Categories

A sample text widget

Etiam pulvinar consectetur dolor sed malesuada. Ut convallis euismod dolor nec pretium. Nunc ut tristique massa.

Nam sodales mi vitae dolor ullamcorper et vulputate enim accumsan. Morbi orci magna, tincidunt vitae molestie nec, molestie at mi. Nulla nulla lorem, suscipit in posuere in, interdum non magna.

Payday Loans Entrap the Most Vulnerable – Roll Call


Payday Loans Entrap the Most Vulnerable | Commentary

©Reprints

By Galen Carey

As our economy continues to improve, there is a crushing weight holding many back: payday loans. While state and local leaders have taken up the cause in certain jurisdictions, this is a national problem that requires Congress to act. Unscrupulous lenders lure those who are already facing financial hardship into a debt trap from which it is very difficult to escape.

Drawn by slick marketing, desperate borrowers are induced to accept unfavorable terms they may not fully understand. The cost of a typical payday loan exceeds 300 percent annual percentage rate. By requiring full repayment from the next paycheck, payday lenders virtually guarantee that the borrower will be forced to ask for a new loan, with additional fees and interest, to pay back the old one.

This violates the underwriting standards applied to virtually every other type of loan. Payday loans perpetuate a cycle of debt, poverty and misery.

Three quarters of the fees payday lenders bring in come from borrowers, mostly low income, who have taken out 10 or more loans in a single year. More than half of all payday loans are renewed or rolled over so many times that consumers wind up repaying at least twice the amount they originally borrowed.

We have just come through the busiest season for payday lenders. Their ads promise an easy solution to the pressure of unbudgeted holiday expenses.

Parents understandably want to buy their children Christmas presents, and the lure of readily accessible extra cash masks a real threat to their financial health.

The reality is that a short-term loan almost always creates a debt that the borrower cannot repay in two weeks. Interest and fee payments balloon while the principal remains unpaid. The debt burden often continues long after the Christmas toys have been broken and discarded.

Last October, the National Association of Evangelicals addressed the devastating impact of payday loans with a resolution calling for an end to predatory lending. We are asking churches, charities, employers and government agencies to work together to help our members, neighbors and co-workers in ways that do not exploit them and lead to further misery. Other religious groups, including the Southern Baptist Convention, have made similar appeals.

The Bible prohibits usury, exploitation and oppression of those in need, and there is growing evidence that payday loans, as they are currently structured, often violate biblical justice. Predatory lenders who oppress the poor incur the wrath of God (Exodus 22:21-27). They should apply their expertise and resources to developing stronger communities rather than tearing them down.

Every family needs a rainy day fund to cover unexpected expenses from time to time. Churches should teach the spiritual disciplines of tithing and saving that position members to provide for themselves and generously care for others when special needs arise. It is our responsibility as neighbors and as churches to save and give generously, to provide the neediest among us with every possible opportunity to achieve and succeed. Churches, charities and employers should support households in their communities in times of crisis so as to prevent neighbors from being drawn into long-term debt.

In 2006, Congress passed bipartisan legislation capping the rates on loans issued to service-members at 36 percent annual interest. We need similar leadership from Congress today so that all Americans are protected from financial predators. The Consumer Financial Protection Bureau, an agency established to monitor the increasingly complex array of financial products offered to the American public, plans to unveil a new rule in coming months. We hope the bureau thoroughly investigates the payday industry and establishes just regulations and that Congress supports this process. State agencies should do the same. We need common sense guidelines such as requiring that loans be made at reasonable interest rates, and based on the borrower’s ability to actually repay.

Credit can change lives. It can be a source of opportunity or cause of devastation. How we use and safeguard this powerful tool is our choice. Caring for and lifting up our neighbors is our responsibility.

Galen Carey is vice president of Government Relations for the National Association of Evangelicals.

The 114th: CQ Roll Call’s Guide to the New Congress

Get breaking news alerts and more from Roll Call in your inbox or on your iPhone.

Want to see more political commentary and opinion stories like this? Sign up for Roll Call’s Thought Leaders Newsletter – delivered daily to your inbox!

© ReprintsGuest Observer […]

Rules are coming on payday loans

WASHINGTON — Troubled by consumer complaints and loopholes in state laws, federal regulators are putting together the first rules on payday loans aimed at helping cash-strapped borrowers avoid falling into a cycle of high-rate debt.

The Consumer Financial Protection Bureau says state laws governing the $46 billion payday lending industry often fall short, and that fuller disclosures of the interest and fees — often an annual percentage rate of 300 percent or more — may be needed.

Full details of the proposed rules, expected early this year, would mark the first time the agency has used the authority it was given under the 2010 Dodd-Frank law to regulate payday loans. In recent months, it has tried to step up enforcement, including a $10 million settlement with ACE Cash Express after accusing the payday lender of harassing borrowers to collect debts and take out multiple loans.

A payday loan, or a cash advance, is generally $500 or less. Borrowers provide a personal check dated on their next payday for the full balance or give the lender permission to debit their bank accounts. The total includes charges often ranging from $15 to $30 per $100 borrowed. Interest-only payments, sometimes referred to as “rollovers,” are common.

Legislators in Ohio, Louisiana and South Dakota unsuccessfully tried to broadly restrict the high-cost loans in recent months. According to the Consumer Federation of America, 32 states now permit payday loans at triple-digit interest rates, or with no rate cap at all.

The CFPB isn’t allowed under the law to cap interest rates, but it can deem industry practices unfair, deceptive or abusive to consumers.

“Our research has found that what is supposed to be a short-term emergency loan can turn into a long-term and expensive debt trap,” said David Silberman, the bureau’s associate director for research, markets and regulation.

The bureau found more than 80 percent of payday loans are rolled over or followed by another loan within 14 days; half of all payday loans are in a sequence at least 10 loans long.

The agency is considering options that include establishing tighter rules to ensure a consumer has the ability to repay. That could mean requiring credit checks, placing caps on the number of times a borrower can draw credit or finding ways to encourage states or lenders to lower rates.

Payday lenders say they fill a vital need for people who hit a rough financial patch. They want a more equal playing field of rules for both nonbanks and banks, including the way the annual percentage rate is figured.

“We offer a service that, if managed correctly, can be very helpful to a diminished middle class,” said Dennis Shaul, chief executive of the Community Financial Services Association of America, which represents payday lenders.

Maranda Brooks, 40, a records coordinator at a Cleveland college, says she took out a $500 loan through her bank to help pay an electricity bill. With “no threat of loan sharks coming to my house, breaking kneecaps,” she joked, Brooks agreed to the $50 fee.

Two weeks later, Brooks says she was surprised to see the full $550 deducted from her usual $800 paycheck. To cover expenses for herself and four children, she took out another loan, in a debt cycle that lasted nearly a year.

“It was a nightmare of going around and around,” said Brooks, who believes that lenders could do more to help borrowers understand the fees or offer lower-cost installment payments.

Last June, the Ohio Supreme Court upheld a legal maneuver used by payday lenders to skirt a 2008 law that capped the payday loan interest rate at 28 percent annually. By comparison, annual percentage rates on credit cards can range from about 12 percent to 30 percent.

Members of Congress also are looking at payday loans.

Sen. Sherrod Brown of Ohio, the top Democrat on the Senate Banking, Housing and Urban Affairs Committee, plans legislation that would allow Americans to receive an early refund of a portion of their earned income tax credit as an alternative to a payday loan.

Sen. Elizabeth Warren, D-Mass., wants the U.S. Postal Service to offer check-cashing and low-cost small loans. The idea is opposed by many banks and seems unlikely to advance in a Republican-controlled Congress.

[…]

Federal regulators plan payday loan rules to protect borrowers

Thumbnail

A payday loans sign in the window of Speedy Cash, London, December 25, 2013. For the first time, the Consumer Financial Protection Bureau plans to regulate payday loans using authority it was given under the Dodd-Frank law. Photo by Suzanne Plunkett/Reuters.

WASHINGTON — Troubled by consumer complaints and loopholes in state laws, federal regulators are putting together the first-ever rules on payday loans aimed at helping cash-strapped borrowers avoid falling into a cycle of high-rate debt.

The Consumer Financial Protection Bureau says state laws governing the $46 billion payday lending industry often fall short, and that fuller disclosures of the interest and fees – often an annual percentage rate of 300 percent or more – may be needed.

Full details of the proposed rules, expected early this year, would mark the first time the agency has used the authority it was given under the 2010 Dodd-Frank law to regulate payday loans. In recent months, it has tried to step up enforcement, including a $10 million settlement with ACE Cash Express after accusing the payday lender of harassing borrowers to collect debts and take out multiple loans.

A payday loan, or a cash advance, is generally $500 or less. Borrowers provide a personal check dated on their next payday for the full balance or give the lender permission to debit their bank accounts. The total includes charges often ranging from $15 to $30 per $100 borrowed. Interest-only payments, sometimes referred to as “rollovers,” are common.

Legislators in Ohio, Louisiana and South Dakota unsuccessfully tried to broadly restrict the high-cost loans in recent months. According to the Consumer Federation of America, 32 states now permit payday loans at triple-digit interest rates, or with no rate cap at all.

The CFPB isn’t allowed under the law to cap interest rates, but it can deem industry practices unfair, deceptive or abusive to consumers.

“Our research has found that what is supposed to be a short-term emergency loan can turn into a long-term and expensive debt trap,” said David Silberman, the bureau’s associate director for research, markets and regulation. The bureau found more than 80 percent of payday loans are rolled over or followed by another loan within 14 days; half of all payday loans are in a sequence at least 10 loans long.

The agency is considering options that include establishing tighter rules to ensure a consumer has the ability to repay. That could mean requiring credit checks, placing caps on the number of times a borrower can draw credit or finding ways to encourage states or lenders to lower rates.

Payday lenders say they fill a vital need for people who hit a rough financial patch. They want a more equal playing field of rules for both nonbanks and banks, including the way the annual percentage rate is figured.

“We offer a service that, if managed correctly, can be very helpful to a diminished middle class,” said Dennis Shaul, chief executive of the Community Financial Services Association of America, which represents payday lenders.

Maranda Brooks, 40, a records coordinator at a Cleveland college, says she took out a $500 loan through her bank to help pay an electricity bill. With “no threat of loan sharks coming to my house, breaking kneecaps,” she joked, Brooks agreed to the $50 fee.

Two weeks later, Brooks says she was surprised to see the full $550 deducted from her usual $800 paycheck. To cover expenses for herself and four children, she took out another loan, in a debt cycle that lasted nearly a year.

“It was a nightmare of going around and around,” said Brooks, who believes that lenders could do more to help borrowers understand the fees or offer lower-cost installment payments.

Last June, the Ohio Supreme Court upheld a legal maneuver used by payday lenders to skirt a 2008 law that capped the payday loan interest rate at 28 percent annually. By comparison, annual percentage rates on credit cards can range from about 12 percent to 30 percent.

Members of Congress also are looking at payday loans.

Sen. Sherrod Brown of Ohio, the top Democrat on the Senate Banking, Housing and Urban Affairs Committee, plans legislation that would allow Americans to receive an early refund of a portion of their earned income tax credit as an alternative to a payday loan.

Sen. Elizabeth Warren, D-Mass., wants the U.S. Postal Service to offer check-cashing and low-cost small loans. The idea is opposed by many banks and seems unlikely to advance in a Republican-controlled Congress.

[…]

Regulators prepare rules on payday loans to shield borrowers

WASHINGTON (AP) — Troubled by consumer complaints and loopholes in state laws, federal regulators are putting together the first-ever rules on payday loans aimed at helping cash-strapped borrowers avoid falling into a cycle of high-rate debt.

The Consumer Financial Protection Bureau says state laws governing the $46 billion payday lending industry often fall short, and that fuller disclosures of the interest and fees — often an annual percentage rate of 300 percent or more — may be needed.

Full details of the proposed rules, expected early this year, would mark the first time the agency has used the authority it was given under the 2010 Dodd-Frank law to regulate payday loans. In recent months, it has tried to step up enforcement, including a $10 million settlement with ACE Cash Express after accusing the payday lender of harassing borrowers to collect debts and take out multiple loans.

A payday loan, or a cash advance, is generally $500 or less. Borrowers provide a personal check dated on their next payday for the full balance or give the lender permission to debit their bank accounts. The total includes charges often ranging from $15 to $30 per $100 borrowed. Interest-only payments, sometimes referred to as “rollovers,” are common.

Legislators in Ohio, Louisiana and South Dakota unsuccessfully tried to broadly restrict the high-cost loans in recent months. According to the Consumer Federation of America, 32 states now permit payday loans at triple-digit interest rates, or with no rate cap at all.

The CFPB isn’t allowed under the law to cap interest rates, but it can deem industry practices unfair, deceptive or abusive to consumers.

“Our research has found that what is supposed to be a short-term emergency loan can turn into a long-term and expensive debt trap,” said David Silberman, the bureau’s associate director for research, markets and regulation. The bureau found more than 80 percent of payday loans are rolled over or followed by another loan within 14 days; half of all payday loans are in a sequence at least 10 loans long.

The agency is considering options that include establishing tighter rules to ensure a consumer has the ability to repay. That could mean requiring credit checks, placing caps on the number of times a borrower can draw credit or finding ways to encourage states or lenders to lower rates.

Payday lenders say they fill a vital need for people who hit a rough financial patch. They want a more equal playing field of rules for both nonbanks and banks, including the way the annual percentage rate is figured.

“We offer a service that, if managed correctly, can be very helpful to a diminished middle class,” said Dennis Shaul, chief executive of the Community Financial Services Association of America, which represents payday lenders.

Maranda Brooks, 40, a records coordinator at a Cleveland college, says she took out a $500 loan through her bank to help pay an electricity bill. With “no threat of loan sharks coming to my house, breaking kneecaps,” she joked, Brooks agreed to the $50 fee.

Two weeks later, Brooks says she was surprised to see the full $550 deducted from her usual $800 paycheck. To cover expenses for herself and four children, she took out another loan, in a debt cycle that lasted nearly a year.

“It was a nightmare of going around and around,” said Brooks, who believes that lenders could do more to help borrowers understand the fees or offer lower-cost installment payments.

Last June, the Ohio Supreme Court upheld a legal maneuver used by payday lenders to skirt a 2008 law that capped the payday loan interest rate at 28 percent annually. By comparison, annual percentage rates on credit cards can range from about 12 percent to 30 percent.

Members of Congress also are looking at payday loans.

Sen. Sherrod Brown of Ohio, the top Democrat on the Senate Banking, Housing and Urban Affairs Committee, plans legislation that would allow Americans to receive an early refund of a portion of their earned income tax credit as an alternative to a payday loan.

Sen. Elizabeth Warren, D-Mass., wants the U.S. Postal Service to offer check-cashing and low-cost small loans. The idea is opposed by many banks and seems unlikely to advance in a Republican-controlled Congress.

___

Follow Hope Yen on Twitter at http://twitter.com/hopeyen1

LoansInvesting Educationpayday loansannual percentage rate […]

Should Farming Get You out of Paying Your Student Loan Debt?

Two of the most commonly cited stumbling blocks to becoming a farmer are access to land and the piles of start-up capital required. Have you seen the price of a tractor lately? We’re talking $25,000 at the very least—and that’s for a small machine. But as the current crop of farmers in America slips past retirement age and into the grey beyond, still working, a third barrier prevents a new generation from taking over the fields: student loan debt.

“Student loans are a huge, huge obstacle for young people pursuing farming careers,” said Lindsey Lusher Shute, executive director and cofounder of the National Young Farmers Coalition and the co-owner of New York’s Hearty Roots Community Farm. “Farmers in their first few years working as interns or apprentices, or even starting out on their own as independent farmers, they’re making a pretty low income. To pay a student loan on top of that is very expensive and almost impossible.”

To make the numbers work, the NYFC has launched a “Farming Is Public Service” campaign, pushing for farmers to included in the Public Service Loan Forgiveness program, a federal program that incentivizes recent graduates into high-need, low-income positions in education, government, and medical fields. Those in the program make income-based payments on their loans, thus lowering the amount paid each month; the PSLF program forgives the balance of the debt after 120 payments and 10 years of full-time employment in a qualifying public service.

With an aging workforce and a huge generation gap with few to no farmers to backfill, the U.S. could soon face a shortage of people growing food. Secretary of Agriculture Tom Vilsack estimates that the U.S. needs 100,000 new farmers in the next few years.I would say that’s really just a baseline,” Lusher Shute said. “Between the last two ag censuses we only had about 3,000 more young people come into agriculture.”

Davon Goodwin, a North Carolina–based farm manager, is one of those new members of the farming ranks. He told NYFC, “Making sure families have access to healthy, local food is as important as being a police officer or teacher,” arguing that he and others should qualify for the same type of loan forgiveness.

After returning injured from service in Afghanistan, Goodwin found a renewed sense of purpose through his employment on the 477-acre Fussy Gourmet Farms, where he helps grow Muscadine grapes and raises pastured chicken, pork, sheep, and goats. He would like to save money to start his own farm while working there, but his monthly student loan payment makes a dream like that seem nearly impossible.

Even those who do manage to start their own farms run into problems. Jesse Hersh launched Con Semilla Seed Company this year, growing locally adapted, open-pollinated vegetable, herb, flower, and grain seeds on the farm he leases in Goleta, California. As is common for new businesses, including farms, Hersh has been operating at a loss in his first year. But having nothing left over after the farm expenses are paid makes it difficult to cover his student loan debt, which totals a third of Con Semilla’s gross revenue.

“Organic farmers produce the food necessary to build healthy communities. We steward soil and agricultural traditions, and are working hard to protect public health,” Hersh told the NYFC. “If up-and-coming American farmers are discouraged from starting farming careers due to student loans, there will be no one left to carry the torch when our older farmers retire. Reducing student loan debt could actually encourage a whole new generation of young farmers to get going on their dreams.”

There’s an additional financial problem around agricultural growth, Lusher Shute explained. “The farmers that are figuring it out, who are able to make their loan payments and farm, when they go to leverage the capital that they need to scale and grow their farm business to really make it financially viable, they’re being turned down for operating loans and for farm ownership loans.” When the Farm Service Agency is considering an application and looks at an operation’s cash flow, a reduction in a monthly student loan bill could mean more farmers would qualify for additional federal loans from the USDA to grow their business. ;

“There need to be national policies that are really incentivizing agriculture as a career,” she said. At the state level, only New York currently offers any farmer loan forgiveness. “But with only 10 farmers awarded up to $10,000 per year, for a total of five years, the program is competitive,” and it only provides relief for a small group of people.

“Right now, about 70 percent of college graduates have student debt,” Lusher Shute continued. “So if you’re basically saying 70 percent of our best and brightest aren’t going to be able to farm because they have student loans, we’re just never going to make the numbers. This is why student debt just has to be addressed—to enable a new generation of young people to farm and to find financial success in farming.”

If you’re a young farmer with student-loan debt, the NYFC wants to hear your story.Right now we’re scheduling meetings with members of Congress,” Lusher Shute said. “When we walk into a meeting in D.C., the more farmers that members of Congress have heard from and the more stories they’ve heard, the more understanding they have of the issue,” and the more likely they are to push for including farmers in the ;Public Service Loan Forgiveness program.

Related stories on TakePart:

A Rogue Mission to Enlist a New Generation of Farmers

From The Battlefield to the Farm Field

Millennials Suit Up as Next-Generation Farmers

Campus Farmers: College Kids are Getting Their Hands Dirty

Original article from TakePart

Financial AidEducationStudent loans […]

Wonkblog: Soaring mortgage fees could cost first-time buyers hundreds of dollars more a month

Thumbnail

The fees borrowers must pony up for mortgages backed by the Federal Housing Administration have gotten so high that consumer advocates and the housing industry’s most prominent trade groups want the agency to consider lowering the costs.

FHA loans have been a popular source of financing for first-time home buyers and low-income families because they require a down payment of only 3.5 percent. Even borrowers with credit scores as low as 500 can qualify if they put more money down.

But when the FHA’s finances took a hit after the housing bust, the agency tried to beef up its cash cushion by raising the “annual premiums” it charges borrowers. Those fees, which are tacked onto the monthly mortgage payment, were raised five times since 2010. They jumped from .55 percent of a loan’s value to 1.35 percent.

This surge translates into big bucks for FHA borrowers, and shuts too many people out of the housing market, the industry says.

For instance, a borrower who took out a $200,000 loan paid an annual premium of $91.66 per month before 2010. This year, a borrower who gets a loan of that size pays $225 per month in premiums. That’s a 145 percent increase.

The FHA does not make loans. It insures lenders against losses should the loans go bad, and it uses borrower fees to cover those losses. But last year the agency’s cash reserves fell so low that it had to turn to taxpayers for help for the first time in its 80-year history. It drew $1.7 billion from the Treasury.

The FHA’s finances have improved since then. The agency recently announced that its cash reserves are back in the black for the first time in two years. Now, consumer groups — including the Center for American Progress and Enterprise Community Partners — are pushing the FHA to consider lowering its borrower fees.

“It’s time for FHA to do as deep an analysis as possible on this issue,” said Julia Gordon, CAP’s director of housing finance and policy. “We’re very concerned that people are being unnecessarily shut out. It’s important for taxpayers to be protected. But at the same time, the people being shut out are also taxpayers.”

The Mortgage Bankers Association and the National Association of Realtors have been saying the same thing for months. The Realtors group estimates that the high fees may have kept up to 375,000 potential buyers from using FHA loans last year, some of whom could not secure other financing. The group also says that the share of people who use FHA loans to buy their first homes shrank from 56 percent to 39 percent during the past four years.

In a report submitted to Congress last month, FHA put a positive spin on how much it helped first-time buyers, emphasizing that 81 percent (or 480,000) of the home purchase loans the agency insured last fiscal year went to that core market.

But that’s 46 percent less than in 2010 (when FHA’s popularity soared) and 30 percent less than in 2000 (more normal times), said Brian Chappelle, a banking industry consultant and a former FHA official. It’s unlikely that the high fees are the only reason behind the drops. Other factors are holding back potential buyers, including tight lending standards and a weak job market. But the fees couldn’t be helping, Chappelle said.

This chart shows that the number of FHA-backed loans for first-time buyers has been shrinking in the past few years:


In its report to Congress, the FHA also said it is trying to scale back its role in the housing market in hopes that the private sector will fill the void. The chart below shows that the agency’s share of the market has diminished. In 2010, the agency had 40 percent of all home purchase loans. It now has about 22 percent.

FHA acknowledged that even as it’s pulling back, the home-buying market has not returned to normal. The volume of loans used to buy single family homes was 44 percent lower in 2008 through 2013 than it was from 1996 through 2001 – the pre-housing bubble era.

Housing officials have not said much about their future plan for borrower fees, even after the report was released. “FHA has made no decisions regarding the premiums,” said Cameron French, a spokesman for the Department of Housing and Urban Development, which includes FHA. “We are regularly evaluating a number of factors to ensure our premiums are at the right levels. As a result of the most recent annual report, we are looking through new information and will use that to inform any future decisions.” The FHA is in a tough spot as it weighs what it should do next. While it said it no longer needs taxpayer help, its cash cushion still remains well below the level required by law. That cushion should equal 2 percent of all the loans backed by the agency. Instead it equals just 0.41 percent. The FHA has not hit the required 2 percent level since 2009, and an independent audit of the agency’s finances predicts it won’t reach that target until 2016. If the agency’s leadership lowers the premiums before boosting its cash reserves to the mandated level, it may please consumer advocates and the housing industry. But it’s likely to anger lawmakers who control HUD’s budget. That leaves the agency in a Catch 22, Chappelle said. The agency had to raise its fees to help increase its cash reserves, but its cash reserves stayed low because it did less business when it raised its fees.

Dina ElBoghdady covers housing policy for The Washington Post.

[…]

South African govt boosts power utility Eskom with 20 bln rand cash

By Wendell Roelf

CAPE TOWN (Reuters) – South Africa will inject 20 billion rand ($1.82 billion) cash into struggling power utility Eskom, and may also convert its existing 60 billion rand subordinated loan to equity, the National Treasury said on Wednesday.

The moves highlight the gravity of the situation facing Eskom, which provides virtually all of the power to Africa’s most advanced economy but has massive funding issues as its costs are running way ahead of its revenues.

Finance Minister Nhlanhla Nene, who tabled the Treasury’s three-year economic outlook in parliament, also said that no new financial guarantees will be given to Eskom as South Africa moves to stabilize its debt load.

“Government will closely monitor Eskom’s financial position and, if necessary, could consider providing additional support to the utility by converting its existing subordinated loan to equity,” Treasury said.

The 20 billion rand injection will be raised through the sale of non-strategic state assets, such as property, direct and indirect shareholding in listed firms and surplus cash balances in public entities, the Treasury said.

No further details were provided. The ruling African National Congress is deeply divided over privatisation and the state’s role in the economy in general and protracted discussions may be needed to implement such a policy.

“Over the next two years capital injections for Eskom and funding for other state-owned companies will be raised in a way that has no effect on the budget deficit,” the Treasury said.

Last month Treasury approved a financial package to the utility which includes the company raising 50 billion rand in additional debt, over and above its original plan of 200 billion rand, as it struggles to finance an ambitious new generation program designed to overcome power shortages that have crimped economic growth.

Because of the impact on growth and on key sectors such as mining, the government is keen that Eskom bridge its funding gap, estimated at around 225 billion rand over the next four to five years, without raising its rates too high.

The energy regulator recently approved a tariff hike which will help fund the building of new and expensive coal-fired power plants.

Labour strikes and shoddy workmanship have delayed the commissioning of the new power plants, although the first of six units at the new Medupi plant will link up to the grid in December.

In March, the utility was forced to impose rolling blackouts for the first time in six years to prevent the national grid from collapsing, a situation that underscored just how precarious the balance is between power supply and demand.

(1 US dollar = 11.0105 South African rand)

Politics & GovernmentBudget, Tax & EconomyEskomSouth AfricaNational Treasury […]

Pa. needs a loan

U.S. Defense Secretary Chuck Hagel and Army Gen. Martin Dempsey, chairman of the Joint Chiefs of Staff, warned Congress on Tuesday about the looming threat that ISIS poses.

The Islamic State in Iraq and Syria has been brutalizing people in that region…

Read More » […]

Some New Insights Into Logical Payday Loans Online Uk Methods …

All the merchandising is done for you. Although this is a hard-and-fast askment with some lenders others would opt you to hold one but would be leaving to make alternate systems so you can get the loan that you need. Dan and Julie McGrath cannot say whether the plan would hold assisted them. Your life, my life. Central elements for www.arrysbrewsite.co.uk explained. withal, after 30 geezerhoods your debt will get written off.

But that kid had to get somebody to come to a nutrient bank to see if they could get dresses! How did you pay it rearwards? You either stay your payment, or you say you don’t hold the cash to pay your requitals, then multitudes’s same, wow you’re a a lot high-risk person to add money to. most of the masses take to apply for this loan program because it can be easy uncommitted and executes not involve procedures or formalities and more confirmation. Oh, and there’s the guy on the top. Michael So he’s on the Today Show, he’s on VH1?s Best Week Ever. We might hold an unexpected measure develop, such as a medical measure or an automobile bushel, and we might not experience adequate money for a twosome more hebdomads to pay these measures. The coitus interruptus sometimes continue even after customers feature pleaded with the banks to preven outt the loaners from tipping their chronicles.

The sentence sociable, this alternative is reasonably hand on grade 3 and below. The agency is likewise in all likelihood to grant borrowers to convert payday loans into longer-term loans, known as installment loans, Mr. Seiberg told. We got a phone call least the former day there. In fact, because of payday loans, on that point is another way uncommitted for you to take. You would definitely get the better of all hurdle races in a delighting manner and everyone can bask it.

In the aftermath of the subprime loan nuclear meltdown, Congress and many state legislatures are now bright a crackdown on the “payday” loan industry. What can you do? If the borrower fares not have the loan amount upon the end of term agreement, he pays up the advance fee and rolls out the loan concluded to the falling out paycheck. While all payday loans bill eminent interest ranges, some are eminenter than others.

I want to be an of import person someday. It is of import to understand that sometimes you will need to make a determination between two options where each of them might be you more than you can in truth afford. You can too dispatch this procedure while you are sitting down in the office and are online. To encounter the requisites for payday loans, at that place are more than than a few eligibility criteria that you have got to encounter before you apply for these loans though.

It is true that money is not everything but it is something without which we can t even imagine to have our introductory and lavishnesses of life. If you don’t do it now, do you know when you will? It was amazing to see everything and be a portion of this, on the brink of double coevals delay rhythm, and to see the future coevals cabinets. You experience, instead of senseing weak and vulnerable, alike that lad done me sense. Ana Hernandez, who supervises the so-called fiscal readiness program at Fort Bliss, avers that soldiers on the base of operations promptly lead out loans to buy things similar electronic commodities.

They cognize him pretty well. If you don’t find a good loaner, your state of affairs could be potentially financially dangerous and could end you up in more debt than before. raging clients have got directed to the bank’s Facebook pageboy to plain about the varieties, menacing to leave alone in protestResearch by MoneyComms shows at that place is a immense difference in complaints. We proceed to feature to borrow 40% of every dollar that we’re dropping. It is dependable that these online agile loans bid infinite welfares for the consumer.

But when I launched out what he’d done, I felted up alike smashing him to parts. Payday loans you kay no credit bank check offering workable solutions to many peoples fiscal jobs. Don’t bank a land site that turns down touch beyond electronic mail or on-line chat. That is near to the £25 accused by some payday loan societies to borrow £100 all over the same period.

turn up a payday loaner close you. I meanspirited, I’m- I’m modeling- I’m posing around in my surviving room hither, talking to a photographic camera. The only difference is the numbers games at the top constituted 2016. So hither we hold venders who are likewise attempting to sieve of get on board and get these- this participatory civilization to work for them. A payday loan is a loan against your future payroll check. fill up out the form and click subject.

[…]

IMF board approves $17 billion for Ukraine

WASHINGTON (AP) — The International Monetary Fund board on Wednesday approved a two-year, $17 billion loan package for cash-strapped Ukraine as it seeks to regain stability following Russia’s annexation of Crimea.

The IMF assistance pledged in March was hinged on economic reforms in Ukraine, including raising taxes, freezing the minimum wage and raising energy prices — all steps that could hit households hard and strain the interim government’s tenuous hold on power.

“Urgent actions were necessary. Urgent decisions were taken by Ukraine and decisions now have just been taken by the IMF,” IMF Managing Director Christine Lagarde told reporters at the monetary fund’s headquarters.

Ukraine’s interim government finds itself caught between the demands of international creditors and a restive population that has endured decades of economic stagnation, corruption and mismanagement.

The IMF’s decision to approve the $17 billion loan paves the way for Ukraine to receive $15 billion in additional assistance pledged by the World Bank, the European Union, Canada, Japan and other European entities, and $1 billion in loan guarantees from the U.S. that Congress recently approved. As part of the deal, Ukraine will be required to use some of the $17 billion loan to repay money it already owes the monetary fund.

Ukraine, a nation of 46 million, is in turmoil after Russia annexed Crimea. Russian President Vladimir Putin has massed 40,000 troops on Russia’s border with Ukraine in what many fear is the first step to an invasion. Russia’s actions have created a standoff with the United States and many European nations.

“Today’s final approval for the $17 billion IMF program marks a crucial milestone for Ukraine,” Treasury Secretary Jacob Lew said in a statement. “The IMF program, in conjunction with bilateral assistance from the United States and other nations, will enable Ukraine to build on the progress already achieved to overcome deep-seated economic challenges and help the country return to a path of economic stability and growth.”

Lagarde said there were risks to the IMF loan but that Ukraine had demonstrated during the past few weeks that it can undertake reforms, such as ones addressing its exchange rate and the price of natural gas. “We believe that Ukraine has an opportunity to seize the moment,” she said.

Asked about recent sanctions that the U.S. and European Union have imposed on Russia, Lagarde said only that the IMF was not designing sanctions, but was trying to improve the situation in Ukraine so that stability can be restored.

“We very strongly encourage the parties to negotiate to come to terms, and whether it’s a question of the future price of gas, the payment of arrears — we very much hope the partners will find an agreement,” she said.

Politics & GovernmentBudget, Tax & EconomyUkraineChristine Lagarde […]