crisis

How can Argentina get out of the crisis? Explained by an Oxford professor

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Paul Collier, a professor at the University of Oxford, was interviewed on the third day of the 56th IDEA Colloquium, where he stated that “Argentina is going to have a prosperous future.” In addition, he indicated that the country can get ahead after this economic crisis.

In an interview in THE NATION, Collier emphasized the dialogue as “the secret resource of democracy“and explained how to work in a”back and forth, as if it were a ping pong match between pairs“.

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Employment | Labor market | Economic reactivation in Colombia – Sectors – Economy

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The pandemic has deteriorated the labor market in Colombia; women and youth are two of the populations most affected by unemployment, and action is urgently required. Here we offer an alternative to reverse this economic crisis.

Unemployment in Colombia reflects a deep social crisis. The unemployment rate is 17 percent nationally and exceeds 20 percent in 20 cities. Women and youth have unemployment rates of 22 and 28 percent, respectively. Cities like Neiva, Ibagué, Popayán, Cúcuta and Florencia had rates of more than 30 percent. This tragedy affects millions of Colombians and their families, who today are without decent employment, without stable income and without opportunities. These conditions translate into more poverty, greater inequality, and a massive destruction of social and human capital.

(We recommend: A turbulent future / Analysis by Ricardo Ávila)

Unlike countries where the pandemic meant the end of an episode of employment expansion, in Colombia the deterioration of the labor market was consolidated. We have unemployment rates consistently above 10 percent. Furthermore, let us remember that close to half of the workers are informal and that same proportion earn less than the minimum wage.

We propose an emergency employment program guided by the following criteria: (I) an aggressive response to the dramatic effect of the current crisis, (II) an effective institutional articulation of the national, regional and local levels, and (III) the care of critical elements such as gender inequality and youth unemployment. This program builds foundations for the development of a long-term pragmatic strategy that integrates: productive development policies, recognition of regional diversity and capabilities, new labor and pension institutional frameworks, and an economy that gives construction a leading role. of a knowledge society.

(Can read: ‘It’s key to review working hours and costs’: new IDB chief)

The program has two lines of action. The main one is the implementation of emergency employment projects.

Emergency jobs

1.4 million new jobs can be created through the development of 10,000 public emergency employment projects in two years.

A central characteristic of the program is the leadership of the municipalities and departments, which have explicit responsibilities in the design, articulation and execution, and the National Government supports the work of the local authorities.

The priorities are: (I) to generate formal employment of unskilled labor; (II) create jobs for women, young people, Afro and indigenous population. The projects must be developed in activities that promote regional development, the country’s food security, social inclusion, environmental sustainability and, in general, the construction of regional capacities for social transformation. Some examples are:

– Social and community services (public health, protection of children and the elderly or psychosocial care).

– Construction, repair and maintenance of local infrastructure such as schools, health centers, public spaces, parks, sports and cultural venues.

– Construction and repair of housing in neighborhood projects.

– Repair and improvement of tertiary roads.

– Programs with rural impact related to the expansion of local and community crops.

– Reforestation and protection of water sources, forest protection, ecotourism support and ecosystem restoration.

– Academic training programs that improve the population’s job qualifications.

(Further: ‘Countries with better digital preparation will come out of the crisis first’)

Each project has a budget of up to 3,000 million pesos and a maximum execution period of one year. At least 80 percent of the budget is allocated to salaries. These are high-intensity projects that can individually create 140 jobs: 100 full-time jobs (minimum wage), 20 part-time jobs (half minimum wage) and 20 jobs for young professionals (1.5 minimum wages).

The implementation of the 10,000 emergency employment projects can create one million jobs (minimum wage), 200,000 jobs for young professionals and 200,000 part-time jobs.

Project selection

The first step in the program consists of allocating resources to each of the 32 departments and 23 cities and metropolitan areas. The allocation is made based on the current size of your unemployed population.

Once the resources have been allocated, the governorates open a public call for the municipalities to present their projects, designed at the municipal level and with a formulation that must meet the objectives of the program and the technical characteristics of the projects.

It is crucial to note that the design of the projects is done through participatory emergency budgets, which ensure the active and responsible participation of the communities. They are the ones who best know their needs and those who can ensure the transparent management of resources. These participatory budgets have the administrative support of the governments and the National Planning Department (DNP), on methodological issues and financial and accounting structuring.

(We suggest you read. This has been the recovery of formal jobs in the country)

Likewise, the involvement of young professionals in this process is promoted. This allows them to put their educational training at the service of their municipalities and departments and to begin to participate early in the public management tasks that their communities need.

The selection of bankable projects will then be in charge of the departmental governments. These will classify the projects presented by the municipalities according to the prioritization criteria. The government must make the selection completely public and with the support of a technical committee in which universities, chambers of commerce and citizen associations participate, which help to guarantee transparency.

Transparency throughout this process is essential: the governorates will permanently monitor the execution with the support of the DNP. All projects must integrate an anti-corruption component with different types of controls and mechanisms for sharing information about the program. The management reports must be public and a platform must be created in which each community and any citizen can follow up on the projects of any municipality in the country. Good community management increases the effectiveness and social impact of projects and takes space away from the corrupt.

The design of the projects is done through participatory emergency budgets, which ensure the active and responsible participation of the communities

Private jobs

This proposal includes a second line of action, to generate employment in the private sector. This line consists of subsidies and credits assigned to companies, through a competitive call that prioritizes: (I) micro and SMEs, (II) the re-employment of workers who lost their job between March and September 2020 and (III ) the recruitment of women and youth. This line can support the generation of nearly two million jobs, and can optimize and target support to workers and companies most affected by job losses. We know, for example, that companies with fewer than 10 employees accounted for almost 70 percent of the job losses in August.

(You can check: These are the vacancies that Nubank has for Colombians)

Financing

The program is ambitious, and it has to be so to rise to the challenge that Colombian society faces. The maximum value for its two lines of action is 50 billion pesos (5 percent of GDP), with two phases of 25 billion pesos each.

The public resources of the ‘Emergency Employment Now’ program would be covered by a direct acquisition of TES from the Government by the Banco de la República or through international loans. Right now, the macroeconomic priority and the best investment is employment. Current conditions allow the activation of less conventional instruments of monetary and fiscal policy.

In the medium term, a tax policy based on more progressive taxes, elimination of inefficient tax exemptions, and capacity building to counter tax evasion and avoidance will have to be processed in the Congress of the Republic.

In no way can the financing of the emergency employment program result from sacrifices of social spending that is already underway.

(See also: The sectors where jobs are most recovered)

Sensible and reliable ideas

The ‘Emergency Employment Now’ program (www.compromisociudadano.com) can reverse the effects of the unemployment crisis and initiate longer-term plans to combat poverty and inequality with decent employment.

This program helps to regain national confidence, in the midst of the malaise that Colombia is experiencing, through sensible ideas and participatory mechanisms in the citizen construction of projects.

In this task we call on young people, seriously affected by the crisis; they are the first line of layoffs from companies; Thousands of young professionals cannot find a job in which they can develop their skills (they remain in the informal sector and in activities for which they were not prepared).

The program that we are presenting today is tuned to the ‘Students First’ program, which we presented three months ago and that starts from the premise that the best job for a young person is studying.

Finally, with this program we are taking an important step in building local capacities for economic reactivation and the recovery of the social fabric in Colombia. We can build a future with hope.

SERGIO FAJARDO, GONZALO HERNÁNDEZ, JOSÉ ANTONIO OCAMPO, MAURICIO OLIVERA, MARIANA FAJARDO AND GERMÁN BARRAGÁN ** Sergio Fajardo, professor and politician of Compromiso Ciudadano. Gonzalo Hernandez, Associate Professor of Economics and Director of Research at the Javeriana University. José Antonio Ocampo, professor at Columbia University. Mauricio Olivera, former Vice Minister of Employment and Pensions. Mariana Fajardo, biologist, Citizen Commitment. Germán Barragan, Manager of Education and Employment of the Corona Foundation

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Cuba: Re-dollarization puts foreign medical students in check

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“We have proposed to bring foreign currency, pay in the currency they like, so as not to increase our enrollment,” said the source, who clarified that the government no longer supports payment in CUC.

The students, which call themselves “self-financed”, come from countries such as Colombia, Ecuador, Honduras, Bolivia and Peru, among others, and are enrolled in fifty specialties.

After months of unanswered complaints, on August 28 they sent a new letter to José Ángel Portal Miranda, Cuban Minister of Public Health, of which they also left a copy in the Ministry of Higher Education.

In the letter, to which this writing had access, they asked the minister to attend to more than 130 students who “have not been able to make the payment of their respective current years.” The payments of this group, they warn in the document, “making a superficial account, are equivalent to approximately 2,000,000 dollars.”

“Tuition, estimated at approximately $ 12,000, would end up at a cost of $ 15,000 after the entire transfer process,” they indicated.

Those affected insisted that they do not want a reduction in the cost of tuition, but rather that the regime provide less expensive options for them.

“We understand that the country is in a period of transition to the disappearance of the convertible currency and we do not intend to affect this process,” they said.

Apart from this difficulty, the bank branch of the state company Cuban Medical Services (SMC) de 3ra y 22, in Havana, does not accept payment in cash with foreign currency.

As a solution, the group that signed the letter proposed that they authorize the deposit of cash in the International Financial Bank (BFI) or that the regime accept that they make national interbank transfers from their savings accounts in foreign currency in Cuban banks.

Furthermore, “taking into account that foreigners with temporary residence can open savings accounts in foreign currency, with the possibility of a magnetic card,” they proposed opening an SMC account in another national bank to facilitate their payments.

The students warned that the economic consequences of the pandemic and the increase in prices that SMC experienced for its services from 2019-2020, in addition to the non-authorization of other forms of payment, “will result in the future decrease of self-financed and in many cases the resignation of these for not having the capacity to pay in the face of said increases “.

Despite this, they assured, they are open to other options offered by the regime.

However, so far only SMC officials have told them that they would receive a written response to this latest letter, something that has not happened with this or any of the previous letters.

“The group decided that it is going to send another letter again. To see what they tell us,” said the source, who indicated that they would also seek the support of their respective embassies.

Hundreds of foreign students are trained in different undergraduate and graduate specialties in Cuba, either through agreements with governments, international organizations, or on their own.

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USA: How did you cope with the corona crisis? Trump fails

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Updated on September 24, 2020, 8:36 a.m.

Donald Trump wants to be re-elected in a few weeks. But the US is struggling more than many other countries with the consequences of the corona pandemic – for which the Democrats blame the US president. But how is its crisis management viewed internationally?

You can find more current information on the coronavirus here

In numerous countries, the number of corona cases is skyrocketing again these days. Above all in the USA. In the United States are now about 200,000 people died after being infected with the coronavirus – more than in any other country in the world.

Most recently, around 40,000 confirmed new infections were reported every day. According to experts, that number would have to be brought below 10,000 to bring the situation under control.

In the final spurt of the Election campaign for the US presidency is this theme Coronavirus omnipresent. Throw the Democrats around challenger Joe Biden Donald Trump given the numbers failure. After Trump the danger has only been belittled, and responded relatively late with countermeasures, the US president is now relying on a corona vaccination.

Trump’s response to the pandemic is failing worldwide

As a reminder: At an election campaign event on February 10, Trump said that SARS-CoV-2 would “theoretically” disappear in April, “when it gets a little warmer”. Two weeks later, he claimed the virus was “very well under control” in the US – the consequences are known.

How Trump’s corona policy is rated internationally is now shown by a representative one Study by the US polling institute Pew Research Center. The researchers asked around a thousand people in a total of 13 countries, including Germany, about how the United States was dealing with the coronavirus pandemic.

The global verdict for Trump is devastating:

  • 53 percent of all respondents rated the Handling the crisis as “very bad”, 31 percent as “rather bad”. Only 15 percent said the Trump administration was doing “rather good” or “very good” work.
  • In 11 of the 13 participating countries, at least half of the respondents rated the USA’s handling of the pandemic as “very bad”.
  • Nearly three-quarters of all respondents (74 percent) said their respective governments had handled the pandemic well.
  • The US crisis management in South Korea was viewed particularly critically. In the country, 66 percent said it was “very bad” and 27 percent said it was “rather bad”. Only 6 percent rated the United States’ response as positive.
  • In Germany the distribution looked like this: 51 percent “very bad”, 37 percent “rather bad” and 9 percent “very good” or “rather good”.
  • AfD supporters rated Trump’s corona policy more positively. 25 percent of the party’s sympathizers said the US is doing a “good job”.

“The Spaniards are the most positive about the American response, but even there only one in five believes that the US has coped well with the outbreak,” the US researchers note.

Another value also shows how great the international distrust of Trump is: this is the case in all of the countries participating in the survey Confidence in the US president has fallen, partly massive. It reached all-time lows in Germany, Great Britain, Italy, Canada, South Korea and Australia. (dpa / AFP / mf)

Donald Trump has previously doubted statements by his experts in the corona crisis – but now he contradicts statements by the head of the CDC health authority about when there will be a corona vaccination for Americans. It’s going very quickly, says the President.

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Deutsche Bank sees looming financial crisis

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(Agence Ecofin) – According to Deutsche Bank, the world is at risk of experiencing a financial crisis due to the perverse effects of massive interventions by central banks and governments to deal with the covid-19 crisis. However, it remains optimistic about short-term economic performance.

German banking group Deutsche Bank sees signs of a financial crisis in the current state of international finance. According to Peter Hooper, its chief economist, the budgetary and monetary responses provided by governments, particularly in developed countries, to combat the effects of covid-19 have led to a growing overvaluation of assets and an increase in debt levels.

“Financial crises have often been triggered in the past under such conditions following the inevitable shift from easing policies applied in times of crisis to policies of tightening”, Mr Hooper said. He specifies, however, that this development would not occur for several years, but that it could surprise by arriving earlier.

The health crisis that has struggled to end since its explosion in March 2020 has been followed by a series of measures by central banks and governments, which have injected massive amounts of money into economies. Under these conditions, global debt was up $ 15 trillion at the end of the first half of 2020, according to data released by the Institute for International Finance, an association of the world’s central banks based in Washington.

However, this money was not used to finance the economic recovery, but to fill the gap in corporate income; which inflated savings. With these resources, demand for shares of listed companies, especially technology stocks, has increased pushing up stock market valuations. While this has generated added value for some investors, there is a risk of a bubble, as the targeted companies have sometimes reached values ​​beyond their capacity to generate reasonable returns.

Deutsche Bank is however optimistic for the short term. Its chief economist now sees a 3.9% contraction in the world economy against an initial forecast of 5.9%.

For 2021, the group now foresees growth of 5.6% against 5.3% initially. In any case, this level of growth will not be sufficient to compensate for the valuation levels of certain companies which have sometimes increased by more than 300%.

Idriss Linen

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SBS provided greater facilities for debtors in trouble due to pandemic | News

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By Malena Miranda

Borrowers can reschedule loans at a second time, reported the head of the Superintendency of Banking, Insurance and AFP (SBS), Socorro Heysen.

In an interview with the newspaper El Peruano, the official pointed out that the proposals to freeze debts are not necessary.

As of July this year, some financial entities showed losses. How to improve those results?

– It was predictable. The regulatory measures and facilities of the Superintendency of Banking, Insurance and AFP (SBS) made it possible for financial entities to reschedule debts, without deteriorating the credit rating of their clients and without constituting provisions at the time.

But, as the months progressed, we noticed that they recovered very few credits, such as what happened in May and June, because users had grace periods.

In July and August these credit recoveries increased significantly. There are entities that can show losses, but they also have clear options to solve those problems.

It was possible to observe debtors who never stopped paying, and others who had a couple of months of grace and then were able to meet their obligations.

– Are there any rescheduled debtors that show payment difficulties?

–In the financial system there are other debtors who will need more grace periods and will demand more work from the entities and, perhaps, some type of interest rate reduction.

The way to implement solutions for clients is in phases, which is why the SBS published the changes to the market conduct management rules, which came into effect at the end of August.

This norm grants financial companies minimum standards of work with users with payment problems, offering them relief alternatives.

These models, which are already in force, are comparable to those of European countries in the crisis of 2009 and 2010.

–What other measures will you implement in the SBS for the debtors?

–The SBS constantly reviews the standards and works with the supervised entities to solve these problems. In addition, we ask them to deliver a loan portfolio management plan to ensure that they deal with the difficulties of non-payment of their debtors. Relevant situation from the point of view of solvency.

Later, we will probably ask finance companies for a self-assessment of their capital needs to determine if that equity is sufficient, or we will ask shareholders for additional capital.

–Is it possible that a debtor can reschedule his credits again?

– Borrowers with normal ratings and potential problems (CPP) before the pandemic agreed to reprofile their loans on a massive scale for the first time; however, they can have a second reprogramming individually.

In some cases, loans could even be rescheduled more times to refine the payment situation, but not indefinitely because this would no longer be good for the sustainability of the entities.

– Could a refinanced loan be rescheduled?

–As a first point, a debtor with a recently refinanced loan cannot access a debt rescheduling, since it already has a deterioration in its rating and to reschedule debts it must have a good payment behavior and evaluation prior to the pandemic.

However, it is possible that a user with a loan refinanced for quite some time, and who has a good repayment behavior in that period, and even improved his score, could reschedule his refinanced debt.

– When would you notice a deterioration in the quality of the portfolio?

–The delinquency will be revealed gradually in the coming months. Towards the end of the year and early 2021, we should already have a clearer idea of ​​the situation.

The important thing is to maintain technical work that preserves the stability of the financial system and not take generalized measures that could disturb the development of the situation itself.

The congressional proposals to freeze debts would cause significant damage to financial stability and savers, as well as to the payment culture, the economy and the public treasury.

That is why we repeatedly express our disagreement with these initiatives.

Changes to the rule

The head of the SBS informed that among the additional norms that they will issue is the norm on modifications to the licensing regulations, mergers and acquisitions.

This standard clearly defines the expectations of the SBS regarding shareholders, managers, business models, among others, as well as new entities or acquirers, he said.

“It gives more predictability to the admission process regarding requirements and time,” he added.

He stressed that in the guarantee programs that the Government could approve, the SBS provides regulatory flexibility as it does with the Mype Business Support Fund (FAE-Mype) and the Reactiva Peru Program.

Data

Loan rescheduling reached 124.059 million soles as of August 28, 32% of the financial system portfolio.

Financial entities rescheduled about eight million loans. Thus, 49% of all loans were rescheduled.

The largest rescheduling is in small business, consumer and micro-business loans.

Figures

54% of 2018 profits were capitalized by financial entities last year, according to the SBS.

76% of the 2019 earnings were reinvested by financial entities during 2020.

75% of the banks’ profits in 2019 were capitalized this year.

100% of the profits of the municipal savings and credit banks in 2019 were reinvested this year.

More in Andina:

(FIN) MMG

JRA

Published: 9/21/2020


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Impeachment of Martín Vizcarra and other political crises in Peru – Latin America – International

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The impeachment trial for “moral incapacity” against the president of Peru, Martín Vizcarra, who was saved on Friday night from being removed from office by Congress, is the latest episode in two decades of political scandals that have marked the history of that Latin American country.

(You may be interested in: The keys to the trial against Peruvian President Vizcarra)

Vizcarra was put on the bench in an express trial, after three audios were known that allegedly revealed that eThe president had hidden or lied about his participation in the hiring of a singer at the Ministry of Culture.

An accusation that left him in a bad way, since his flag since he came to power in March 2018, after the resignation of his predecessor, Pedro Pablo Kuczynski, ha sido la of the fight against corruption.

But, in addition, it was not the first crisis facing the president. His friction with the Peruvian Congress had already been in evidence in the past.

In September 2019, for example, the Peruvian president chose to dissolve the Legislative, a decision that came after he refused to support his anti-corruption reforms and the proposal to advance the 2021 elections with which he intended to settle the political differences between the two powers.

(Read also: President Vizcarra is saved from being dismissed by the Congress of Peru)

Pedro Pablo Kuczynski, president of Peru between 2016 and 2018, was arrested for alleged corruption linked to the Brazilian company Odebrecht.

Photo:

Luka González / AFP

And although Vizcarra came out well off, the crisis and uncertainty generated by his impeachment in Peru adds to the long list of crises that have occurred in that country, which began in 2000, when the then president, Alberto Fujimori, was removed by Congress, after he fled to Japan and resigned via fax amid a corruption scandal.

Fujimori, who served 10 years in power, was sentenced in 2009 to 25 years in prison for corruption and human rights violations under his government.

(You may be interested in: Other former presidents under suspicion of Odebrecht bribes)

That controversy was later joined by those of former president Alejandro Toledo, who in June 2003 ended up declaring a state of emergency to deal with the strikes that paralyzed the country for several weeks, a decision that ended with the resignation of his cabinet. Six months later, and faced with the need to stop a sex scandal that involved its prime minister, Beatriz Merino, Toledo asked all his ministers to resign.

former presidents with Odebrecht 6

Alejandro Toledo, president of Peru from 2001 to 2006.

Photo:

Eduardo Muñoz / EFE

But the scandals did not stop there. His successor, Alan Garcia –Who returned to power in 2006 despite criticism against him for his first government (1985-1990), marked by corruption–, was also surrounded by a strong controversy when, in 2008, his cabinet resigned to prevent the approval of a vote of no confidence for concessions to the Norwegian company Discover Petroleum.

Scandals also peppered the government of Ollanta Humala, who in 2011 became the first leftist ruler in Peru in 36 years.

(Also read: Garcia’s suicide will not stop Odebrecht investigation: prosecutor)

His first year as president was marked by dozens of social conflicts that left several dead and led him to declare a state of emergency three times. In March 2015, Humala had to face the crisis that erupted when Congress removed its prime minister, Ana Jara, over allegations that the national intelligence agency had spied on legislators, journalists, business leaders and ordinary citizens for years.

Ollanta Humala

Former Peruvian President Ollanta Humala greets the media after leaving the prison of the Directorate of Special Operations of the Police (Diroes) in Lima (Peru).

Photo:

EFE / Ernesto Arias

For his part, Kuczynski faced since 2017 to investigations for their possible links in the great scandal of the Brazilian construction company Odebrecht, accused of paying millions of dollars in bribes to Peruvian officials and politicians between 2005 and 2014.

The former president passed an impeachment vote in Congress in December 2017, thanks to the support of a dozen legislators led by Kenji Fujimori, brother of opposition leader Keiko Fujimori.

(Read also: Keiko Fujimori released after spending three months in prison)

But the controversy did not stop there. Days after the vote in the Legislative, Kuczynski pardoned Alberto Fujimori, which led thousands of Peruvians to protest. In March 2018, a day before a second vote in Congress for his impeachment, Kuczynski resigned. In October of that year, the courts annulled Alberto Fujimori’s pardon.

Keiko

The former candidate for the presidency of Peru, Keiko Fujimori.

The scandals have also touched the former presidents after their departure from power.
In addition to Kuczynski, Toledo, García and Humala have faced investigations into the Odebrecht case, as well as Keiko Fujimori, on probation.

(You may be interested in: The new political crisis facing Peru amid the pandemic)

García committed suicide before being arrested in 2019; Toledo was arrested in the US and is awaiting extradition; Kuczynski is in house arrest, and Humala and his wife, Nadine Heredia, paid nine months of preventive detention. Just this Friday, the Peruvian justice ordered house arrest for the former first lady.

INTERNATIONAL DRAFTING *
* With AFP

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The crisis of Ray Dalio, the king of funds: his investors have already withdrawn $ 3.5 billion

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The firm, which manages $ 148 billion in assets, it is going through the biggest crisis of the last decade.

As reported by the Bloomberg agency, only in the month of August Pure Alpha II, the company’s flagship fund, suffered a drop of 18.6%. At the same time, rivals Caxton Associates and Brevan Howard Asset Management made big profits.

One of Bridgewater’s big problems, they say, is that its computer models misinterpreted the markets, prompting its large clients to start withdrawing their money. During the first 7 months of the year, investors took $ 3.5 billion in what appears as a trend with an uncertain ending.

In addition, Dalio fired dozens of his employees and lost a lawsuit with his former employees.

Although he still relies on his ability and the Bridgewater to make a profit. “For something we are the largest investment fund. We have never had a bad year, they have all been positive, but we knew that this day would come. We lost the evolution of the pandemic and this is the reality“acknowledged the billionaire in an interview with Bloomberg.

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Axa ordered to compensate five restaurateurs for their losses due to the crisis

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In this judgment, of which AFP has obtained a copy, the Paris Commercial Court considers that “the conditions required by Axa” to cover the operating losses of these restaurateurs “are met”.

As a result, he ordered Axa to pay a total of 240,000 euros to these five restaurateurs as a down payment for their operating losses that occurred between March and May. An expert will have to define more precisely the extent of these losses.

“The exclusion clause that Axa opposed to restaurateurs is not legal, that’s what the court said”, told AFP Me Guillaume Aksil, who defended these professionals.

Their contracts guaranteed the operating loss in the event of an “administrative closure, due to an epidemic”, but Axa “said: + There is an exclusion: if another establishment, whatever its nature or its activity, is located in the same department, is closed for an identical cause, so I can no longer guarantee you + ”, he detailed.

“However, an epidemic will not affect a single establishment in a single department… consequently, the guarantee will never be used. And to be legal, an exclusion must be limited, delimited precisely ”, continued the lawyer.

“The court said that this clause + does not meet the condition of limitation provided for by article L 113-1 of the Insurance Code +”, reported Me Aksil, explaining that the insurer will have to compensate the restaurateurs, who are ” on the verge of putting the key under the door ”, immediately, a possible appeal not being suspensive.

In detail, this decision benefits three Parisian restaurateurs and two others located respectively in Puylaroque (Tarn-et-Garonne) and Bastia.

“The position of the Commercial Court of Paris, contrary to those of the courts of Toulouse and Bourg-en-Bresse, reinforces the extreme confusion on the issue of operating losses”, reacted for his part Eric Lemaire, spokesperson. word of Axa France, in a written reaction sent to AFP.

“In this very difficult economic context, we deplore this confusion. (…) We are therefore appealing the decisions rendered today and we hope that greater clarity will be provided as quickly as possible by the courts and the courts of appeal, ”added Mr. Lemaire.

This judgment is in fact against that of the Toulouse Commercial Court which, on August 18, in a similar case, had rejected the starred chef Michel Sarran, restaurateur in the Pink City and member of the jury of the Top Chef show. on M6.

In Bourg-en-Bresse, the commercial court also dismissed at the end of August another restaurateur, based in Ambérieu-en-Bugey (Ain), in a similar case.

At the same time, the Tarascon commercial court (Bouche-du-Rhône), on the other hand, ordered Axa to compensate a restaurateur in the Alpilles for his operating losses for the same type of contract.

“Toulouse and Bourg-en-Bresse agreed with Axa, Marseille and Tarascon, with restaurateurs. Today five restaurateurs have won their case: we are at 7 against 2. On a final score of a football match, there is no confusion ”, joked Me Aksil, who defends 22 other clients in business. similar.

These various decisions relate to contracts mainly marketed in Axa’s network of general agents or with partner brokers, a spokesperson for the insurer told AFP, specifying that 18,000 of these contracts are counted.

Several dozen other court decisions are expected, especially in Marseille and Bordeaux.

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Visco, very heavy crisis, uncertain consequences – Ultima Ora

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(ANSA) – ROME, SEPTEMBER 16 – “The consequences of this global crisis are very serious and depend on the spread of the coronavirus, they are difficult to assess. The extent of the unprecedented event evident in the costs of human lives in the world”. This was stated by the governor of the Bank of Italy, Ignazio Visco, speaking to the bankers of the ABI Executive, specifying that “the prospects are uncertain and this negatively affects household and business spending” (ANSA).

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