nintendo game store – R4I3 DSR4 FR http://r4i3dsr4fr.com/ Tue, 17 May 2022 20:54:56 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://r4i3dsr4fr.com/wp-content/uploads/2021/10/icon-25-120x120.png nintendo game store – R4I3 DSR4 FR http://r4i3dsr4fr.com/ 32 32 Before you start generating funds for your game, there are four things you should know. https://r4i3dsr4fr.com/2022/04/07/before-you-start-generating-funds-for-your-game-there-are-four-things-you-should-know/ Thu, 07 Apr 2022 02:39:48 +0000 https://r4i3dsr4fr.com/?p=2133 While COVID-19 has disrupted our lives, the game industry has had an incredible year.  There has never been a better time for entrepreneurs, and the quantity of capital available from specialists ConsolidationNow and non-specialized investors has increased. At Makers Fund, we’ve been amazed by the great developers who are starting to build their studios, and […]]]>

While COVID-19 has disrupted our lives, the game industry has had an incredible year. 

There has never been a better time for entrepreneurs, and the quantity of capital available from specialists ConsolidationNow and non-specialized investors has increased.

At Makers Fund, we’ve been amazed by the great developers who are starting to build their studios, and we wanted to offer some advice to those considering approaching VCs for funding.

Figure out how to get on the radar of investors.

COVID-19 has unquestionably altered the way VCs do business. One thing that hasn’t changed is that warm introductions are still the greatest method to meet gaming venture capitalists. 

Look through your networks, such as LinkedIn, to locate avenues for these introductions.

We’ve also been astonished by how durable the video game industry conventions have been during the pandemic. These gatherings remain a terrific way to meet gaming venture capitalists, even in an online-only format. Because entrepreneurs and investors are strapped for time during these events, meeting requests are frequently prioritized. However, setting up pitch meetings can still be done by sending a cold pitch and deck via email or LinkedIn.

Look for “smart money” when looking for an investment.

Over the last few years, the number of investors interested in gaming has expanded dramatically, a positive development for the business. There are still only a few gaming-focused investors. So far, the tangible impact on their portfolio firms has pleased us.

Gaming venture capitalists specialize in offering industry-specific help by utilizing strong industry relationships and delivering greater product-level insights. They are more likely to be familiar with the industry’s peculiarities, such as the gaming life cycle, user base, etc. 

Many are previous entrepreneurs, either founders or executives.

When it comes to equity investments, finding the correct long-term partner is crucial. 

This includes the firm itself and the people you’ll be working with daily.

As an entrepreneur, the best thing you can do is to screen the investors yourself. Anyone interested in learning more about working with VC firms could contact their portfolio companies directly and ask them questions.

Be aware of how VCs assess a team.

The founders get a lot of attention. The leaders may be as few as two or three founders in the early phases, but a strong foundation is essential. We assess the founding team by asking people who have worked directly with or for the individuals for references. VCs search deep to understand that the leaders are proven in their domain.

Getting a feel of a leader’s fortitude and reliance are two significant signs we seek when evaluating them. We want to know how long the founding team has been working together. 

Did they start working together on the project they’re pitching today for the first time? 

We’re looking for indicators that leaders are both intellectually and emotionally mature.

Furthermore, competition for elite talent has intensified due to the influx of new studios. 

We seek founders with a track record of drawing people, since hiring has become increasingly critical.

Finally, we’re looking for founders who are close to their players, eager to learn, and open to change. Having tight and regular feedback loops has become critical to the development process in a business because gamers’ tastes are always changing and evolving.

Be aware of the distinctions between equity, project, and debt funding.

Equity, project, and debt financing are the three basic types of financing. There are various sources for each of them. VC firms or strategic investors like publishers or platforms can provide equity investment. Traditionally, project funding has come from publishers, but independent financial investors have emerged as a viable option. 

Debt financing is also available through various financial institutions, and gaming debt financing companies have started to arise in recent years. When you use equity financing, you give up some control of your business and dilute your ownership. You keep your intellectual property and creative control, nevertheless. This option hinges on how much creative agency you wish to retain. This is a long-term collaboration that could span numerous projects.

If a publisher finances a production, they get a cut of the profits and, in many situations, they’ll demand IP or sequel rights (sometimes both). Typically, the collaboration is limited to a single project.

One way to look at this is to figure out where you want greater independence and where you want more support. Publishers, for example, are excellent if you need assistance with marketing and platform business development. Other partners may be a better option if you believe you can self-publish, owing to your experience and contacts.

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Sanctions threat brings foreign share of Russian debt to lowest level in 6 years https://r4i3dsr4fr.com/2021/05/07/sanctions-threat-brings-foreign-share-of-russian-debt-to-lowest-level-in-6-years/ https://r4i3dsr4fr.com/2021/05/07/sanctions-threat-brings-foreign-share-of-russian-debt-to-lowest-level-in-6-years/#respond Fri, 07 May 2021 04:37:39 +0000 https://r4i3dsr4fr.com/sanctions-threat-brings-foreign-share-of-russian-debt-to-lowest-level-in-6-years/ Foreign investors’ holdings in Russian government debt fell below 20% for the first time in six years at the end of March, according to official data from Russia’s National Settlement Depository. International investors have been sale their holdings in Russian public debt since the start of the year, fearing to be caught in a possible […]]]>


Foreign investors’ holdings in Russian government debt fell below 20% for the first time in six years at the end of March, according to official data from Russia’s National Settlement Depository.

International investors have been sale their holdings in Russian public debt since the start of the year, fearing to be caught in a possible toughening of sanctions against Russia in retaliation for the poisoning and imprisonment of Kremlin critic Alexei Navalny.

The outflow among foreign residents of holdings in so-called OFZ – Russian government bonds – reached more than 120 billion rubles ($ 1.6 billion) in March. It was the largest monthly sale since April 2020 and brought the overall share of foreign holdings down to 19.7%, according to analysts at the state-controlled Sberbank’s investment banking arm.

“The exits are driven, in our view, by concerns about rising benchmark yields, growing geopolitical risks, a weakened ruble and still high investments, ”Sberbank analyst Alisa Zakirova said in a research note on Tuesday.

Quarter-end cash outflows likely also played a role, VTB Capital strategist Maxim Korovin said, with much of the March sale taking place in the last few days. Analysts suspect many investment firms have downgraded their positions in Russia’s foreign debt to “underweight” – a sign of market pessimism as traders limit their exposure to assets they deem too risky or not offering enough value.

At the start of the pandemic, foreigners held more than a third of Russia’s public debt.

The Russian government quickly accelerated borrowing last year to help pay the costs of the coronavirus and fill the fiscal hole created by falling oil export revenues. State-controlled banks stepped in to buy back public debt in large numbers, which also lowered the share of foreign assets.

Despite their declining share, the holdings of foreign investors have remained relatively stable over the past 12 months in ruble terms, according to the Institute of International Finance (IIF) noted, calculating the total holdings to be around $ 43 billion. Foreign holdings have actually tripled in value since 2014, when the international community first imposed sanctions on Russia for annexing Crimea.

But investors now fear that the United States will opt for the “nuclear option” of punishments – an outright ban on US-based financial institutions that hold and trade Russian government debt.

Under various laws against the use of chemical weapons, which could be used in response to the poison attack on Navalny, the US administration has this option. It’s a move Washington has hesitated to consider, but calls from die-hard senators for the Biden administration to take a tougher stance against Russia in response to Navalny’s imprisonment have intensified since the start of the year.

Still, analysts are not convinced how damaging this step would be to the Russian economy and the government’s ability to take on debt.

“The Central Bank has the option of providing liquidity to banks to buy OFZs or the national social protection fund could be used to buy government bonds directly and at a significant discount,” noted Elina Ribakov, chief economist. deputy of the IIR.

The scale of Russia international reserves offers plenty of opportunities to recover from even a full sell-off among international public debt holders, experts say, with Russia’s National Social Welfare Fund – a war chest made up of oil profits in the years leading up to the pandemic – over $ 180 billion. In addition, a financial system dominated by state-controlled lenders also offers many potential domestic buyers.

“A total ban on transactions involving Russian foreign debt (…) will only result in serious losses for Western financial institutions as a result of the sale”, economist Vladislav Inozemtsev noted recently.

“The Russian authorities will restructure their liabilities – making huge savings on debt service. Therefore, by striking a blow against Russian sovereign debt, Western politicians will not inflict much damage on Russia’s finances.


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Terence Loh of Novena Healthcare in debt of S $ 70 million, launches attempt to avoid bankruptcy https://r4i3dsr4fr.com/2021/05/07/terence-loh-of-novena-healthcare-in-debt-of-s-70-million-launches-attempt-to-avoid-bankruptcy/ https://r4i3dsr4fr.com/2021/05/07/terence-loh-of-novena-healthcare-in-debt-of-s-70-million-launches-attempt-to-avoid-bankruptcy/#respond Fri, 07 May 2021 04:37:39 +0000 https://r4i3dsr4fr.com/terence-loh-of-novena-healthcare-in-debt-of-s-70-million-launches-attempt-to-avoid-bankruptcy/ Singapore — Distressed businessman Terence Loh, who co-founded Novena Global Healthcare (NGH), seeks interim order to avoid bankruptcy, The times of the straits (ST) reported Thursday (April 29). The amount owed to five banks, owing to a personal guarantee for loans held by NGH, has reached S $ 70 million. On April 15, his bankruptcy […]]]>


Singapore — Distressed businessman Terence Loh, who co-founded Novena Global Healthcare (NGH), seeks interim order to avoid bankruptcy, The times of the straits (ST) reported Thursday (April 29).

The amount owed to five banks, owing to a personal guarantee for loans held by NGH, has reached S $ 70 million.

On April 15, his bankruptcy case was adjourned for the third time, after saying he needed more time to work out a payment plan from Maybank, one of NGH’s creditors.

And on Thursday (April 29), it was again adjourned when Mr. Muralli Rajaram, his lawyer, informed the court of Mr. Loh’s request for an interim order.

The interim order requested by Mr. Loh will be heard next month. She will put an end to all lawsuits against her, including bankruptcy proceedings, while the businessman comes to terms with his creditors for repayment plans.

If Maybank, Citibank, Bank, DBS Bank and UOB Bank, among other creditors, accept its settlement agreements, the High Court will appoint an agent for the implementation of its proposals.

However, if they refuse his , the court will set aside the interim order.

ST quoted Mr. Loh as saying Thursday that he “is actively developing a plan focused on recovery of value with various stakeholders. The transaction contains sensitive details and is highly confidential.”

Maybank sought to recover more than S $ 3 million from Mr Loh, who is the bank’s loan guarantor the Singaporean subsidiary of Novena Global Healthcare Group (NGH).

In November 2020, Maybank initiated bankruptcy proceedings against Mr. Loh.

In January of this year, Mr Loh asked creditors for more time to set up a repayment program.

This is quite a setback for Mr. Loh.

He and his cousin Nelson Loh, co-founder of NGH, were two of the three directors of the Bellagraph Nova Group, which was reportedly a serious contender for the takeover of English Premier League football club Newcastle United in August of last year.

In January, Mr. Nelson Loh, 41, was unable to pay more than $ 14 million in unpaid debts he owed to DBS Bank. The High Court of Singapore has since declared him bankrupt.

Additionally, Novena Global Healthcare Group faces charges of using unauthorized signatures from the accounting firm Ernst & Young in its financial statements.

The cousins ​​have since separated their business interests.

ST reports that Mr. Terence Loh has said he is trying to recoup the value of his other businesses so he can pay his creditors. It is reportedly exploring the possibility of selling a chain of clinics under a subsidiary of Novena Global Healthcare Group, Novu Aesthetics.

However, all five of Novu Aesthetics’ outlets were suddenly closed in March. There are hundreds of patients who still have prepaid treatment packages that they haven’t claimed yet, ST added.

The clinics were reportedly closed due to a lack of funds, with some clinic staff facing back pay.

/ TISG

Also read: Loh’s cousins ​​go from Newcastle United takeover bid to bankruptcy within months

Loh’s cousins ​​go from Newcastle United takeover bid to bankruptcy within months

Follow us on social media

Send your scoops to news@theindependent.sg


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Behind the lucrative assembly line of student debt suits https://r4i3dsr4fr.com/2021/05/07/behind-the-lucrative-assembly-line-of-student-debt-suits/ https://r4i3dsr4fr.com/2021/05/07/behind-the-lucrative-assembly-line-of-student-debt-suits/#respond Fri, 07 May 2021 04:37:39 +0000 https://r4i3dsr4fr.com/behind-the-lucrative-assembly-line-of-student-debt-suits/ A New York State Supreme Court judge ruled differently last year on a separate case that raised the same defense. He dismissed a motion to dismiss and stated that the standing of the Navient trusts should be considered at trial. Do you want a conversation? Yes. How is it going? Me dai cest excéllant, it […]]]>


A New York State Supreme Court judge ruled differently last year on a separate case that raised the same defense. He dismissed a motion to dismiss and stated that the standing of the Navient trusts should be considered at trial. Do you want a conversation? Yes. How is it going? Me dai cest excéllant, it is hot.

Patricia Nash Christel, spokesperson for Navient, declined to comment on specific cases.

“We pursue litigation as a last resort for a tiny fraction of individuals – less than 1% of defaulting private education loan borrowers – and each case is individually reviewed and prepared,” Ms. Christel said.

The Office of Consumer Affairs’ action against National Collegiate and Transworld was intended to ward off aggressive litigants.

Under the terms of the settlement, National Collegiate would be prohibited from collecting judgments that its trusts have already won, or engaging in new business, until it has completed an audit of the documents underlying each. of its 800,000 loans – an expensive and time-consuming operation. consumer labor.

But the deal, reached in September, may be falling apart.

The settlement requires court approval, usually a stamp when both parties have agreed to the terms. The case went to the United States District Court in Delaware.

The beneficial owner of the trusts, Donald Uderitz, founder of Vantage Capital Group, a private equity firm in Delray Beach, Florida, has approved the deal with the consumer office. In the days following its announcement, however, seven other parties involved or working for the trusts, including Transworld, filed motions asking the court to dismiss it.

(The separate settlement Transworld reached with the consumer office did not need court approval. It has already come into effect, although it does not prevent Transworld from hiring law firms. to file debt collection cases.)


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OJ Simpson can’t escape the debt collector for the Goldmans https://r4i3dsr4fr.com/2021/05/07/oj-simpson-cant-escape-the-debt-collector-for-the-goldmans/ https://r4i3dsr4fr.com/2021/05/07/oj-simpson-cant-escape-the-debt-collector-for-the-goldmans/#respond Fri, 07 May 2021 04:37:39 +0000 https://r4i3dsr4fr.com/oj-simpson-cant-escape-the-debt-collector-for-the-goldmans/ With his release from a Nevada prison over the weekend, OJ Simpson must once again try to escape a multi-million dollar settlement he owes the family of Ron Goldman, one of the his alleged victims in the 1994 double murder that destroyed his reputation. as a former NFL superstar and famous pitchman. “The good news […]]]>


With his release from a Nevada prison over the weekend, OJ Simpson must once again try to escape a multi-million dollar settlement he owes the family of Ron Goldman, one of the his alleged victims in the 1994 double murder that destroyed his reputation. as a former NFL superstar and famous pitchman.


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Argentina returns to global debt markets with sale of $ 16.5 billion bonds https://r4i3dsr4fr.com/2021/05/07/argentina-returns-to-global-debt-markets-with-sale-of-16-5-billion-bonds/ https://r4i3dsr4fr.com/2021/05/07/argentina-returns-to-global-debt-markets-with-sale-of-16-5-billion-bonds/#respond Fri, 07 May 2021 04:37:39 +0000 https://r4i3dsr4fr.com/argentina-returns-to-global-debt-markets-with-sale-of-16-5-billion-bonds/ Argentina returned to the bond market on Tuesday with the largest sell-off of emerging market debt on record, drawing strong investor interest after years as a financial outcast. The global debt supply of $ 16.5 billion was more than double the previous highs of developing country governments, according to Dealogic. The demand for the South […]]]>


Argentina returned to the bond market on Tuesday with the largest sell-off of emerging market debt on record, drawing strong investor interest after years as a financial outcast.

The global debt supply of $ 16.5 billion was more than double the previous highs of developing country governments, according to Dealogic.

The demand for the South American country’s debt was so strong that Argentina was able to both increase the initial size of the operation while reducing the returns offered to investors. Underwriters of the deal received nearly $ 70 billion in orders for the bonds, more than four times the value of the debt, people familiar with the matter said.

The giant bond offer is a milestone for Argentina, which defaulted on more than $ 80 billion in sovereign debt in 2001, the government’s biggest default at the time. Argentinian officials engaged in years of public struggle with bondholders, with a former president calling some creditors “vultures”.

“We are finally at the end of the era of default in Argentina,” said Robert Koenigsberger, founder of Gramercy Funds Management LLC which helped negotiate a restructuring of Argentina’s bonds in 2009 and bought part of the new debt. “We are happy to see that the resolution has arrived and that everyone can move on. “


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Bond insurer approaches Puerto Rico utility debt deal: court filing https://r4i3dsr4fr.com/2021/05/07/bond-insurer-approaches-puerto-rico-utility-debt-deal-court-filing/ https://r4i3dsr4fr.com/2021/05/07/bond-insurer-approaches-puerto-rico-utility-debt-deal-court-filing/#respond Fri, 07 May 2021 04:37:38 +0000 https://r4i3dsr4fr.com/bond-insurer-approaches-puerto-rico-utility-debt-deal-court-filing/ FILE PHOTO: The Central San Juan of Puerto Rico Electric Power Authority (PREPA) is seen in San Juan, Puerto Rico, June 30, 2015. Reuters / Alvin Baez-Hernandez / File Photo SAN JUAN (Reuters) – A tentative deal between a bond insurer and the Puerto Rico Electric Power Authority (PREPA), disclosed in a court case late […]]]>


FILE PHOTO: The Central San Juan of Puerto Rico Electric Power Authority (PREPA) is seen in San Juan, Puerto Rico, June 30, 2015. Reuters / Alvin Baez-Hernandez / File Photo

SAN JUAN (Reuters) – A tentative deal between a bond insurer and the Puerto Rico Electric Power Authority (PREPA), disclosed in a court case late Tuesday, displaces an agreement to restructure around $ 9 billion in utility debt into bankruptcy closer to the end of the line.

Assured Guaranty Corp is in the “final stages” of documenting and executing a deal with PREPA and a group of bondholders, which reached a deal with the utility in July covering more than $ 3 billion. dollars in debt, according to a petition filed in US district court. in Puerto Rico.

The so-called definitive restructuring aid agreement (RSA) would cover around half of the outstanding PREPA bonds.

“If finalized, the final RSA will provide PREPA and its creditors with a path to restructuring billions of dollars of inherited debt and facilitate PREPA’s transformation process and the development of an adjustment plan,” indicates the folder.

A PREPA deal has fallen behind on court-approved settlements with bankrupt U.S. Commonwealth Government Development Bank and Sales Tax Financing Corporation (COFINA) creditors. The island has been in federal court since May 2017 in an attempt to restructure around $ 120 billion in debt and pension obligations.

PREPA’s latest bankruptcy petition calls for a two-week extension of the litigation schedule filed in October by Assured and two other bond insurers seeking a court-appointed receiver for PREPA. Assured plans to withdraw from the lawsuit, which is currently set for a May 15 court hearing, if a settlement is approved, according to the filing.

The other insurers, National Public Finance Guarantee Corp and Syncora Guarantee, have not reached an agreement on less than 15% of the PREPA bonds they insure, according to the file.

PREPA filed for bankruptcy in July 2017. Its financial and operational problems were exacerbated by Hurricane Maria, which hit the island in September, decimating an electricity grid already in difficulty due to poor perception of tariffs, d ‘high management turnover and lack of maintenance.

Meanwhile, Puerto Rico’s government on Wednesday announced a new restructuring deal with a group of bondholders from its Infrastructure Financing Authority, tackling Port Authority bonds issued in 2011. The deal, which is awaiting approval by the island’s federally appointed financial supervisory board, includes an investment component in cargo and logistics operations in San Juan Bay.

Reporting by Karen Pierog in Chicago and Luis Valentin Ortiz in San Juan; edited by Jonathan Oatis


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How to manage debt in an uneven recovery | Technology https://r4i3dsr4fr.com/2021/03/11/how-to-manage-debt-in-an-uneven-recovery-technology/ Thu, 11 Mar 2021 06:08:06 +0000 https://r4i3dsr4fr.com/2021/03/11/how-to-manage-debt-in-an-uneven-recovery-technology/ Sean Pyles The past year has fractured our world in countless ways. Now, as people look to pick up the pieces, those managing debt must be held accountable for their position in our uneven economic recovery. In this so-called K-shaped recovery, one part of the population bounces back quickly while another has a longer, slower […]]]>

Sean Pyles

The past year has fractured our world in countless ways. Now, as people look to pick up the pieces, those managing debt must be held accountable for their position in our uneven economic recovery.

In this so-called K-shaped recovery, one part of the population bounces back quickly while another has a longer, slower path. For example, in January, the unemployment rate for whites was 5.7%, compared to 8.6% for Hispanics and 9.2% for black workers and 6.6% for Asians, according to the Bureau of Labor. Statistics.

Those who remain unemployed or underemployed may continue to take on debt to get by. Meanwhile, those whose finances have remained stable or improved may be ready to clear their debts.

Managing Debt in the Lower Half

Some consumers have had no choice but to rack up debt, including unpaid rent or mortgages, credit card debt and overdue utility bills. If this is your situation, focus on basic needs and pay minimums to avoid collections.

People also read…

Protect the essentials

If you’re one of the millions of Americans unable to cover your housing costs right now, take advantage of the eviction moratorium and mortgage relief programs now extended through June 30. Keep an eye out for additional benefits from the COVID-19 relief program being discussed. in Washington and call 211 to connect to local assistance for basic needs like food and shelter.

Add transportation, internet, and cell phone to your list of priorities too, so you can stay in touch with friends and family for help and looking for work.

“All creditors will make it look like they’re the most important to get paid,” says Amanda Christensen, a financial coach based in Morgan, Utah. “Accommodation and transportation should come at the top of that list and take priority.”

If necessary, look for cheap credit

If you need to add debt to cover regular expenses, like groceries and utilities, financial coach Vineet Prasad of Fulton, Calif., suggests finding the cheapest options. “A revolving line of credit against your home equity has a much lower APR than a credit card. Another option is a personal loan from a credit union.

To qualify for a HELOC, you will generally need an equity of at least 15% of the value of your home. And weigh the risks: HELOCs tend to have adjustable interest rates, which can make them more expensive over time, and your home is at risk of foreclosure if you can’t repay the debt.

Focus on long-term recovery

Once your situation has stabilized, focus on paying off your debts and also make saving a priority.

Consider using a debt repayment calculator who can track your debts and monthly payments. And while you may be tempted to spend all of your excess income on paying off debt, having some cash on hand can help you weather the next financial crisis.

Saving even a small percentage of your income helps, says Christensen: “If you’re not saving anything right now, see if you can hit that 1% to 5% range.

Managing Debt in the Upper Half

If your finances have held steady or improved in 2020, think about how you can take advantage of your situation, whether through charitable donations or using some of your money to improve your finances.

And if your focus is on reducing debt, the classic earning playbook works well: Start by taking stock of what you owe. Consider using a spreadsheet or online debt tracker to organize your balances.

Then choose a payment strategy, like the debt snowball method where you focus on your smaller debt by paying as much as you can while paying minimums on others. Once it’s paid off, incorporate the amount you paid into paying your next largest debt and so on until you’re completely debt free.

Paying off debt can be a long game. To stay focused, Prasad advises finding someone who can serve as a confidant and encouragement.

“Getting a responsible partner who is good at managing money can usually be a huge differentiator with sticking to your plan and struggling to pay it back over time,” he says.

Anyone can be in crushing debt

Regardless of your income or employment status, you might have too much debt to realistically repay with a strategy like the debt snowball. If all your monthly debt payments, including housing, total more than 50% of your monthly gross income, you may need to consider debt relieflike a debt management plan at a non-profit credit counseling agency or a bankruptcy.

The goal is to settle your debt quickly and in a way that allows you to reach your future financial goals. Otherwise, you risk spending years funneling money into insurmountable debt, sacrificing your retirement, an emergency fund, and other goals.

Bankruptcy in particular can be a good option because it can help you settle what you owe in months instead of years. While bankruptcy filings fell 30% in 2020, according to the American Bankruptcy Institute, that could change in 2021 as consumer financial circumstances begin to stabilize.

To get the most out of fresh start bankruptcy offers, don’t wait so long that you can’t even pay the filing fee. Take action when you can improve your financial situation, says bankruptcy attorney Cathy Moran of Redwood City, Calif.

“When you’ve hit rock bottom and things are about to turn around, that’s when you want to drop,” Moran says.

This article was written by NerdWallet and was originally published by The Associated Press.

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How Eurobond owners forced Kenya to forgo G20 debt relief https://r4i3dsr4fr.com/2021/03/11/how-eurobond-owners-forced-kenya-to-forgo-g20-debt-relief/ Thu, 11 Mar 2021 06:08:06 +0000 https://r4i3dsr4fr.com/2021/03/11/how-eurobond-owners-forced-kenya-to-forgo-g20-debt-relief/ Economy How Eurobond owners forced Kenya to forgo G20 debt relief Wednesday 03 June 2020 The National Treasury Building. FILE PHOTO | NMG By OTIATO GUGUYUMore from this author Summary A covenant in the terms of the Eurobond prevented Kenya from requesting a suspension of debt payments under a G20 initiative to help poor countries […]]]>

Economy

How Eurobond owners forced Kenya to forgo G20 debt relief


The National Treasury Building. FILE PHOTO | NMG

BDgeneric_logo

Summary

  • A covenant in the terms of the Eurobond prevented Kenya from requesting a suspension of debt payments under a G20 initiative to help poor countries overcome the Covid-19 pandemic. 19.
  • The Group of 20 major economies had agreed in April to suspend payment obligations on bilateral debt owed by their less-developed counterparts until the end of the year.
  • The aim was to free up more than $20 billion (Sh2 trilion) that poor or struggling governments could use to strengthen their health services.
  • Treasury Secretary Ukur Yatani told the business daily in an interview that Kenya had chosen not to apply for debt suspension due to a number of reasons, including the terms of the Eurobond, fears that the relief could hurt the credit rating from the country.

A covenant in the terms of the Eurobond prevented Kenya from requesting a suspension of debt payments under a G20 initiative to help poor countries overcome the Covid-19 pandemic. 19.

The terms of the Eurobonds indicate that failure to pay Kenya’s external debt, including seeking moratoria, would be considered a default, which could trigger a demand for the country to pay all of the Eurobonds in full. worth $6.1 billion (652.7 billion shillings).

This means the Treasury could be forced to pay eight times the 72 billion shillings relief it would have received for a freeze on bilateral loan repayments.

The Group of 20 major economies had agreed in April to suspend payment obligations on bilateral debt owed by their less-developed counterparts until the end of the year.

The aim was to free up more than $20 billion (2 trillion shillings) that poor or struggling governments could use to strengthen their health services.

Treasury Secretary Ukur Yatani told the Business Daily in an interview that Kenya chose not to seek debt suspension for a number of reasons, including the terms of the Eurobond, fearing that the relief harm the country’s credit rating.

“The conditions were very restrictive. They say you shouldn’t borrow commercially, but we’re already holders of commercial paper like Eurobonds and the clause in that Eurobond says if you don’t pay debt on a bilateral issue or on any other issue, you are deemed to have defaulted,” Mr. Yatani said.

Clause 10 of the Eurobond prospectus states that holders of 25% of the notes can trigger a call for the full loans and interest in the event of default.

Some of the actions that Eurobond terms consider default include non-payment of principal for 15 days or interest for 30 days and non-compliance with contract terms for 45 days.

Eurobond holders can list Kenya as defaulter if the country fails to pay external debt or collateral worth more than $25 million (2.6 billion shillings) or obtains a moratorium on foreign loans.

Kenya will also be deemed to be in default if it ceases to be a member of the International Monetary Fund or if it is not eligible to use the resources of the Bretton Woods institution. The country can also be called a defaulter if it refuses to pay the Eurobond, takes legal action or changes the law relating to it.

In the event of a default, Kenya can only be saved if 50% of investors agree not to recall the debt immediately.

“An acceleration declaration may be canceled in certain circumstances by the written resolution of the holders of at least 50%,” the Eurobond’s prospectus states.

Kenya has five Eurobonds ranging in duration from seven to 30 years, with the last one set to repay in 2048.

Mr Yatani argued that Kenya can only be part of the G20 initiative if private lenders like the Eurobond type are part of the debt relief efforts.

“So if we rush in and say we don’t pay, even if we don’t default on their (Eurobond), the fact that we don’t pay on the bilateral debt is deemed to have already defaulted,” he said. he declared.

“It is a conversation that we are engaging in to also bring these commercial entities on board to ensure that they agree on a moratorium. Until that is agreed, we do not want to rush.

The G20 initiative only covers official bilateral debt, although it calls for the voluntary participation of private lenders on comparable terms.

A third of Kenya’s external debt of 3.2 trillion shillings is owed to private creditors, including holders of the country’s Eurobonds.

The Covid-19 pandemic caused the government’s budget deficit to swell to 8.2% of GDP in the financial year ending June, compared to an initial forecast of less than 7%, mainly due to the reduction collection of taxes and loss of earnings in the form of VAT and income tax reduction.

But the deficit is expected to narrow to 7.3% – or 823.2 billion shillings – in the 2020/21 financial year and to 4.2% of GDP by 2023/24, according to Treasury data.

Moody’s downgraded Kenya’s outlook to negative from stable on May 7, citing the shock caused by the Covid-19 pandemic to its tourism industry and agricultural exports.

Last month, the IMF lowered the country’s risk of debt distress from high to moderate.

The Treasury was also concerned that the terms of the debt relief limiting countries’ access to international capital markets during the status quo could hamper Kenya’s ability to finance its deficit later in the year.

Relatively wealthy Angola has requested debt relief from the G20. The country is heavily dependent on oil revenues and is saddled with debts that exceed its economic output.

It is grappling with the economic fallout from the coronavirus disease pandemic and an oil price shock that saw crude prices plunge below $20 a barrel in April.

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debt relief needed to protect Africa’s informal sector https://r4i3dsr4fr.com/2021/03/11/debt-relief-needed-to-protect-africas-informal-sector/ Thu, 11 Mar 2021 06:08:05 +0000 https://r4i3dsr4fr.com/2021/03/11/debt-relief-needed-to-protect-africas-informal-sector/ A largely informal workforce and fragile fiscal situation mean debt relief must be at the forefront of Africa’s response to COVID-19, says World Bank in Africa’s Pulse published this month . Informal work accounted for 89.2% of all jobs in sub-Saharan Africa in 2018. These workers do not enjoy benefits such as health and unemployment […]]]>

A largely informal workforce and fragile fiscal situation mean debt relief must be at the forefront of Africa’s response to COVID-19, says World Bank in Africa’s Pulse published this month .

Informal work accounted for 89.2% of all jobs in sub-Saharan Africa in 2018. These workers do not enjoy benefits such as health and unemployment insurance, or paid vacations. Many have to work every day to earn a living. Small and medium-sized enterprises (SMEs), on the other hand, represent up to 90% of all businesses. “A prolonged lockdown will jeopardize the livelihoods of their households,” said the World Bank report said.

For SMEs across Africa, access to finance is a challenge at the best of times.

Before COVID-19, the financing gap for SMEs in Africa was estimated at $331 billion. And interest rate cuts made by some African countries are unlikely to be effective, the bank said, citing reduced labor supply and business closures due to the coronavirus, as well as the weak monetary transmission existing in underdeveloped national financial markets.

This means another type of central bank intervention through direct lines of credit or secured business loans to formal and informal businesses is needed, according to the bank.

  • Direct income support is necessary for the most vulnerable, especially those in sectors where containment measures prevent them from working.
  • Cash transfers are easy to implement and an effective way to reach the informal sector, especially the self-employed in slums, the bank says.
  • Tax systems should be used to help businesses through tax relief and delayed debt repayment.

READ MORE: Coronavirus: Africa must act on World Bank and IMF debt relief proposal

South Africa, Namibia

The most decisive policy responses have come from southern Africa, said the bank.

  • In South Africa, the social security agency pays advance social benefits to the elderly and disabled
  • Government to pay sick leave to workers affected by lockdown or those who fall ill
  • In Namibia, formal or informal workers who have lost their income will receive a one-time payment of 750 Namibian dollars (50 US dollars).
  • Taxpayers can borrow one-twelfth of their previous year’s tax payment on favorable terms.

But how to pay for everything?

The massive fiscal costs could lead several governments to default on their debt, the report says. About 17 African governments have bond spreads above 1,000 basis points, a threshold that typically precedes defaults.

That means international debt relief This is the key.

  • In 2018, sub-Saharan Africa paid $35.8 billion in total external debt service, or 2.1% of regional GDP.
  • “Carrying out effective policies while preserving macroeconomic stability in sub-Saharan Africa may require suspension of sovereign debt payments or debt relief,” the bank argues.
  • With multilateral assistance from the IMF, World Bank and regional development banks, this would “immediately inject new liquidity and expand fiscal space for African governments.”
  • The region may need an emergency economic stimulus of $100 billion, including a $44 billion waiver for interest payments to multilateral, bilateral and private creditors in 2020, the bank estimates.

READ MORE: Coronavirus: South Africa’s Ramaphosa mounts economic relief efforts

The essential : Failure of the international community to provide debt relief would exact a heavy toll on Africa’s informal sector.

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