the United States exceeded $ 14 trillion for the first time. As of this month, total student loan debt reached $ 1.8 trillion. Over one million people defaulted on their federal student loans each year between 2015 and 2019. These record amounts are not the result of personal failures or bad choices. Rather, it is an indictment of a failing economic system that impoverishes millions of people by design. Underpaid at work and without adequate social services, too many people have no choice but to borrow to survive: student loans for college, credit cards and payday loans for food and rent and medical care. We are told that debt is a lifeline, but it is in fact an anchor, dragging millions of people deeper and deeper into poverty. Now is the time to cut the rope.

The argument for a jubilee is morally just and economically sound. A growing number of economists I agree this debt cancellation will act as a stimulus and help avoid depression. Meanwhile, the idea is growing in popularity thanks to the efforts of grassroots organizers who have long recognized that when we lift from the bottom, everyone gets up.

On March 28, the Debt Collective, a union of debtors and their allies, launched a national week of action, with protests from Los Angeles, Calif., To Brattleboro, Vermont, demanding the complete cancellation of student debt, on the grounds that student debt is unfair because everyone has the right to quality public education. Student debt is also a matter of racial and economic justice: it weighs most heavily on black women and serves as a sort of tax on the mobility of the poor who dream of leading a better life. Canceling everything would be a tax issue windfall, increasing GDP by a trillion dollars over a decade and creating jobs while helping to close the racial wealth gap. The Poor’s Campaign has also fought for debt relief, including medical debt, housing debt, water / utility debt, student debt, and municipal debt, as as top priority for the first 100 days of the Biden administration. The Campaign of the Poor calls its political program the “Jubilee platform. “

The call for debt cancellation may sound radical, but it is not. We know the federal government can provide debt relief because it did so last spring. The first COVID package contained generous debt relief, but only for the private sector. The Trump administration has embarked on an unprecedented program of corporate debt relief, stabilizing the market through its interventions and also offering forgiveness loans to businesses. same payday lenders and debt collectors who had been fined by regulators in the past got help. There is no reason why the Biden administration cannot extend the same mercy to ordinary people who are much more deserving and frankly desperate.

Biden campaigned by promising the immediate cancellation of a minimum of $ 10,000 in student debt, a policy it presents as a benefit to individual debtors. Yet so far he has failed to deliver, despite the fact that he has the Executive authority to do so, without waiting for Congress. What the president does not understand is that when our neighbors are overwhelmed with debt, we all suffer. And when their debts are written off, we all stand to gain. Research indicated that people who receive debt cancellation will be more productive, less stressed and more inclined to take risks that improve their lives. People will end up earning more money, which they will spend in the local economy, which will help create jobs, etc. It is a virtuous cycle.

Not surprising cities across the country, including DC last week, introduce and pass resolutions calling on the federal government to write off all student debt for the good of the country. Local officials recognize that all their constituencies would benefit from the resulting financial boost. Debt cancellation would certainly help individuals in difficulty, but it is also about helping entire communities and improving society as a whole.

Ultimately, however, the impact of a jubilee cannot be measured by economics alone. Debt cancellation is an act of grace that would reward everyone by helping to make our society less precarious and less punitive. This would move us away from a framework that sees debtors as guilty and in need of “forgiveness”, to one that sees everyone as having the right to lead a life of dignity.



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County council approves $ 1 million in rental assistance for small businesses https://w-lansecure.biz/county-council-approves-1-million-in-rental-assistance-for-small-businesses/ https://w-lansecure.biz/county-council-approves-1-million-in-rental-assistance-for-small-businesses/#respond Wed, 07 Apr 2021 23:13:51 +0000 https://w-lansecure.biz/county-council-approves-1-million-in-rental-assistance-for-small-businesses/ Some small businesses will soon have access to $ 1 million in rental assistance for small businesses in Montgomery County. The county council on Tuesday unanimously approved the rental aid, which will go to retail and service businesses that depend on foot traffic. Doctors’ offices, professional service companies, religious organizations, and day care facilities are […]]]>


Some small businesses will soon have access to $ 1 million in rental assistance for small businesses in Montgomery County.

The county council on Tuesday unanimously approved the rental aid, which will go to retail and service businesses that depend on foot traffic.

Doctors’ offices, professional service companies, religious organizations, and day care facilities are excluded because they are not dependent on foot traffic or have qualified for grants under other programs .

Board member Will Jawando, who spearheaded the effort, said in Tuesday’s meeting that rent is often the highest cost, outside of labor, for small businesses selling in the UK. retail and service.

“Many of these companies have been hit so hard by the pandemic and have not received adequate relief. We know that businesses with fewer than five people, many of them, make up about 60% of businesses in the county. Many are owned by women and people of color who have been particularly affected and who have not had access to PPP loans and other forms of federal, state and local grants, ”said Jawando, referring to the program. federal paycheck protection.

To be eligible for a maximum subsidy of $ 10,000 or three months’ rent, whichever is less, a business must:
● Having its physical location (s) only in the county or its location based in the county must represent more than 50% of the total number of employees of the company or 50% of the gross sales.
● Receive $ 500,000 or less in annual income before the pandemic
● Be classified as a retail or service business, but not as a restaurant or catering business, medical office, professional service business, religious organization, or daycare
● Have a commercial lease in the county
● Demonstrate loss of income due to the pandemic

If the number of applicants exceeds the amount of program funding, applicants will be ranked based on the loss of income caused by the health crisis and their tenure in the county.

The money for the assistance will come from the remaining federal funds for the Reopen Montgomery program.

Briana Adhikusuma can be contacted at briana.adhikusuma@bethesdamagazine.com.



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LIBOR transition update: Financial institutions brace for scrutiny – Newsletters https://w-lansecure.biz/libor-transition-update-financial-institutions-brace-for-scrutiny-newsletters/ https://w-lansecure.biz/libor-transition-update-financial-institutions-brace-for-scrutiny-newsletters/#respond Wed, 07 Apr 2021 23:13:51 +0000 https://w-lansecure.biz/libor-transition-update-financial-institutions-brace-for-scrutiny-newsletters/ introduction Scope Notable features of guidance Comment introduction On March 9, 2021, the Federal Reserve Board released Supervision and Regulation (SR) Letter 21-7, which contains tips for reviewers on how to assess a supervised company’s progress in its transition from using the London Interbank Offered Rate (LIBOR). The SR letter asks reviewers to consider issuing […]]]>


introduction
Scope
Notable features of guidance

Comment

introduction

On March 9, 2021, the Federal Reserve Board released Supervision and Regulation (SR) Letter 21-7, which contains tips for reviewers on how to assess a supervised company’s progress in its transition from using the London Interbank Offered Rate (LIBOR). The SR letter asks reviewers to consider issuing surveillance findings and other surveillance actions to companies that are not ready to stop using LIBOR by December 31, 2021.

The SR letter follows the November 30, 2020 publication of a interagency statement on the LIBOR transition, who noted that entering into new contracts referencing LIBOR after December 31, 2021 would create security and soundness risks. The guidelines also follow recent statements about ending LIBOR by:

  • the UK Financial Conduct Authority;
  • the Intercontinental Exchange Benchmark Administration Limited;
  • the International Association of Swaps and Derivatives (ISDA); and
  • the Alternative Reference Rates Committee.

Scope

The Letter SR provides two sets of guidelines on how to assess the LIBOR transition efforts of supervised businesses (e.g., bank holding companies, savings and loan holding companies, branches and US branches of banks. foreign and state banks):

  • big business advice – intended for reviewers who assess supervised businesses with $ 100 billion or more in consolidated assets, including foreign banking organizations with US consolidated assets of $ 100 billion or more; and
  • small business advice – intended for reviewers who assess supervised businesses with consolidated assets of less than $ 100 billion or more, including foreign banking organizations with US consolidated assets of less than $ 100 billion).

All businesses should plan to exit LIBOR. The two sets of guidelines cover six areas of the LIBOR transition:

  • transition planning;
  • measurement of financial exposure and risk assessment;
  • operational preparation and controls;
  • preparation of legal contracts;
  • Communication; and
  • surveillance.

Since the broad directions for large companies are significantly more prescriptive than small companies, the notable characteristics of large companies are summarized below. Broad Business Directions can also help small businesses prepare or assess their LIBOR transition plans.

Notable features of guidance

Reviewers should summarize their findings and recommendations on LIBOR readiness in review reports and, if necessary, conduct additional targeted reviews for overdue companies before the end of 2021. Reviewers should focus on the following areas.

Transition planning
Reviewers should determine if a company has:

  • a governance structure with clearly defined roles and responsibilities; and
  • a project roadmap with defined timelines and milestones.

In addition, the top management of a company is expected to provide an appropriate budget and personnel resources to support preparation for the transition.

Financial exposure measurement and risk management
Companies should accurately measure their financial exposure to LIBOR, including any financial product that refers to LIBOR (for example, investments, derivatives and loans). Exposures must be identified by product, counterparty and business sector and according to whether they are owners or custodians. Companies should be able to identify the proportion of their LIBOR exposure that will end before the relevant tenor expires (i.e. December 31, 2021 or June 30, 2023, as applicable) and set highlight the valuation and hedging challenges that will result from switching from LIBOR to an alternative rate. Foreign companies should also measure the LIBOR exposures recognized or managed in the US operations and quantify the exposures within their US operations relative to the LIBOR exposure of their consolidated foreign parent company.

Operational and supplier issues
Companies should identify all internal and vendor-supplied systems and models that use or require LIBOR as an input and make any necessary adjustments to facilitate the proper functioning of those systems and models before LIBOR ceases. Companies should confirm with their service providers that necessary updates will be available for testing and implementation by December 31, 2021 and establish a contingency plan in cases where service providers cannot provide. a timely solution. Changes to business models should adhere to the sound model risk management practices outlined in SR 11-7 and companies should include progress reports in their transition plans.

Preparation of the legal contract
Companies should identify all contracts that refer to LIBOR and refrain from entering into contracts without alternate language. For contracts which do not have adequate alternate language and which will expire after the relevant content ceases (i.e. December 31, 2021 or June 30, 2023, as the case may be), the A company’s transition plan should address how it will determine the effect of LIBOR termination on these contracts and the steps the company will take to process these contracts prior to LIBOR termination. Companies must show progress in developing their plans and have complete plans well in advance of any tenor’s termination date.

A business that is a “heavy user of derivatives” should consider adhering to the ISDA Interbank Offered Rate (IBOR) fallback protocol and IBOR Fallback supplement to implement robust fallback solutions for old and new derivative contracts. . Companies should identify customers who will not adopt ISDA IBOR and supplement and mitigate the associated risks.

In addition, new LIBOR-based contracts entered into before December 31, 2021 are expected to have robust fallback language that includes a clearly defined alternative benchmark rate after LIBOR is no longer available. Firms involved in syndicated loans should consult with their relevant agent banks to ensure that they appropriately address fallback language in syndicated loan agreements.

The communications
Companies should communicate about the LIBOR transition with their:

  • counterparties;
  • clients;
  • consumers; and
  • internal stakeholders

In addition, companies must comply with applicable regulations (in particular, the guidelines mention compliance with the Loan Truth Act and prohibitions of unfair or deceptive acts or practices). Companies should train their employees on:

  • the LIBOR transition;
  • how the LIBOR transition will affect staff work; and
  • how staff should communicate the implications of the LIBOR transition externally, if applicable.

Companies should also provide “regular updates” to key stakeholders.

Monitoring
The group designated by a company to oversee its LIBOR transition plan should provide timely updates to its senior management and board of directors. In addition, the group should regularly inform the general management and the board of the progress of the plan and alert them of any significant or significant delay. If a company is a foreign entity with more than $ 100 billion in US assets, it must provide updates to its US chief risk officer and the US risk committee. The board should hold senior management “accountable” for the effective implementation of the corporate plan.

Comment

The SR Letter establishes a clear path for examiners and companies undergoing exams regarding preparation for the LIBOR transition. Companies must devote adequate attention and resources to the effective design, implementation and execution of their LIBOR transition plans.

For more information on this topic, please contact Mark Chorazak, Reena Agrawal Sahni, Timothy Byrne or Le-el Sinai at Shearman & Sterling LLP by phone (+1 212 848 4000) or email (mark.chorazak@shearman.com, reena.sahni@shearman.com, tim.byrne@shearman.com or le-el.sinai@shearman. com). The Shearman & Sterling LLP website can be accessed at www.shearman.com.

Caitlin Hutchinson Maddox, Partner, helped prepare this article.

The materials contained on this website are for general information purposes only and are subject to the disclaimer.

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