Offshore Loans – Island Crisis http://islandcrisis.net/ Tue, 26 Oct 2021 23:06:30 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://islandcrisis.net/wp-content/uploads/2021/04/default1-150x150.png Offshore Loans – Island Crisis http://islandcrisis.net/ 32 32 China urges Evergrande founder to pay debt with his own fortune https://islandcrisis.net/china-urges-evergrande-founder-to-pay-debt-with-his-own-fortune/ https://islandcrisis.net/china-urges-evergrande-founder-to-pay-debt-with-his-own-fortune/#respond Tue, 26 Oct 2021 21:27:04 +0000 https://islandcrisis.net/china-urges-evergrande-founder-to-pay-debt-with-his-own-fortune/ Last week, Evergrande surprised some Chinese observers by pulling off the brink of default, paying an $ 83.5 million coupon to international bondholders before the grace period expired on October 23. We do not know where the funds come from. Separately, Reuters reported that Hui had agreed to put his own money into a Chinese […]]]>

Last week, Evergrande surprised some Chinese observers by pulling off the brink of default, paying an $ 83.5 million coupon to international bondholders before the grace period expired on October 23. We do not know where the funds come from. Separately, Reuters reported that Hui had agreed to put his own money into a Chinese bond-linked residential project to ensure it is completed and bondholders are paid.

The next test will be a dollar coupon payment due on October 29, at the end of a 30 day grace period. A heavy wall of maturing debt awaits in 2022, with some $ 7.4 billion in onshore and offshore bonds pending.

Evergrande narrowly avoided defaulting on its loans last week but remains on the edge, Credit:Getty

There has been little help from the asset sale in recent months, even after Hui put stakes in once prized weapons such as his electric vehicle and bottled water units on the block. Evergrande said last Wednesday it had dropped talks to get rid of a stake in its property management arm. The deal fell apart even after officials in Evergrande’s home province of Guangdong helped negotiate the talks, a person familiar with the matter said.

Just a year ago, such support – and help from Hui’s wealthy friends – was enough to put the company through a liquidity crunch, when it failed to secure a backdoor listing. for its continental unity. Today, the Hui Empire is emerging as one of the biggest victims of President Xi’s efforts to curb debt-fueled excesses of conglomerates and defuse risks in the housing market.

Evergrande and its affiliates were built on an aggressive mix of debt issuance, equity sales, bank loans, and shadow financing – funding avenues that were largely cut off by the crackdown.

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The Ministry of Housing and Urban-Rural Development tasked local affiliates across China in August to oversee funds for Evergrande’s real estate projects in special escrow accounts, sources close to home said. Under increased surveillance, the developer’s funds must first be used for construction to ensure the delivery of the project, the people said.

Evergrande has yet to complete homes for 1.6 million buyers who have already made down payments. Its real estate sales fell about 97% during peak home buying season, further reducing its ability to generate funds.

Business problems infect the entire housing market. Sentiment among buyers evaporates, and in September, prices began to drop for the first time in six years.

China’s banking regulator pledged last week to maintain restrictions on the country’s property market, even as policies weighed on indebted developers. As officials have called on banks to step up mortgage lending again, the central bank has indicated that Evergrande’s contagion risks are “controllable” and unlikely to spread.

Bloomberg

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How should Mass be a “once in a lifetime” godsend? House leaders offer $ 3.65 billion response https://islandcrisis.net/how-should-mass-be-a-once-in-a-lifetime-godsend-house-leaders-offer-3-65-billion-response/ https://islandcrisis.net/how-should-mass-be-a-once-in-a-lifetime-godsend-house-leaders-offer-3-65-billion-response/#respond Mon, 25 Oct 2021 16:30:09 +0000 https://islandcrisis.net/how-should-mass-be-a-once-in-a-lifetime-godsend-house-leaders-offer-3-65-billion-response/ House leaders said they expected to vote on the 37-page bill later this week, followed by a vote in the Senate in the coming weeks. The plan is the first indication of how legislative leaders intend to spend part of a state’s $ 1.5 billion surplus and $ 4.9 billion in so-called ARPA funds: about […]]]>

House leaders said they expected to vote on the 37-page bill later this week, followed by a vote in the Senate in the coming weeks.

The plan is the first indication of how legislative leaders intend to spend part of a state’s $ 1.5 billion surplus and $ 4.9 billion in so-called ARPA funds: about $ 600 million would be spent on housing programs; An additional $ 500 million would be used to help strengthen the state’s indebted unemployment insurance trust fund; hospitals “in financial difficulty” would get $ 250 million; and $ 150 million would help those in need of training or more education re-enter the workforce, among other proposals.

Notably, that would leave an estimated $ 2.75 billion unspent between the two pots of state and federal money, which legislative leaders said they would reconsider.

“Our goal is to responsibly fund priority areas that will stand the test of time and to bring about systemic and equitable change,” said Speaker of the House Ronald Mariano, who, along with other legislative leaders , has resisted calls from Baker and others to speed up federal spending. stimulus fund after they arrived in May.

“Part of the benefit of being deliberative is that we can take a break, see what this money is doing and what impact it is having on our economy and make some additional decisions,” Democrat de Quincy said.

One of the main areas of spending is “wage premiums” for low-income workers. Almost $ 500 million would be made available to those who are up to 300% above the federal poverty line and who worked in person during the state’s 16-month COVID-19 state of emergency.

Premiums would vary between $ 500 and $ 2,000, depending on the number of eligible workers. The exact guidelines people are eligible for would likely be defined later, lawmakers said.

“We didn’t want to make him too generous,” said Mariano. “We wanted to benefit the people who stayed at their posts throughout the pandemic – the people who worked in nursing homes, who drove buses, who worked in supermarkets.”

As part of the half a billion dollars, the bill commits $ 40 million for similar bonuses of up to $ 2,000 for “frontline state employees” who were required to work in person during the winter. 2020 to 2021, although who might qualify was not immediately clear.

The proposal also includes tax breaks worth $ 200 million for small businesses that paid personal income taxes on state and federal grants or loans they received during the pandemic.

The plan also includes a host of small amounts of funding: $ 10 million to help educators of color obtain a license, $ 5 million for the state inspector general to set up a public database of followed by federal funds, or $ 12 million to assist with the resettlement of Afghan refugees in Massachusetts.

The plan differs in many areas from what Baker proposed in the spring, when he asked for $ 1 billion for housing initiatives, an additional $ 1 billion for infrastructure projects and $ 240 million for programs. workforce development, among other funding rounds.

Under the House plan, $ 350 million would be spent on infrastructure and development, including $ 100 million to help the state’s marine and offshore wind development. Lawmakers said the state could potentially see another federal injection if Congress passed a $ 1 trillion infrastructure that has already authorized the US Senate.

Baker has also asked for a $ 1 billion injection for the UI trust, but House leaders are proposing half of that.

Lawmakers passed a bill earlier this year that would extend the cost of what’s called a two-decade credit rating to cover $ 7 billion in unemployment benefits related to the COVID-19 pandemic. But businesses had asked for more help to ease their burden, with a trade group representing small businesses saying the unemployment insurance system was in “crisis.”

State Representative Aaron Michlewitz, Speaker of the House Budget, said legislative leaders, including in the Senate, accepted the $ 500 million contribution after reviewing 15 other states with similar deposits, which , he said, averaged half a billion dollars.

Combined with the tax break proposed by the bill, Michlewitz said he believed it was a “significant amount of money to help solve some of the problems the business community has been facing. “.

Lawmakers had taken a slower approach to appropriating the funds in recent months, moving billions into a segregated fund they control while holding a series of hearings to assess ideas on how to spend them.

In the meantime, they have set aside $ 200 million in federal aid for Baker to spend in the short term, with his administration devoting the vast majority to financially troubled hospitals, to fill staff shortages in psychiatric facilities for patients. hospitalized and invest in workforce development.

Almost $ 200 million also went to various locations: four communities that received significantly less than neighboring towns under the federal COVID-19 relief act received $ 109 million; $ 75 million has been budgeted for a COVID-19 leave program; and Baker administration officials used $ 10 million to pay for the state’s immunization lottery program.

The Chairs of the Legislative Assembly’s budget committees – Michlewitz and Senator Michael J. Rodrigues – said in a statement on Monday that the two chambers agreed to allocate $ 500 million each for bonuses and the trust fund. unemployment insurance, although any other difference would have to be negotiated. before an invoice reached Baker’s office.

Lawmakers have a lot of leeway when it comes to actually committing federal stimulus funds, which must be committed by the end of 2024 and spent by the end of 2026.


Matt Stout can be contacted at matt.stout@globe.com. Follow him on twitter @mattpstout.



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Evergrande claims to have resumed work on more than ten projects https://islandcrisis.net/evergrande-claims-to-have-resumed-work-on-more-than-ten-projects/ https://islandcrisis.net/evergrande-claims-to-have-resumed-work-on-more-than-ten-projects/#respond Sun, 24 Oct 2021 09:26:28 +0000 https://islandcrisis.net/evergrande-claims-to-have-resumed-work-on-more-than-ten-projects/ Beijing, October 24 (EFE) .- Chinese real estate giant Evergrande said on Sunday that it had resumed work on more than 10 projects, shortly after local press pointed out that the company had paid interest on a fair offshore bond the day before officially in default. The group reported today via the Wechat social network […]]]>

Beijing, October 24 (EFE) .- Chinese real estate giant Evergrande said on Sunday that it had resumed work on more than 10 projects, shortly after local press pointed out that the company had paid interest on a fair offshore bond the day before officially in default.

The group reported today via the Wechat social network that some projects in cities such as southern Shenzhen have entered “the interior decoration phase to be delivered” and that the group is finishing construction of other buildings.

Evergrande, the paradigm of the Asian country’s policy of openness since the 1970s, has total liabilities of more than $ 300,000 million, of which $ 37,000 correspond to loans to be repaid before the end of the first half of 2022.

China’s real estate industry began to overheat in the late 1990s, when regulators at the time reached out to developers keen to profit from the Chinese brick boom.

Restrictions on capital outflows and volatile local stock markets have made real estate one of China’s favorite investment vehicles, in part because there is still no national property tax: according to Moody’s Analytics, homes account for nearly 60% of Chinese household equity and above. more than 75% of their debts.

On the sidelines, the authorities have tried in recent years to regulate the sector to control its excessive expansion, forcing companies to reduce their liabilities and offer ever larger discounts to maintain liquidity.

Some experts estimate that the direct and indirect weight of the real estate and construction sectors reaches between 20 and 30% of the national GDP.

It is also believed that between 13% and 22% of townhouses in the country are empty, especially in small towns, in some of them, where authorities have already started to set limits on the price of apartments that can decrease to “maintain the stability” of the market.

(c) EFE Agency

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How not to mitigate the reduction in fiscal space – Manila Bulletin https://islandcrisis.net/how-not-to-mitigate-the-reduction-in-fiscal-space-manila-bulletin/ https://islandcrisis.net/how-not-to-mitigate-the-reduction-in-fiscal-space-manila-bulletin/#respond Wed, 20 Oct 2021 16:05:00 +0000 https://islandcrisis.net/how-not-to-mitigate-the-reduction-in-fiscal-space-manila-bulletin/ SUBSTANCE AND SPIRIT Diwa C. Guinigundo Malampaya dominates both Pharmally and Starpay in size and consequence. What is at stake here is not medical equipment or remittances. It is nothing less than the Malampaya Gas Field, a deep-water offshore gas condensate reservoir in northwest Palawan, discovered in 1989 and become operational in 2001. Short of […]]]>

SUBSTANCE AND SPIRIT

Diwa C. Guinigundo

Malampaya dominates both Pharmally and Starpay in size and consequence. What is at stake here is not medical equipment or remittances. It is nothing less than the Malampaya Gas Field, a deep-water offshore gas condensate reservoir in northwest Palawan, discovered in 1989 and become operational in 2001. Short of skills and funding, the Philippine government contracted Shell Philippines Exploration BV (SPEX) to operate the facility and, with Chevron Malampaya LLC, established a joint venture through the Philippine National Oil Company Exploration Corporation (PNOC-EC).

Originally, Shell and Chevron each account for 45 percent, while PNOC-EC holds the remaining 10 percent.

We are getting serious benefits from Malampaya. With the discovery of offshore gas, we reduced oil imports and allowed a more stable and cleaner source of energy, supplying approximately 40% of Luzon’s needs. Malampaya is also expanding our fiscal space. Long-term revenues from the gas field were expected to be between $ 8 billion and $ 10 billion for the National Government (NG) over its lifetime, accounting for 60% of the upstream gas company’s share of NG royalties. in accordance with Presidential Decree 87 or the Oil and Gas Law. Shell receives 40 percent.

From 2001 to 2018, the government received revenues of over $ 10 billion, or some P311 billion based on the Senate Energy Committee (SCE) estimate. The Department of Energy (DOE) calculates an annual payment of 17 billion pesos to NG. The President is authorized to designate its use in the annual budget. The Malampaya funds financed infrastructure and cheap electricity.

But Malampaya is not inexhaustible.

The November 2020 SCE meeting revealed that natural gas production could be exhausted by 2026 or 2027, five to six years from today. Service contract 38, which is the license to operate the field, is expiring and Shell has announced that it will divest its 45% stake during the Senate hearing. Chevron sold its stake several months earlier for $ 565 million to Dennis Uy’s Udenna.

The Chairman of the Senate Energy Committee, Senator Sherwin Gatchalian, explained that “we have to make sure that whoever takes over Shell’s part has the technical capacity”. The issue was energy security, especially in light of reports that there may be “other potential sinks” in the region.

In May 2021, Udenna succeeded in securing a controlling stake by purchasing the remaining 45% owned by Shell, valued at $ 460 million per installment, $ 380 million initially and $ 80 million between 2022 and 2024 depending on the performance of asset and oil prices.

Gatchalian questioned the deal due to Udenna’s financial capacity. The acquisition of Shell would be financed by foreign loans. Worse yet, in the Senate report it was stated that the DOE “bent the rules” to approve the buyout. Udenna Malampaya had negative working capital and her debt was double her capital. While admitting that Udenna has insufficient capital, the DOE justified it because “the agreements between the lenders, the buyer and the seller are already beyond us.” The DOE is focusing more on the group’s ability to continue working, funding development and continuing exploration work.

The DOE should know that without sufficient capital, these three deliverables are impossible. Udenna brings nothing to the table, no exploration skills or experience, because by the DOE’s own admission, only the names of the shareholders will change. The offshore project workers would stay.

It is also unnecessary to distinguish between the different Udenna consortia. These entities come under the same Udenna group which is said to be heavily indebted. In the event of significant exposure, the obligations of the potential service provider may not be honored.

With the Malampaya project now supplying 26 percent of Luzon’s electricity needs, 3.7 million homes could be affected if the service contract fails to meet.

What is difficult to understand about the takeover of Shell is the failure of DOE and PNOC-EC to take appropriate action by matching Udenna Malampaya’s offer to Shell. It was explained that if PNOC-EC also wanted to increase NG’s operational stake, national banks would only lend 50 percent of the purchase price. The reason why the PNOC-EC board decided to waive its right despite the discounted sale and expected short payback period is known only to them.

Former PNOC chairman Eduardo Mañalac suggested that the government had effectively lost billions of pesos in profits by giving in to Udenna. By his own estimate, some 138 billion pesos have been lost. Without the takeover of Uy, NG could have received an additional 42 billion pesos simply by taking control of the Malampaya contract for the remaining three years. This amount could be higher due to the increase in oil prices.

Perhaps for all of these reasons, three people sued Energy Secretary Alfonso Cusi, President of Udenna Corporation Uy and 24 others for “questionable sale of shares in the Malampaya gas-electricity project”. Balgamel Domingo d’Iloilo, attorney Rodel Rodis and businesswoman Loida Nicolas Lewis, both based in the United States, claimed that Cusi and other officials conspired to give Uy “an unfair advantage in the buyout of a Chevron subsidiary that held a 45% stake in Malampaya.Gas to electricity conversion project.If proven, the culprits could be charged under RA 3019 or the Anti-Practices Act. Registry and corruption The complaint was lodged with the ombudsman’s office in the city of Iloilo on October 18.

The complainants argued that NG, through PNOC-EC, should have exercised its right to match Udenna’s offer. Obviously, the whole Malampaya project was very profitable. It remains to be determined why Chevron and Shell decided to pull out. NG’s inaction is wasting a good opportunity.

If someone doesn’t let go, the job of our finance and treasury department should be much easier. Malampaya could have mitigated the reduction in our fiscal space, especially in this time of pandemic.


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Pacific nations have an interest in challenging China’s vast maritime claims – The Diplomat https://islandcrisis.net/pacific-nations-have-an-interest-in-challenging-chinas-vast-maritime-claims-the-diplomat/ https://islandcrisis.net/pacific-nations-have-an-interest-in-challenging-chinas-vast-maritime-claims-the-diplomat/#respond Tue, 19 Oct 2021 05:37:04 +0000 https://islandcrisis.net/pacific-nations-have-an-interest-in-challenging-chinas-vast-maritime-claims-the-diplomat/ Advertising There are indications that New Zealand is increasingly becoming concerning on China’s excessive maritime claims. The Royal New Zealand Navy frigate HMNZS Te Kaha recently joined a British carrier strike group crossing the disputed South China Sea en route to joint military exercise Bersama Gold 21 to ensure freedom of navigation in the region. […]]]>

There are indications that New Zealand is increasingly becoming concerning on China’s excessive maritime claims. The Royal New Zealand Navy frigate HMNZS Te Kaha recently joined a British carrier strike group crossing the disputed South China Sea en route to joint military exercise Bersama Gold 21 to ensure freedom of navigation in the region.

To a small state that has a heavy commercial dependence on China, worth about $ 33 billion a year, New Zealand’s relevance to the Conflicts in the South China Sea may seem symbolic and far-fetched. New Zealand, even Australia, would never have faced China if they had had other choices. Therefore, the fact that Wellington feels the need to oppose Beijing’s violation of international law sends a clear signal that China must respond to the world and stop self-interpreting international law.

The South China Sea is not only an arena of strategic competition between China and the United States. Given China’s direct core strategy, the South China Sea is a crucial test of whether the world can reject interpretations of international law with Chinese characteristics. Otherwise, the South China Sea will become an example of a magnificent failure to respect the principle of freedom of navigation, and China’s controversial interpretation of international law will become customary international law.

Small states, especially coastal and archipelagic states that benefit significantly from an international order based on the law and the law of the sea, will be most affected.

So what is a straight baseline and why should it deserve a closer look?

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UNCLOS and straight baselines

Under the 1982 United Nations Convention on the Law of the Sea (UNCLOS), a Baseline is the line along a coast from which the maritime limits of a State’s territorial sea and certain other maritime areas of jurisdiction are measured. A baseline, normal or straight (Article 5 and Article 7 of UNCLOS, respectively), determines the rights to jurisdiction over maritime and super-adjacent airspace both of the coastal state itself and of foreign nations. While normal baselines apply to coastal states, straight baselines are exclusive to coastal states. Archipelagic States, which consist entirely of one or more archipelagos and may include other islands.

Basically, straight baselines grant an archipelagic state special legal rights over the internal waters between its islands, which include the airspace over the territorial sea as well as its bed and subsoil. At the same time, according to Article 52 and Article 53 of UNCLOS, ships of all States enjoy the right of innocent passage in archipelagic waters and the rights of archipelagic maritime passage.

An archipelagic State may, without discrimination in form or in fact between foreign vessels, temporarily suspend the innocent passage of foreign vessels in specific areas of its archipelagic waters if such suspension is essential for the protection of its safety. In addition, an archipelagic State may designate sea lanes and air routes suitable for the continuous and rapid passage of foreign ships and aircraft through or over its archipelagic waters and the adjacent territorial sea. UNCLOS does not allow coastal states to use straight baselines to connect islands in an offshore archipelago.

What will happen to international law and the rights of the international community if China, a continental state, successfully obtains archipelago status for its unfounded claims to islands, reefs and other elements in the disputed waters of the South China Sea?

International law with Chinese characteristics

In May 1996, China issued a declaration declaring straight baselines along its coast and promulgated its geographic positions, much of which the United States has found “do not meet one or the other of the two geographical conditions of the Convention on the Law of the Sea required to apply straight baselines. Also in July 2016, China declared that it apply the straight baselines method measure the extent of its territorial seas, contiguous areas and other claimed sea areas.

China wants the waters between its claimed islands and the features of the South China Sea to be recognized as inland waters. In the 200 nautical mile exclusive economic zone (EEZ) projected from these straight baselines, China wants control military activity, and not just economic activity under international law. In addition, China wishes a territorial sea of ​​12 nautical miles from the baseline of the Paracel Islands and the constructed islands of the Spratly Islands. China wants exclusive access to its neighbors Resources even if it encroaches on their EEZ. China wants jurisdictional rights over the “historic waters” of its nine dash line claim, which covers virtually all of the South China Sea islands and their adjacent waters, a claim which was rejected by South China Sea arbitration in 2016. Anyway, China is determined to apply a straight baseline to the “four shas” she claims: the Dongsha or Pratas, the Xisha or Paracels, the Nansha or Spratlys, and Zhongsha or Macclesfield Bank. Now China wants foreign ships to seek his approval for commercial transit through its “territorial waters”.

China has a large political toolbox, including militarization, “wolf warrior diplomacy, debt traps, Mekong dams, and law, with which to realize its basic ambition – in other words, to appropriate the South China Sea. If successful, China will first gain, at the cost of significant losses for the international rights community, enormous and unprecedented weight against its neighbors. Second, China’s interpretation of international law will become customary international law, which could prove perilous for other shipping companies in the long run.

Since 2015, the United States has aggressively challenged China’s excessive claims by making frequent freedom of navigation operations (FONOPs) in the South China Sea. More recently, the United States has built a coalition allies and partners not only to patrol disputed waters, but also to raise legal issues at the United Nations. However, more such measures will be needed to change the way China interprets international law in its favor.

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This is where the small non-requesting states come in, which benefit most from an international order based on law in general and UNCLOS in particular. If they fail to form a consensus that views the South China Sea disputes and China’s interpretation of the law as a national threat, the repercussions will not end at the water’s edge of current claimants. such as Vietnam, the Philippines, Indonesia, Malaysia or Brunei. Small coastal and archipelagic states will incur high long-term costs for inaction. Through inaction, small states can effectively pave the way for a future where China interprets the law for them.

The fact that China is breaking the rules in neighboring waters should send a serious warning to the nations of Oceania. In particular, there are important political and security implications for New Zealand.

New Zealand’s regional security and stability

New Zealand has a leadership role in the small coastal town neighborhood and Archipelagic States in Oceania, and its national security is closely linked to the security and prosperity of the Pacific island nations. When addressing the challenge of balancing the vulnerability of his trade dependence on China and the growing tensions between Canberra and Beijing, the New Zealand Foreign Minister acknowledged that while trade matters, ” regional peace and stability. “

For the small states of Oceania, fishing is life. In the South China Sea, China never allows other countries to enter its claimed EEZs, but reserves the right to interfere in others waters and overfishing the.

As China gets richer and more powerful, is it possible for China to draw a straight baseline around the claimed islands and features that could threaten New Zealand’s EEZ, one of the biggest in the world? May be. From a regional perspective, who can guarantee that China will never enter the EEZs of the Pacific states that control vast expanses of ocean rich in resources? Under the definition of national security proposed by the New Zealand government, China’s direct core strategy and its interpretation of international law and UNCLOS can certainly be interpreted as a threat to the nation’s security.

The unity of the Pacific states is fragile and China is increasingly using economic tools to achieve strategic goals. Beijing has established itself as an important partner for the Pacific states. From 2000 to 2017, according to a report recently released by AidData, China has granted Oceania $ 2.4 billion in aid for 628 projects and $ 8.7 billion in loans for 95 projects. The ratio of Chinese aid to loan commitments to Oceania was 1: 3.6, which means that Chinese debt dominates Chinese sources of finance in the region. In addition, China has demanded high levels of collateral and has no qualms about its state-owned enterprises seizing the assets of their overseas partners.

However, such debts cannot be compared to the prospects of losing vital fishing grounds due to the future application of “international law with Chinese characteristics”. And this is something the New Zealand and Pacific states cannot afford to wait to delay responding. Once China succeeds in forcing states to accept its interpretation of international law, the costs to small states will only increase.


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Government pledges $ 1.3 billion to countries affected by climate change https://islandcrisis.net/government-pledges-1-3-billion-to-countries-affected-by-climate-change/ https://islandcrisis.net/government-pledges-1-3-billion-to-countries-affected-by-climate-change/#respond Sun, 17 Oct 2021 22:44:19 +0000 https://islandcrisis.net/government-pledges-1-3-billion-to-countries-affected-by-climate-change/ The government is quadrupling its funding for international climate change assistance to $ 1.3 billion over four years. Investing in solar capacity around the Pacific will maintain electricity supply when other sources of energy are destroyed by cyclones and other climate-related weather events. Photo: Twitter / Aumua Amata The announcement was made ahead of the […]]]>

The government is quadrupling its funding for international climate change assistance to $ 1.3 billion over four years.

Investing in solar capacity around the Pacific will maintain electricity supply when other sources of energy are destroyed by cyclones and other climate-related weather events.
Photo: Twitter / Aumua Amata

The announcement was made ahead of the United Nations climate conference in Glasgow later this month.

At least half of the funding will go to the Pacific.

Climate Change Minister James Shaw said Morning report the money would support a number of projects, with a particular focus on helping Pacific island nations adapt to the effects of climate change.

Some of the projects would be an expansion of the work New Zealand was already helping its Pacific neighbors with, Shaw said.

“We have invested quite heavily in solar capacity around the Pacific; this both helps reduce greenhouse gases from the islands themselves, but it especially helps with resilience in terms of cyclones and so on because what happens when you have a major event like that is, their diesel supplies are disrupted, and therefore having electricity that is produced, stored and used on site is very important to ensure the ability of their power grids to continue. “

Prime Minister Jacinda Ardern said the investment would help enable clean energy projects in developing countries, ensure crops are drought tolerant and communities are protected from sea level rise and storm surges.

She said the climate change clock was ticking, so it was important for New Zealand to raise its contribution to align with other countries.

Shaw said the funding for today’s announcement was a grant and did not include soft loans to Pacific countries, which some commentators have argued that they generate economic dependence.

“The way we run our program is that it’s actually run by the islands themselves, so we really respond to the types of requests they make.

The issue of climate change and its effects has been the main concern raised with him and other ministers whenever they have spoken to leaders of the Pacific Islands, Shaw said.

“Whenever any of our ministers or part of our government has some form of dialogue with any of the Pacific Islands, the main thing they talk to us about is climate change, the need to reduce our own emissions to stop the climate change from what’s going on in the first place, and also the need for that support to enable them to make the transition. “

New Zealand’s action on climate change has been “woefully inadequate” over the past 30 years, Shaw said.

“We only have a few years left to significantly reduce the greenhouse gases we release into the atmosphere. to be in it, but that doesn’t mean we’re not up to the challenge. “

Shaw didn’t believe New Zealand was one of the countries Queen Elizabeth was referring to when she was recently heard expressing her irritation at those who “speak but don’t” regarding action against the climate change.

“If you look at what we’ve been doing over the past four years – you know, besides passing the Zero Carbon Act unanimously and setting up the Climate Change Commission – we’ve also done things like introducing incentives for low-emitting vehicles, we have ended offshore oil and gas exploration, we will be the first country in the world to put a price on agricultural greenhouse gas emissions, etc. late to start and the effects of these policies are not yet being felt. “


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How the powerful hide their wealth https://islandcrisis.net/how-the-powerful-hide-their-wealth/ https://islandcrisis.net/how-the-powerful-hide-their-wealth/#respond Sat, 16 Oct 2021 10:30:00 +0000 https://islandcrisis.net/how-the-powerful-hide-their-wealth/ This US-led initiative has already garnered support from around 132 countries for a minimum tax rate of 15%. The first pillar will imply that even if the profits are recorded in a tax haven, as long as they are not hidden, the home country can legitimately tax them. For decades, big companies like Apple, Google, […]]]>

This US-led initiative has already garnered support from around 132 countries for a minimum tax rate of 15%. The first pillar will imply that even if the profits are recorded in a tax haven, as long as they are not hidden, the home country can legitimately tax them. For decades, big companies like Apple, Google, Amazon have registered the profits of their European and global revenues in the weak tax haven of Ireland. It will now end. Indeed, the European Union has fined Ireland for such irresponsible taxation, which amounts to “stealing taxes” from other jurisdictions.

In India too, a lot of rich people say that they have transferred their wealth to offshore trusts and that everything is legal. Perhaps they fear that the tax authorities will take away part of their wealth in the form of wealth tax? The sharply rising stock market and the mega injection of liquidity have dramatically increased wealth inequalities in India and around the world. Most developed countries have a high inheritance or inheritance tax. India does not. Is there a fear of the return of inheritance rights?

Leaving aside the fugitives who defrauded banks or who defaulted on large loans from public sector banks, another question to think about is that even though the wealth has been legally sold, does this reflect capital flight? Do high net worth individuals transfer large assets abroad? What is their anxiety? Do they think their wealth is not safe in India?

If India were to fully open its capital account, would there be a massive flight of capital? The Pandora Papers raise many questions that require serious soul-searching. However, we hope that, like the Panama and Paradise Papers, they will not make the headlines of the forgotten newspapers in a fortnight.

(Dr Ajit Ranade is Economist and Senior Researcher, Takshashila Institution) (Syndicate: The Billion Press)


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Canadian homebuyers cram into variable loans, mitigating impact of rising fixed rates, Real Estate News, AND RealEstate https://islandcrisis.net/canadian-homebuyers-cram-into-variable-loans-mitigating-impact-of-rising-fixed-rates-real-estate-news-and-realestate/ https://islandcrisis.net/canadian-homebuyers-cram-into-variable-loans-mitigating-impact-of-rising-fixed-rates-real-estate-news-and-realestate/#respond Fri, 15 Oct 2021 06:45:00 +0000 https://islandcrisis.net/canadian-homebuyers-cram-into-variable-loans-mitigating-impact-of-rising-fixed-rates-real-estate-news-and-realestate/ Photo file TORONTO: A recent move by major Canadian banks to raise fixed mortgage rates amid surging bond yields is unlikely to slow the nation’s searing housing market as more than half of new borrowers take out variable rate loans that are the cheapest they’ve ever been. The market share of new variable rate mortgages […]]]>
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TORONTO: A recent move by major Canadian banks to raise fixed mortgage rates amid surging bond yields is unlikely to slow the nation’s searing housing market as more than half of new borrowers take out variable rate loans that are the cheapest they’ve ever been.

The market share of new variable rate mortgages jumped to 51% in July, the highest level since the Bank of Canada started tracking data in 2013, from less than 10% at the start of 2020, and mortgage brokers say this has continued to increase since then.

This change is the result of a growing spread between variable rates which move parallel to the overnight rate and fixed rates, which have followed the rise in bond yields. The spread is expected to widen further, thanks to the Bank of Canada’s commitment not to raise the benchmark rate until the second half of 2022, even as bond yields continue to climb due to rising inflation.

This, in turn, means that the popularity of adjustable rate mortgages will continue to grow, reversing a trend that has been in place for more than a decade, according to experts.

Growing demand for housing during the pandemic has led the country’s mortgage insurer and the Bank of Canada to warn of escalating risks, and politicians have pledged to take action to increase affordability. Yet the central bank’s own low interest rate policies helped fuel the surge in demand.

“We are at a point where there is an artificial removal of the short-term rate controlled by the central bank,” said mortgage broker Ron Butler. But “a market-based rate like the five-year fixed rate says ‘no no no, I think the rates have to go up’.”

But “the effect on the market, where the variable rate is so low, is very blunt,” he added.

Canada’s largest banks have raised their five-year fixed rates in response to surging bond yields, ranging from the Royal Bank of Canada’s rate of 2.44% to that of the Toronto-Dominion Bank of 2.29% .

That pushed the discounted average fixed mortgage rate to a 16-month high of 1.94% on Wednesday, while the discounted variable rate fell to a record 0.95%, according to rate comparison site RateHub.ca.

“The variable rate is half the fixed rate,” said James Laird, co-founder of Ratehub.ca, adding that the demand for variable rate mortgages typically increases when they are at least 75 basis points cheaper than the rate. fixed. “It’s the most extreme difference we’ve seen.”

Mortgages have fueled bank profit growth during the pandemic, but as economies open up, banks have more opportunities to lend and their willingness to pass their higher borrowing costs on to buyers. houses shows this flexibility.

The rise in fixed rates illustrates that part of the eagerness of banks during the pandemic to increase mortgages to deploy excess capital has diminished, said Ryan Bushell, portfolio manager at Newhaven Asset Management.

The fact that they are pushing more borrowers into variable rate loans shows that they “want people to adjust the curve faster,” he said, because any hike in the bank’s interest rates central bank would increase floating rates while fixed rates would remain the same.

A decline in aggregate mortgage demand will only happen if bond yields rise 100 basis points or more, although this is offset by better margins for lenders, said Rob Colangelo, vice president and senior manager. credit at Moody’s Investors Service.

“If bond yields continue to rise, they may have to make adjustments here and there, but I don’t think they would be … as big as if the Bank of Canada said it was going to raise rates 50 to 100 points, for example, ”he said.


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KBRA assigns preliminary ratings to ABS financing of Golub Capital Partners 2021-2 https://islandcrisis.net/kbra-assigns-preliminary-ratings-to-abs-financing-of-golub-capital-partners-2021-2/ https://islandcrisis.net/kbra-assigns-preliminary-ratings-to-abs-financing-of-golub-capital-partners-2021-2/#respond Wed, 13 Oct 2021 21:10:00 +0000 https://islandcrisis.net/kbra-assigns-preliminary-ratings-to-abs-financing-of-golub-capital-partners-2021-2/ NEW YORK–(COMMERCIAL THREAD) – Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to two categories of notes issued by Golub Capital Partners ABS Funding 2021-2 (GCPAF 2021-2), a securitization backed by a portfolio of recurring income and corporate loans of the middle market. GCPAF 2021-2 is a $ 450.0 million securitization managed by GC Investment […]]]>

NEW YORK–(COMMERCIAL THREAD) – Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to two categories of notes issued by Golub Capital Partners ABS Funding 2021-2 (GCPAF 2021-2), a securitization backed by a portfolio of recurring income and corporate loans of the middle market.

GCPAF 2021-2 is a $ 450.0 million securitization managed by GC Investment Management LLC (“GCIM” or the “Collateral Manager”), an investment advisor and an affiliate of GC Advisors LLC (collectively, these companies affiliates and other funds managed by them and their “Golub Capital” subsidiaries). The securitization consists of $ 283.5 million in Class A notes, $ 45.0 million in Class B notes and $ 124.5 million in subordinated notes, which are expected to receive payments from ” a portfolio of recurring income loans (“RRL”) and middle market loans (“MML”). The reinvestment period is approximately two years from the closing date. Ratings reflect initial levels of credit enhancement, excess spreads and structural characteristics.

Golub Capital’s recurring income lending strategy focuses on senior secured loans to business-to-business software and healthcare companies with a minimum level of recurring income and low loan-to-value ratios. Despite the low level of earnings, portfolio debtors generally have strong liquidity profiles and credit covenants. The overall K-WARF of the portfolio is 3514, which represents a weighted average valuation of the portfolio between B- and CCC +. The portfolio presented to KBRA contains exposures to 57 debtors with 65.6% of the nominal exposure to RRLs.

GC Investment Management LLC is an investment advisor established in 2010. GCIM is a USVI company which provides investment management, fund accounting, operations and administration services to manage some of Golub Capital’s offshore funds. Through service agreements, the collateral manager will leverage the Golub Capital platform, including its investment professionals and other resources. Founded in 1994, Golub Capital has over $ 40 billion in capital under management as of July 30, 2021, with over $ 30 billion in direct middle market loans and over $ 5 billion in effect loans. largely unionized leverage.

KBRA’s preliminary rating on the Class A and Class B Notes takes into account the on-time payment of interest and the final payment of principal on the applicable stated maturity date.

KBRA analyzed the transaction using the Global structured credit rating methodology, the Global structured finance counterpart methodology, and the Overall ESG rating methodology.

Click on here to view the report. To access the assessments and relevant documents, click on here.

Disclosures

Further information on key credit considerations, sensitivity analyzes that examine the factors that may affect these credit ratings and how they might lead to an upgrade or downgrade, and ESG factors (where they are a key factor in changing the credit rating or rating outlook) can be viewed in the full rating report mentioned above.

A description of all substantially significant sources that were used to prepare the credit rating and information about the method (s) (including significant models and sensitivity analyzes of the relevant key rating assumptions, if any) used to determine the credit rating is available in the information disclosure form (s) located here.

Information on the meaning of each rating category can be located here.

Further information relating to this rating measure is available in the information disclosure form (s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures can be found at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a credit rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a credit rating agency with the UK Financial Conduct Authority under the temporary registration regime. In addition, KBRA is appointed as the designated rating agency by the Ontario Securities Commission for issuers of asset-backed securities to file a simplified prospectus or a shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a credit rating provider.


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BJP government buys goods and services from “fugitives” who fled India with public money: Congress https://islandcrisis.net/bjp-government-buys-goods-and-services-from-fugitives-who-fled-india-with-public-money-congress/ https://islandcrisis.net/bjp-government-buys-goods-and-services-from-fugitives-who-fled-india-with-public-money-congress/#respond Mon, 11 Oct 2021 14:19:00 +0000 https://islandcrisis.net/bjp-government-buys-goods-and-services-from-fugitives-who-fled-india-with-public-money-congress/ Congress alleged Monday that the BJP government was buying goods and services from “fugitives” who fled the country with public money. Congress spokesman Gourav Vallabh at a press conference said the BJP government first helped fugitives escape the country and then bought goods from their businesses. He cited the example of the Sandesara brothers at […]]]>
Congress alleged Monday that the BJP government was buying goods and services from “fugitives” who fled the country with public money. Congress spokesman Gourav Vallabh at a press conference said the BJP government first helped fugitives escape the country and then bought goods from their businesses. He cited the example of the Sandesara brothers at Sterling Biotech.

There has been no government comment on the charges.

Vallabh alleged that those who were declared “fugitive economic delinquents”, having duped banks, escaped with public money and relaxed abroad, now sell goods and services from these places to government.

He alleged that crude oil worth Rs 5,701.83 crore was purchased by oil PSUs from the Sandesara group company, even after a special court in September 2020 said Nitin Sandesara, Chetan Sandesara , his wife Dipti and a Hiteshkumar Narendrabhai Patel as “fugitive economic offenders” on the application management’s request.

He said promoters of Baroda-based Sterling Biotech fled India just before the CBI and ED filed lawsuits against them in 2017 for allegedly siphoning off loans from government banks worth of 15,000 crore rupees.

The congressman alleged that from January 1, 2018 to May 31, 2020, shipments worth Rs 5,701.83 crore of OKWUIBOME crude oil were received from Sterling Oil Exploration and Energy Production Company Ltd (SEEPCO), Nigeria through our oil PSUs.

SEEPCO produced OKWUIBOME crude oil and PSUs like Hindustan Petroleum Corporation Ltd (HPCL), Bharat Petroleum Corporation Ltd (BPCL) and Indian Oil Corporation Ltd (IOCL) actively purchased oil from (SEEPCO) Nigeria, he said. declared.

Vallabh also alleged that recent Pandora articles revealed that the Sandesara brothers have formed six offshore companies to increase the oil trade to India. All of these companies were formed between November 2017 and April 2018, and none of them were investigated by central agencies like ED and CBI.

“These points make it clear that the central government, the PSBs and central agencies like the CBI and the ED have not only been lenient towards the Sandesara brothers, but have also helped them escape the law and contribute to their wealth and to their fortunes by repeatedly engaging in business with them, he alleged.

“The Congress Party asks the Modi government why there was no attempt to extradite the Sandesara brothers? Are banks and central agencies treating other defaulted debtors and economic offenders the same,” he said. Vallabh asked.

He also questioned whether the Modi government even viewed the Sandesara brothers as fugitive economic delinquents and why the oil PSUs repeatedly engaged in business with economic delinquents.


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