Lending money – Ibook Linux http://www.ibooklinux.net/ Sun, 14 Aug 2022 04:23:26 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://www.ibooklinux.net/wp-content/uploads/2021/06/ibook-150x150.png Lending money – Ibook Linux http://www.ibooklinux.net/ 32 32 How many Americans have student loan debt? https://www.ibooklinux.net/how-many-americans-have-student-loan-debt/ Sat, 13 Aug 2022 22:50:00 +0000 https://www.ibooklinux.net/how-many-americans-have-student-loan-debt/ US student debt has grown at a rate of 20% over the past ten years, leaving college graduates with heavy payments. In the United States, the student debt ratio is increasing by 7.8% each year, turning into a crisis of 1.7 trillion dollars. 2 College graduates owe about $1.75 trillion in student loans in 2021 […]]]>

US student debt has grown at a rate of 20% over the past ten years, leaving college graduates with heavy payments.

In the United States, the student debt ratio is increasing by 7.8% each year, turning into a crisis of 1.7 trillion dollars.

2

College graduates owe about $1.75 trillion in student loans in 2021

How many Americans have student loan debt?

Student loan debt in the United States is a growing crisis, with college graduates facing a total of $1.75 trillion in student loans.

In 2022, an estimated 92.8 million Americans have student loan debt, according to Education Data.org.

Part of the reason debuts are so high is due to inflation, which has increased the cost of college by 602.5% since 2000, according to the Education Data website.

Another issue that weighs heavily on the student loan crisis is the degree obtained.

In recent years, a master’s degree is now considered to have replaced a bachelor’s degree, with more jobs requiring advanced training to be hired or promoted in a job.

For those age 25 and older, about 13% went on to further education to earn their master’s, which resulted in an average of $71,287 in additional student loan debt.

What Did Joe Biden Do About Student Loan Debt?

Since taking office, President Joe Biden has repeatedly spoken about student loans.

He even went so far as to suspend payments four times to help provide relief to Americans who have been financially impacted during the Covid-19 pandemic.

However, he is yet to make a decision on the most recent break, which is due to expire on September 1, 2022.

While many have offered to forgive $50,000 per borrower, there have been reports that he plans to forgive $10,000 per borrower, according to The Hill.

The Hill went on to note that since Biden took office, about 1.3 million borrowers have seen $25 billion in student debt forgiveness.

The cost of a college education has increased by 602.5% since 2000

2

The cost of a college education has increased by 602.5% since 2000Credit: Getty

Why has the cost of college increased so drastically?

At the turn of the millennium, the average American who graduated with a bachelor’s degree racked up student loan debt of about $17,297, about $13,000 less than the average debt in 2021.

The student debt crisis took hold during the 2008-2009 recession, prompting students to cross the $1 trillion threshold in student debt.

Since 2000, the country has seen a 76% growth in student debt upon graduation.

Forbes reported last year that tuition for a college education is vying for the top spot for rising costs, just behind hospital care.

University tuition fees have even increased faster than the cost of housing, child care and medical services over the past twenty years.

As more and more students pursue a college education, the cost comes down to supply and demand, with more and more students taking out student loans in the hopes that it will benefit them in the long run .

Nicole Smith, chief economist at the Georgetown University Center on Education and the Workforce, spoke to CNBC last year to explain the reason for the general rise in lending.

“People who went to school in the 70s and 60s actually paid for their education while working. They would take summer jobs and pay their tuition,” she said.

“And by the time they graduate, they’d be debt-free or just a few hundred dollars, a few thousand dollars to get by, they pay that off in a few years and get on with their lives.”

She said that in 2020, about 30% of students have defaulted on their student loans, are behind on their payments, or have stopped making payments altogether.

This results in students falling behind as they pass through life milestones such as getting married, buying a house, and having children.

Smith said: “…If you think of student loan debt as negative wealth, as money that could have been used to save for wealth or to buy a house or to invest in the stock market to accumulate wealth, this potential wealth is now being used to repay the loans.”

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New bank loans in China fall more than expected amid housing jitters https://www.ibooklinux.net/new-bank-loans-in-china-fall-more-than-expected-amid-housing-jitters/ Fri, 12 Aug 2022 11:58:00 +0000 https://www.ibooklinux.net/new-bank-loans-in-china-fall-more-than-expected-amid-housing-jitters/ July new loans 679 billion yuan against 1.10 trln yuan f’cast New loans fall even as c.bank pledges to support growth M2 money supply in July up 12% year-on-year, against 11.4% in f’cast July TSF 756.1 billion yuan, against f’cast 1.30 trln yuan BEIJING, Aug 12 (Reuters) – New bank lending in China fell more […]]]>
  • July new loans 679 billion yuan against 1.10 trln yuan f’cast
  • New loans fall even as c.bank pledges to support growth
  • M2 money supply in July up 12% year-on-year, against 11.4% in f’cast
  • July TSF 756.1 billion yuan, against f’cast 1.30 trln yuan

BEIJING, Aug 12 (Reuters) – New bank lending in China fell more than expected in July as general credit growth slowed amid fresh COVID surges, job concerns and a housing slump worsening has made businesses and consumers reluctant to take on more debt. .

Chinese banks extended 679 billion yuan ($101 billion) of new yuan-denominated loans in July, less than a quarter of the amount in June and below analysts’ expectations, according to data released Friday by the People’s Bank of China. (PBOC).

“Credit growth fell last month as jitters in the housing market weighed on bank lending,” Capital Economics said in a note. “This could continue to disappoint in the near term as homebuyer sentiment is expected to remain weak and government borrowing is set to slow.”

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Analysts polled by Reuters had predicted new yuan lending would fall to 1.1 trillion yuan in July, from 2.81 trillion the previous month and 1.08 trillion a year earlier.

Household loans, including mortgages, fell to 121.7 billion yuan in July from 848.2 billion in June, while corporate loans fell to 287.7 billion yuan from 2.210 billion.

China’s economy slowed sharply in the second quarter as widespread lockdowns weighed on demand and business activity, while the property market swung from crisis to crisis.

China’s top leaders recently signaled they were poised to miss the government’s growth target of around 5.5% for 2022, which analysts said looked increasingly out of reach.

The PBOC reiterated that it would intensify the implementation of its prudent monetary policy and maintain reasonably adequate liquidity, while closely monitoring changes in domestic and external inflation, it said in its report on the Politics.

But few China-watchers now expect benchmark lending rate cuts, which could increase the risk of capital flight as other major central banks hike rates sharply to combat the surge in inflation.

BLOCKED PROJECTS

In the real estate market, a growing number of home buyers have threatened to stop paying mortgages on hundreds of stalled projects. While regulators have urged banks to help provide funds to bridge the funding gap for developers, confidence in the sector remains fragile. Read more

Data firm China Beige Book International, which conducts monthly surveys of more than 1,000 companies, said there was a sharp decline in demand for credit in July from manufacturing and service companies, with an uptick in retail, which she attributed largely to fears of more lockdowns.

Some analysts point to a recent glut of liquidity in interbank money markets as a further sign of weakening credit demand.

M2 broad money supply rose 12% in July from a year earlier, central bank data showed, above Reuters poll estimates of 11.4%.

Outstanding yuan loans rose 11% from 11.2% in June. Analysts had expected growth to be unchanged from June.

Growth in the total stock of social finance (TSF), a broad measure of credit and liquidity in the economy, slowed to 10.7% in July from 10.8% in June.

The TSF includes forms of off-balance sheet financing that exist outside of the conventional bank lending system, such as initial public offerings, trust company loans, and bond sales.

In July, the TSF fell to 756.1 billion yuan from 5.17 trillion in June. Analysts polled by Reuters had expected a July TSF of 1.3 trillion yuan.

Local governments issued a net amount of 3.41 trillion yuan in special bonds in the first six months – part of the 2022 special bond quota of 3.65 trillion, according to data from the Ministry of Finance, while that the authorities were seeking to accelerate infrastructure spending.

Sources told Reuters that China plans to advance some 2,023 local special bond quotas in the fourth quarter. Read more

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Additional reporting by Ellen Zhang; Editing by David Holmes

Our standards: The Thomson Reuters Trust Principles.

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Hidden cost of buying a house https://www.ibooklinux.net/hidden-cost-of-buying-a-house/ Wed, 10 Aug 2022 18:33:56 +0000 https://www.ibooklinux.net/hidden-cost-of-buying-a-house/ If you’re thinking of buying a new home soon, you’ve probably thought about the maximum price you can afford and the down payment you can afford. And if you’re planning to finance the purchase, the monthly mortgage payment might also be on the list of big expenses you’ve already started accounting for. In terms of […]]]>

If you’re thinking of buying a new home soon, you’ve probably thought about the maximum price you can afford and the down payment you can afford. And if you’re planning to finance the purchase, the monthly mortgage payment might also be on the list of big expenses you’ve already started accounting for.

In terms of immediate expenses, these are definitely the big three. But the path to home ownership is littered with other “hidden” costs that most people overlook or are unprepared for, especially if they are first-time buyers. Here is a checklist of the most common; be sure to budget for them, to avoid any surprises once the contract is signed and the countdown to closing has begun. And, as a bonus, a few things to expect once you move into your new home.

Closing costs

Closing costs must be paid before you legally take possession of the home. A variety of fees for separate services (loan origination, underwriting, title search, deed registration, etc.), these expenses primarily relate to obtaining a mortgage, although some help with verifying ownership, the condition and value of the home. Although they vary widely from state to state, closing costs are generally between 2 and 5 percent of the mortgage amount. For example, if you borrow $420,000 to buy a house, your closing costs could range from $8,400 to $21,000.

Home evaluation and inspection

You are not required to have your home professionally inspected before closing your purchase. However, it could be worth it, especially if there are issues with the property that aren’t obvious and require further investigation to identify. On average, potential buyers pay about $339 for home inspections, according to contractor finder Angi. However, this rate may vary depending on the location, age and size of the house.

serious money

If you put an offer on a house and it’s accepted by the seller, you’ll need to follow up with a deposit within a day or two. This is a good faith filing demonstrating your intent to honor the contract of sale and ultimately purchase the property. There is no law requiring a down payment to be made on a prospective home purchase, but at least 1% of the purchase price is standard. In some cases, potential buyers offer to make even larger deposits to convince sellers.

Crook

Escrow accounts serve two purposes: to hold the deposit and to make payments for property taxes and home insurance. The deposit is applied to the purchase price at closing. But if there is a problem with the house, as revealed during the inspection, the funds will be refunded to you.

Once you’ve closed on your home, you can also elect or be required to fund a mortgage escrow account, which holds funds from your mortgage payment that are reserved for future property taxes and home insurance bills. When bills become due, the mortgage company will pay them from this account on your behalf.

Title fees

Title insurance may not be required, although most mortgage lenders require you to purchase it. This coverage protects the buyer and lender from potential problems with the deed once you assume ownership. Otherwise, you will be responsible for covering all legal fees if the home has liens or other types of serious encumbrances against it – what is called a “cloudy” or “unclear title”. Expect to pay a few hundred dollars for title insurance.

Transfer taxes

Also known as deed transfer tax, real estate transfer tax is assessed when real estate changes hands. The fee is determined by the state or municipality where the property is located and is usually a percentage of the sale price of the home.

Moving expenses and expenses

Well, the closing has taken place. Congratulations, owner! Now, however, you’ll have to incur moving costs – and if you’re smart, you’ll start accumulating them up front, as soon as you sign the purchase contract, in fact. On average, in the range of $868 to $2,383, you’ll spend $1,624 to hire professional movers, according to HomeAdvisor. It’s for a local move. A long-distance trek costs an average of $6,060 if you’re traveling across the country, notes Fixr.

New furniture

Yes, we know you’re going to be repurposing everything you have and raiding your parents’ attic, but it’s just as important to factor in the cost of furniture, especially if you’re upgrading to a bigger house or you are moving from an apartment to a house. And then there are new light fixtures, like window treatments and ceiling fans. The average homeowner spends $16,000, HomeAdvisor reports.

Current property taxes and HOA fees

OK, so much for the new house stuff. Now let’s move on to ongoing homeownership costs.

First things first: property taxes imposed by your county or city. You can either pay the property taxes yourself or have them blocked from your monthly mortgage payments. In any case, you must include them in your budget.

HOA fees are another story: you’ll have to pay them directly to the homeowners association monthly, quarterly, semi-annually, or annually. They typically cover costs associated with garbage collection, shared utilities, security, and landscaping.

Home maintenance and repairs

It’s easy to overlook home maintenance and repair expenses. But trust us: they’re going to happen, and if you’re used to apartment living, some of them — like roof repairs, gutter cleaning, heating costs, and lawn mowing — may not occur immediately. And some can get quite expensive, especially if they’re repairs related to extreme weather, a natural disaster, or a major problem that causes major damage to your property. You might also list home insurance premiums in this category.

Emergency fund

Most experts recommend having at least three to six months of current household expenses in an emergency fund. If you don’t have this amount of reserves before buying a home, focus on building up your cushion as soon as possible to avoid the risk of foreclosure if life occurs and your income is suddenly reduced.

Adequate cash reserves can also be useful if you need to cover the cost of unexpected repairs that your insurance won’t cover or that are insufficient to cover the policy deductible.

Conclusion on the hidden costs of the house

Buying a home is an exciting time. It also involves one of the biggest purchases you are likely to make. Thus, you should familiarize yourself with the hidden – or, perhaps we should say, less than obvious – costs that often surprise many homeowners. And that can lead to them becoming housing poor: a perilous financial situation in which you can cover the costs of the house, but nothing else.

To avoid this fate, start building your bank account to be prepared for these costs and make sure your finances are in good shape before buying a home. That way, you can shop with confidence and be ready to take on the financial responsibilities that, along with the joys, come with home ownership.

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5 key takeaways from the new plan to cancel student debt https://www.ibooklinux.net/5-key-takeaways-from-the-new-plan-to-cancel-student-debt/ Sun, 07 Aug 2022 12:30:00 +0000 https://www.ibooklinux.net/5-key-takeaways-from-the-new-plan-to-cancel-student-debt/ President Joe Biden (Photo by JIM WATSON/AFP via Getty Images) AFP via Getty Images Here are 5 key takeaways from a new student debt cancellation plan. Here’s what you need to know and what it means for your student loans. Student loans Days before President Joe Biden announced his decision on student loan forgiveness, a […]]]>

Here are 5 key takeaways from a new student debt cancellation plan.

Here’s what you need to know and what it means for your student loans.

Student loans

Days before President Joe Biden announced his decision on student loan forgiveness, a major new student loan forgiveness plan rocked Capitol Hill. Three members of Congress, Representatives Virginia Foxx (R-NC), Elise Stefanik (R-NY), and Jim Banks (R-IN), introduced major legislation on student loan forgiveness and repayment. Their new bill, which faces an uphill battle in a Democratic-controlled Congress, offers an alternative to Biden’s potential plan to cancel student loans and change the future of student loan debt. Here are 5 important takeaways from the new student loan forgiveness plan.


1. No Large-Scale Student Loan Forgiveness

First, the plan includes no large-scale student loan cancellation. More than 40 million student borrowers are waiting for an answer from Biden on student loan forgiveness. They are hoping for $50,000 in student loan forgiveness, but expecting $10,000 in student loan forgiveness. Leaked documents from the US Department of Education show who might be eligible for a large-scale student loan forgiveness. However, Biden has not decided whether he will embrace large-scale student loan forgiveness. Therefore, Biden could forgo a large student loan forgiveness. The bill reflects Republican sentiment toward student loan forgiveness: it is extremely costly, represents an unfair redistribution of wealth, and harms Americans who have not attended college or have no student loan. Progressive members of Congress disagree, saying large-scale student loan forgiveness will boost the economy, reduce disparities and provide a financial lifeline to millions of borrowers. Democrats say student borrowers are suffering financially from the Covid-19 pandemic and that student loans have prevented them from getting married, starting families, buying homes and saving for retirement.


2. End student loan forgiveness for these borrowers

Second, the new bill would end the student loan exemption for public servants. Specifically, the bill would end the Civil Service Loan Forgiveness Program effective July 1, 2023. Student borrowers who apply for Civil Service Loan Forgiveness before that date would likely remain eligible for waiver of their student loan. Like the large-scale student loan forgiveness, some Republicans believe eliminating public service loan forgiveness would save the federal government billions. Democrats want to continue the federal program to help police, firefighters, military, first responders, doctors, nurses and other public servants get student loan relief. Since becoming president, Biden has forgiven more than $25 billion in student loans, including $8 billion in student loans for public servants. Congress created the Public Service Loan Forgiveness program in 2007 with bipartisan support.


3. New income-based repayment plan

Third, the bill would create a new single income-based reimbursement plan, similar to income-based reimbursement (IBR). This new plan would replace the existing income-based reimbursement plans: IBR, Pay As You Earn (PAYE), Revised Pay As You Earn (PAYE) and Income-Contingent Repayment (ICR). A single student loan repayment plan would reduce bureaucracy and confusion for student borrowers. Biden has made several changes to simplify the cancellation of student loans. The president could also propose a new income-driven repayment plan, but Biden recently delayed his new student loan plan. The new bill would also eliminate interest capitalization on student loans, which would save money for student borrowers. When student loan interest is capitalized, accrued student loan interest is added to your student loan balance.


4. Interest on student loans would be limited to 10 years

Fourth, in a big win for student borrowers, the bill would limit interest on student loans to 10 years. Specifically, student borrowers who are enrolled in an income-driven repayment plan would only have to pay their original student loan balance plus 10 years of student loan interest. Currently, student borrowers with an income-driven repayment plan get student loan forgiveness after 20 years for student loans. This could save student borrowers up to thousands of dollars in student loan repayments.


5. End the student loan payment pause

Fifth, the new legislation would end the pause in student loan payments. The student loan moratorium will end on August 31, 2022. However, this legislation would officially end the student loan moratorium if Biden extends student loan relief beyond August. Federal student loan payments have been suspended for more than 40 million student borrowers since March 2020. Congress passed the Cares Act, the $2 trillion stimulus package, with historic student loan relief, including no mandatory federal student loan payments and a 0% interest rate on student loans. Democrats have urged the president to continue suspending student loan payments, citing economic uncertainty and the Covid-19 pandemic. Republicans say Biden has canceled $400 billion in student loans and the ongoing pause in student loan payments has cost the federal government $150 billion. Are you ready for the restart of student loan repayments? Understand all of your student loan repayment options. Here are some of the best ways to pay off student loans and save money:


Student Loans: Related Reading

Cancellation of student loans: Congress proposes 0% interest rates for student loans

What Your New Student Loan Manager Means for Student Loan Cancellation

Senators propose major changes to student loan forgiveness

Student loan forgiveness must be extended, Biden attorneys general warn

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Gastonia wants to borrow money to improve roads https://www.ibooklinux.net/gastonia-wants-to-borrow-money-to-improve-roads/ Fri, 05 Aug 2022 20:36:52 +0000 https://www.ibooklinux.net/gastonia-wants-to-borrow-money-to-improve-roads/ Gastonia voters will decide in November whether or not to allow the city to borrow money to improve Gastonia’s roads, sidewalks and other transportation infrastructure around the city. If Gastonia voters approve the plan, Gastonia will borrow $75 million through the sale of bonds to improve streets, highways, sidewalks, bridges and other traffic necessities. Bond […]]]>

Gastonia voters will decide in November whether or not to allow the city to borrow money to improve Gastonia’s roads, sidewalks and other transportation infrastructure around the city.

If Gastonia voters approve the plan, Gastonia will borrow $75 million through the sale of bonds to improve streets, highways, sidewalks, bridges and other traffic necessities.

Bond proceeds must be spent within seven years, but that could be extended to 10 years, City Manager Michael Peoples said.

Michael Peoples

The city will have 20 years to pay off the debt, and they hope to pay off the debt using money generated from the county’s upcoming property reassessment.

If the reassessment is 20% to 25% higher than the properties’ current value, property taxes will produce the revenue the city needs to pay off the debt, Peoples said.

City of Gastonia officials hope to use much of the $75 million — up to $20 million — to repave the city’s roads.

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ARCIL bids for bad loan from Yes Bank https://www.ibooklinux.net/arcil-bids-for-bad-loan-from-yes-bank/ Thu, 04 Aug 2022 03:22:23 +0000 https://www.ibooklinux.net/arcil-bids-for-bad-loan-from-yes-bank/ Bombay : Asset Reconstruction Co. of India (ARCIL) has become the only candidate to acquire Yes Bank’s ₹A bad loan portfolio of 48,000 crore, said two people with knowledge of the matter. ARC, backed by Avenue Capital, has also partnered with private equity firm Cerberus Capital to fund the offer, the sources said on condition […]]]>

Bombay : Asset Reconstruction Co. of India (ARCIL) has become the only candidate to acquire Yes Bank’s A bad loan portfolio of 48,000 crore, said two people with knowledge of the matter. ARC, backed by Avenue Capital, has also partnered with private equity firm Cerberus Capital to fund the offer, the sources said on condition of anonymity.

The offer also marks Cerberus’ return to the Yes Bank asset sale, which it lost in the first round.

Despite being a strong competitor, the private equity firm had lost out to JC Flowers ARC because it did not own ARC.

After accepting JC Flowers’ term sheet, Yes Bank sought expressions of interest under the Swiss Challenge method, the deadline for which ended on Tuesday.

Emails sent to ARCIL and Cerberus Capital went unanswered.

In the Swiss Challenge for Yes Bank bad debt sale, only a CRA can make the counter-bid, and the bid must be at least 5% higher than the leading bidder.

This means that since the main tenderer JC Flowers ARC had offered 11,183 crore, ARCIL’s counter-offer is at least 11,750 crores. JC Flowers ARC can still match ARCIL’s counter-offer by mid-September.

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As part of the transaction, the distressed loans will be sold on a 15:85 structure, with 15% of the agreed amount to be paid upfront in cash to Yes Bank, and the remaining 85% to be paid in security receipts. and reimbursed as ARCs. recovers money from defaulters.

“It will be a pure and simple portfolio sale according to the Swiss Challenge method. There is no proposal at this time for Yes Bank to take a stake in ARCIL as in the case of JC Flowers,” said one of the two previously quoted officials on condition of anonymity. “However, what is important is how JC Flowers react to this offer,” he added.

A Swiss Challenge allows competitors to outperform the winning bidder. If there is such a bid and the winning bidder refuses to match it, the challenger can walk away with the deal.

Mint had announced on Feb. 10 that Cerberus was in talks with Blackstone-backed International Asset Reconstruction Co. to jointly acquire Yes Bank’s stressed portfolio, but talks remained unsuccessful.

Last week, Yes Bank’s board approved the lifting 8,898 crore ($1.1 billion) by selling shares and warrants to private equity investors Carlyle Group and Advent International, a move that would strengthen the private lender’s capital position. Negotiations to raise capital had been dragging on for months and reportedly took longer than expected due to delays in the bank’s plan to find a partner to offload its stack of toxic assets.

Yes Bank having selected JC Flowers as a joint venture partner to purchase distressed loans from 48,000 crore, the bank was able to advance its fundraising plan.

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Credit rules change to make mortgages easier https://www.ibooklinux.net/credit-rules-change-to-make-mortgages-easier/ Tue, 02 Aug 2022 03:11:42 +0000 https://www.ibooklinux.net/credit-rules-change-to-make-mortgages-easier/ From March, borrowers will no longer be unfairly penalized when trying to get money to buy a house. Trade and Consumer Affairs Minister David Clark. The government is changing the credit rules that banks and other lenders must apply so that borrowers are no longer unfairly penalized when they try to borrow money to buy […]]]>

From March, borrowers will no longer be unfairly penalized when trying to get money to buy a house.

Trade and Consumer Affairs Minister David Clark.

The government is changing the credit rules that banks and other lenders must apply so that borrowers are no longer unfairly penalized when they try to borrow money to buy a house.

But the changes won’t take effect until March next year.

The regulations generated by the Credit Agreements and

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Credit firm Crypto Celsius is taking its toll on customers, as customers write letters to judge asking for their money back https://www.ibooklinux.net/credit-firm-crypto-celsius-is-taking-its-toll-on-customers-as-customers-write-letters-to-judge-asking-for-their-money-back/ Sun, 31 Jul 2022 12:04:17 +0000 https://www.ibooklinux.net/credit-firm-crypto-celsius-is-taking-its-toll-on-customers-as-customers-write-letters-to-judge-asking-for-their-money-back/ The Celsius debacle in the stock market crash Celsius, a crypto lending platform, was a big part of the industry as many customers used their assets to deposit with the company. The crypto credit company promised customers high interest rates, prompting investors to deposit their holdings in degrees Celsius. Celsius, as part of its operations, […]]]>

The Celsius debacle in the stock market crash

Celsius, a crypto lending platform, was a big part of the industry as many customers used their assets to deposit with the company. The crypto credit company promised customers high interest rates, prompting investors to deposit their holdings in degrees Celsius. Celsius, as part of its operations, invests these deposits in other funds and companies and uses them to earn interest. When the stock market crash happened in May, many cryptocurrency institutions found themselves in the soup. Celsius was one of them.

Celsius had also loaned a large portion of the deposits to Three AC, a hedge fund company. When the hedge fund company collapsed, the Celsius debacle began. The company first froze investors’ accounts, prohibiting them from withdrawing their funds. The company has also hired restructuring lawyers to help the company restructure and get out of the soup. Even this move seems to have failed. After several attempts, the crypto credit company filed for bankruptcy. As the company filed for bankruptcy, many of the company’s customers erupted and began writing about their experience with the company, asking the judge to look into the matters more carefully.

Anger, anguish, anxiety, the three A’s common to clients.

Credits: RTC Direct Mailing

Hundreds of letters began pouring in from clients to the judge, who was tasked with overseeing Celsius’s bankruptcy filings. The letters were filled with people’s experience of anger, anguish and anxiety. According to the court filing, the company owed approximately $4.7 billion to its customers and users.

There were clients of different age groups, financial conditions and many different variables suffering from the three A’s mentioned above. The letters revealed many examples of the pain the clients faced. Some of the examples are, like a single mother struggling with unpaid bills in Texas, an Indian teacher losing her hard-earned savings and many such examples have concluded the pathetic condition of clients.

Many letters were addressed to the CEO’s AMA (Ask Mashinsky Anything), which was held online, days before the accounts were frozen. The campaign was basically to keep customers in a good space and make them believe that the business was not in danger.

Writer’s report:

As we read more and more of people’s experiences of losing their assets and suffering, it’s hard to stomach the fact that a major crypto institution didn’t have the right measures in place to refund investments in the event of debacle. Some of the clients went as far as depression, where they planned to kill themselves, which is surely one of the most undesirable implications that Celsius wants right now.

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Mumbai: 10 Chinese nationals involved in international loan application scam costing hundreds of millions of rupees https://www.ibooklinux.net/mumbai-10-chinese-nationals-involved-in-international-loan-application-scam-costing-hundreds-of-millions-of-rupees/ Fri, 29 Jul 2022 19:30:55 +0000 https://www.ibooklinux.net/mumbai-10-chinese-nationals-involved-in-international-loan-application-scam-costing-hundreds-of-millions-of-rupees/ Cyber ​​police officials from the Mumbai Crime Branch, who busted an international loan application fraud racket, said at least ten Chinese nationals are involved in the crime and are the beneficiaries of money embezzled from India using cryptocurrency. Cyber ​​Police, which arrested 14 defendants from across India, said the defendants had been behind the fraud […]]]>

Cyber ​​police officials from the Mumbai Crime Branch, who busted an international loan application fraud racket, said at least ten Chinese nationals are involved in the crime and are the beneficiaries of money embezzled from India using cryptocurrency.

Cyber ​​Police, which arrested 14 defendants from across India, said the defendants had been behind the fraud since 2018, the number of victims could be over 1,000 and the total money stolen could be as high as several hundred million rupees.

Mumbai Police Co-Commissioner (Crime) Suhas Warke said at a press conference on Friday, “The accused had opened more than 360 bank accounts and more than 200 shell companies to siphon off the ill-gotten money. Over 50 cryptocurrency wallet accounts were used to transfer money.

“We froze several bank accounts and recovered Rs 14 crore. Another 2.17 lakh USDT was found in cryptocurrency wallets. We have seized 39 phones, 211 SIM cards, 19 laptops and other electronic items which were used to commit the crime,” said Hemraj Singh Rajput, Deputy Commissioner of Police (Cyber).

Police said the accused downloaded the digital loan apps from Google Playstore or sent them directly to the victims via SMS or WhatsApp messages. They were using at least 37 fraudulent loan applications and another 200 loan applications are under scanning.

The accused used to gain access to personal details like pictures, victim’s contact list while lending a few thousand rupees and later extorted much more money than the loan amount by transforming their photos with pornographic images and sending them to everyone in their contact list. They also called the loanees and their family and friends and abused them.

Crime Branch cyber police began investigating the case after a loanee died by suicide in Malad in May 2022 after being harassed by “loan collectors”. After investigations that lasted two months, police learned that the masterminds, believed to be Chinese nationals, had started front companies with Indians as directors of those companies. The accused also hired young people who needed jobs.

“Each person had a different role. One particular group made phone calls and offered loans. Another group ensured that the loans were granted and a third group called the beneficiaries to remind them of the repayment. A fourth group then sexually harassed the victims and extorted money…” said a cyber police officer, who is part of a team of 22 officers and 12 constables from all five cyber police stations in Mumbai.

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Chinese banks rush to increase debt as slowdown increases potential bad loans https://www.ibooklinux.net/chinese-banks-rush-to-increase-debt-as-slowdown-increases-potential-bad-loans/ Thu, 28 Jul 2022 03:36:00 +0000 https://www.ibooklinux.net/chinese-banks-rush-to-increase-debt-as-slowdown-increases-potential-bad-loans/ Chinese banks are rushing to raise capital as they brace for a potential increase in bad loans due to the economic slowdown and the spreading housing crisis. A record amount of new money came from financial markets, with banks selling 29% more bonds in the first half than a year ago […]]]>


Chinese banks are rushing to raise capital as they brace for a potential increase in bad loans due to the economic slowdown and the spreading housing crisis.

A record amount of new money came from financial markets, with banks selling 29% more bonds in the first half than a year ago to replenish capital and cover credit losses. Local authorities have also provided funds from the sale of government bonds to help cash-strapped regional lenders.

China’s economy grew at the weakest pace in more than two years in the second quarter due to Covid lockdowns and a prolonged slowdown in the housing market, fueling concerns about an increase in the number of businesses and individuals who cannot repay their loans. These fears were heightened recently when hundreds of thousands of homeowners said they would stop paying the mortgage on homes that are yet to be built, increasing pressure on developers who may find it more difficult to sell homes. projects and also having to repay bank loans.

Read also | China’s Gen Z are underemployed and cut back on their ambitions: report

“We believe asset quality is deteriorating due to Covid-related lockdowns, the real estate crisis, risks associated with small and micro loans and the general economic slowdown in China,” said S&P senior director Harry Hu. Global Ratings. The government’s capital injections “will help these smaller regional banks that have large bad debt burdens to clean up their books and support local economies.”

In the year to July 27, lenders had sold 568 billion yuan ($84 billion) of additional Tier 1 debt, which is among the first to absorb losses in times of crisis, and Tier 2 bonds. China’s big four state-owned banks are the top sellers of bonds this year, according to onshore sales data compiled by Bloomberg, although local lenders including Bank of Hebei Co., Chengdu Rural Commercial Bank Co. and Bank of Shanghai Co. .. are also selling.

This debt is the main tool banks have to add additional capital, analysts including Liao Zhiming of China Merchants Securities Co. wrote in a report in May.

In addition to this, the central government will allow 320 billion yuan generated from the sale of special local bonds to be used to supplement the capital of small and medium-sized banks, Financial News reported last week, citing an unnamed official with China Banking and Insurance Regulatory Commission. The amount, including 120 billion yuan of lapsed funds from last year, is 60 percent higher than in 2020, when money from the sale of these bonds was first allowed to be used for this purpose. .


Doubtful debts increase

Bad debts rose by nearly 107 billion yuan in the first half to 2.950 billion yuan, according to the CBIRC. It’s the largest six-month increase since the peak of the national pandemic in the first half of 2020, according to Bloomberg calculations based on data from the commission. At the same time, banks’ capital adequacy ratio fell for the second consecutive quarter to 14.87% at the end of June.

“The pressure on non-performing loans to rebound increased as the downward pressure on the economy was gradually felt by the financial sector,” said Liu Zhongrui, an official with the statistics and monitoring department. risks of the CBIRC, during a press briefing last week.

The “slower than expected” economic recovery led S&P to raise its estimate of banks’ non-performing assets, which includes bad loans and some “special mention loans,” to 7.5% of total loans this year. That’s up from a May forecast of 6.5% and the actual ratio of 6% last year.

The problem is particularly acute for small and medium-sized lenders, who hold 29% of total banking sector assets, according to CBIRC data. They have long been plagued by lax governance, a heavy reliance on large local corporations for loans and deposits, and they are more exposed to weak links in the economy than large lenders, such as the agricultural industry and small businesses.


doubtful debts

Government efforts to push banks to lend more may exacerbate the asset quality problem. Demand for loans from businesses and households is weak as Covid restrictions remain a threat to business and household incomes, and if banks have to reduce their lending requirements to attract borrowers, they could find themselves making new loans with little hope of repayment.

Financial regulators have urged banks to increase loans to builders to help complete projects, and officials are considering giving some homeowners a grace period on payments, Bloomberg reported. This will likely worsen profits for banks that have already extended loan relief measures for small businesses and mortgage holders affected by Covid.


Regional risks

Authorities are accelerating the use of special local government bonds to bolster the capital of smaller banks this year “to shore up the important line of defense against bank risks,” CBIRC spokesman Qi Xiang said. , during last week’s briefing. In the first half of this year, 103 billion yuan of the special bond quota was allocated to Henan, Liaoning, Gansu and Dalian City, he said.

Liaoning had the highest number of “high-risk” financial institutions in a 2020 review of financial companies by the People’s Bank of China, followed by Gansu, Inner Mongolia and Henan. When it released the 2021 assessment in March this year, the central bank said high-risk companies were concentrated in four provinces, but did not name them. More than 90% of the 316 high-risk institutions belonged to rural and county banks.

There have been high-profile problems in banks in Henan and Liaoning recently, with protests in Henan from people who had their money stolen in the country’s biggest banking scam and a rural bank taken over by another bank in Shenyang, the capital of Liaoning. Both provinces were also affected by the mortgage boycott.

“Business sentiment and their ability to increase investment spending are both very weak, so economic momentum has yet to pick up,” said Peiqian Liu, chief China economist at NatWest Group Plc. “As long as the real estate and Covid problems persist, banks’ bad debts will continue to increase.”

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