Cabinet approves seeking $ 565 m in ADB loans | Daily FT
$ 165 m for COVID-19 hit SME assistance$ 400 m for secondary education enhancement project $ 1.65 m grant from Japan to minimise poverty Cabinet has approved a proposal to enter into several agreements with the Asian Development Bank (ADB) seeking nearly $ 565 million in loans.The proposal submitted by Prime Minister Mahinda Rajapaksa as the Finance Minister was approved by the Cabinet and comes in the wake of Sri Lanka struggling to find low-cost funding to boost growth and continue investment projects, while managing its debt to GDP ratio.The decision was announced at the Cabinet Press brief...
Daily Financial Times
Variety of tactics to prevent SME loans from turning sour
Despite being overshadowed by large conglomerates in size and financial stature, small and medium-sized enterprises (SMEs) have long been the backbone of Thailand’s economy, helping to fuel the engine of growth for decades.This backbone has been buckling, ravaged by the pandemic, with strict measures to contain the outbreak sapping firms’ cash flow, leading to shutdowns or employees being laid off.In 2019, Thailand had roughly 3 million SMEs and startups, including community enterprises, according to the Office of Small and Medium Enterprises Promotion.Of those, 700,000 registered SMEs are und...
The Bangkok Post
COA flags OWWA’s P 234.5-M uncollected loans
The failure of the Overseas Workers Welfare Administration (OWWA) to collect P234.5 million in unpaid loans from overseas Filipino workers (OFWs) has deprived it of additional funds for other OFWs in need.In a 2019 report, state auditors called out the OWWA for accumulating P234.5 million in past due loans receivables, which have been outstanding for nine to 29 years.“The failure to enforce the collection mechanism efficiently and the lack of effective monitoring of receivables … resulted in the accumulation of past due loans receivable totaling P234,384,034.73 … thus depriving the agency of a...
Philippines Daily Inquirer
BSP mulls interest rate cap on other loans
BSP mulls interest rate cap on other loansLawrence Agcaoili(The Philippine Star) – October 23, 2020 – 12:00amMANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) is studying the possibility of imposing a ceiling on interest rates for other types of loans to ease the burden of consumers amid the COVID-19 pandemic.In a virtual forum organized by Home Credit, Rochelle Tomas, deputy director of the BSP’s Center for Learning and Inclusion Advocacy, said that imposing a cap on interest rates for other types of loans need to undergo extensive evaluation and consultation with the stakeholders i...
Escaping bad loans is about to get harder for Nigerian banks
Nigeria’s economy is poised to expand at less than half the pace needed by banks next year to avoid a spike in unpaid loans.The 2021 outlook for sub-Saharan Africa’s largest economy was cut to the growth of 1.7% by the International Monetary Fund on Tuesday, compared with a June forecast of 2.6%. That will make Nigeria the fourth-worst performer among nations measured by the Washington- based lender in the region.Lenders need the economy to accelerate after restructuring about 40% of loans on their books that would’ve soured and should have been booked as non-performing loans. As growth lags, ...
Russians’ Overdue Loans Hit Record High
The coronavirus pandemic has pushed the number of overdue loans in Russia to a record high, new research has found.More than 12.5 million loans issued by Russian banks and credit providers are currently non-performing — meaning the borrower is more than 90 days behind on repayments — the National Association of Professional Collection Agencies and credit bureau Equifax said Thursday.They forecast that another million borrowers could fall behind by the end of the year, which would mean one in every six loans would be overdue.“The pandemic has had an extremely negative impact on the quality of l...
The Moscow Times
Virus-hit ANA to acquire 400 bil. yen in loans to bolster capital base
The parent company of All Nippon Airways Co. plans to acquire 400 billion yen ($3.8 billion) in loans from five Japanese banks as the airline operator's earnings have sharply deteriorated under the novel coronavirus, sources close to the matter said Wednesday.Four major commercial banks and the government-backed Development Bank of Japan are expected to extend the capital to ANA Holdings Inc. through subordinated loans, the sources said.Under the plan, the DBJ and Sumitomo Mitsui Banking Corp. will extend 130 billion yen each in subordinated loans, which rank after other debts but carry higher...
Firstbank deepens financial inclusion drive, disburses N17bn loans through Firstadvance
Customers of First of Bank Nigeria Ltd have been able to access over N17billion worth of loans through the bank’s Firstadvance, a digital lending solution, as compiled from the tier-one bank.According to the lender, Firstadvance is designed to offer convenient and easy access to cash for salary earners whose accounts are domiciled with Firstbank and have received regular salaries for two months, before the loan request. In barely a year since the launch of Firstadvance, over 128,000 unique customers in over 782,996 successful transactions have so far benefitted from loans.Meanwhile, the World ...
MSMEs in tourism get access to interest, collateral-free loans
MSMEs in tourism get access to interest, collateral-free loansCatherine Talavera(The Philippine Star) – October 14, 2020 – 12:00amMANILA, Philippines — The Department of Tourism (DOT) and the Small Business Corp. (SB Corp) have rolled out a loan assistance program for micro, small and medium enterprises (MSMEs) in the tourism industry.The program under the COVID-19 Assistance to Restart Enterprises (CARES) of the SB Corp., an attached agency of the Department of Trade and Industry, gives tourism MSMEs access to zero interest, no-collateral loans with a loan term period of up to four years, inc...
JPMorgan Chase earnings rise, avoids more reserves for bad loans
New York (AFP) - JPMorgan Chase reported higher third-quarter earnings Tuesday behind strength in investment banking, avoiding new reserves for bad loans that have plagued the last two quarters.The giant US bank reported $9.4 billion in profits, up four percent from the year-ago period as revenues were down slightly at $29.9 billion.Like other large banks, JPMorgan had set aside billions of dollars in bad loans the last two quarters due to the coronavirus. But after nearly $20 billion in credit costs in the first half of 2020, the bank reported just $611 million in credit costs in the third qu...