Loanable Funds – Future Komp http://futurekomp.net/ Fri, 24 Sep 2021 09:39:17 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://futurekomp.net/wp-content/uploads/2021/03/futurekomp-icon-70x70.png Loanable Funds – Future Komp http://futurekomp.net/ 32 32 Agri-agra loans climb at the end of June https://futurekomp.net/agri-agra-loans-climb-at-the-end-of-june/ https://futurekomp.net/agri-agra-loans-climb-at-the-end-of-june/#respond Fri, 24 Sep 2021 09:39:17 +0000 https://futurekomp.net/agri-agra-loans-climb-at-the-end-of-june/

BANK loans to the agriculture and land reform sector increased 13.60% at the end of June this year, according to the Bangko Sentral ng Pilipinas (BSP), but have not reached the mandated amount.

As of the end of June 2021, the banking system had set aside 789.60 billion pesos for the sector, up 94.53 billion pesos from the 695.06 billion pesos a year earlier.

Total loanable funds increased 16.70% to 7.42 trillion pesos at the end of June this year, from 6.35 billion pesos a year earlier.

The combined allocation for agriculture and land reform, at 10.63 percent of total loanable funds, did not meet the 25 percent threshold set by Republic Act 10,000, or the “Law of the Republic. the credit of the Agri-Agra reform of 2009 ”.

Banks are required to lend 15 percent and 10 percent of their entire loan portfolio to farmers and land reform beneficiaries, respectively, under the law.

Lenders, on the other hand, gave the agriculture industry only 9.66 percent of their total loanable money, while land reform beneficiaries received only 0.96 percent of their money. total loanable.

Over an eight-year period, banks that failed to meet the compulsory credit allowance for agriculture and land reform were fined more than 13 billion pesos.

“We collected around 13.4 billion pesos in agro-agricultural penalties from 2011 to 2018,” noted Lyn Javier, director general of the policy and specialized supervision sub-sector of the BSP.

The Common Agricultural Guarantee Fund received 45 percent of the fines, said Javier, who provides guarantee coverage to banks, cooperatives, farmers / organizations and businesses financing small farmers and fishermen.

The same amount was sent to the Philippine Crop Insurance Corp., which provides insurance coverage for farmers (non-rice miles) and corn, among others, against natural disasters, plant diseases, and pest infestations.

BSP, meanwhile, received 1.34 billion pesos, or 10 percent of funds.

BSP Governor Benjamin Diokno said the central bank would continue to push for “structural reforms” that would strengthen rural development by offering a holistic approach that takes into account the broader agricultural finance ecosystem and community needs.

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Biden suggests new approach for COVID-19 | New https://futurekomp.net/biden-suggests-new-approach-for-covid-19-new/ https://futurekomp.net/biden-suggests-new-approach-for-covid-19-new/#respond Thu, 23 Sep 2021 03:23:00 +0000 https://futurekomp.net/biden-suggests-new-approach-for-covid-19-new/

President Joe Biden’s new six-pronged approach to dealing with COVID-19 hopes to protect Americans while introducing new regulations to help the economy and keep schools open amid the raging Delta variant.

The six-pronged plan aims to immunize the unvaccinated, protect the vaccinated, keep schools open, increase testing and mask requirements, protect the economy, and improve COVID-19 care, the all thanks to a scientific approach.

When it comes to vaccinating more Americans, the federal government has employed the Department of Labor’s Occupational Safety and Health Administration, or OSHA, to require vaccinations or regular testing for nearly 80 million Americans, according to the Biden administration’s official COVID-19 action plan. , as reported on the White House website.

“OSHA is developing a rule that will require all employers with 100 or more employees to ensure their workforce is fully vaccinated or will require all workers who are not vaccinated to produce at least a negative test result. once a week before coming to work, ”the website reads.

The White House website also mentions paid time off requirements for all federal workers and hospital workers participating in Medicare and Medicaid to get vaccinated.

Vaccinating more workers is critical to ending the pandemic, Biden said in a speech to the nation on September 9.

“This is an unvaccinated pandemic,” Biden said. “This is because despite America having an unprecedented and successful vaccination program, despite the fact that for almost five months free vaccines have been available in 80,000 different places, we still have almost 80 million Americans who failed to get vaccinated. “

On Wednesday, September 22, the Food and Drug Administration, or FDA, approved booster doses of the Pfizer vaccine for people 65 years of age and older and those at high risk of illness or exposure. These photos should be available by the end of the week, according to ABC News.

The Biden administration also plans to keep schools and students safe through increased vaccinations.

“To help keep students, families and their communities safe, the President’s plan includes requirements for teachers and staff in Head Start and Early Head Start programs, teachers and staff in children’s programs and Department of Defense youth and teachers and staff at Schools operated by the Bureau of Indian Education get vaccinated, ”says the COVID-19 action plan.

In his remarks on September 9, Biden also called on state governments to help promote immunization for educators.

“I call on all governors to demand immunizations for all teachers and staff,” Biden said. “Some have already done it, but we need more to step up. Vaccination requirements in schools are not new. They work.”

The Biden administration is also hoping to expand production of affordable COVID-19 rapid tests to promote faster and more regular testing, according to the action plan.

“President Biden’s plan will mobilize industry due to the urgent and compelling need to ramp up production of the COVID-19 rapid test,” the action plan says.

On the protection of the economy, the president’s plan will introduce more support for small businesses and make improvements to the current payment protection program loan cancellation process.

President’s plan will help more than 150,000 small businesses by bolstering COVID[-19] Economic disaster loan [or] EIDL program, which provides long-term, low-cost loans, ”says the action plan. “The improvements will allow more businesses to gain greater and more flexible support with the $ 150 billion in loanable funds still available in the program.” “

For the last part of its new approach, the action plan says the administration will double the number of DOD teams working with hospitals.

“These clinicians will be available for a mission through FEMA’s response in all surge states,” the plan says.

These new regulations have received negative reactions from Republicans in Texas, including Gov. Greg Abbott, who believes the federal government is going beyond its limits.

“The federal government must stop trying to run private businesses,” Abbott spokesperson Renae Eze said in a statement to the Texas Tribune.

Republican states are likely to challenge the federal government, and some cases could even go to the Supreme Court, said Max Crook, Ph.D., professor of political science at Texas A&M.

“It’s very likely that it will make it all the way to the Supreme Court, states will definitely sue… because that’s the nature of our society right now,” Crook said.

Biden’s full remarks, as well as an official overview of the administration’s COVID-19 action plan can be found at whitehouse.gov.

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President Biden’s COVID-19 Action Plan and Private Employers – Coronavirus (COVID-19) https://futurekomp.net/president-bidens-covid-19-action-plan-and-private-employers-coronavirus-covid-19/ https://futurekomp.net/president-bidens-covid-19-action-plan-and-private-employers-coronavirus-covid-19/#respond Wed, 22 Sep 2021 21:21:02 +0000 https://futurekomp.net/president-bidens-covid-19-action-plan-and-private-employers-coronavirus-covid-19/

United States: President Biden’s COVID-19 action plan and private employers

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On September 9, 2021, President Joe Biden announced a six-prong COVID-19 action plan that includes:

  1. Vaccinate the unvaccinated;
  2. Protect the unvaccinated more;
  3. Keep schools safe and open;
  4. Increased testing and masking requirement;
  5. Protect our economic recovery; and
  6. Improving care for people with COVID-19.

For private employers in particular, the action plan creates new screening and vaccination mandates as well as financial support and incentives to tackle the recent resurgence of the COVID-19 pandemic.

Testing and vaccination orders

Large employers

The Occupational Safety and Health Administration (OSHA) is creating a Temporary Emergency Standard (ETS) that will require all employers with more than 100 employees to ensure their employees are fully vaccinated against COVID-19 Where can prove, at least once a week, that they have tested negative for COVID-19 before being allowed into the workplace. These employers will also be required to give employees paid time off for the time it takes to get vaccinated or to recuperate if they experience side effects after being vaccinated.

Federal contracts

In addition to an executive decree requiring that all Federal employees be fully vaccinated against COVID-19, “subject to exceptions required by law, President Biden signed an executive order requiring adequate COVID-19 security protocols for federal contractors. Although this is not apparent from the The clear text of either executive order, the White House’s COVID-19 action plan page says the federal employee vaccination requirement extends to all employees of federal contractors.

Health workers

The Center for Medicare & Medicaid Services (CMS) will require COVID-19 vaccinations for workers in healthcare facilities that receive Medicare or Medicaid reimbursement, such as hospitals, dialysis centers, outpatient surgery facilities, health care agencies. home health and nursing homes. The vaccination requirement will apply whether or not workers are involved in the direct care of patients, residents or clients.

Financial support and incentives

Increased assistance to small businesses

The Small Business Administration (SBA) is strengthening its COVID Economic Disaster Lending Initiative (EIDL), which provides long-term, low-cost loans to eligible businesses. Eligible businesses can take advantage of the $ 150 billion in loanable funds still available by borrowing now up to $ 2 million, up from $ 500,000 previously, to hire and retain employees, purchase inventory and equipment, and repay a loan. higher interest rate debt. These loans will also now be more easily obtained by small multi-site businesses in industries particularly affected by the COVID-19 pandemic, such as restaurants, hotels and gyms.

Simplify the loan forgiveness of the Paycheck Protection Program

The SBA’s Paycheck Protection Program (PPP), which provided loans to eligible businesses to keep employees on their payroll, will streamline its loan cancellation process for businesses with $ 150,000 loans or less. The SBA will provide pre-filled application forms to these borrowers, who can then work with the SBA to complete the forgiveness process.

Conclusion and implications

While COVID-19 action plans are not new, President Biden’s action plan covers uncharted territory and may be subject to legal challenges. Biden’s Plain of Action also raises many questions about screening and vaccination mandates, including:

  1. Will seasonal, temporary and part-time workers count toward the 100 employee threshold for OSHA’s COVID-19 mandate?
  2. Does OSHA have the authority to establish vaccination and testing standards in the context of an ETS, especially with regards to salary, hours and paid time off requirements?
  3. Will the mandates apply to employees who work entirely remotely and can rarely, if ever, enter their employer’s premises?
  4. How will the mandates impact employers who do not have a physical physical location but send employees into the community to interact with clients, clients and other members of the public?
  5. Will the terms of reference apply to employees subject to collective agreements and will they be considered as compulsory subjects of negotiation with the unions?

Some of these questions (and many more) may be answered in future regulations, but gaps open to interpretation are likely to remain.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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Dr. Thomas’ proposal is incomplete https://futurekomp.net/dr-thomas-proposal-is-incomplete/ https://futurekomp.net/dr-thomas-proposal-is-incomplete/#respond Fri, 17 Sep 2021 06:05:34 +0000 https://futurekomp.net/dr-thomas-proposal-is-incomplete/

Mr. Editor,

In his article SN 2021/08/01, “Working for the poor in the face of relentless fake news”, Dr CY Thomas identified six negative findings in Guyana as “noise and absurd” without mentioning fatherhood or personal responsibility. I want to comment on Dr CYT’s sequel, in various ways: The six big negatives:

1. – distort the economic outlook; no one is distorting the economic outlook. Everyone is waiting for the production and export data. These data should be consistent with usable national reserves and national funds loanable to local businesses; not the direct foreign inputs that foreign entrepreneurs and partners are required to bring into the national economy to pay for their imported products tax-free.

2. – disincentive for economic agents; CYT has yet to identify these anti-national agents and whether they come from the owner or non-owner classes, poor or rich Guyanese.

3. – curb investment spending; CYT has not yet clarified whether this phenomenon is part of the “incompleteness” of the 2016 contract or artificial fake news, or the lack of project implementation skills in Guyana.

4. – undermine self-confidence; CYT has a lot of explaining to do here. Is it individual or systemic?

5. – erosion of trust; CYT must again explain this historical societal artefact by also examining the output and input data of the population of Guyana. The United States is clear on who to trust.

6. – and divert attention from the growth of inequalities and poverty. CYT – That would be relatively easy, as the Americas are full of ancient slavery laws in form and substance. Low wages and cheap goods produced abroad help the local poor because their jobs are outsourced. The wages of the poor can hardly catch up with the property classes that are now redefining the status quo, Guyana’s new frontiers and its corporate social function. There is no consistent discussion of these six negatives. They’re just hanging over the head.

I will comment on CYT’s other accusations or complaints as follows:

1A. The incompleteness of the quote from the 2016 CYT oil deal: There is a third complementary feature, which is not easily perceived, however. That is, Guyana PSA represents what economists call an “incomplete contract”. The contractor has full and incomplete terms: “full” terms – zero import duties, except for petroleum used as domestic fuel.

“Incomplete” terms – Environmental risks and catastrophic losses will weigh on Guyana’s poor. They are not conditional contracts. The same goes for the secondary input-output requirements of an old big sister economy grappling with a whole new growing oil economy.

CYT QUOTE ON RENEGOCIATION: Position 1

“Such a renegotiation can never be ruled out as a future rational option”! The theory of incomplete contracts postulates that, independently of the public statements on the contracts of the party to the PSA Guyana 2016 indicating “no renegotiation”,

CYT QUOTE: Position 2

Given this dynamic, the shrill noise and absurd calls to renegotiate Guyana’s PSA are little more than a poorly disguised pretext for the complicit pursuit of political, personal and self-promotion agendas. . The poor cannot be served by ignoring the current unbalanced contract. CYT should be aware that there is no link between the current budget and Guyana’s capital budget. All residual cash held is sterilized at the New York Federal Reserve. A direct source of transfer payments to Guyana’s poor has yet to be defined. The absence of enabling laws approved by Parliament will harm the poor; it is not serving the poor.

2A. On Synergy, Guyana revels in the combined association with Big Oil.

However, there is nothing “synergistic” about the 2016 contract; just a pound of flesh. The conditions are well defined to capture all the external benefits of the first cash flows in Guyana’s capital budget so that Guyana can minimize its debt structure and optimize its portfolio cost of debt. This suboptimal debt is no different from Guysuco’s debt structure that CYT is familiar with.

3A. Tax system

QUOTE 1 CYT: “One is the synergistic relationship of the individual elements of the tax system (ie, deductions, taxes, allowances, credits, as well as other terms and conditions)”. The second is that the tax system has both written (tangible) and unwritten (intangible) components. These include such elements as trust and goodwill between the Parties to the Agreement;

QUOTE 2 CYT:

“Last week’s column aimed to reinforce the critical importance of two features of the tax system, which is enshrined in Guyana’s 2016 Production Sharing Agreement (PSA) with ExxonMobil and its partners.” Guyana gave up its tax policy levers, assessed the profits taxes paid by Guyana, sir, non-trade deal, a lot of goodwill that results in an appreciation in the price of the entrepreneur’s shares and nothing for the poor of Guyana from Guyana’s profit share (not an inch or a blade of entrepreneurs’ future profit payment). Guyana, which pays entrepreneurs’ taxes, gets no consideration, just no value of goodwill on Guyana’s balance sheet or budget.

4A Very Strong Incentives to Cheat in a Zero Sum Game, Guyana Vs Contractor Plus Partners, Measurements, Cost Estimation and Auditing:

CYT QUOTE: “avoidance of zero-sum lawsuits”. All oil recoveries come from Guyana’s oil wealth. The total is fixed. Any slip of the Guyanese plate falls directly on the knees of EXM. This is the real incentive for moral hazard to trick Guyana into a zero-sum contract. Capital recoveries of up to 75% and unaudited reports showing exactly where the royalties are coming from or whether Guyana is also paying royalties on its share or the multinational share or recoverable head office costs are part of zero-sum lawsuits. undefined of CYT. This zero tax regime could be challenged and declared unconstitutional. I ignore all these 60/600 block fiascos.

5A. Quote from CYT’s proposal – “As I had previously suggested, the formation of a national oil company, NOC, for the onshore gas project to be built by ExxonMobil and to be funded by the PSA’s oil cost offers the ideal entry point for this. “Who will ring the cat and foot the bill? CYT’s proposal is incomplete.

Truly,

Ganga Persad Ramdas

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NRB injects an additional 20 billion rupees into the country’s financial market to ease liquidity crunch – myRepublica https://futurekomp.net/nrb-injects-an-additional-20-billion-rupees-into-the-countrys-financial-market-to-ease-liquidity-crunch-myrepublica/ https://futurekomp.net/nrb-injects-an-additional-20-billion-rupees-into-the-countrys-financial-market-to-ease-liquidity-crunch-myrepublica/#respond Fri, 17 Sep 2021 00:52:43 +0000 https://futurekomp.net/nrb-injects-an-additional-20-billion-rupees-into-the-countrys-financial-market-to-ease-liquidity-crunch-myrepublica/

KATMANDU, September 17: The Nepal Rastra Bank (NRB) on Thursday injected an additional 20 billion rupees into the national financial system in an attempt to alleviate the growing lack of liquidity in the banking system.

According to NRB, he issued a pension worth the donated amount through the bidding process for the next two weeks. Also last week, the central bank injected Rs 30 billion via the monetary measure.

The country’s financial market is currently under pressure to manage liquidity, which has largely been blamed on the NRB implementing the credit-to-deposit (CD) ratio rule. Through monetary policy, the NRB replaced the base capital plus deposit (CCD) credit grant ratio with a maximum limit of 85% per CD ratio with a 90% cap.

According to bankers, banks now have around Rs 25 billion in loanable funds due to the slowness of deposit collection compared to a sharply rising lending rate. Banks have opted for increased interbank transactions to manage the necessary funds. As a result, the interbank rate has fallen from less than 1% to 5% in recent months.

Due to the pressure of declining liquidity in the banking system, banks and financial institutions have also started to increase their interest rates on deposits and loans. Many banks have already offered double-digit interest rates to attract funds into term deposits.

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The financing gap for SMEs during the pandemic https://futurekomp.net/the-financing-gap-for-smes-during-the-pandemic/ https://futurekomp.net/the-financing-gap-for-smes-during-the-pandemic/#respond Thu, 16 Sep 2021 16:04:18 +0000 https://futurekomp.net/the-financing-gap-for-smes-during-the-pandemic/

The DTI’s MSME Development Plan Progress Report contains very revealing data on MSMEs’ access to credit from formal financial institutions. Recall that in 2008, Republic law n ° 9501 prescribes that banks must set aside 8% of their total loanable funds for micro and small businesses while 2% should be allocated to medium-sized businesses.

The law lapsed on June 16, 2018, but BSP continues to monitor the banking sector’s exposure to MSMEs. Clearly, the allocation has seen a sharp drop, with the following data: a) 2017: 3.32% of micro and small enterprises (MSE) and 5.03% of medium enterprises (ME); b) 2018: 3.12% MEP and 4.55% ME; c) 2019: 2.8% MEP and 4.3% ME and d) Q12020: 2.09% MEP and 3.31% ME.

Even before the 2020 pandemic, the share of loans to MSMEs in the total banking book was declining significantly. Mandatory credit alone was already not working to move this initiative forward and it is getting worse even without the warrant. The pandemic with its containment hits the small and medium-sized ones harder Fiwho suffered from the lack of economic activity and mobility of people.

Nationwide closures have disrupted economic activities and slowed overall growth. Businesses, in general, are struggling to repay loans due to losses and bleak prospects. This has resulted in slower lending growth in the banking sector, as banks have to be more careful and demanding in granting credit. And when banks slow down lending, the first group of disenfranchised customers are those who are seen as small, vulnerable, and with very little lifeline through equity.

This author has followed the banking industry’s history of mandatory compliance in his previous posts, and historically the compliance mandate has assisted MSMEs in its early implementation.

In 1991, the law required banks to reserve 5% of their net loan portfolio for small businesses. This was revised in 1997 to 6% for small businesses and 2% for medium-sized businesses. In 2002, the compliance rate was 30% high, 17.40% for small and 12.60% for medium. As he unraveled off, it was still 8.46% for MSMEs and 7.94% for MEs in 2010.

Let me step back a bit by stating categorically that, in this author’s opinion, mandatory law has worked for SMEs because there is a market ready to be served. The same cannot be said of the 25% agri-agra compliance law, however, which is unrealistic and out of proportion to the number of potential customers. This is especially true of the agrarian part of the law with its unsustainable demands as it is obvious that there are not enough borrowers ready in proportion to the overall demand for credit. Mandatory compliance laws must be rational, reasonable, proportionate and enforceable. It cannot be based on a pipe dream.

Having clarified this position, it is necessary to do a thorough study of what has happened over the past 10 years or so so that MSME clients have been disadvantaged by the banking sector in the decision to grant credit. Considering that statistically the large business tally of all Philippine businesses represents 0.49% of the total, is it too much to ask to ask for a mandatory allowance for the rest of the 99.51%? The Philippine Statistics Authority (PSA) 2020 survey recorded a total of 957,620 business enterprises operating in the country. Of these, 952,969 are MSMEs. And the last count of bank loans granted to them is only 5.4%.

A March 2021 study by the Asian Development Bank Institute of Southeast Asian Countries found that a quarter to half of the MSMEs in the sample experienced temporary lockdowns and a third two-thirds were faced with a lack of liquidity. The impact of the pandemic on employment and the sustainability of businesses has been quite severe. MSMEs are inclined to use up their cash and cut jobs.

From a banker’s perspective, it’s understandable that these companies are no longer a priority. So the recent downtrend is no surprise. However, note that this drop occurred even before the pandemic. So we cannot use the current circumstances as an excuse, although she is now a major contributor.

Policymakers need to consider why the mandatory allocation policy worked between 1991 and 2010, and what contributed to its ineffectiveness over the past 10 years. Among the questions worth exploring are the following: First, what oversight mechanism was used? Is the identification of the MSME market done correctly? Second, was the structure of the sanctions proportionate enough to draw attention to the sector? Could it be that paying a penalty is an easier solution? Third, what accompanying regulations have been promulgated to support the sector? Would there have been contrary policies in place? Fourth, have the agencies responsible for monitoring compliance been given sufficient power and authority to review actual compliance? And finally, has the MSME sector been represented in the development of guidelines and regulations so that their interests are safeguarded?

MSMEs will be the key to the Philippine recovery once we are able to move towards the new normal. Their FiFinancing needs must be addressed in one way or another in this march towards reviving our economy if they are indeed the economic backbone of the Philippines.

The opinions expressed in this material are his own and do not necessarily reflectflect the opinion of his office as well as that of FINEX.

Benel Dela Paz Lagua was previously Executive Vice President and Director of Development at the Development Bank of the Philippines. He is an active member of FINEX and an advocate for risk-based lending for SMEs.

]]> https://futurekomp.net/the-financing-gap-for-smes-during-the-pandemic/feed/ 0 The situation of MSMEs https://futurekomp.net/the-situation-of-msmes/ https://futurekomp.net/the-situation-of-msmes/#respond Thu, 16 Sep 2021 12:59:52 +0000 https://futurekomp.net/the-situation-of-msmes/

MICRO, Small and Medium Enterprises (MSMEs) are supposed to be the economic backbone of the Philippines. They make up 99.5% of the country’s business establishments, provide 63% of the jobs for the Filipino workforce, and contribute around 40% of the country’s gross domestic product (GDP). Yet they only receive a total allocation of 5.4% of the Philippine banking sector’s loan portfolio. Are they being left behind?

For those interested in the situation of MSMEs, there is a 2017-2022 MSME Development Plan. And it is interesting that the Ministry of Trade and Industry (DTI) released a 2020 MSME Development Plan Completion Report. In terms of initiatives and efforts, the DTI team is to be commended for documenting what the ministry has done given that MSMEs are the hardest hit sector in this Covid-19 pandemic.

A reading of the report will show that there is no shortage of initiatives undertaken to help the sector. In summary, the MSME development plan focuses on three areas: the business environment, business capacity and business opportunities. And it sets out its five major objectives: 1) improving the business climate; 2) better access to finance; 3) improved management and workforce capacities; 4) better access to technology and innovation; and 5) better market access. The interested reader is invited to consult the DTI website for a better overview of how the programs are developed.

This column will select key statistics to check the current situation of the country. In all fairness, the government is doing all it can, but results are all that matters. As a caveat, we need to understand that the Covid-19 pandemic that began in 2020 was beyond the purview of the original writers of the plan.

The very clear measures of the plan can be found in employment figures, gross value added, funding amounts and sales, when available.

Employment increased slightly, but not as much as expected. The baseline figure for total employment in 2016 was 4,879,179 with a 2022 target of 8.284 million. The number increased until 2017, when it reached 5.714 million, but has since declined to 5.381 million in 2020, or 65% of the 2022 target. With containment underway, the outlook for 2021 does not look promising and the targets may no longer be achievable.

The gross MSME value of 50-55% has been set in line with the objectives of Asean-6. The report does not provide figures so far, but indications regarding the country’s overall GDP performance are not encouraging.

Despite the expiration of Republic Law 9501, which requires banks to reserve 8% of their total loanable funds for micro and small businesses and 2% for medium-sized businesses, the Bangko Sentral ng Pilipinas continues to monitor allocation of banks. The share of MSMEs is decreasing: a) 2017: 3.32% of micro and small enterprises (MSE) and 5.03% of medium enterprises (ME); b) 2018: 3.12% MPE and 4.55% ME; c) 2019: 2.8% MEP and 4.3% ME; and d) Q12020: 2.09% MPE and 3.31% ME.

An interesting financial report in the DTI paper is the number of borrowers in Small Business Corp.’s P3 program. for micro-entrepreneurs which reached 209,189 in 2020. In addition, the document reports on Bayanihan 1 and 2 which prescribe funds of 275 billion pesos. and 165.5 billion pesos, respectively for emergency grants and for the injection of capital into government financial institutions in support of MSMEs, cooperatives and overseas displaced Filipino workers. We need an accounting of these funds. In theory, these should have had an impact to meet the needs of MSMEs in these difficult times.

The value of export sales increased from $ 14.35 billion in 2016 to $ 17.33 billion in 2018. The number of MSMEs engaged in export sales also increased from 5.048 in 2016 to 4,146 in 2018. There is no data from 2019.

There are several key performance indicators in the achievement report that will need to be worked on. And future reports should attempt to include the impact of funds made available by the government in response to the Covid-19 crisis.

The initiatives are there, but is there enough follow-up to get things done? Let us underline a specific case. In a UNDP report on its July 2020 survey of issues and challenges faced by Philippine MSMEs, they make the following observations. “Another key aspect of business continuity is funding. Access to finance remained a major concern for the majority of survey respondents … To maximize this, a key element that can contribute to increasing bank lending to MSMEs is the credit guarantee program for MSMEs. Government MSMEs. The accreditation process for interested financial intermediaries should be reviewed and streamlined so that a greater number of financial institutions, including rural banks present in the field and working with microenterprises in rural areas, can benefit from the guarantee system and increase their confidence in loans to MSMEs. “

The 2020 Achievements Report is silent on actual guarantee data and only mentions that “BSP is stepping up engagement with the Philippine Guarantee Corp. (PGC) to identify interventions aimed at helping financial institutions, including non-governmental microfinance organizations, to serve their target. clientele mainly belonging to the MSME sector. On its website, however, PGC reported guaranteed loans of 207 million pesos in December 2020 and 952.5 million pesos in February 2021. This is still a far cry from the 60 billion pesos cited by UNDP.

Overall, it is clear that there are indeed various government initiatives in place. But will this be enough given the scale of the problems facing our MSMEs? Hopefully these initiatives will intensify as we don’t want the backbone of the economy to be left behind.

Benel Dela Paz Lagua was previously Executive Vice President and Director of Development at the Development Bank of the Philippines. He is an active member of FINEX and an advocate for risk-based lending for SMEs. The opinions expressed here are his own and do not necessarily reflect the opinion of his office or that of FINEX.

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NRB injects an additional 20 billion rupees into the country’s financial market to ease liquidity crunch – myRepublica https://futurekomp.net/nrb-injects-an-additional-20-billion-rupees-into-the-countrys-financial-market-to-ease-liquidity-crunch-myrepublica-2/ https://futurekomp.net/nrb-injects-an-additional-20-billion-rupees-into-the-countrys-financial-market-to-ease-liquidity-crunch-myrepublica-2/#respond Thu, 16 Sep 2021 12:32:08 +0000 https://futurekomp.net/nrb-injects-an-additional-20-billion-rupees-into-the-countrys-financial-market-to-ease-liquidity-crunch-myrepublica-2/

KATMANDU, September 17: The Nepal Rastra Bank (NRB) on Thursday injected an additional 20 billion rupees into the national financial system in an attempt to alleviate the growing lack of liquidity in the banking system.

According to NRB, he issued a pension worth the donated amount through the bidding process for the next two weeks. Also last week, the central bank injected Rs 30 billion via the monetary measure.

The country’s financial market is currently under pressure to manage liquidity, which has largely been blamed on the NRB implementing the credit-to-deposit (CD) ratio rule. Through monetary policy, the NRB replaced the base capital plus deposit (CCD) credit grant ratio with a maximum limit of 85% per CD ratio with a 90% cap.

According to bankers, banks now have around Rs 25 billion in loanable funds due to the slowness of deposit collection compared to a sharply rising lending rate. Banks have opted for increased interbank transactions to manage the necessary funds. As a result, the interbank rate has fallen from less than 1% to 5% in recent months.

Due to the pressure of declining liquidity in the banking system, banks and financial institutions have also started to increase their interest rates on deposits and loans. Many banks have already offered double-digit interest rates to attract funds into term deposits.

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Libraries are the anchor points of our communities. They need help. https://futurekomp.net/libraries-are-the-anchor-points-of-our-communities-they-need-help/ https://futurekomp.net/libraries-are-the-anchor-points-of-our-communities-they-need-help/#respond Tue, 14 Sep 2021 09:04:39 +0000 https://futurekomp.net/libraries-are-the-anchor-points-of-our-communities-they-need-help/ Let’s address the juggernaut in the room.

Once the Cohoes Public Library is secure again, visitors will once again be able to see Marty the Juggernaut standing in the choir gallery of this former church. Its welcoming presence is a tribute to the prehistoric creature unearthed on this site before the building was constructed in 1898.

As of yet, however, there are no story hours, study areas for returning students, public computers or loanable WiFi hotspots – and no mastodon. After pieces of the building’s bluestone facade fell from outside the library earlier this summer, the building was closed pending repairs. Limited library services are provided from a small temporary location across town.

Public libraries like Cohoes’ are the anchors of their communities, yet many of them are literally collapsing before our eyes.

This critical infrastructure issue has attracted the attention of 149 bipartisan cosponsors of the federal Build America’s Libraries Act, which will give us the opportunity to reverse this disturbing trend. Congress has a September 15 deadline to allocate funds for the budget, and it is crucial that libraries are included.

The Build America’s Libraries Act would allocate $ 5 billion to libraries nationwide, and approximately $ 261 million to New York State, for the modernization and renovation of public libraries.

Each of the 36 public library buildings in the Upper Hudson Library System is unique and special. But it is also true that their average age is just over 86 years old.

The fact that Herman Melville taught in the building that houses the Troy’s Lansingburgh library; that the oldest part of the Westerlo Public Library was built in 1798; or that the Bibliothèque Libre d’Altamont is located in a train station built in 1897 are all real sources of community pride. But we also know that historic buildings are more expensive to repair and maintain, and pose unique challenges for accessibility and connectivity as public buildings.

Conversely, a library does not need to be historic to have critical infrastructure needs. Many of our “newer” libraries, those built in the 1980s and 1990s, have structural problems and have building systems that are reaching the end of their useful life. And while this presents the potential to install high efficiency systems, large infrastructure projects like these are sometimes prohibitively expensive for publicly funded institutions.

Congress has not funded library construction since 1996. Fortunately, the New York Legislature provides some funding for library construction projects – $ 34 million statewide this year. But with the estimated need for statewide library projects exceeding $ 1.5 billion, that’s far from enough, and securing matching local funds can be a huge hurdle, in especially for small libraries and cash-strapped municipalities.

The Build America’s Libraries Act would pave the way for all communities to rebuild better, not just those with the most financial resources. It would focus on the safety and accessibility of all libraries and prioritize community connectivity and sustainable design. The pandemic has taught us to look at safety from a new perspective, including air quality and ventilation. This bill would make our libraries better, safer and healthier.

The House took a decisive step for all of us by passing the Build Back Better Act budget reconciliation package in August. Congress must take the crucial next step: including libraries in the budget reconciliation bill. Please let your state and federal officials know how important it is that libraries are included in the budget, so that our public libraries can better rebuild and Marty the juggernaut can accommodate future generations at the Cohoes Public Library.

Timothy G. Burke is Executive Director of the Upper Hudson Library System.

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White House unveils mandate on vaccines, more help for small businesses https://futurekomp.net/white-house-unveils-mandate-on-vaccines-more-help-for-small-businesses/ https://futurekomp.net/white-house-unveils-mandate-on-vaccines-more-help-for-small-businesses/#respond Fri, 10 Sep 2021 13:56:46 +0000 https://futurekomp.net/white-house-unveils-mandate-on-vaccines-more-help-for-small-businesses/

The US Department of Labor’s Occupational Safety and Health Administration (OSHA) is developing a rule that will require all employers with 100 or more employees to ensure their workforce is fully immunized or require that all workers who are not vaccinated produce a negative test result on at least once a week before coming to work.

According to a September 9 White House announcement, OSHA will also issue an emergency temporary standard to implement the requirement, which is expected to impact more than 80 million workers.

“The president’s plan will reduce the number of unvaccinated Americans by using regulatory powers and other actions to dramatically increase the number of Americans covered by immunization requirements,” the White House statement said.

The plan “will also provide paid immunization holidays to most of the country’s workers.”

The White House also announced that the Biden administration “will help more than 150,000 small businesses by bolstering the COVID Economic Disaster Lending Program (EIDL), which provides long-term, low-cost loans.

“The improvements will allow more businesses to gain more and more flexible support with the $ 150 billion in loanable funds still available in the program.”

“First, the Small Business Administration (SBA) will increase the maximum amount of financing a small business can borrow through this program from $ 500,000 to $ 2 million, which can be used to hire and retain employees, purchase inventory and equipment, and pay more. – the interest debt.

An SBA analysis of current EIDL COVID borrowers eligible for the increase shows that more than 80% have 25 or fewer employees.

“The SBA will ensure that no small business has to start repaying these loans for two years after receiving the funding, so small businesses can weather the pandemic without having to worry about making payments.

“Second, SBA will make it easier for small businesses with multiple locations in hard-hit industries like restaurants, hotels and gyms to access these loans.

“To ensure that taxpayer dollars are used to support businesses that really need help, the SBA has put in place stronger controls and will work closely with the SBA Inspector General to monitor the program.

“And finally, to ensure that Main Street businesses have more time to access the remaining funds, the SBA will offer an exclusive 30-day window of access where only small businesses looking for loans of $ 500,000 or more. less will receive rewards after the launch of the new and improved loan product.

Through the P3, the SBA has made more than $ 11 million in loans to small businesses that can be canceled “and taken off their books if they use the funds to keep employees on the payroll.”

In order to qualify for a loan discount, borrowers must complete an application with their PPP lender.

“The president’s plan will make it easier for over 3.5 million PPP borrowers with loans of $ 150,000 or less to write off their loans. As part of the new, streamlined approach, the SBA sends a pre-filled application form to the borrower who can review, sign, and refer to the SBA, who then works with the lender to complete the remission process.

The SBA expects more than 2.5 million additional small businesses to benefit from this streamlined process in the coming months, “helping them avoid unnecessary bureaucracy and avoid costly payments in principal and interest on their businesses. ready “.

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