Fed declines comments on AIG loan reports

A U.S. Federal Reserve spokeswoman declined to comment on Tuesday on reports that the central bank could extend a bridge loan of roughly $85 billion dollars to troubled insurer American International Group.
Both CNBC and the New York Times reported that the Fed was arranging a bridge loan for AIG. (Reporting by Mark Felsenthal; Editing by Leslie Adler)

Bad Credit Loans Wash Out Credit Worries

The stint of bad credit in the society is marked actually by the economic and technological boom since this growth drives the demand of more and fresh as well as new products among the people. People go for more buys with the aids of credit cards and like things, which are however, not easy to be repaid by everyone. So, the result comes with bad credit record. So, they can not be blamed for it. And, this has been aptly understood by the lenders today for which they have brought up a unique type of loans, bad credit loans, which help the bad credit holders to take loans for their needs at cheap and affordable rates.

Bad credit loans do not discriminate any one against any thing. Bad credit loans are available for both the kind of people who can pledge collateral for their loans and also for those who can not. Lenders of secured bad credit loans where you are to pledge collateral, give you the loans with cheap rates as your collateral plays the role of security of the lender’s money. Unsecured bad credit loans, on the other hand do not require the borrower to attach any collateral. And, unsecured options of bad credit loans are quite popular among the tenants and homeless people since they can not pledge any property as the collateral.

Hong Kong shares end morning lower on renewed U.S. credit, housing woes UPDATE

Hong Kong shares ended the Friday morning session lower, as the bigger-than-forecast decline in home sales and rising number of jobless citizens in the United States revived fears of the credit crisis.
The National Association of Realtors said existing home sales fell by 2.6 percent in June from a year ago, the lowest in a decade and more than the 1 percent drop economists have expected. That prompted investors to sell U.S. equities overnight.
Adding to the gloom, the Labor Department said the number of workers filing for unemployment benefits rose to 406,000 last week, an increase of 34,000 seasonally adjusted, the highest since the aftermath of the Gulf Coast hurricanes in 2005.

"The subprime credit crisis is far from over," said Jackson Wong, investment manager at Tanrich Securities. "The drop in housing sales is a constant reminder that the problems are still there even after the administrative measures adopted by the U.S. government."

Washington has bailed out the nation's biggest mortgage financiers Fannie Mae and Freddie Mac, giving investors an excuse to hunt for bargain U.S. stocks in the past few days. Wall Street's rally has spilled over to Asian markets, including Hong Kong, with the key index hitting its highest level in five weeks on Wednesday.
The Hang Seng Index lost 446.68 points or 1.9 percent to end the session at 22,641.04.

China Shenhua Energy, the biggest coal producer in the mainland, led the index lower after the government capped thermal coal prices further and tightened supply distribution. The Chinese government also warned it would punish those who are engaged in hoarding and price speculation.
China Shenhua Energy, the biggest coal producer in the mainland, led the index lower after the government capped thermal coal prices further and tightened supply distribution. The Chinese government also warned it would punish those who are engaged in hoarding and price speculation.

Loan For Youths Benefits Malanje Province

Malanje, 07/22- Angola`s Government programme named "Youth Credit" on Tuesday officially reached Malanje city, in a ceremony chaired by the Provincial Governor, Cristovão da Cunha, Angop has learnt.
The launching of the “Youth Credit” culminated with the handing over of USD 45,000 out of the USD 100,000 made available by the Savings and Credit Bank (BPC) for this province.

Under the programme, each group may benefit from USD 5,000 to USD 10,000, having into account the kind of activity.For the first stage, beneficiaries are eight co-operatives of young people initially selected.

Meanwhile, BPC Northern region Director, Ilda Maria Silva, said that her institution will increase from USD 100,000 to 200,000 the amount available for Malanje province, under this Government programme.
On his turn, Governor Cristovão da Cunha said it is an act of responsibility for the beneficiaries and therefore they should meet the demands of this governmental programme.

State credit agency eyes Cebu furniture sector for loan facility

THE Philippine Export-Import Credit Agency (Philexim) announced that default cases on its wholesale lending program remain to be minimal.
“It’s a supervised credit program,” said Alex Ara-bis, Philexim officer-in-charge for accounts management department in the Visayas and Mindanao.
He said a fund or credit management committee evaluates and decides whether a company is qualified to avail itself of a loan.
Among the members of the committee are representatives from the Land Bank of the Philippines and Philexim.
Under Philexim’s Omnibus Revolving Credit Line, an established group of exporters can avail of a maximum of P25 million that will serve as a revolving fund that can be extended to a member-company. Each member can borrow a maximum of P1 million with a monthly interest of two percent, where one percent will go as revenue for the export association and the other one percent to Philexim.
This facility is also available for check re-discounting, international trade fair participation, improvement of workplace and other financial requirements of the exporters.
The Cebu Gifts, Toys and Houseware Manufacturers and Exporters Association (GTH-Cebu) and the Cebu-Fashion Accessories Manufacturers and Exporters (Fame) Foundation have availed themselves of the loan facility.
Arabis said a year after GTH-Cebu applied for the program, it has already generated more than P2 million for the group.
Once the associations can sustain the re-lending program, Philexim will detach itself from the group.
Edward Mendez of the Cebu Software Development Industry Association (Cebusoft) said he will talk to Cebusoft members so they can also benefit from the program.
He said the loan facility would be useful to members that have plans to establish outsourcing companies.
Philexim is also considering the Cebu Furniture Industries Foundation (CFIF) as some of its members have availed themselves of the state agency’s direct loan facility.
Aside from the wholesale lending and the direct loan programs, Philexim also offers guarantees and foreign-sourced financing facilities to industries where foreign exchange may be generated or saved, like the export group.

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Gov’t to Bail Out Credit Delinquents

The government will either write off overdue interest on loans or transfer loans with high interest rates to loans with low interest rates for 460,000 credit delinquents who have failed to repay money borrowed from financial institutions or private lenders, or whose overdue loans amounts less than 10 million won, starting September.

As the government is expected to include credit delinquents with less than 30 million won in overdue loans in its bailout plan from next year, a total of 720,000 credit delinquents will benefit from the government’s rescue plan.

These measures were finalized at the fifth Presidential Council on National Competitiveness presided over by President Lee Myung-bak yesterday.

Under the plan, the government will create a fund amounting to 700 billion won. In the first phase, the government will purchase loans worth less than 10 million won and overdue for more than three months starting September.

Overdue interest fees will be written off and the beneficiaries of the bailout plan will be allowed to repay the loans for up to eight years, depending on their financial capabilities. During the process, they will be registered as those “under credit recovery” at the Korea Federation of Banks. But, if they repay the debt in time for two years, their financial delinquent records will be erased.

Also, the government will help credit delinquents who borrowed money from financial institutions or private lenders and whose credit rating stays between Grade 7 and Grade 10 transfer their loans borrowed at high interest rates to those with low interest rates.

The transfer program will be subject to those who borrowed less than 10 million won from financial institutions or private lenders at an annual interest rate higher than 30 percent and have repaid the money in time. In short, the government will help money borrowers to transfer their loans with high interest rates to loans with low interest rates with its credit recovery fund. Each borrower will face a different interest rate depending on his or her credit rating.

Regardless of the amount of loans, low-income credit delinquents can have their debt maturity lengthened and transfer their loans with high interest rates to those with low interest rates. However, mortgage loan is not subject to the program and low-income credit delinquents who have property to repay the debt cannot be supported by the government.

The government is also expected to allow credit delinquents with less than 30 million won in overdue loans to have their debt maturity lengthened or transfer their loans borrowed at high interest rates to those with low interest rates. In sum, 720,000 people, or 10 percent of 7.2 million whose credit rating stood between Grade 7 and Grade 10 as of late May, will be supported by the bailout program.

Also, the government will prevent collectors from calling or visiting money borrowers from 9 p.m. to 8 a.m. They will not be allowed to send letters of reminder to children of money borrowers.

In the meanwhile, the government’s rescue plan, which writes off overdue interest fees or allows borrowers to transfer to new loans with low interest rates, will bring about a debate regarding moral hazard.