Lenders – One Payday http://onepayday.com/ Thu, 24 Nov 2022 09:16:39 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://onepayday.com/wp-content/uploads/2021/11/icon-2-150x150.png Lenders – One Payday http://onepayday.com/ 32 32 Kotak Institutional Equities thinks PSU lenders have a better edge; Raises target price for some banks https://onepayday.com/kotak-institutional-equities-thinks-psu-lenders-have-a-better-edge-raises-target-price-for-some-banks/ Thu, 24 Nov 2022 06:59:59 +0000 https://onepayday.com/kotak-institutional-equities-thinks-psu-lenders-have-a-better-edge-raises-target-price-for-some-banks/ After a spectacular quarter reported by the banking sector in the second quarter, brokerage Kotak Institutional Equities (KIE) raised target prices for some public sector lenders in its coverage based on strong trading performance. The brokerage believes that Tier 2 banks such as public sector and regional banks have a better advantage than frontline banks. […]]]>

After a spectacular quarter reported by the banking sector in the second quarter, brokerage Kotak Institutional Equities (KIE) raised target prices for some public sector lenders in its coverage based on strong trading performance. The brokerage believes that Tier 2 banks such as public sector and regional banks have a better advantage than frontline banks.

The brokerage, however, remains bullish across the banking space and maintains the investment thesis that we are still early in the credit cycle currently and the visibility of a sharp deterioration in asset quality appears low.

“We are upgrading the fair values ​​of hedged banks in part to reflect the higher confidence in earnings thanks to lower credit costs, better than expected loan growth and, consequently, operating profit growth. The increase in fair values ​​mainly concerns second-tier banks (public banks and regional banks), which traded below or closer to the book value where we see the bulk of the improvement in business performance,” the brokerage said.

The brokerage increased the target price by Bank of Baroda at 180 from 165 earlier. The new target implies an 8% upside from its current market price. He also increased the target price by Canara Bank at 340 (from 285 earlier), indicating a potential upside of 7% now. National Bank of Punjab the objective has also changed from 45 earlier for 54, implying a potential upside of 12%. Finally, the target price of Karur Vysia Bank has been upgraded to 120 (from 110 earlier), 18% increase observed.

Stock price trend

The brokerage further pointed out that there has been a very strong increase in price performance at these banks over the past few years. Regional banks, state-owned banks and non-frontline private banks have experienced strong price increases and are outperforming frontline private banks.

Over the past month, Clever power bank jumped 22% vs. a 4% rise Clever bank. Meanwhile, on a YTD basis, the PSU Bank index is up 60% vs. a 21% rise for Nifty Bank and over the past year, Nifty PSU Bank is up 46% vs. a 15% rise. % for Nifty Bank.

In 2022 year-to-date, among PSU banks, Bank of Baroda jumped the most, giving multibagger returns, up 107%, followed by Indian bank (up 99%), Union Bank (up 78%), Canara Bank (63%), Bank of India (58%) and UCO Bank (58 percent). Other PSU banks, including Bank of MaharashtraNational Bank of Punjab, SBIand central bank of india also delivered double-digit returns over this period, up 20-45%.

Meanwhile, among frontline banks, HDFC Bank and Kotak Bank gave single-digit returns in 2022 year-to-date, up 9% and 8%, respectively. Meanwhile, ICICI Bank added 25 percent and Axis Bank is up 30% during this period.

Investment thesis

The brokerage said its positive investment thesis at this point for the sector is relatively straightforward.

“We believe the sector is still in the very early stages of post-Covid recovery. We are currently seeing strong intent to lend from debt capital providers. Banks, especially state-owned banks, which had been impacted by the corporate NPL cycle, have come back strongly in recent quarters. This has translated into a sharp decline in credit costs in recent quarters and a strong improvement in asset quality ratios. We are also seeing public banks, regional banks and NBFCs are more comfortable growing their balance sheets as well,” he explained.

He also pointed out that with a large flow of funds, the likelihood of non-performing loan (NPL) ratios falling further is still high, implying that lower credit costs in banks could also be visible for a while. much longer period.

KIE also mentioned that this decline in credit costs implies that RoE (return on equity) is likely to approach the industry average fairly quickly from here and that the dispersion of RoE, which has been quite high these years, converges for most banks. It also slightly changed its cost of equity estimates to account for the same.

Macro risks

KIE recognizes that the macro risks are still quite high and may warrant a change of heart. However, it’s difficult to build an investment thesis that currently hinges on a potential downturn until it can assess the impact of that downturn, he noted.

“It does look like growth could be slower rather than a repeat of the corporate NPL cycle. We saw that the slowdown caused by the capex slowdown was different from the Covid-caused slowdown on the banks. Public or large banks private banks have had a negligible impact during the Covid cycle while they have been deeply affected during the corporate downturn.As such, we have yet to see an asset bubble currently, either in the corporate sector via a large investment cycle or in the real estate sector These are typically sectors that can potentially lead to a sharp downturn and therefore high loss rates Note that the loan portfolio matters more retail lending in the current cycle and therefore the likelihood of a higher cost of credit appears to be lower.comfortable despite the recent e rising interest rates,” the brokerage warned.

Q2 benefits

The banking sector recorded a strong Results for the September quarter (Q2FY23), driven by healthy loan growth, expanding margins and continued moderation in provisions. Loan growth was driven by sustained momentum in the Retail and SME (small and medium-sized enterprises) segments, as well as a strong recovery in corporate loans.

Only the Punjab National Bank (PNB) recorded a year-on-year (YoY) decline in profit after tax (PAT) in the September quarter as provisions for non-performing assets rose. All other banks recorded solid profit growth for the quarter under review. In fact, eight of them posted a more than 50% jump in profit in the second quarter.

Outlook

Brokerage Bank of America Securities (BofA Sec), in a recent report, said: “Public banks are now guiding steady growth – in line with or above the system. Overall PSO loan growth in FY22 improved to 8.8% (vs. 16% for private banks), the highest level since FY14. More importantly, PSB growth was broader across all segments.”

Meanwhile, Satish Menon, Managing Director of Geojit Financial Services, said, “A steep PSB valuation discount and improved quarterly results reflecting business growth, buffer supply and asset quality drove on recovery. PSB’s GNPA has more than halved. from a peak of 14.6% in FY18. A huge valuation gap between private and public sector banks created the arbitrage opportunity. However, spreads quickly narrowed, limiting short-term upside. While in the long term, the revaluation should expand.

Disclaimer: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of MintGenie.

YTD yield of bank stocks.

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7th Cir. Rules The claims of the lenders against the borrower and the guarantor were prescribed https://onepayday.com/7th-cir-rules-the-claims-of-the-lenders-against-the-borrower-and-the-guarantor-were-prescribed/ Wed, 23 Nov 2022 07:22:33 +0000 https://onepayday.com/7th-cir-rules-the-claims-of-the-lenders-against-the-borrower-and-the-guarantor-were-prescribed/ The United States Court of Appeals for the Seventh Circuit recently upheld a trial court’s ruling that the claims of two lenders against a borrower were barred by the applicable statute of limitations. In that decision, the Seventh Circuit held: 1) Under the debt securities at issue, the limitation period began to run when an […]]]>

The United States Court of Appeals for the Seventh Circuit recently upheld a trial court’s ruling that the claims of two lenders against a borrower were barred by the applicable statute of limitations.

In that decision, the Seventh Circuit held:

1) Under the debt securities at issue, the limitation period began to run when an event of default occurred under the mortgage note and not under a subsequent forbearance agreement; and

2) Under Illinois law, the statute of limitations does not operate to extinguish a debt or absolve a person in contract from the obligation, but merely renders that obligation unenforceable in court .

A copy of the notice in Hovde v ISLA Development LLC is available on: Link to Reviews.

The defendant borrower was seeking investment funds for the purpose of constructing a condominium development off the coast of Cancun, Mexico. The borrower formed a limited liability company and obtained lenders secured by a mortgage and evidenced by a note with the limited liability company and a personal guarantee from the individual borrower.

The borrower’s business ultimately failed. More than 10 years later, the lenders sued the LLC and individual borrower under the note and security to recover the funds they lent to the borrower and LLC.

The trial court granted summary judgment to the borrower because any alleged breach of the mortgage, note and warranty was carried beyond the expiration of the 10-year statute of limitations applicable in under Illinois law. The lenders appealed.

CLAIMS OF LENDERS UNDER THE NOTE

According to the terms of the note, principal and interest on the loans were due in June 2007. However, the note also contained an acceleration clause “in the event of default” which stated: “the outstanding principal balance of the note , the interest thereon and all other obligations of the Borrower to the Bank under the Loan Documents shall automatically become due and payable. If the borrower has admitted in writing its inability to pay its debts as they come due, then an event of default has occurred.

The Seventh Circuit agreed with the trial court that two separate emails from the borrower to the lenders, not a subsequent forbearance agreement, constituted an event of default and an acceleration of unpaid principal and interest. The first email was a request from the borrower for an additional loan from lenders to meet a tax liability. The following email referred to additional financial issues, including notification that all construction on the project was on hold. Following the fault and acceleration event, the Seventh Circuit ruled that the statute of limitations was triggered in September 2008.

The lenders argued that a November 2008 forbearance agreement constituted a new promise to pay and that the 10-year statute of limitations should run in November 2008. However, the Seventh Circuit did not consider this argument because it was not properly raised in the trial court. Accordingly, the Court of Appeals upheld the trial court’s decision that the claims brought under the note were barred by Illinois’ 10-year statute of limitations.

CLAIMS OF LENDERS UNDER THE GUARANTEE

On appeal, the lenders also argued that the trial court erred in finding that the limitation period defense had not been waived in the security. In support of this argument, the lenders relied on two provisions of the guarantee. First, the lenders argued that the wording of the guarantee provided that the guarantee was “continuing, absolute and unconditional, and shall remain in full force and effect with respect to the satisfaction of any unit of guarantor in the entirety of the borrowers’ debts. Second, the lenders argued that the wording of the guarantee provided that the guarantor waived certain defenses, including its defense of limitation.

The guarantor argued that blanket disclaimers of material statutory rights should only constitute a waiver where the wording of the warranty is explicit. Because the warranty here did not explicitly refer to a waiver of the statute of limitations, the warrantor argued that the court should not decide that it waived any statute of limitations defense.

The Court noted that the Guarantee stated: “the Guarantor agrees that, except as provided below, its obligations under this Guarantee shall be unconditional, regardless of… (vii) any other circumstances which might otherwise constitute a release or a legal or equitable defense of a surety.”

The Seventh Circuit held that this provision of the warranty guarantees that the warranty shall be unconditional and that no legal or equitable defense can alter the status of the bonds as unconditional. However, the Court held that the statute of limitations did not affect the unconditional nature of the obligation, as Illinois courts recognize that the statute of limitations is not a defense that has affects the obligation of a party and does not operate to release a person in the contract from the obligation obligation. Instead, a limitation period only affects a party’s ability to enforce the obligation in court.

Thus, the Court held, under the language of warranty, the defense’s statute of limitations was not waived.

Accordingly, the Seventh Circuit upheld the trial court’s ruling that the lenders’ claims were statute-barred.

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What borrowers and lenders need to know as sustainability-linked loans become more popular https://onepayday.com/what-borrowers-and-lenders-need-to-know-as-sustainability-linked-loans-become-more-popular/ Tue, 22 Nov 2022 16:41:46 +0000 https://onepayday.com/what-borrowers-and-lenders-need-to-know-as-sustainability-linked-loans-become-more-popular/ The SLL is designed to improve the sustainability profile of the borrower over the life of the loan. For borrowers, SLL is not price driven, as for them the benefit is a better ESG profile by responding to SPTs and benchmarking its success in terms of reputation and credibility rather than chasing pricing. cheaper […]]]>

The SLL is designed to improve the sustainability profile of the borrower over the life of the loan. For borrowers, SLL is not price driven, as for them the benefit is a better ESG profile by responding to SPTs and benchmarking its success in terms of reputation and credibility rather than chasing pricing. cheaper margin.

Any type of loan financing can be used as SLL. Unlike green or social loans that earmark funds for specific sustainability projects, businesses have the option of applying a general-purpose SLL. Sustainability-linked loans are, as stated, any type of loan instruments or conditional facilities, such as lines of guarantee, lines of guarantee or letters of credit, which incentivize the borrower to achieve ambitious goals. and pre-determined sustainability performance ratings.

Non-compliance with SPTs and KPIs generally does not constitute an event of default. The Principles of sustainability-related lending (SLLP) developed by the Asia Pacific Loan Market Association, the Loan Market Association and the Loan Syndications and Trading Association states that “there is currently no established market standard as to what will constitute a violation of the” sustainability” and this should be clearly documented in the facility agreement for each transaction”. The SLLP provides a general high-level framework to provide guidance on market expectations when issuing SLLs. They contain 5 components of basis of SLLs that are necessary for the integrity of the SLL market: selection of KPIs, calibration of SPTs, loan characteristics, reporting and verification.

Key performance indicators

KPIs must be ambitious and material. Given the intention of the SLL to encourage improvements in corporate sustainability, the selection of relevant KPIs and the calibration of ambitious SPTs are crucial for the effectiveness and credibility of the SLL and the need to prevent accusations of greenwashing. The SLLP requires that KPIs be “relevant, essential and material to the borrower’s overall business, and of high strategic importance to the borrower’s current and/or future operations”. For longer-term transactions or transactions subject to extension options, when not all SPTs can be accurately defined at the start of the loan, or when certain KPIs and SPTs may cease to be relevant over time , the parties must document the precise conditions to allow the update. KPI and SPT calibration to maintain alignment with its sustainability commitment throughout the life of the loan.

There is a wide range of KPIs. The use of generic and immaterial KPIs should not be tolerated in the SLL market and the choice of KPIs must be made on a transaction-by-transaction basis. KPIs and SPTs should be tailored to the particular borrower. A case-by-case approach is fundamental to the integrity of the SLL product. However, the following KPIs are frequently used in SLLs:

  • reduction of CO2 or greenhouse gas emissions
  • increased use of renewable energy
  • diversity goals
  • reduction of work accidents

Sustainable development coordinator and ESG consultant

One or more sustainability coordinators are often appointed to help, among other things, negotiate KPIs between the lending group and the borrower. The sustainability coordinator can help identify the most relevant core and material KPIs for that specific industry sector and associated SPTs and negotiate. He can also liaise with external reviewers regarding the choice of KPIs and the calibration of SPTs.

The sustainability coordinator generally acts on a non-dependency basis. Therefore, it is up to each lender to make their own assessment of relevant KPIs with respect to credit and sustainability requirements. Some banks are keen to take on this role, other banks are more cautious about taking on this role or being involved in the review and validation of ESG data.

The borrower can also appoint an ESG consultant to help it with its sustainability strategy or to identify relevant, essential and material KPIs for its business activities. A second party opinion can offer an objective opinion on the materiality of the selected KPIs.

Reports

There are no standardized methods for reporting STPs yet, which means that reporting will likely be decided on a loan-by-loan basis. Borrowers must report on their SPTs at least once a year. They are encouraged to provide details of the methodology and underlying assumptions and to confirm that there have been no changes in the calculation. Public reporting is encouraged.

The SLLP guidance notes mention that “there are several sustainability reporting methodologies in the market today. These include the Global Reporting Initiative’s Sustainability Reporting Standards, which provide widely adopted for sustainability reporting”.

Post-signature verification of KPIs and SPTs

The SLLP stipulates that borrowers must obtain independent and external verification of the level of performance of the borrower against the SPT and for each KPI at least once a year. It is recommended that verification of performance against SPTs be made public, where applicable. Unlike external pre-signing review, such as a second-party review, which is recommended, post-signing verification is a necessary part of the SLLP. It is recommended that verification of performance against SPTs also be made public.

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How Google Play changes will affect digital lenders https://onepayday.com/how-google-play-changes-will-affect-digital-lenders/ Tue, 22 Nov 2022 04:42:14 +0000 https://onepayday.com/how-google-play-changes-will-affect-digital-lenders/ Data center How Google Play changes will affect digital lenders Tuesday, November 22, 2022 Google logo at the Googleplex in Menlo Park, California. AFP PHOTO Digital lenders in Kenya will need to file a self-declaration form and license from the Central Bank of Kenya (CBK) with tech giant, Google, in order to remain placed under […]]]>

Data center

How Google Play changes will affect digital lenders


Google logo at the Googleplex in Menlo Park, California. AFP PHOTO

Digital lenders in Kenya will need to file a self-declaration form and license from the Central Bank of Kenya (CBK) with tech giant, Google, in order to remain placed under Google Play.

Google released new policies last week that will require mobile lenders to disclose banking regulator requirements within a month in order to “remain or release new personal loan apps on the Play Store.”

Play Store allows web and Android users to access apps for their phones. This means that millions of short-term borrowers will not be able to download or get an update on applications from lenders who do not comply with the new policies.

The US tech company will also remove hundreds of mobile apps from its platform if they fail to prove their permissions to operate by the December 15 deadline.

‘Digital Credit Providers (DCPs) must complete the DCP registration process and obtain a license from the Central Bank of Kenya (CBK). You must provide a copy of your CBK license as part of your statement’ ‘, Google said in the Developer Program Policy.

“Currently, we only accept declarations and licenses from entities published in the Directory of Digital Credit Providers on the official CBK website.”

Apps that don’t offer loans directly but offer a platform to other mobile loan apps will need to provide licenses for the digital loan reader they host.

“If you are not directly engaged in money lending activities and only provide a platform to facilitate the lending of money by registered DCPs to users, you will need to accurately reflect this in the statement and provide a copy of the DCP license from your respective partner(s),” he added.

Google’s policies come amid an extensive review of digital loan providers in the market that have attracted millions of individuals and small businesses.

CBK was recently given the power to license and regulate digital lenders under a new law following growing concerns over predatory lending by mobile loan providers, with expensive interest rates triggering defaults increasing payment and abuse of personal information.

As of September 19, CBK had licensed ten players that had been in business for just over a year, leaving market leaders scrambling to explain their delayed approvals.

The chairman of the Digital Lenders Association of Kenya (Dlak), Kevin Mutiso, said the regulator has been overwhelmed by the number of applications to the tune of 288 and expects big players to get approvals.

The licensing process would be thorough and interactive, with the regulator looking into all the details submitted by digital loan providers.

The licenses and the new policy should reduce the proliferation of malicious digital apps in the market.

Under the new rules, lenders were expected to provide the regulator with a certificate of incorporation, memorandum and articles of association of the applicant and that of any significant shareholders.

Directors, chief executives, senior executives and significant shareholders would also be subject to a fitness and propriety test by the regulator, which would also require disclosure of the source of funds and models. pricing.

Google has given all new and existing apps a grace period of at least 30 days from November 16 to comply with the changes, with the policy taking full effect on January 31, 2023.

The tech giant has also released policy changes relating to personal loan apps in other countries, including Nigeria, India, Indonesia and the Philippines.

[email protected]

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Homebuyers Are Not Doing Their Due Diligence in Finding Lenders – theMReport.com https://onepayday.com/homebuyers-are-not-doing-their-due-diligence-in-finding-lenders-themreport-com/ Mon, 21 Nov 2022 19:07:57 +0000 https://onepayday.com/homebuyers-are-not-doing-their-due-diligence-in-finding-lenders-themreport-com/ Publication of the results of a new survey, Zillow Home Loans found that potential buyers spend about as much time researching a new television or buying a vehicle as researching mortgage lenders. Overall, the survey found that 72% of potential homebuyers only plan to get one quote for a mortgage loan and that these respondents […]]]>

Publication of the results of a new survey, Zillow Home Loans found that potential buyers spend about as much time researching a new television or buying a vehicle as researching mortgage lenders.

Overall, the survey found that 72% of potential homebuyers only plan to get one quote for a mortgage loan and that these respondents could be responsible for that decision at the cost of hundreds of dollars in additional costs per month. month.

Reasons for this include fear that multiple credit applications will lower their credit score (30%), they were happy with the first lender/offer they received (24%), the time and effort it took to shopping around (19%), the misconception that all lenders offer the same rate (15%) and the unwillingness to share their financial information with lenders (14%).

This is in comparison with 28% of those same respondents indicating that they spent at least a month researching a new vehicle and 23% spent a month researching an upcoming vacation, but only 13% said they spent as much time time researching mortgage lenders before submitting an application.

Research from Zillow reveals that potential home buyers who don’t shop around could end up spending tens of thousands of dollars more over the life of their mortgage. This is likely due to a lack of understanding of the mortgage application process, causing people to ignore research.

“Homebuyers should take the time to make an informed decision about their mortgage. It’s often the most important financial decision a person makes. Taking the time to understand their credit report, fix any issues and consulting with a qualified mortgage professional can make a significant difference in a homebuyer’s experience,” said Libby Cooper, Vice President of Zillow Home Loans. “Buyers often don’t understand that a loan officer can be a partner in the home buying process. They help discuss options and find the right solution for a client’s personal financial situation. Zillow home loans can help buyers get informed and head into their home purchase feeling more confident about this important financial decision.”

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Borrowers and Lenders – The Irish Times https://onepayday.com/borrowers-and-lenders-the-irish-times/ Mon, 21 Nov 2022 01:08:38 +0000 https://onepayday.com/borrowers-and-lenders-the-irish-times/ Sir, – If, as is often suggested, Irish lenders are making excess profits from higher interest rates, one would expect non-Irish banks to form an orderly queue to enter the Irish super profitable home loan market. Instead, non-Irish lenders who serve this market are heading for the door. In doing so, outgoing banks are not […]]]>

Sir, – If, as is often suggested, Irish lenders are making excess profits from higher interest rates, one would expect non-Irish banks to form an orderly queue to enter the Irish super profitable home loan market. Instead, non-Irish lenders who serve this market are heading for the door. In doing so, outgoing banks are not acting irrationally. We should think about why they leave and see what that tells us.

A clue is provided by Joe Brennan’s report (Business This Week, Nov. 11) on Central Bank data that shows more than half of overdue mortgage borrowers have paid nothing to their lenders in the last two years. More than 15,000 borrowers in long-term arrears, or 55% of the total, are “not cooperating”.

The complaint that mortgage interest rates are higher here than elsewhere in Europe is frequently heard. It is rarely noted that it is nearly impossible for Irish lenders to enforce the collateral they hold for home loans and that this inability means that performing borrowers pay, through higher interest rates, at both for their own loans and for those of tens of thousands of defaulting borrowers.

Ed Sibley, Deputy Governor of the Central Bank, made this point, but in suitably impenetrable terms. You reported (Business, July 14, 2021) on a Central Bank document which records that half of long-term arrears cases are “uncooperative” borrowers and quoted Mr. Sibley: -the cooperation, the functioning of the legal system to ensure the realization of collateral for lenders will continue to be essential to the effective functioning of the mortgage market for all Irish citizens”.

In perhaps more accessible language, we will continue to have a dysfunctional mortgage market if our courts persist in believing that only borrowers have rights and lenders have none.

You regularly report cases that have reached the courts where the borrower is not only in default but has not repaid a penny on the loan for eight, nine or 10 years. We all know who pays for the borrower to live in their house without rent and without interest. – Yours, etc.,

Pat O’Brien,

Rathmines,

Dublin 6.

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China works with other lenders to ‘relieve’ Sri Lanka’s debt https://onepayday.com/china-works-with-other-lenders-to-relieve-sri-lankas-debt/ Sat, 19 Nov 2022 04:10:48 +0000 https://onepayday.com/china-works-with-other-lenders-to-relieve-sri-lankas-debt/ ECONOMYNEXT – The fashion industry in Sri Lanka has been facing a shortage of young professionals since 2019 as many aspiring people move away due to the challenges they face following the Easter Sunday attack, the pandemic and an unprecedented economic crisis, said an expert. The industry has been improving a lucrative business globally over […]]]>

ECONOMYNEXT – The fashion industry in Sri Lanka has been facing a shortage of young professionals since 2019 as many aspiring people move away due to the challenges they face following the Easter Sunday attack, the pandemic and an unprecedented economic crisis, said an expert.

The industry has been improving a lucrative business globally over the past decade, but challenges have reversed the gains, the expert said.

The deluxe edition of Colombo Fashion Week, which kicked off on Thursday (17), is one such effort to showcase Sri Lanka’s talented fashion designers and the event featured segments from luxury, second-hand and bridal trousseau by 8 designers who had created their collections.

The latest edition has focused on finding resources available in Sri Lanka to create clothing by altering the narrative and manufacturing materials available in the troubled island nation.

“I think the whole cycle needs to be re-disciplined because Sri Lanka has been influenced mainly by garment manufacturing. So a lot of young kids are getting into big garment companies,” said Ajay Vir Singh, director general of Colombo Fashion Week, at EconomyNext.

“So we want to inspire young people to embrace fashion and design, of course it’s the inspiration, the program and the work to give them the right mindset.”

“After that, you have to help them produce quality products. The next step is to sell in Sri Lanka after learning. Then you can take the next step of exporting to Sri Lanka because when you have the retail market experience and sometimes you have to import materials, sometimes you have to review the local resources available”

Sri Lanka’s fledgling fashion design industry had reached a new level with talented young designers since the end of the war in 2009. But challenges like the Easter attack, the pandemic and the economic crisis reversed the hard work accomplished over the past 10 years. from 2009 to improve the industry, Singh said.

The economic crisis has hit imports of fashion design materials with only a few materials available in Sri Lanka like accessories and fabrics. .

Singh said nearly 50% of design materials were banned as the country’s central bank to save US dollars in the face of severe currency shortages.

Singh said Sri Lankan culture has never been a barrier to promoting fashion design as an industry.

“Culture is your strength, but people misinterpret it. This is where it goes wrong and people wrongly try not to understand what culture is, they try to protect it but don’t understand what they are
protector of”. (Colombo/November 18, 2022)


Continue reading

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Lenders shun Nigeria for -B rating, DMO shouts country can’t survive on mounting debt https://onepayday.com/lenders-shun-nigeria-for-b-rating-dmo-shouts-country-cant-survive-on-mounting-debt/ Fri, 18 Nov 2022 14:37:46 +0000 https://onepayday.com/lenders-shun-nigeria-for-b-rating-dmo-shouts-country-cant-survive-on-mounting-debt/ Lenders avoid Nigeria for its -B rating and accumulated N42.84 debt By Jeph Ajobaju, Editor-in-Chief International lenders join Japan in refusing to lend more money to Nigeria as it has already increased its debt to 42.84 trillion naira amid fears of default amid low incomes as vast sums of loans are stolen instead of being […]]]>

Lenders avoid Nigeria for its -B rating and accumulated N42.84 debt

By Jeph Ajobaju, Editor-in-Chief

International lenders join Japan in refusing to lend more money to Nigeria as it has already increased its debt to 42.84 trillion naira amid fears of default amid low incomes as vast sums of loans are stolen instead of being invested in the economy.

Abuja exceeded its borrowing target of 1.26 trillion naira in the first eight months of the year to August (8M 2022), increasing domestic and foreign lending which had totaled 42.84 trillion naira in second quarter (Q2 2022).

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The Debt Management Office (DMO) has revealed that it is now difficult for Nigeria to borrow in international markets as global lenders and investors shun Category-B countries.

DMO chief executive Patience Oniha said Nigeria needs to increase its revenue while seeking other sources of funding internationally.

“We really can’t survive like this,” she warned.

Oniha gave the warning when she appeared before the House of Representatives Aid, Loans and Debt Management Committee to defend the DMO’s 2023 budget.

She said the government has been unable to meet its external borrowing target and is now looking for lenders in the United States and Europe.

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His words: “Where there is a problem is the new external loans. What was planned in the 2022 budget is 2.57 trillion naira in new external borrowing and this, in terms of naira at the fiscal exchange rate, is equivalent to $26 billion.

“The reality is that if it was before, we would have already issued Eurobonds to raise money and we would be in good business.

“But let’s say that from the fourth quarter of last year, the international capital markets were not opened up to countries like Nigeria. So in 2021 there was about $6 billion to raise. We raised $4 billion for that one. But this year it’s $1.25 billion.

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Related Articles:

Abuja borrows new N5.3tr, exceeds N1.26tr target

Nigeria’s Sukuk bond debt service rises 305% in a quarter

Buhari racks up a $40 billion national debt for his successor

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International creditors don’t like Nigeria

“International markets are not looking for countries with our -B ratings,” Oniha said, according to a report by The punch.

“Russia’s invasion of Ukraine, as you know, has shaken things up in the world in a significant way. So inflation rates are high, interest rates are high, and investors are saying that ‘there’s a lot of uncertainty about what’s going to happen.

“There is a threat of recession.

“So what they decided to do is to put their money in the G7 securities: United States, Germany, France, Japan, etc. These countries also issue bonds. So that’s where investors are putting their money and rates have gone up dramatically.

Pay attention to the percentage of deficit in the budgets

Two global economic analysts and rating agencies, Moody’s and Fitch, recently downgraded Nigeria to a “B” category.

Oniha said Abuja needs to pay attention to the deficit percentage in the budgets.

“We really have to look at revenue. For the debt to be sustainable in the medium term, you must earn income.

“We shouldn’t have a 17 trillion naira budget and a 10 trillion naira deficit, and from that [there is] new borrowing of 8.8 trillion naira, or 50% of your budget.

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Clifford Chance advises syndicate of lenders on US$300 million term loan facility for Marel https://onepayday.com/clifford-chance-advises-syndicate-of-lenders-on-us300-million-term-loan-facility-for-marel/ Fri, 18 Nov 2022 12:07:28 +0000 https://onepayday.com/clifford-chance-advises-syndicate-of-lenders-on-us300-million-term-loan-facility-for-marel/ International law firm Clifford Chance advised a syndicate of lenders (coordinated by BNP Paribas and comprising ABN AMRO, BNP Paribas, Danske Bank, HSBC, ING, Rabobank and UniCredit) on a €300,000 term loan facility 000 USD for Marel. Marel is one of the world’s leading suppliers of advanced food processing equipment, systems, software and services to […]]]>

International law firm Clifford Chance advised a syndicate of lenders (coordinated by BNP Paribas and comprising ABN AMRO, BNP Paribas, Danske Bank, HSBC, ING, Rabobank and UniCredit) on a €300,000 term loan facility 000 USD for Marel.

Marel is one of the world’s leading suppliers of advanced food processing equipment, systems, software and services to the poultry, meat and fish industries and is listed on Euronext Amsterdam. Learn more about Term Loan here.

This transaction builds on Clifford Chance’s longstanding relationship with the lenders’ syndicate and the Marel Group, having previously advised the lenders on the implementation of a €700 million revolving credit agreement in February 2020 and a €150 million bridge loan agreement relating to the Acquisition of Wenger by Marel in April 2022.

The cross-border team was led from Amsterdam by Angela McEwan and further included Lewis Whyte and David Woolmer (Finance, Amsterdam (English law)), Titus de Vries, Martine Trip, Inge De Bruin and Menno Postma (Finance, Amsterdam (Dutch law) )), Robin Houtveen and Nolan Groenland (Tax, Amsterdam), Evan Cohen, Andrew Young, Chiemaka Chukwu and Thomas McGowan (Finance, New York) and Paul Koppel and Thomas Koh (ERISA, New York).

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Canadian mortgage lenders see higher loan losses, average value jumps 68% https://onepayday.com/canadian-mortgage-lenders-see-higher-loan-losses-average-value-jumps-68/ Thu, 17 Nov 2022 20:19:33 +0000 https://onepayday.com/canadian-mortgage-lenders-see-higher-loan-losses-average-value-jumps-68/ Canadian real estate is starting to see the first sign of stress from rising interest rates and normalizing demand. Canadian mortgage lenders begin to write off larger mortgages in the third quarter of 2022, the largest in nearly a decade. Credit bureau data shows that’s not yet a problem, as the share of mortgages written […]]]>

Canadian real estate is starting to see the first sign of stress from rising interest rates and normalizing demand. Canadian mortgage lenders begin to write off larger mortgages in the third quarter of 2022, the largest in nearly a decade. Credit bureau data shows that’s not yet a problem, as the share of mortgages written off continues to decline. Fewer new borrowers and declining liquidity likely means the rate cut is just a lag.

Mortgage losses are about liquidity, not the health of the borrower

There are a lot of misconceptions about losses and low default rates, so let’s quickly address this issue. Loan losses indicate a lack of liquidity, not necessarily the health of the borrower. In a booming market, anyone will buy anything at any price, which means a distressed borrower can sell before they default. A seller must be forced to sell and unable to find a buyer at the price he needs for increased losses. Low default rates are more indicative of a bubble than anything else, while small increases are not necessarily a bad thing.

The size of mortgage losses in Canada increases by 68%

Canadian mortgage losses are rising sharply these days. The average loss reached $96,000 in Q3 2022, up 17.1% ($14,000) from the previous quarter. That’s a whopping 68.4% (US$39,000) more than the same quarter last year. Losses are taken after home value is included, so they tend to decrease as home prices rise. The last time it was this high was in 2015, so it’s a trend worth paying attention to.

Average Canadian mortgage loss among lenders

The average dollar value written off by Canadian mortgage lenders.

Source: CMHC; Equifax; Live better.

The share of mortgage defaults has fallen further

The share of mortgages represented by write-offs continued to decline. The rate fell to just 0.03% in the third quarter of 2022, down 0.01 points from the previous quarter and 0.2 points lower than the same quarter last year. We haven’t been able to find such a low number in at least 10 years, likely setting a new record. The unnatural number is one of the lowest in decades.

Canadian mortgages written off as a proportion of total

The share of mortgages written off by Canadian mortgage lenders.

Source: CMHC; Equifax; Live better.

Bearing in mind that liquidity is the most important message here, the data comes across as a mixed message at first glance. On the one hand, losses are increasing, indicating that buyers are rejecting higher prices, which tends to happen when interest rates rise. People default before they can sell at higher prices. This usually precedes an increase in the default rate as buyers stop rushing to buy any inventory they can find.

At the same time, the share of mortgage loans turning into losses is decreasing. This is typical of a very high demand environment – some would say “sparkling”. This is only the second quarter after interest rates have started to rise and an entire quarter’s non-payment is required to declare a default. Most likely, the share of mortgage print losses will start to rise to healthier levels, especially as growth in new mortgages slows.

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