International Monetary Fund has adopted reforms for a loan programme designed to help low-income countries cope with emergencies caused by events beyond their control.According to a statement issued today by the body, programme aims to provide assistance more quickly, and in larger amounts, to help low-income IMF members, many of them in sub-Saharan Africa, cope with events such as commodity price changes, natural disasters and conflicts and crises in neighboring countries, which disrupt trade.
Statement shows that revamp, approved by executive board on 19 September, also streamlined conditionality, commitments that borrower governments make on their economic and financial policies, attached to Exogenous Shocks Facility. Review of ESF will make it easier and faster for members to receive fund's support has reportedly been accelerated in light of experience and recent worsening of global economic conditions, in particular with recent episode of surging food and fuel prices that have hit low-income countries particularly hard, an IMF spokesman said.
This component could be used on a stand-alone basis or as a first step towards high access component, along lines of current ESF, with access up to 75 percent of quota for each arrangement in normal circumstances. Resources would be provided in multiple disbursements based on reviews. This component could be used following a rapid-access component, or on a stand-alone basis," statement says.
Under rapid access component, member would need only to commit to appropriate policies to address shock, and in exceptional cases, to take targeted up-front measures. It further indicates that programme will be able to be used more flexibly in conjunction with other fund facilities and instruments, for example, with a Policy Support Instrument
Wednesday, November 19, 2008
Wednesday, November 12, 2008
Loans are Euro 2,7, But Payments are Regular
Although Montenegrin citizens and businessmen had more than Euro 2, 7 Billion in Loans, data of the Loan Regulatory Bureau of Montenegrin Central Bank (CBCG) suggest that the loan-takers are diligently fulfilling their obligations.
Head of Department for Control of Loan Risks of CBCG, Veselin Vukovic stated that the system of banks and micro-financial institutions (MFI) reveals that total value of loans which are not being serviced regularly (loans which are 60 and more days due) amounts at Euro 54,6 Million.
“This makes only two percent of the total amount of loans. The most significant noted loan is in the group of 60 to 80 days and amounts at 44, 2 percent of the total amount of loans with delayed payments”, Vukovic stated.
Regulatory Bureau for Loans of CBCG started receiving information from the banks in April of 2005. It has been formed to regulate loan risk of banks, as the dominant risk in the banking system of Montenegro. Exchange of data from the registry basis with banks and MFI commenced nine months ago.
“At this point, Registry does not have a role of the true Credit Bureau, as individuals and companies cannot obtain data about their debts with the banking system or with the MFIs. For the time being, there is no possibility for citizens or companies to obtain personal reports as evidence about their debt or credit history. Sector for controls is working on improving the project of Credit Bureau so that the possibility for this service would be considered in the future”, Vukovic has explained.
In its’ loan registry, CBCG is preserving data about the debts since its’ foundation. It also intends to introduce a regulation which would specifically define the time-frame for saving the data on client’s loan history.
“This data-base includes the data on client’s debts based on their use of credit cards, overdraws on their accounts and leasing for 181,621 clients, out of which 175,293 individuals and 6,328 companies.
Total value of this debt is Euro 1, 7 Billion or 63, 57 percent of the total debt”, Vukovic clarified.
Statistic data shows that 97 percent of this debt is in credits, 1, 1 percent is for credit cards, while overdraws on accounts and leasing cleared from banks makes 1, 5 percent and 0, 4 percent of the total debt, respectively. According to the same data, average debt of citizens with banks amounts at Euro 5, 818 for individuals and Euro 281, 211 for companies.
“Credit Registry started collecting data also about debts with MFIs. And, according to the data, 30, 965 citizens and 144 companies are using services of these institutions.
MFIs have cleared total of Euro 67, 1 Million in credits, out of which 98, 5 percent to citizens and 1, 5 percent to companies”, Vukovic stated, adding that the Registry has no data on the debt with the Leasing companies.
Head of Department for Control of Loan Risks of CBCG, Veselin Vukovic stated that the system of banks and micro-financial institutions (MFI) reveals that total value of loans which are not being serviced regularly (loans which are 60 and more days due) amounts at Euro 54,6 Million.
“This makes only two percent of the total amount of loans. The most significant noted loan is in the group of 60 to 80 days and amounts at 44, 2 percent of the total amount of loans with delayed payments”, Vukovic stated.
Regulatory Bureau for Loans of CBCG started receiving information from the banks in April of 2005. It has been formed to regulate loan risk of banks, as the dominant risk in the banking system of Montenegro. Exchange of data from the registry basis with banks and MFI commenced nine months ago.
“At this point, Registry does not have a role of the true Credit Bureau, as individuals and companies cannot obtain data about their debts with the banking system or with the MFIs. For the time being, there is no possibility for citizens or companies to obtain personal reports as evidence about their debt or credit history. Sector for controls is working on improving the project of Credit Bureau so that the possibility for this service would be considered in the future”, Vukovic has explained.
In its’ loan registry, CBCG is preserving data about the debts since its’ foundation. It also intends to introduce a regulation which would specifically define the time-frame for saving the data on client’s loan history.
“This data-base includes the data on client’s debts based on their use of credit cards, overdraws on their accounts and leasing for 181,621 clients, out of which 175,293 individuals and 6,328 companies.
Total value of this debt is Euro 1, 7 Billion or 63, 57 percent of the total debt”, Vukovic clarified.
Statistic data shows that 97 percent of this debt is in credits, 1, 1 percent is for credit cards, while overdraws on accounts and leasing cleared from banks makes 1, 5 percent and 0, 4 percent of the total debt, respectively. According to the same data, average debt of citizens with banks amounts at Euro 5, 818 for individuals and Euro 281, 211 for companies.
“Credit Registry started collecting data also about debts with MFIs. And, according to the data, 30, 965 citizens and 144 companies are using services of these institutions.
MFIs have cleared total of Euro 67, 1 Million in credits, out of which 98, 5 percent to citizens and 1, 5 percent to companies”, Vukovic stated, adding that the Registry has no data on the debt with the Leasing companies.
Monday, November 3, 2008
Seek that green light; score yourself a loan
credit crunch" would have eased. But prospective home buyers — including those with stable jobs and decent credit — still confront unusually high hurdles to gain approval on their home-loan applications. People in the mortgage industry are extremely hungry for business. But they're also extremely picky who they lend to. The last thing they want are more foreclosures coming back to haunt them," says Blaine Rickford, president of an independent mortgage firm.
Mortgage officers those who take loan applications and deal with the public prepare files on would-be borrowers. Yet no file is ever approved by a bank unless its underwriters give the green light. You never get to meet the underwriters these loan supervisors are off-limits to borrowers. But mortgage officers talk to them directly and can plead your case if they think you're a good bet," says Rickford, who's worked in the mortgage field since 1978.
Develop a positive rapport with your mortgage lender and you're more likely to reach your home-buying goal, says Leo Berard, charter president of the National Association of Exclusive Buyer Agents (www.naeba.org).
"You don't want to torpedo your chances of owning a home because of some financing glitch. Those who win in the mortgage process take a businesslike approach," Berard says. Educate yourself on the basics of mortgages before you apply.
Many home buyers, and particularly novices, are in the dark about mortgages and how lending works. Because they feel ignorant on the topic, they hesitate to pose important questions.
But as Berard says, the basic concepts of mortgage lending aren't so complex that you can't grasp them in a short period of time. Start with the Internet, taking a look at the "mortgage" entry in Wikipedia (www.wikipedia.org), the free online encyclopedia, and its related links. You can also go to the U.S. Department of Housing and Urban Development's Web site at http://www.hud.gov/.
Also, Berard encourages you to stop by your local library to check out a book or two on the topic, such as "Mortgages for Dummies," co-authored by Ray Brown and Eric Tyson.
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