Loan system – Alba Ruthenicae http://albaruthenicae.info/ Fri, 01 Jul 2022 03:38:52 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://albaruthenicae.info/wp-content/uploads/2021/07/icon-2021-07-06T145847.214-150x150.png Loan system – Alba Ruthenicae http://albaruthenicae.info/ 32 32 CBN guarantees N131bn loan and challenges farmers to revive $430bn economy https://albaruthenicae.info/cbn-guarantees-n131bn-loan-and-challenges-farmers-to-revive-430bn-economy/ Fri, 01 Jul 2022 01:19:52 +0000 https://albaruthenicae.info/cbn-guarantees-n131bn-loan-and-challenges-farmers-to-revive-430bn-economy/ The Agricultural Credit Guarantee Scheme Fund, which is managed by the Central Bank of Nigeria, has guaranteed 1.232 million loans to farmers across the country. The monetary value of the loans was estimated at N130.903 billion. The apex bank also challenged farmers to come together to revitalize the country’s $430 billion economy by improving value […]]]>

The Agricultural Credit Guarantee Scheme Fund, which is managed by the Central Bank of Nigeria, has guaranteed 1.232 million loans to farmers across the country.

The monetary value of the loans was estimated at N130.903 billion. The apex bank also challenged farmers to come together to revitalize the country’s $430 billion economy by improving value addition and diversification.

These were the highlights of the National Farmer of the Year 2021 Award Ceremony under the ACGSF which was held in Abuja on Thursday.

According to the Chairman of ACGSF, Mr Stephen Okon, “A total of 1,232,326 loans worth N130.903b have been secured since inception till May 2022, of which 973,646 beneficiaries have repaid a total of N98.91b”.

He noted that the Federal Capital Territory had, from January to May 2022, guaranteed a total of 82 loans under the scheme, valued at N22.580 million.

This, he said, brought the total loans secured in the FCT since the program’s inception in 1978 to May 2022 to 14,258, valued at N1.748 billion.

In terms of loan recovery, Okon said 11,726 loans worth N801.058 million had been repaid under the FCT program since its inception, noting that records showed a high level of commitment from officers. of the FCT as well as the determination of farmers to take advantage of the opportunities offered by the program to empower themselves and improve their lot.

“We hope that before long, participants in the FCT agricultural value chain will take advantage of the opportunities offered by the amended law,” he said.

The ACGSF was created by Decree No. 20 of 1977 and started operations in April 1978. It aimed to reduce the risks associated with agricultural loans by providing guarantees to banks lending to the agricultural sector and encouraging loans to the agricultural sector. agriculture to increase its contribution to the development of agriculture. and encourage debtors to adopt good credit behavior that repays in a compliant manner.

Okon further said the disbursement is part of proactive measures to encourage people and cushion the impact of global crises on the economy and support the agricultural sector.

“Truly, the Federal Government, through the ACGSF program as well as other CBN development funding interventions, has continued to promote the nation’s quest to achieve food self-sufficiency,” he noted. .

CBN Abuja Branch Comptroller Michael Onyeka Ogbu said the ceremony was an expression of the apex bank’s management’s commitment to supporting hard work, innovation and productivity in the chain. of agricultural value.

“To this end, the CBN challenges Nigerian farmers to explore our various agricultural interventions aimed at increasing the value addition of their production towards achieving food self-sufficiency, supply of raw materials to our manufacturing industries and also for export, which ultimately helps diversify and improve the foreign exchange earning base of our economy,” he said.

]]>
China insists loans to Tonga come with no political strings attached | Tonga https://albaruthenicae.info/china-insists-loans-to-tonga-come-with-no-political-strings-attached-tonga/ Wed, 29 Jun 2022 02:16:00 +0000 https://albaruthenicae.info/china-insists-loans-to-tonga-come-with-no-political-strings-attached-tonga/ China’s ambassador to Tonga has denied engaging in “debt trap” diplomacy in the Pacific, telling his first press conference in two years that if the heavily indebted country cannot repay its loans , “we can talk and negotiate in a friendly and diplomatic way”. . Cao Xiaolin told Tuesday’s rally in Nuku’alofa – a rare […]]]>

China’s ambassador to Tonga has denied engaging in “debt trap” diplomacy in the Pacific, telling his first press conference in two years that if the heavily indebted country cannot repay its loans , “we can talk and negotiate in a friendly and diplomatic way”. .

Cao Xiaolin told Tuesday’s rally in Nuku’alofa – a rare opportunity for reporters to interview Chinese officials – that China’s preferential loans were “without political strings attached” and that Beijing would never force countries to repay the loans.

Tonga, which was hit by a volcanic eruption and tsunami in January, has an external debt of $195 million, or 35.9% of its GDP, two-thirds of which is owed to the China Import Bank. export (Exim), according to its budget.

There are worries about debt repayments to China set to rise in 2024, on a loan used to rebuild its central business district after the 2006 riots.

In May, Chinese Foreign Minister Wang Yi signed six agreements with Tonga during a whirlwind tour of the Pacific, according to Prime Minister Siaosi Sovaleni, whose office confirmed that discussions had taken place on the Tonga’s loans to China.

Xiaolin said on Tuesday: “For a long time, some media misinterpreted China’s preferential loans to Tonga. They fabricated China’s so-called “debt trap” with malicious intentions to defame and smear China and disrupt China’s cooperation with Tonga. »

He said the Tonga government had applied for the loans from the Exim Bank and had already started repaying them, “indicating a healthy state of Tonga’s fiscal and economic system and sending a positive signal to the community. international”. When asked how much Tonga owes China, Xiaolin said he could not provide figures.

Asked about the Sri Lankan port that China took over when Colombo could not repay its loan, he said: “I don’t think we can compare these two preferential loans because each country has its own terms. The national condition and status of Tonga cannot be compared to that of Sri Lanka.

The ambassador again sought to allay concerns about China’s efforts to secure a comprehensive security deal for the region, saying China had come to the Pacific region to build roads, bridges and improve the level life of the population, “not to station troops or build military bases”. ”.

“China is ready to work with Pacific island countries to expand consensus on regional cooperation, not to sign a regional security agreement,” he added. “When China conducts exchanges and cooperates with Pacific island countries, it has never interfered in the internal affairs of Pacific island countries, never attached political conditions, and never sought interests. personal geopolitics.”

Xiaolin said the controversial deal with the Solomon Islands was agreed to help the Pacific nation “maintain social order”, echoing claims by Collin Beck, a leading figure in the Solomon Islands government. Xiaolin said, “China does not impose anything on anyone. This is not how the Chinese people behave.

In a shot at Western powers, the Chinese ambassador said Beijing does not view the region as its “backyard” and would never seek to expand its sphere of influence.

“Not like some other countries in the world that have a history of colonialism and nuclear weapons testing in the Pacific region, China has no such history and will never do such things.”

]]>
An entrepreneur uses honeycomb credit to finance a loan for the expansion of his business https://albaruthenicae.info/an-entrepreneur-uses-honeycomb-credit-to-finance-a-loan-for-the-expansion-of-his-business/ Mon, 27 Jun 2022 11:39:00 +0000 https://albaruthenicae.info/an-entrepreneur-uses-honeycomb-credit-to-finance-a-loan-for-the-expansion-of-his-business/ Distributor of Mobeauty supplies Custom vending machine with a beach style wrap Air Vacations and Vending Custom Vending Machine with a Wood Grain Envelope An Atlanta-based entrepreneur is looking for last-minute investors to fund an expansion loan to grow her vending machine business. ATLANTA, GEORGIA, USA, June 27, 2022 /EINPresswire.com/ — Local entrepreneur, Maureen Washington […]]]>

Distributor of Mobeauty supplies

Custom vending machine with a beach style wrap

Custom vending machine with a beach style wrap

Air Vacations and Vending Custom Vending Machine with a Wood Grain Envelope

Air Vacations and Vending Custom Vending Machine with a Wood Grain Envelope

An Atlanta-based entrepreneur is looking for last-minute investors to fund an expansion loan to grow her vending machine business.

ATLANTA, GEORGIA, USA, June 27, 2022 /EINPresswire.com/ —

Local entrepreneur, Maureen Washington is looking for last minute investors for a crowdfunding loan to expand her vending machine business, Mobeauty Supply Vending. Using Honeycomb Credit, a lending crowdfunding platform that allows everyday people like friends, family and customers to invest in small businesses, has allowed Maureen to engage her community to support in a new way. Honeycomb Credit allows Maureen to raise funds for her expansion with an equity loan rather than a traditional bank loan.

Mobeauty Supply Vending hopes to expand its current offerings as vending machine distributors to help other entrepreneurs see selling as income. Their customers include convenience stores, beauty salons, hair salons, churches, hotels, schools, public buildings, and more. Wherever convenience items may be needed, a vending machine can be placed to help!

Mobeauty Supply Vending is raising funds on Honeycomb Credit for the expansion of its vending machine business to include upgrades such as equipment, furniture/warehouse, office systems and marketing. Once Mobeauty can get a warehouse, the business can really thrive. Machines can be packed up at the warehouse for customers to come in and want to see the product in action. This will make every vending business unique and different from any other, giving anyone who wants to own an auto vending business a chance to excel.

All in all, they are working towards a $50,000 loan to support Maureen’s business growth. The loan is approximately half funded and there are only three days left to meet the minimum loan requirement. For more information on how to support the Mobeauty Vending Supply crowdfunded loan, please visit our investor page at https://invest.honeycombcredit.com/campaigns/Mobeauty-Supply-Vending

About Mobeauty Supply Vending Machines:

Mobeauty Supply Vending Machines is a black women-owned company at the forefront of innovative specialty vending machines. Business owner Maureen Washington aspires to help other entrepreneurs grow with customizable vending machines to suit any need or location. From beauty salons to universities to AirBnBs, vending machines are as versatile as the items they carry.

summer smile
Sun Public Relations
mobeautysupplyvending@gmail.com

Mobeauty Vending Supply is looking for investors to finance a loan

]]>
New Homes England 2021-22 homebuilding statistics revealed https://albaruthenicae.info/new-homes-england-2021-22-homebuilding-statistics-revealed/ Thu, 23 Jun 2022 08:34:39 +0000 https://albaruthenicae.info/new-homes-england-2021-22-homebuilding-statistics-revealed/ Housing programs implemented by Homes England resulted in the creation of 38,436 new homes on site and 37,164 homes completed between April 1, 2021 and March 31, 2022, as the sector began to recover from the pandemic of Covid-19. The proportion of affordable housing units started and completed increased from the previous year Increase in […]]]>

Housing programs implemented by Homes England resulted in the creation of 38,436 new homes on site and 37,164 homes completed between April 1, 2021 and March 31, 2022, as the sector began to recover from the pandemic of Covid-19.

  • The proportion of affordable housing units started and completed increased from the previous year
  • Increase in housing starts and deliveries thanks to a recovery in housing construction activity following the slowdown caused by the Covid-19 pandemic.

Housing schemes delivered by Homes England saw an overall increase in starts and completions in 2021-22 compared to the previous year, official statistics showed today (23 June).

Last year, 38,436 new homes were started on site and 37,164 homes were completed between April 1, 2021 and March 31, 2022. Three-quarters (72%) of starts (27,509) were for homes affordable. This is a 2% decrease from the previous year, but was expected due to the closing of tenders for the 2016-21 Shared Ownership and Affordable Housing Program (SOAHP) and the gradual increase in housing starts from the new affordable program. Homes Program (AHP) 2021-26.

Of the housing completions, 26,485 (71%) were for affordable housing, representing an increase of 11% over the previous year.

A total of 5,606 affordable housing units started in 2021-2022 were intended for affordable rent. There were 4,778 housing starts under plans such as condominiums and rent-to-own. 15,144 starts were defined as “Affordable Tenure TBC” homes, where the ultimate occupancy category is not known until completion. The remaining 1,981 were intended for social rent, a decrease of 23% compared to the previous year.

Of the affordable housing units completed, 13,929 were for affordable rent, an increase of 5% from the previous year, and 9,479 were under mid-level affordable housing programs. The remaining 3,077 were social rent completions, up 62% on the previous year.

Peter Denton, chief executive of Homes England, said:

Statistics released today show the incredible progress the housing industry has made in recovering from the downturn and ensuing supply issues caused by the Covid-19 pandemic.

Over the past period we have started accepting applications for funding through the new £8.6bn Affordable Housing Scheme and announced the new tranche of 31 strategic partnerships we have formed which will provide partner organizations in the public and private sectors the tools they need to plan and act strategically, shape their communities and build up to 90,000 new homes.

Housing is central to Leveling Up, and as we continue to support the Government’s ambitions in this area, our work with partners across the sector will be essential to creating the homes and neighborhoods the country needs, in the places people want Direct.

Notes to Editors

National housing statistics are released twice a year and show semi-annual and annual housing starts and completions as part of scheduled national statistical releases. The next release is for half-yearly housing starts and completions, which are expected to be released in November/December 2022. Housing figures cannot be provided outside of these official releases.

Homes England schemes are centrally funded to enable registered private providers, home builders, community groups and local authorities to provide affordable housing.

This release shows on-site housing starts and home deliveries delivered by Homes England between April 1, 2021 and March 31, 2022 in England excluding London (for current and historical series), excluding Build to Rent (BTR) and Home Builders Fund – Short Term Fund (HBF-STF) schemes which are administered by Homes England on behalf of the Greater London Authority (GLA) and where delivery covers the whole of England including including London.

Since April 2012, the Mayor of London has overseen strategic housing, regeneration and economic development in London. This means that Homes England no longer publish housing starts and completions for London, except where Homes England administers a scheme on behalf of the GLA.

The list of programs included in these totals is detailed in the official Housing Statistics report, which can be found here [Housing Statistics 1 April 2021 to 31 March 2022 – National statistics announcement – GOV.UK (www.gov.uk)]

“TBC Affordable Tenure” refers to units that have reached the site start-up milestone, but where the tenure of those units has not yet been specified. This was introduced as a flexibility for strategic partnerships to allow them to determine the tenure near or at the completion point. These starts will be restated under their specified occupancy headings in future updates to national statistics once occupancy has been established at completion.

Homes England also operates the Help to Buy equity loan scheme in England (including London on behalf of the GLA). However, completions are reported by the Department of Planning, Housing and Communities (DLUHC) and, therefore, are excluded from these statistics.

]]>
A nurse practitioner pocketed a million in a loan program https://albaruthenicae.info/a-nurse-practitioner-pocketed-a-million-in-a-loan-program/ Tue, 21 Jun 2022 13:42:09 +0000 https://albaruthenicae.info/a-nurse-practitioner-pocketed-a-million-in-a-loan-program/ A New York nurse practitioner allegedly pocketed $1 million in a fraudulent disability loan scheme and could spend nearly 30 years in prison as a result. Catherine Seemer, 42, of Elmsford, New York, faces charges of wire fraud, federal financial aid fraud and aggravated identity theft, according to federal officials. The charges carry a possibility […]]]>

A New York nurse practitioner allegedly pocketed $1 million in a fraudulent disability loan scheme and could spend nearly 30 years in prison as a result.

Catherine Seemer, 42, of Elmsford, New York, faces charges of wire fraud, federal financial aid fraud and aggravated identity theft, according to federal officials. The charges carry a possibility of up to 27 years in prison.


From June 2017 to March 2022, Seemer filed false disability claims for more than 100 borrowers, resulting in the forgiveness of millions of dollars in student loans under the federal Total and Permanent Disability Program, claim federal officials. The program is designed to ease the financial burden of people with permanent disabilities by relieving them of student loan obligations. Applicants for this program are typically military veterans who have suffered service-related physical or mental disabilities.

Federal authorities allege Seemer tricked each borrower into believing they qualified for some form of loan relief. She traded her “services” for up to 10% to 20% of each borrower’s loan amount to speed up the release process. Officials say the scheme led to the wrongful cancellation of more than $10.5 million in loans under disability assistance programs, and Seemer earned more than $1 million as a result.

Because every claim must be certified by a licensed physician, Seemer used the identities, medical license numbers, and signatures of more than a dozen physicians to falsify medical diagnoses and disability certificates. None of the physicians used for certification had ever met any of the borrowers. One of the doctors was used for up to 70 of the applicants, according to the federal complaint against Seemer.

Most borrowers believed they qualified because they were caring for an elderly or disabled relative. In one case, Seemer relieved a borrower caring for a disabled parent of $100,000 in student loans by claiming he was bipolar.

A borrower became suspicious of the application process after learning about the disability requirement. Once brought to Seemer’s attention, she convinced them that certain words on the app, like “you” and “your” might refer to a family member, but “they don’t broadcast (that) to everyone” according to the complaint.

According to the New York Office of the Professions, Seemer obtained her registered professional nursing license in 2016 and it is valid until February 2025.

Frankie Rowland is an Atlanta-based freelance writer.

For more news, follow Medscape on Facebook, TwitterInstagram and YouTube.

]]>
Israeli lawmaker calls for bigger mortgages as homebuyer prices drop https://albaruthenicae.info/israeli-lawmaker-calls-for-bigger-mortgages-as-homebuyer-prices-drop/ Sun, 19 Jun 2022 15:06:00 +0000 https://albaruthenicae.info/israeli-lawmaker-calls-for-bigger-mortgages-as-homebuyer-prices-drop/ A general view of the Tel Aviv skyline is seen through a hotel window in Tel Aviv, Israel May 15, 2017. REUTERS/Amir Cohen/Files Join now for FREE unlimited access to Reuters.com Register JERUSALEM, June 19 (Reuters) – The head of Israel’s parliamentary economy committee on Sunday asked the central bank to consider allowing future homeowners […]]]>

A general view of the Tel Aviv skyline is seen through a hotel window in Tel Aviv, Israel May 15, 2017. REUTERS/Amir Cohen/Files

Join now for FREE unlimited access to Reuters.com

JERUSALEM, June 19 (Reuters) – The head of Israel’s parliamentary economy committee on Sunday asked the central bank to consider allowing future homeowners to take out mortgages worth more than 75% of the value of a home to help buyers cope with the housing boom. costs.

Michael Bitton, at a committee meeting on Sunday, urged the Bank of Israel to look into a pilot program that would allow mortgages to reach between 80% and 90%. Israel has long had conservative banking regulations to protect the banking system.

Along with the lowest mortgage interest rates, house prices have more than doubled since 2010, rising 16% in the past year alone. Tent protests are starting to pop up across Israel similar to 2011.

Join now for FREE unlimited access to Reuters.com

Data shows that a four-room apartment in Israel costs on average almost 2.5 million shekels ($723,380), with prices much higher in Tel Aviv, Israel’s financial and cultural capital.

“The funding limit (75%) dates from 2012 and is no longer tied to the continued rise in house prices,” Bitton said. “Many mortgage borrowers take out an additional loan – from banks or a non-bank institution, usually for a shorter term and at a higher interest rate than the mortgage itself.”

Bank of Israel official Ziv Naor noted that only 0.02% of mortgage buyers had significant repayment problems.

“The current perception is that the risks do not warrant a relaxation of restrictions,” she said. “Interest rates and inflation are rising, and so are the monthly payments for those who have taken out loans. The public needs to understand the risks and think carefully about whether they will be able to afford those loans.”

Still, the Bank of Israel said it would consider Bitton’s claims.

Inflation, to which most mortgages are tied, hit a new 11-year high of 4.1% in May and is expected to approach 5%. The Bank of Israel responded with two rate hikes totaling 0.65 percentage points to 0.75% and economists expect further hikes in 2023.

Last week, the Israeli government said it planned to dramatically increase housing starts and extend a rebate program aimed at limiting the rapid rise in property prices as demand continues to outpace the offer. Read more

($1 = NIS 3.4560)

Join now for FREE unlimited access to Reuters.com

Reporting by Steven Scheer; edited by David Evans

Our standards: The Thomson Reuters Trust Principles.

]]>
Inverse Finance snatched for $1.2m via flash loan attack • The Register https://albaruthenicae.info/inverse-finance-snatched-for-1-2m-via-flash-loan-attack-the-register/ Fri, 17 Jun 2022 21:34:00 +0000 https://albaruthenicae.info/inverse-finance-snatched-for-1-2m-via-flash-loan-attack-the-register/ A Decentralized Autonomous Organization (DAO) called Inverse Finance has had an exchangeable cryptocurrency stolen for $1.2 million, just two months after it was taken for $15.6 million. “Inverse Finance’s Frontier Money Market was the subject of an oracle price manipulation incident that resulted in a net loss of $5.83 million in DOLA, with the attacker […]]]>

A Decentralized Autonomous Organization (DAO) called Inverse Finance has had an exchangeable cryptocurrency stolen for $1.2 million, just two months after it was taken for $15.6 million.

“Inverse Finance’s Frontier Money Market was the subject of an oracle price manipulation incident that resulted in a net loss of $5.83 million in DOLA, with the attacker earning a total of $1.2 million dollars,” the organization said in a message attributed to its chief growth officer on Thursday. “Pab.”

And Inverse Finance would like to recover its funds. Listing the actions the DAO intends to take in response to the incident, Patb said: “First, we encourage the person(s) behind this incident to return the funds to the DAO Inverse Finance in exchange for a generous bonus.”

This seems unlikely given that the attacker funneled the funds via Tornado Cash, a cryptocurrency mixing or toggling protocol designed to hide the source of funds. Coincidentally, the service is popular for money laundering.

The net loss of $5.83 million represents funds borrowed by the attacker from the DAO to carry out the attack. Inverse Finance therefore views it as a bad debt rather than funds that need to be refunded to an individual.

The DAO, founded by Nour Haridy in 2020, doesn’t provide many details about these things running, if anyone can be said to be running things in a “decentralized autonomous organization”.

Inverse Finance made news in April after being mined for $15.6 million.

The register reached out to people associated with Inverse Finance via Twitter and Discord in hopes of asking a few questions.

We managed to reach Patb via Discord. Here’s how the conversation went (with minor edits for proper capitalization and readability):

ElReg: Is Inverse Finance really an incorporated business anywhere? Or just a group of people?

patb: Not incorporated – a DAO. Can you share a bit of context on what you write?

ElReg: Working on a story about the recent $1.2 million hack. So how do DAOs work from a legal standpoint? If disgruntled investors want to sue someone, do they name the principals individually? And do you know if the hack was the result of a bug in your smart contract code? Or was it the result of code created by others?

patb: Not our smart contract code.

ElReg: Can you elaborate? Do you have any idea how the bug appeared? Also, how come the team members aren’t fully named other than Nour? It seems that including this type of information would help build trust. I would not want to invest funds in an entity with no fixed address and few identified principals.

At that point, the conversation stopped for 18 minutes. Patb eventually responded with a link to the Inverse Finance post quoted above. Another question remained unanswered at the time this story was filed.

Patb’s blog post provides details of what happened, but these are rather difficult to decipher for those not steeped in cryptocurrency lingo:

Basically, the attacker used a flash loan – a loan taken out and immediately repaid – to trick the protocol and obtain control of the assets.

According to Patb’s post, Inverse Finance is “adding additional security operations talent to the Inverse team.” This follows “a competent third-party team to review the architecture and implementation of the oracle involved in today’s incident” and post-April incident input and guidance.

In case you still don’t know what a DAO is or why anyone would put money into such a thing, you might find some sort of answer on Investopedia, among other resources for deciphering the world’s deliberately obtuse terminology. of cryptocurrency.

Here’s a salient passage: “The developers of the DAO believed they could eliminate human error or manipulation of investor funds by placing decision-making power in the hands of an automated system and participatory process.”

Let it sink in. Maybe even read it a second time.

As for Inverse Finance, at least the thief didn’t run away with the company’s optimism.

“We are also taking immediate action to incentivize additional liquidity in the DOLA-3POOL,” Patb’s message concludes. “More information on this will be available soon.” ®

]]>
Buyout loans sell at a discount as recession fears rise https://albaruthenicae.info/buyout-loans-sell-at-a-discount-as-recession-fears-rise/ Thu, 16 Jun 2022 06:43:18 +0000 https://albaruthenicae.info/buyout-loans-sell-at-a-discount-as-recession-fears-rise/ Placeholder while loading article actions Last week, bankers led by JPMorgan Chase & Co. applied the largest discount seen in 2022 on a leveraged loan just to get the $1.5 billion deal off the books and into the hands of investors. . The debt was sold at a price equivalent to 89 cents for every […]]]>
Placeholder while loading article actions

Last week, bankers led by JPMorgan Chase & Co. applied the largest discount seen in 2022 on a leveraged loan just to get the $1.5 billion deal off the books and into the hands of investors. . The debt was sold at a price equivalent to 89 cents for every dollar borrowed to support the merger of two private equity firms, Material Handling Systems Inc. and Fortna Inc., Bloomberg News reported. This promises a handsome return for investors – but it will be disappointing, and possibly costly, for the banks involved.

This is not a bad one-time transaction. Borrowers and investors are seeing a sharp rise in interest costs and slashed prices in the market for risky and poorly rated loans. Soaring inflation and fears of potential recessions ravaging stocks, bonds, currencies and crypto are also hurting lending. This is a problem for banks that take out loans and resell them to investment funds. The average discount on loans sold over the past month is the highest in a decade with prices averaging 95.5 cents on the dollar, according to Citigroup Inc. analyst Michael Anderson.

JPMorgan, for its part, has significantly reduced its exposure to the leveraged loan market over the past year. Daniel Pinto, chief operating officer, recently told investors that the bank had reduced its share of deals done but not yet sold to 6% of the market in May, from more than 20% at the start of 2021. That share has fallen further since, according to a senior banker at the company who declined to be identified as the risk of being stuck with unwanted and unsellable debt has steadily increased.

When the market freezes or slows, banks may end up having to sell loans at low prices, which may reduce their fees or lead to outright losses, or they may have to keep them on their balance sheets, which reduces their ability to generate new revenue. new offers. At worst, they find themselves stuck lending to a company that cannot repay its debt. Banks guard against this by agreeing in advance with borrowers that they can sell loans at a discount or raise interest rates before selling, with the business bearing the costs. If a borrower disagrees, the loan is not taken out – and it happened this year.

Sales of new loans this quarter are at lower volumes even than during the start of the Covid pandemic in 2020. Two weeks to the end of June, the US market at $149 billion is on track for its most weak quarterly issuance since the first three months of 2015, according to data compiled by Bloomberg. In Europe, issuance currently stands at 5.9 billion euros ($6.1 billion), which is expected to be the worst since the first quarter of 2009.

It is above all the worries linked to the recession that make investors nervous. Leveraged loans pay a floating interest rate that increases with higher central bank rates. It’s good for investors up to a point; but when rates rise rapidly, higher debt service charges can quickly put borrowers in trouble.

For all risks, it’s not redux 2008 for leveraged loans for several reasons. During this crisis, banks around the world found themselves stuck with hundreds of billions of dollars in debt representing more than a quarter of the total market. Today, the volume of loans made and not sold is both lower value and a much smaller fraction of a much larger market.

Additionally, some investors are more willing to grab cheap deals when the market is in trouble. Citi’s Anderson notes that there is a flurry of so-called “print and sprint” transactions being made by secured loan bond managers. These debt-funded investment vehicles are created to quickly redeem existing loans that are trading at low prices, rather than spending weeks slowly buying new loans as they are created. As quick investors, they can help support prices in a jittery market.

Another difference over the past decade is the growth of private credit funds, which have become an industry of around $1.5 trillion. Some of the biggest managers, such as Blackstone Credit, Stone Point Capital or Antares Capital have become loan arrangers as well as investors, with the aim of increasing returns with additional fees and ensuring that they get a much of the loans they want. That means they’re in direct competition with investment bankers: In a recent deal for software company Kofax Inc., private lenders accounted for about half of the loan arrangers, according to Bloomberg. This might help spread the pain in a worsening downturn.

There are a lot of things that could go wrong with leveraged loans, especially if Western economies tip into recession. And some banks are always going to make bad calls to the companies they’re trying to bring to market. But for now at least, leveraged bankers appear to be facing a slowdown in earnings rather than impending balance sheet disasters.

More from Bloomberg Opinion:

• Decisive people are not better decision makers: Thérèse Raphaël

• The stock market has one more shoe to drop: John Authers

• How close are we really to the inflation of the 1970s? : Burgess, He and Winger

This column does not necessarily reflect the opinion of the Editorial Board or of Bloomberg LP and its owners.

Paul J. Davies is a Bloomberg Opinion columnist covering banking and finance. Previously, he was a reporter for the Wall Street Journal and the Financial Times.

More stories like this are available at bloomberg.com/opinion

]]>
World Bank approves nearly R8 billion low-interest loan for South Africa’s Covid-19 vaccination program https://albaruthenicae.info/world-bank-approves-nearly-r8-billion-low-interest-loan-for-south-africas-covid-19-vaccination-program/ Tue, 14 Jun 2022 07:23:05 +0000 https://albaruthenicae.info/world-bank-approves-nearly-r8-billion-low-interest-loan-for-south-africas-covid-19-vaccination-program/ The World Bank has approved a low-interest loan of €454.4 million (R7.6 billion) to help fund South Africa’s purchase of vaccines. The government had asked for help to finance the purchase of vaccines. This loan will now be used retroactively to finance the country’s acquisition of 47 million doses of Covid-19 vaccine. As of Monday, […]]]>

The World Bank has approved a low-interest loan of €454.4 million (R7.6 billion) to help fund South Africa’s purchase of vaccines.

The government had asked for help to finance the purchase of vaccines. This loan will now be used retroactively to finance the country’s acquisition of 47 million doses of Covid-19 vaccine.

As of Monday, more than 36.4 million doses of Covid-19 vaccines have been administered, just over 50% of the country’s adults and 29.9% of 12 to 17 year olds have been vaccinated.

The Treasury and the World Bank said in a joint statement that more can be done to increase immunization coverage and boost South Africa’s economic recovery.

“The loan is part of the government’s efforts to reduce debt service costs by using cheaper sources of funding through multilateral development banks, while supporting the health system to respond to Covid-19 through the deployment of vaccines, critical research and treatment measures,” acting Treasury Director General Ismail Momoniat said in the statement.

The Treasury and the World Bank said the loan “contributes to the government’s fiscal relief program while reinforcing South Africa’s decisions on how best to provide relief to the economy and those most affected by the crisis. “.

“This support aims to put the country on a more resilient and inclusive growth trajectory by bolstering South Africa’s vaccination efforts against Covid-19 with the aim of vaccinating up to 70% of the country’s target population. “, said Marie Françoise Marie Nelly, policy officer at the World Bank. country director for South Africa.

“This project builds on our new World Bank Group Country Partnership Framework 2022-2026, jointly developed with the government in July 2021 to help spur investment and job creation.”

READ | SA to secure $750m loan from World Bank to boost economic recovery

In January, the World Bank approved South Africa’s request for a loan of $750 million (about R11.4 billion at the time) to support the country’s implementation of its recovery plan. reconstruction and economic recovery in the wake of Covid-19.

And in 2020, the International Monetary Fund gave SA a loan of $4.3 billion (about R70 billion at the time) to support job creation and the protection of businesses affected by the Covid pandemic. -19.

This was followed by a $1 billion (R14.5 billion at the time) loan from the New Development Bank (NDB) in 2021. The NDB is a development finance institution established by Brazil , Russia, India, China and South Africa as part of the BRICS grouping.

Get the biggest business stories sent by e-mail every day of the week.

Go to the Front page of Fin24.

]]>
Mountainburg gets $50,000 for investigation of proposed water project https://albaruthenicae.info/mountainburg-gets-50000-for-investigation-of-proposed-water-project/ Sun, 12 Jun 2022 06:16:53 +0000 https://albaruthenicae.info/mountainburg-gets-50000-for-investigation-of-proposed-water-project/ MOUNTAINBURG – A town in the River Valley has received much-needed help in its mission to bring clean water service to approximately 625 households. On June 1, the Arkansas Department of Agriculture’s Arkansas Natural Resources Commission awarded Mountainburg a $50,000 Cultural Resources Survey Grant for its Central Water System Project. -northern Crawford County, according to […]]]>

MOUNTAINBURG – A town in the River Valley has received much-needed help in its mission to bring clean water service to approximately 625 households.

On June 1, the Arkansas Department of Agriculture’s Arkansas Natural Resources Commission awarded Mountainburg a $50,000 Cultural Resources Survey Grant for its Central Water System Project. -northern Crawford County, according to a news release. It was one of nine water and wastewater projects and four technical assistance programs for which the commission approved more than $35.4 million.

Mayor Susan Wilson said the city needs to conduct this cultural resources survey to get the money needed to complete the water project from various agencies, including the Arkansas Commission of Natural Resources and the U.S. Department. of farming. Van Buren-based Hawkins-Weir Engineers estimated the project would cost $12.4 million.

Wes LeMonier of Hawkins-Weir Engineers said completing an environmental review of the project area is one of the requirements for applying for money through the Water Disposal Loans and Grants program. and waste from the United States Department of Agriculture.

“In doing so, we have to send cross-agency environmental correspondence, and the Arkansas Historic Preservation Program is one of those agencies,” LeMonier said.

LeMonier said the Arkansas Historic Preservation Program requested that a cultural resources survey be conducted during the review to ensure items such as artifacts and historic sites will not be disturbed by the project. Another part of the review will ensure that the project will not affect threatened and endangered wildlife species or their habitats.

Flat Earth Archeology of Cabot will conduct the cultural resource survey, according to LeMonier. It will take about two months to complete. It should take about a month for the Arkansas Historic Preservation Program and interested Native American tribes to review the report. The survey will be permitted pending approval of the $50,000 grant from the Arkansas Natural Resources Commission.

Wilson said the city applied for the grant in May.

The project

Households in a certain part of Crawford County — between Mountainburg and Cedarville — from Washington County’s southern edge to Rudy, are not served by any water supply system, Wilson said. Residents who want water for drinking, cleaning or other purposes must either get it from wells or haul it in from an outside source, such as the city’s water treatment plant. Fort Smith Lake. Mountainburg buys water from Fort Smith.

The water infrastructure project was developed by a committee of concerned owners and Hawkins-Weir engineers, according to Wilson.

LeMonier said the project would add 68 miles of pipe from the city’s water distribution system to households in the affected area in a single phase.

Wilson said residents will be connected to the water system during the project.

Financing needs and agreements

Wilson said the investigation and other requirements must be completed before Mountainburg can apply for project funding.

This includes additional audits, as well as a public meeting to educate residents about the project and some of its history. The meeting, which took place at 6 p.m. Monday at Mountainburg High School and was mandated by the Department of Agriculture, was also intended to provide residents with an avenue to voice concerns and ask questions about the project.

Wilson said the city will submit its grant application package to the Arkansas Department of Agriculture and Natural Resources Commission in October.

The Crawford County Quorum Court approved the allocation of $2.5 million from the county’s U.S. bailout fund for the project on March 21. The order outlining the allocation states that the money will remain in the fund until the project is fully funded and construction has begun. It will revert to the county’s US bailout committee for redistribution if the project is not fully funded by Nov. 30.

The city plans to take out a loan when the project is complete to cover final expenses, according to Wilson. The loan is tentatively set at around $1.8 million at this time.

Mountainburg is also still in the process of getting 400 signed agreements with water users and matching deposits of $100 from landowners in the affected area. Wilson established the requirement to show funding agencies that the water project would be sustainable if they approved funding for it. Deposits of $100, which are included in the total cost of the project, will serve as participants”https://www.arkansasonline.com/news/2022/jun/12/mountainburg-gets-50000-for-survey-for- proposed /”buy-in” for construction if funded.

Wilson said the city received 347 agreements Tuesday. County residents who do not sign a user agreement and provide a bond will have to pay a $2,500 tap fee if they want their property connected to the water project.

Wilson said Mountainburg is scheduled to hold its next public meeting on the project at 6 p.m. Aug. 1 at City Hall. She plans to upload the information presented at Monday’s meeting, along with details of future meetings and a frequently asked questions page about the project, to the city’s website.

]]>