Finance Debt – Thunder From Under http://thunderfromunder.com/ Sat, 11 Sep 2021 13:44:01 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 http://thunderfromunder.com/wp-content/uploads/2021/04/thunder-from-under-icon.png Finance Debt – Thunder From Under http://thunderfromunder.com/ 32 32 Tanzania says it has started debt relief negotiations to support economy http://thunderfromunder.com/tanzania-says-it-has-started-debt-relief-negotiations-to-support-economy/ Thu, 11 Mar 2021 06:07:49 +0000 http://thunderfromunder.com/tanzania-says-it-has-started-debt-relief-negotiations-to-support-economy/

DAR ES SALAAM (Reuters) – Tanzania has started negotiations with creditors over a G20 initiative on debt relief, the finance minister said on Thursday, as part of efforts to mitigate the economic effects negative results caused by the coronavirus epidemic.

The initiative aims to delay debt repayments from May to December 2020, freeing up cash that governments can use to mitigate the economic impact of COVID-19.

“The richest 20 nations in the world (G-20) have urged official bilateral creditors to provide debt relief to the world’s poorest nations, including Tanzania,” Philip Mpango told parliament.

“The government has started negotiations with creditors to benefit from this initiative.

Mpango told lawmakers that Tanzania and international institutions are discussing access to finance to “fight (the) COVID-19 pandemic to stabilize the economy.”

The government is in talks with the European Union for potential support of 27 million euros and the rapid credit facility from the International Monetary Fund, where Mpango said he could access up to $ 272 million in support from the balance of payments.

The African Development Bank has pledged a concessional loan of $ 50 million as budget support, the finance minister added.

On Wednesday, the IMF announced that it had approved debt relief for Tanzania in the amount of $ 14.3 million over the next four months, and potentially up to $ 25.7 million over the course of over the next 23 months.

Neighboring Kenya has said it will not seek debt relief under the G-20 plan because conditions are too restrictive and this could affect Kenya’s credit rating.

Earlier on Thursday, Mpango said Tanzania expects its economy to grow 5.5% in 2020 from a previous estimate of 4%, after the government took steps to mitigate the economic impact of the coronavirus. , a much more optimistic outlook than the World Bank’s projection of 2.5%.

“This is due to the rains which are destroying the transport infrastructure in the country and the impact of COVID-19 which has affected many countries which are our trading partners,” he said.

In the last budget of this parliament before the general elections in October, Tanzania plans to spend 34 88 trillion tanzanian shillings (15.09 billion dollars) for the fiscal year 2020/21, against 33 110 billion shillings l year before, Mpango said.

The finance minister told parliament that the ratio of total public debt to GDP was 27.1% while external public debt to GDP was 16.3%.

Tanzania plans to borrow a total of 7.94 trillion shillings in domestic and international markets for the next fiscal year, Mpango said.

Reporting by Nuzulack Dausen in Dar es Salaam and Omar Mohammed in Nairobi; Written by Omar Mohammed; Editing by Katharine Houreld, Peter Graff and Jonathan Oatis

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IIR unveils new legal tool to aid G20 debt relief process http://thunderfromunder.com/iir-unveils-new-legal-tool-to-aid-g20-debt-relief-process/ Thu, 11 Mar 2021 06:07:49 +0000 http://thunderfromunder.com/iir-unveils-new-legal-tool-to-aid-g20-debt-relief-process/

WASHINGTON (Reuters) – The Institute for International Finance on Friday released a legal tool aimed at helping some of the world’s poorest countries take advantage of a debt payment suspension offered by the Group of 20 major economies.

The IIR, which brings together more than 450 banks and other global financial institutions, says it has developed the waiver letter template here at the behest of UN officials and others who fear the pandemic could trigger a major debt crisis.

G20 countries and the Paris Club of official creditors agreed in April to freeze the debt payments of the 73 poorest countries for the remainder of 2020 to free up funds to contain the pandemic and mitigate its economic fallout.

Forty-one countries have expressed interest in the G20 Debt Service Suspension Initiative (DSSI), but the Paris Club has signed deals with just under half of them to date, including Côte d’Ivoire, Ethiopia and Pakistan.

Some countries have been reluctant to participate, fearing it could trigger an automatic “event of default” on their private sector debts, even if the freeze only affects official bilateral debt payments.

Many private sector loans include conditions that allow creditors to declare default if circumstances – such as payments to official creditors – change. Private sector lenders have said they would be prepared to waive such clauses on a case-by-case basis, but borrowers are expected to request such a step.

The IIR letter will speed up that process by giving borrowing countries a legal model they can adapt to ask commercial creditors to waive the possibility of default, said Sonja Gibbs, Managing Director of IIR.

“It allows borrowers to ask their official bilateral creditors for this suspension of debt service without triggering an event of default,” she said.

Reporting by Andrea Shalal; Editing by Sonya Hepinstall

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County to receive $ 59 million from US bailout http://thunderfromunder.com/county-to-receive-59-million-from-us-bailout/ Thu, 11 Mar 2021 06:07:49 +0000 http://thunderfromunder.com/county-to-receive-59-million-from-us-bailout/

ALBANY COUNTY – Senate Democrats passed President Joe Biden’s $ 1.9 trillion on Saturday American rescue plan, which must now empty the Chamber a second time.

No Republican senator voted for the measure, which was applauded by Democratic and Republican members of the New York State County Association on Saturday.

“This is a victory for all of New York State’s counties and the residents we serve. At a time when much of our politics are bitterly divided, county leaders on both ends of the political spectrum have advocated for this package because it will help them help their communities recover from this pandemic, ”said the Dutchess County director Marcus Molinaro, a Republican, who is president of the Association, in a statement.

Albany County Executive Daniel McCoy, a Democrat, praised the plan during his press briefing on Friday, saying it had taken “11 months of fighting” to secure the package. He said Albany County is expected to receive $ 59 million.

The plan includes $ 3.8 billion for the state’s 62 counties, to be distributed according to population. The five counties that make up New York City will receive $ 1.6 billion and the remaining 57 counties will receive $ 2.2 billion. New York City will receive an additional $ 4 billion through community development Global grant funding formula.

Funding for the bailout can be used to respond to the public health emergency caused by the coronavirus as well as to deal with the economic fallout that accompanied it, including aid to households, small businesses and organizations. non-profit, and aid to affected industries such as tourism, travel and hospitality.

The funding can also be used to help governments provide services and invest in water, sewage and broadband infrastructure.

“I am grateful to the US Senate for adopting the US bailout today to provide much needed nutritional assistance and financial relief to millions of families struggling to pay the bills and put healthy food on the table,” Agriculture Secretary Tom Vilsack said in a statement. Saturday’s statement.

He continued: “The bill does not only strengthen SNAP [Supplemental Nutrition Assistance Program] benefits until September, it is also increasing targeted nutritional assistance to mothers and young children and further accelerating nutritional assistance to American territories. Farmers, business owners and workers in the food supply chain will also benefit from additional help responding to market disruptions… and other farmers of color.

“The House of Representatives should act quickly to adopt this vital relief plan because recovery from this ongoing crisis is not a matter of politics,” Governor Andrew Cuomo said in a statement on Saturday. “There can’t be a national recovery if states and local governments don’t get relief – it’s that simple.”

In an unrelated statement released on Saturday, New York Comptroller Thomas DiNapoli said: “One year after the first case of COVID-19 was reported in New York State, the economic disruption caused by the pandemic remains severe . A key metric is the total number of New Yorkers claiming unemployment insurance benefits… The figure remains high 11 months after the initial wave of job losses, with 2.4 million claims reported by the Bureau of Labor Statistics from the United States in mid-February 2021.

The US bailout includes one-time direct payments of up to $ 1,400 for Americans earning $ 75,000 a year or less and unemployment assistance of $ 300 a week until Labor Day.

The plan also extends tax cuts for families with children and increases subsidies for childcare.

In a statement unrelated to the bailout on Saturday, Cuomo announced that $ 29 million was available to support essential workers and first responders through the Empire Pandemic Response Reimbursement Fund program coordinated by the Office of Human Services. childhood and family of the state.

The program is designed to reimburse the costs of child care, transportation, accommodation and other eligible expenses that allowed workers to perform their duties. Funding comes from private donations from individuals, charitable trusts and businesses made during the COVID crisis.

Scholarships will be awarded to eligible applicants for expenses on a first come, first served basis until funding is exhausted. The maximum reimbursement amount is $ 1,000 per household.

Most recent issues

In a statement Saturday morning, McCoy announced 68 new cases of COVID-19, bringing the county total to 20,860.

Of the new cases, 41 had no clear sources of infection identified, 20 had close contact with someone infected with the disease, six were health workers or residents of assembly places, and one had traveled out of state.

The five-day average for daily new positives increased from 59.6 to 61.8. There are now 560 active cases in the county, up from 540 on Friday.

The number of residents of Albany County under quarantine has increased from 1,504 to 1,525. So far, 65,344 residents have completed quarantine. Of those, 20,300 had tested positive and recovered. That’s an increase of 46 recoveries since yesterday.

There were three new overnight hospitalizations, and there are now 37 county residents hospitalized with the virus. There are currently four patients in intensive care units unchanged from Friday.

The death toll from COVID-19 in Albany County remains at 359.

Statewide, Friday, on a seven-day average, the infection rate is 3.15%, according to a statement released by Cuomo’s office on Saturday.

The capital region had a positivity rate of 1.96 percent.

Albany County on Friday, as a seven-day moving average, had an infection rate of 1.9 percent, according to the state report. dashboard.

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Drowned in debt, cab drivers stage ‘day of action’, close Brooklyn Bridge, and gather outside Gracie Mansion – CBS New York http://thunderfromunder.com/drowned-in-debt-cab-drivers-stage-day-of-action-close-brooklyn-bridge-and-gather-outside-gracie-mansion-cbs-new-york/ Thu, 11 Mar 2021 06:07:49 +0000 http://thunderfromunder.com/drowned-in-debt-cab-drivers-stage-day-of-action-close-brooklyn-bridge-and-gather-outside-gracie-mansion-cbs-new-york/

NEW YORK (CBSNew York) – Taxi drivers plead for debt relief.

Many are already struggling under the cost of expensive lockets saying the coronavirus pandemic has exacerbated their economic suffering.

READ MORE: New York City’s yellow cab drivers call on Mayor De Blasio for much-needed debt relief

Some of these drivers spoke to CBS2’s Jenna DeAngelis.

CBS2 met Mostapha Alabsy outside his home in Jersey City, where he was greeted lovingly by his five grandchildren, including three from his native Yemen.

“I promised them a good life in America,” Alabsy said.

For 25 years, Alabsy rode in his yellow cab and pursued the American dream in New York. But for months now, the cab has been sitting in its driveway with signs saying “Not working since March 2020”.

His last shift, he only made $ 40.

(Photo: CBS2)

“I don’t want unemployment. I want to go back to work normally as a taxi driver, taking care of my family, taking care of my loans, ”said Alabsy.

But the 68-year-old returned his plates and put his medallion in reserve. He is one of 7,000 drivers, his union said, who have done the same to save on insurance.

Alabsy must reimburse this medallion, which he bought in 2008, for $ 600,000. He still owes more than half.

He said he feared he would end up homeless or return to the hospital.

“That’s when I had open heart surgeries in 2014, because I was working so hard,” Alabsy said, showing a photo to DeAngelis. “If I don’t get a solution for my debt, the lender or the bank will take my house. These children will find themselves homeless on the streets.

The medallion is a municipal license required to drive a taxi, a system introduced in the 1930s.

READ MORE: Washington DC Taxi Driver Caravan Searching for COVID Rescue

It was once valued at over $ 1 million, but has since fallen, in part due to the rise of ridesharing like Uber and Lyft. The struggles were then perpetuated by the pandemic. The Taxi and Limousine Commission reported that ridership fell 92% in June.

Alabsy was among the immigrant drivers who testified at a city council committee hearing. Meanwhile, others gathered outside Gracie Mansion and brought a day of action to the Brooklyn Bridge, shutting it down.

Drivers are asking for debt relief for medallion loans.

“Divers have a financial debt. The city has a moral debt. They have to solve this problem, ”said Bhairavi Desai, executive director of the New York Taxi Workers Alliance.

Desai said the alliance’s proposal calls on lenders to reduce outstanding medallion loans to $ 125,000 and refinance payments, with the city acting as a safety net.

“The city should go back and think about our dignity,” said taxi driver Dorothy Leconte.

Leconte and Alabsy are heartbroken by nine drivers who commit suicide. They said they didn’t know how much longer the indebted drivers could take.

“We want them to stop these suicides to help us cancel our debts so that we can manage our lives,” Alabsy said.

The group is also calling on Congress for help, rallying outside the Senate Majority Leader Chuck schumer‘s Brooklyn home to get federal driver relief.

Schumer released a statement on Thursday saying he was standing by the taxi workers and working hard to provide financial assistance to the city.

“There are few frontline workers who work longer hours or suffer more serious financial problems than our taxi drivers. I join the New York Taxi Workers Alliance in its urgent mission to create a financial lifeline for their hard-pressed members to restructure Medallion debt, save their future retirement and have a fair chance at earning a salary decent for all their many hours behind the wheel, ”said Schumer. “I’m fighting like hell right now to provide robust local aid to New York City, send another round of direct payments to low- and middle-income New Yorkers, expand pandemic unemployment assistance that has helped to keep so many taxi drivers afloat, secure additional rent and mortgage relief, and more. We can – and should – honor the work of our taxi drivers by finding a way to deliver these drivers in their entirety. “

NO MORE NEWS: Yellow cab drivers gather near New York City Hall, asking for taxi medallion debt relief

Mayor Bill de Blasio said federal support will open the door to help drivers.

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Rating agencies could solve the African debt deadlock http://thunderfromunder.com/rating-agencies-could-solve-the-african-debt-deadlock/ Thu, 11 Mar 2021 06:07:49 +0000 http://thunderfromunder.com/rating-agencies-could-solve-the-african-debt-deadlock/

A Moody’s sign on World Trade Center Tower 7 is pictured in New York on August 2, 2011. REUTERS / Mike Segar

Global institutional investors and lenders are pulling back as the COVID-19 pandemic tightens its grip on Africa. A call by the Group of Twenty (G20) last April for private sector abstention in the form of a temporary halt in interest payments was ignored. One possible solution is for the three global credit rating agencies to provide the analytical muscle that could help break this deadlock.

Fitch Ratings, Moody’s Investors Service and Standard & Poor’s Financial Services have done business during the pandemic by doing what they always do: provide credit ratings and warnings on corporate and sovereign borrowers. The pandemic has forced global policymakers to introduce unconventional measures to deal with economic and public health damage. But on the central question of how African governments should respond to this unprecedented humanitarian crisis, the private sector is pursuing a rigid approach. The situation must change.

The facts are well known, but bear repeating. As the virus first spread across the world, G20 leaders agreed to suspend the debt of seventy-three low-income countries, many of them in Africa. At the end of July, 41 countries had requested relief that would free up about $ 12 billion in debt service this year. In July, the G20 reiterated its call on banks and international investors to abstain valued $ 45 billion in private sector external debt payments owed by African sovereigns this year.

In the past two months, the pandemic has gained momentum across Africa. Testing in many countries is limited, but more than 1.2 million cases have been reported, with over 600,000 in South Africa alone. Beyond the immediate toll, the derivation limited resources from other critical programs, particularly the treatment and prevention of AIDS, tuberculosis and malaria, increase the toll of the crisis. In a recent report, the World Food Program valued that “the number of acutely food insecure people in East Africa could increase by 73 percent” to reach 41.5 million by the end of 2020.

Rating agencies have been diligently monitoring the financial impact of the crisis. In its August 13 “Credit Outlook” report (available only to paying customers), Moody’s estimated that even after official G20 debt relief, eligible countries would face “a shortfall of around 40%. billion dollars “by the end of the year and” a negative outlook for a number of sovereigns[,] highlighting the challenge they face, whatever the [G20] initiative.”

Moody’s has downgraded Ethiopia for “its stated intention to seek public sector debt service relief” as part of the G20 initiative and placed Cameroon, Ivory Coast, and Sengal under the symbol “review for decommissioning”. In its August 13 report, Moody’s says some governments have continued to pay their private creditors even after obtaining official relief, and “[a]Therefore, the risk of [private sector involvement] in all or most cases seems to have decreased. Some of the 32 countries that chose not to participate in the initiative have privately indicated that they are concerned about the threat of downgrading.

Fitch warned A few days after the announcement of the G20 initiative, the “preferred creditor status” of development banks like the World Bank could suffer if developing countries suspended their debt payments. This led the G20, in its communicated, to call on these institutions to protect their current ratings even as they “go further” in their support for debt relief.

Public pressure on lenders and bondholders to join the G20 effort, including the UN agencies– does not give results. The main banks lending to Africa have called for case-by-case negotiations. And in April declaration, bondholders have expressed opposition to a “rushed, comprehensive approach” to debt relief, saying “future generations of Africans will need access to private capital to invest in hospitals, roads, education, health systems and other infrastructure essential for economic and societal development. “

Many bondholders don’t seem to understand that the pandemic is much different from a financial crisis that has its origins in market failures. The exposures to Africa of institutional investors and global banks represent only a small portion of their portfolios. There is little risk of a wave of sovereign defaults simply because of the temporary shutdown of the G20.

Over the past decade, most African governments have proven to be reliable partners in global finance, rewarding investors with significantly higher returns than those available from treasuries or gilts. Instead of lecturing countries on preserving the sanctity of the “credit culture”, perhaps it is time to discuss burden sharing. There are many precedents for this, as evidenced by the recent debt relief for bondholders. agreement with Argentina.

It is therefore time that the rating agencies, which have considerable leverage in influencing the private sector, took a more active role in the search for a sensible solution. What can be done?

Perhaps there should be a shared public-private deal for a suspension of payments on African sovereign debt, with a firm commitment by governments to honor what is owed to the private sector after the International Monetary Fund (IMF) raised the green flag that economic conditions have improved. Rating agencies could provide independent economic assessments, as they always do, but they should imperatively suspend rating judgments as long as the status quo is in effect. Global cooperation during the pandemic will require finding such innovative and original solutions.

Furthermore, what is needed after the pandemic is an independent review of Eurobonds and other contracts signed by African governments. These contracts are heavily biased in favor of creditors, with no flexibility to deal with emergencies like a pandemic. Over the past two decades, creditors have introduced collective action clauses into sovereign bond contracts to facilitate the orderly resolution of debt crises. Consideration should be given to a clause in bonds issued by low-income countries to suspend interest payments under extraordinary conditions, with the tacit support of rating agencies.

It all comes down to the need for global leadership and cooperation. Signals from international agencies like the IMF are that the economic slowdown in developing countries is likely to result in the long run healing. This means that the debt crisis will not just “go away”, as some executives predicted for the virus itself.

Rating agencies should offer a nuanced understanding of the unique needs of African nations. The G20 and global regulators have the power to persuade international investors that a little tolerance could save lives and livelihoods. But it requires more political will than it has shown so far.

Vasuki Shastry, formerly of the IMF and Standard Chartered Bank, is Associate Researcher at Chatham House and author of “Resurgent Indonesia – From Crisis to Confidence”.

Jeremy Mark was a senior communications advisor and speechwriter on the IMF’s management team and previously an award-winning reporter for the Asian Wall Street Journal.

Further reading:

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World Bank: Covid-19 pushes poorer countries “from recession to depression” | world Bank http://thunderfromunder.com/world-bank-covid-19-pushes-poorer-countries-from-recession-to-depression-world-bank/ Thu, 11 Mar 2021 06:07:49 +0000 http://thunderfromunder.com/world-bank-covid-19-pushes-poorer-countries-from-recession-to-depression-world-bank/

The World Bank chief called for a more ambitious debt relief plan for poor countries after warning that the Covid-19 recession turns into depression in the most difficult regions of the globe.

In an interview with The Guardian, David Malpass raised the prospect of the first systematic debt write-off since the Gleneagles deal of 2005, when he said new Bank figures due next month would show $ 100 million. more people had been pushed into poverty by the crisis.

Poor countries had been hit harder by the economic fallout from Covid-19, Malpass added, and a growing debt crisis meant there was a need to go beyond the repayment holidays offered by rich countries more early this year.

“It’s worse than the financial crisis of 2008 and for Latin America worse than the debt crisis of the 1980s,” said the world Bank said the president.

“The immediate problem is that of poverty. There are people on the brink. We have made progress over the past 20 years. Entire populations have emerged from extreme poverty. The risk of the economic crisis setting in is that people will fall back into extreme poverty. “

Malpass added: “As the crisis hit, inequalities have become very marked. The recovery in advanced countries has been targeted on advanced countries, as a major problem of inequality has worsened. Recessions are even worse in developing countries than in advanced economies. “

Debt problems were escalating, Malpass said, because while the gross domestic product of poor countries declined, the amount they owed was not.

The World Bank president said he was happy to see the industrialized G7 countries consider extending the debt repayment holidays due to end this year in 2021, but said a more radical approach was needed. .

“Even before the pandemic, we noted over-indebtedness in many countries. There has been a huge increase in the amount of debt in poor countries and in the developing world, in part caused by the hunt for yield.

“For heavily indebted countries, we need to look at the stock of debt,” said Malpass. “So far we’ve given debt service relief, but then added what hasn’t been paid at the end. “

Malpass said the terms under which countries borrow needed to be more transparent and said it was important for the agreements to include creditors who had so far not taken part in the debt agreements, such as private sector investors and the Development Bank of China.

“There is a risk of free riding, where private investors are paid in full, in part thanks to the savings countries receive from their official creditors. This is not fair to the taxpayers of countries providing development assistance and means that poor countries do not have the resources to deal with the humanitarian crisis ”.

Malpass said the Bank has mobilized $ 160 billion for loans and grants to relieve the immediate strain on health systems, the increase in the number of out-of-school children, the loss of income for those working in the informal economy and the threat of hunger. The total cost of strengthening infrastructure in developing countries, improving health and education systems, and weaning poor countries off fossil fuels would run into the trillions of dollars.

“The recession has turned into a depression for some countries,” said Malpass, adding: “It is the biggest crisis in decades, but I am fundamentally optimistic that people who work together will find a way through it.” .

The World Bank president said the prospect of people going hungry was “of grave concern”, noting the threat to food security as the year progressed.

Decent harvests and food imports currently averted the threat of famine, but Malpass said: “While there is no problem of food shortage now, if the situation continues it could become one.”

Malpass said it was a “huge tragedy” that the crisis had prevented many children in poor countries from going to school. “It’s pretty clear. When children do not go to school, they lose some of what they have already learned ”.

Reduced access to schools means some countries are backing down on education, he added, with ripple effects on the physical protection of young girls for whom there is an increased risk of marrying a youngster. age.

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G-7 plans to extend debt relief for low-income countries until 2021 http://thunderfromunder.com/g-7-plans-to-extend-debt-relief-for-low-income-countries-until-2021/ Thu, 11 Mar 2021 06:07:48 +0000 http://thunderfromunder.com/g-7-plans-to-extend-debt-relief-for-low-income-countries-until-2021/

A response team employee takes the temperature of passengers disembarking from an Ethiopian Airlines flight at N’Djili International Airport in Kinshasa, Democratic Republic of the Congo.

AFP / Getty Images

G-7 finance ministers discussed on Monday extending the freeze on debt service payments to low-income countries until 2021, a spokesperson for the US Treasury said.

In a reading, the US official said the G-7 discussed the G-20’s debt relief plan and “additional options for low-income countries, including an extension of the suspension of the debt. debt until 2021 “.

The freeze for the 73 poorest countries is expected to expire at the end of the year. The program, called the G-20 Debt Service Suspension Initiative, was designed to ensure these countries have the money to fight the coronavirus pandemic.

According to the US official, the G-7 called on “all official bilateral creditors” to fully implement the G-20 debt plan.

Yun Sun, an expert on China and a non-resident member of the Brookings Institution, said the language appeared to be a veiled reference to China.

“I would say it was an unnamed blow against China, or at least China will feel it as a veiled blow,” Yun Sun said in an email.

China is Africa’s largest official creditor, holding 20% ​​of Africa’s public debt – and many countries eligible for debt relief are located in Africa, according to the Jubilee Debt Campaign. Although China is a member of the G-20, questions have arisen about its full participation in the debt relief effort.

Oxfam said in July that 41 countries had requested debt relief, saving them $ 9 billion in 2020.

The nonprofit group criticized the temporary suspension of G-20 debt as “woefully inadequate” to stave off the worst effects of the pandemic. Oxfam noted that the measure does not impose any action on the part of private creditors or multilateral development banks such as the World Bank.

G-7 officials also discussed support for the manufacture and distribution of COVID-19 vaccines and treatments, especially related to low-income countries.

Finance ministers also discussed support for Lebanon. The Lebanese economy was already suffering from a crisis before a massive explosion in Beirut destroyed much of the capital, including its seaport, on August 4.

Officials also noted improvements in economic conditions in the G-7 economies.

US Treasury Secretary Steven Mnuchin hosted the G-7 meeting via teleconference earlier on Monday.

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Debt Management Tips For Debt Relief http://thunderfromunder.com/debt-management-tips-for-debt-relief/ Thu, 11 Mar 2021 06:07:48 +0000 http://thunderfromunder.com/debt-management-tips-for-debt-relief/

Scottsdale, Arizona – When we talk about things like debt, it can seem overwhelming – especially since we know there are a lot of things we need to consider before we get full debt relief. However, as with any problem, solutions come when we properly assess our problems. When it comes to debt relief, it is possible to achieve financial stability with a little planning and a little sacrifice. Here are some debt management tips for debt relief.

The plan matters

However, before we start attacking us debt management Debt Relief Tips It is important to remember that the way we plan for debt management is perhaps the most important step to consider. None of these tips will work if you don’t incorporate them into your overall debt management plan accordingly. As such, take the time to consider these factors:

  • What is your current debt status? Try to assess and remember how much your repayments are and how often you are expected to pay them. Check out the interest rates and how they can affect your overall debt total.
  • Check your current budget and expenses. This doesn’t mean that you should make a plan from scratch, but at least list your current sources of income and list all of your expenses so far. How do they fare when it comes to balancing your debt and your current budget? Take note of the things you want to change.
  • Take note of the dates. How long would it take you to pay off your debt using your current strategy? Since our goal is more or less to get the debt relief to come sooner, try to assess a date closer to which we want to work.

With these considerations in mind, we can finally proceed with our advice.

  1. Try to change the payment methods

One of the secrets to getting debt relief sooner than usual is, of course, to make more payments. There really is no way around this. However, there is a smarter way to approach more wages. Don’t think about how you will make the necessary profit to make the payments just yet, but consider these possibilities:

  • Check if there are any prepayment penalties. Some lenders are strict about payment dates, so check for penalties if you make prepayments.
  • Check what types of payment methods are possible, and of course, assess their overall effects on your debt. If, for example, you switch to automatic payments, where the bank automatically takes part of your salary for repayment, will that have an effect on interest rates or the overall total?
  • What if you try to pay twice a month? This is effective advice for some. What if you found a way to make your payments twice a month? This can actually lower your total interest rate, which can dramatically lower your total repayment costs over the life of your debt.
  • What happens if you pay an extra month’s refund? If, for example, you get a tax refund or a work premium, why not devote it to an extra month of refund? It could also have a positive impact on your interest rate or total debt.
  1. Try to reallocate your debt

Just because your current debt conditions are what they are, doesn’t mean there’s no way you can try to put yourself in a better position. Negotiation is key – if you think your current income won’t be able to support the type of debt repayment that needs, you may be able to reallocate the debt.

  • What about debt settlement? Debt settlement “reallocates” the terms and conditions of the loan. This means that you can get a new repayment schedule and new repayment plans. However, this can increase or decrease the interest rates and the total repayment amount, so be careful. To verify Comments from those in similar situations to see what were the pros and cons of this option.
  • What about debt consolidation? One of the reasons people stay in debt is because they have a lot of debt to deal with. Debt consolidation “consolidates” all the debts into one big debt that you need to pay off. This means that you will have a huge debt instead of several smaller ones. Again, check what kind of impact this has on your overall interest rate and your repayment amount before proceeding.
  1. Try alternative and additional sources of income

If you feel that you don’t have enough income to support any of the methods presented above, it may be time to use your other resources. You can actually find alternative and additional sources of income.

  • Maybe there is a way to get a raise? If you discuss your situation with your supervisor or boss, they may be able to offer you a raise even if you need to do extra work.
  • Try to work freelance or part time. If you have other skills on things you like, you may be able to offer them services. If you like handcrafted accessories, you can sell your products for additional income.

Conclusion

Debt relief can be overwhelming, especially if you know you have a lot of debt to pay off. However, it’s specific because debt-free credit can be good for you that we focus on things like effective debt management. The key to every plan is to make sure that all the variables are seen, and the key to a successful plan is to make sure that we follow our strategies. Once we sort them out, then our debt management Debt relief tips can seal the deal and financial stability could be on your way in no time.

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Somalia’s debt relief process: relevance and lessons from reform http://thunderfromunder.com/somalias-debt-relief-process-relevance-and-lessons-from-reform/ Thu, 11 Mar 2021 06:07:48 +0000 http://thunderfromunder.com/somalias-debt-relief-process-relevance-and-lessons-from-reform/

– Liban Obsiye is the chief political coordinator in the office of the Minister of Finance of Somalia.

– Abdinor Dahir is a Horn of Africa researcher and analyst at the TRT World Research Center.

ISTANBUL

Somalia must have shocked the world in recent weeks as the World Bank, the African Development Bank, the International Monetary Fund (IMF) and Paris Club creditors came together to write off most of Somalia’s debts to their countries. institutions and their countries.

From late February to early March 2020, international financial institutions announced that Somalia had made difficult but necessary economic reforms under successive programs monitored by IMF staff, and reached decision point.

This meant that Somalia was eligible for debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative and therefore received debt relief totaling just over US $ 800 million.

This was followed by the successful Paris Club negotiations where Somalia’s debt to the Club of just over $ 3 billion was reduced by $ 1.4 billion. Now the Somali government has turned its attention to the group of non-Paris Club creditors, mainly Arab governments and their institutions, who are owed just over $ 700 million to secure a comparable or better deal.

If Somalia’s positive reform trajectory continues, which is likely to be the case given the determination of the government and the people and a clear track record in implementing previous reforms, Somalia’s external debt will most likely be cleared at the completion point.

However, the main headline is and remains, to the astonishment of many, that Somalia and Somalis have done something right. Ultimately.

Relevance

Reaching the decision point has been a critical achievement for Somalia. This historic step has helped the Somali government normalize its ties with international financial institutions, which, alongside traditional bilateral and multilateral donors, will now facilitate new development finance through much-needed grants.

These new resources will allow the Somali government to invest in key political priorities to stimulate the economy, better fight poverty and ensure sustainable development for its people.

Reaching the decision point was also monumental as Somalia is no longer synonymous with civil and political unrest. Simply put, Somalia is no longer a failed state. The debt relief stage, which allows Somalia to re-enter the world economy after 30 years of absence, is a signal that the country is making progress towards stability and development.

In addition, the decision to alleviate Somalia’s debts and the country’s accession to the World Bank’s Multilateral Investment Guarantee Agency (MIGA) which followed, should give more confidence to the private sector. Somali and international investors to develop the country’s economic potential.

Reaching the decision point is of additional importance for Somalia, as reforms under successive IMF staff monitoring programs have strengthened good governance and improved transparency in the country.

Despite ranking the country as one of the most corrupt nations in the world, crucial reforms are being undertaken by successive Somali governments as part of IMF reforms, which included biometric registration of all security personnel, payment timely officials direct to their bank account and the fight against corruption in the public sector, have won the trust of Somalis and the international community.

Now, securing debt relief after a long and difficult reform journey – with still some way to go until full debt cancellation after the completion point – will most likely fuel the determination of governments. Somali authorities to maintain this positive momentum.

Lessons of reform

Somalis love to remember a glorious socialist past that never really existed and, together with dictatorship, sparked one of the costliest and most devastating civil wars in modern African history.

However, in order for Somalia to get debt relief, it had to face this story by counting its multi-faceted debt stock. For a fragile nation that is slowly recovering, with a weak and fragmented economy, Somalia has never been able to repay the $ 5.3 billion it owed its creditors.

This is where the good news begins, as this awareness and honest assessment by the Somali government kicked off the process of engaging creditors, which included both countries and institutions, to find a way forward. . Somalia no longer wanted to go into debt and become an outcast of the international financial system.

Under the successive programs monitored by staff, Somalia embarked on a long but successful journey of economic reform from 2016, which confronted government leaders and the population with the harsh reality of the country. debt and exclusion from global financial resources.

There were strict structural benchmarks, including the adoption of primary legislation by legislators, focused on improving domestic resource mobilization and strengthening public financial management as well as good governance, which Have been realised.

For the first time, Somali security personnel have been audited, revenues have increased year on year compared to 2017, and international partners have started to have confidence in the capacity and commitment of Somali authorities to implement reforms.

These reforms were certainly difficult, but in carrying them out the Somali government and people made it clear to themselves (most importantly) and the world that it was no longer business as usual.

Despite the many remaining socio-economic and political challenges, Somalia has made progress.

It is not only the glowing reports of international partners and the achievement of debt relief that symbolize this, but also the growing confidence of the Somali government and people who – yes, after many past traumas and failures – they can actually change their future for the better.

Somalia is an important development laboratory for the world given the country’s unique opportunities and challenges. It is therefore crucial to learn the lessons of Somalia’s economic reform, especially for fragile and developing countries where public debt remains a major challenge.

The most important of these lessons are the importance of leadership and common ownership at all levels, from leadership from government, legislators, the private sector to international partners and the need to constantly engage the public to build trust. and gain and maintain public support for reforms that will strengthen countries’ economic fundamentals and good governance.

More importantly, what Somalia’s debt relief process can teach the world is that reform and development is truly possible where there is genuine partnership across borders and institutions.

After all, in this age of increased interconnectivity and interdependence, it is better to work collectively for sustainable development to achieve common progress and prosperity.

* The opinions expressed in this article are those of the author and do not necessarily reflect the editorial policy of the Anadolu Agency


The Anadolu Agency website contains only a portion of the stories offered to subscribers in the AA News Distribution System (HAS), and in summary form. Please contact us for subscription options.

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Covid-19 crisis: Pakistan will benefit from G20 debt relief of Rs 335 billion http://thunderfromunder.com/covid-19-crisis-pakistan-will-benefit-from-g20-debt-relief-of-rs-335-billion/ Thu, 11 Mar 2021 06:07:48 +0000 http://thunderfromunder.com/covid-19-crisis-pakistan-will-benefit-from-g20-debt-relief-of-rs-335-billion/

Pakistan will separately sign its debt relief agreement with the G20 countries before the deadline of December 31, 2020, in order to receive debt relief of just over $ 2 billion ($ 335 billion). rupees) to mitigate the negative effects of the COVID-19 pandemic, media reported. reports.

A senior Finance Division official told The News on Sunday that work was underway to benefit from the debt relief announced by G20 countries.

“So far, we have reconciled more than a dozen creditors out of a total of 20, so we are working to reconcile the exact debt data as soon as possible, after which Islamabad will have to sign an agreement with each bilateral creditor separately. “said the senior official. noted.

Other sources said the deadline for accomplishing debt relief was being considered December 31, 2020, but the government was doing everything possible to complete this task in the first quarter until September 30.

This debt relief of more than $ 2 billion, according to the official, provided a much-needed respite, because if it had not happened, the pressure on the exchange rate could have increased in recent months due to the payments due on the external front.

Among the G20 countries, China was the largest bilateral creditor with its outstanding liabilities to Pakistan amounting to USD 9 billion, followed by Japan with USD 5 billion and the remaining countries including South Korea, France , Germany, Canada, the United States and Saudi Arabia. and others.

Pakistani authorities requested World Bank help to develop a standard format for requesting debt relief from bilateral creditors, but due to different standard requirements it could not be developed. Now, the Economic Affairs Division has developed its own format in consultation with stakeholders and the Ministry of Justice to move forward on this topic.

“We will soon start to sign a separate agreement with bilateral creditors to benefit from this debt relief facility to mitigate the negative effects of the COVID-19 pandemic,” the official said.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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