Government has disposed of more than $ 4,000 million for pandemic | News from El Salvador

The amount comes from loans, issuance of Letes, Cetes, donations and current income, explained deputies from the PDC and ARENA.

The numbers don’t lie. In a review made by the economic analyst Claudio De Rosa, it appears that the Government has had sufficient funds. They are $ 4.1 billion to face the pandemic, but as the deputies say, one of them, Rodolfo Parker, of the PDC, the Executive refuses to deliver the bills of the expenses.

“We are certain of what we have delivered, of how they have spent that money, we do not know, and they do not want to give information about it,” Parker said in a television interview.

ALSO READ: Minister of Finance once again ignores call from deputies to discuss Fodes and loans

Meanwhile, the Minister of Finance, Alejandro Zelaya, accuses the deputies that they have not approved the resources he needs to compensate for the drop in current income.

Due to lack of money, the official justified that he was 17 days late with the payment of the salary of the employees and deputies of the Assembly and still owes the mayors five months from the Fund for Economic and Social Development (Fodes).

The president of the Assembly, Mario Ponce, of the PCN, summoned Zelaya again yesterday with the aim of addressing what solution together with the legislators they can give to pay the Fodes, but the official did not arrive.

Zelaya insists that he does not have funds to honor the Fodes payment, despite the fact that the money was already planned in the 2020 budget. The official argues that the income, which is where the payment for the mayors comes from, fell due to to the pandemic.

However, De Rosa reveals the real data on the income that the Treasury has had, which were confirmed by deputies Parker; Nidia Díaz, from the FMLN and Donato Vaquerano, from ARENA.

CONTINUE READING: Rodolfo Parker: Minister of Finance has shown “gang” behavior by violating the Constitution four times

Only in issuance of Letes (State Treasury Bills), the Government acquired $ 485 million in debt; in Cetes, which is short-term debt, it is $ 645 million; of funds incorporated into the 2020 budget from credits are $ 688 million; $ 1,000 million in bond issuance and $ 88 million in donations, making a total of $ 2,908 million, of extraordinary income, that is, that does not come from taxes.

In this regard, Parker made a breakdown of what they have found on the same website of the General Directorate of the Treasury of the Ministry of Finance.

“There it appears that the ordinary income to August would be $ 3,228 million and the extraordinary income $ 3,238 million, but in the case of what the Minister (of Finance) came to say on Saturday to that meeting (with PCN and GANA) he said that they had only $ 606 million entered from extraordinary resources, it is an advance, because generally he and his people said that not a penny split in half had been received, “said Parker.

According to Zelaya, the Government has only received from ratified loans, $ 389 million from the International Monetary Fund (IMF); $ 197 million from the Inter-American Development Bank (IDB); and $ 20 million from the World Bank (WB).

However, Parker explained that the Government forgets that it also issued $ 1,000 million issued in bonds and authorized by the Assembly, of which $ 600 million were for the Trust to help micro, small and medium-sized companies.

“And the $ 1,000 million that were to be placed at 9.5%? That would lead us to add $ 606 million plus $ 1,000 million, we would be adding $ 1,606 million, but also, there have been issuance of Letes and Cetes for about $ 1,630 million, which leads us to extraordinary income certified by the former president of the Bank Central Reserve for $ 3,238 million “, expressed Parker.

The pedecista deputy made another comment regarding the $ 1,000 million, stating that the government “deceived” the Assembly, since $ 600 million were for micro entrepreneurs and the rest $ 400 million, distributed as follows: $ 300 million to pay suppliers and $ 100 million for VAT to exporters.

“That was already in the planned and provisioned ordinary budget, they deceived the Legislative Assembly,” Parker said, adding that the Government used $ 640 million for the pandemic that went for public investment in 2020.

The data was also certified by the economist De Rosa. In a comparative table, the expert details the amount of loans for the pandemic that have been approved and incorporated into the Nation’s budget and what remains to be endorsed by the deputies; plus what the Government has pending to negotiate with the multilateral banks.

Liquid funds that the Government already has added to state spending are $ 688 million; broken down as follows: $ 25 million taken from the Social Security budget to equip the CIFCO Hospital; $ 42 million from the Japan Natural Disaster Recovery Contingency Program (JICA); plus another $ 4 million included in the same program for Fopromid (Disaster Prevention and Mitigation Fund).

Plus another $ 389 million from the IMF; $ 11 million from a KFW loan; $ 20 million from a loan from the International Bank for Reconstruction and Development (IBRD); $ 197.5 million with the IDB.

To this are added $ 1,000 million of issuance of securities for the Trust; and $ 88.2 million from donations.

Authorized by the Assembly pending approval in the first round of $ 350 million of a loan with the IDB for the program to strengthen public policy and fiscal management to address the health and economic crisis caused by COVID-19; $ 50 million with the Central American Bank for Economic Integration (CABEI) for the partial financing of compensatory economic measures implemented by the emergency of COVID-19; and $ 50 million with the IDB to finance the immediate public health response project to contain the coronavirus and mitigate its effects.

While the Executive has in the initial negotiation stage a total of $ 1,380.2 million. This money is the one that has not reached the Assembly to discuss it. Among them, there is a credit for $ 115.2 million with CABEI to improve 25 sports spaces; another of $ 350 million with CABEI to finance the economic recovery; of $ 250 million with CABEI of freely available loan; $ 15 million from the OPEC Fund for International Development for the health emergency; and $ 650 million with the IDB for educational coverage.

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Rabobank only provides a loan for greening

Greening will become a condition for financing farmers or horticulturists. Farmers’ income will also more often come from other sources of income than just primary production. This is evident from the Vision for Agriculture and Horticulture 2030 that the Rabobank published this week.

In this view, the bank states that it sees stimulating sustainability as an integral part of its financing policy. The existing forms of green financing, such as the biodiversity impact loan in dairy farming, will be extended to horticulture, arable farming and pig farming. Entrepreneurs receive an interest discount if they score well on the biodiversity monitor drawn up together with the sector.

For companies that are unable to make the transitions or do not have that intention, the financing policy will be aimed at enabling company closure or participation in a warm reorganization.

Rabobank wants to help entrepreneurs to make that transition. It expects six transitions to take place in the sector in the coming years: demand-driven chains, area-oriented approach, circular agriculture, climate transition, precision agriculture and horticulture and enhanced entrepreneurship.

Circular agriculture and horticulture

If necessary, new instruments are used for this. These financing solutions can help to make circular agriculture and horticulture possible. Rabobank is prepared to assume part of the innovation risk.

The bank expects that additional income from green or blue services, for nature or water management, for example, will play a greater role in the farmer’s income.

Largest financier

Rabobank is by far the largest financier of the agricultural and horticultural sector and indicates in the vision document that it wishes to become more explicitly involved in the debate about agriculture and horticulture. The bank’s vision is sometimes at odds with that of the government, such as with external netting.

The background to this is that the bank wants to retain sufficient space for viable agricultural and horticultural chains. In addition, Rabobank believes it is important that the sector itself remains in control of shaping its own future.

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Pegadaian Extends Zero Percent Interest Program until the End of the Year

JAKARTA, KOMPAS.com – PT Pawn shops (Persero) extended the Pawn Care program until December 31, 2020.

This program is interest-free mortgage or zero percent for loans up to IDR 1 million.

Head of the Pegadaian Company Communication Department Basuki Tri Andayani said the program, which has been ongoing since May 2020, has become a form of company concern for the community during the Covid-19 pandemic.

Also read: Pegadaian Waives Interest for 1.9 Million Customers

Until the end of August 2020, it was noted that the program had been used by more than 2 million customers with a total loan of IDR 1.39 trillion with an average loan of IDR 690,000.

“This certainly helps the public in obtaining financial solutions in the midst of a pandemic which has an impact on economic conditions,” explained Basuki in his official statement, Tuesday (15/9/2020).

He explained that the public could apply for the program by pawning goods and attaching a copy of the KTP, and filling in the forms provided at Pegadaian outlets.

However, each family can only access one transaction. This is so that more people can enjoy the benefit of the Pawn Care program,

“The conditions of the Covid-19 pandemic have yet to show signs of ending. Therefore, Pegadaian has extended this program so that people can experience Pegadaian as the right financial solution, “he said.

Also read: There is a Brompton bicycle online auction, pawn shops ensure fake accounts

Basuki emphasized, to break the chain of Covid-19 transmission, the company in providing services continues to apply prevention protocols.

For example, requiring customers to take temperature measurements, wash hands, wear masks.

“As well as having to adjust the distance in transactions,” said Basuki.

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Key points of loan from the Government of Colombia to Avianca.

The announcement of millionaire loan was made by the Ministry of Finance a few days ago, for which he earned criticism from various sectors of the country, including other airlines, who accused the Government of not giving them the same conditions to try to overcome the economic crisis after several months on the ground due to the COVID-19 pandemic.

The Treasury portfolio highlighted at that time that the injection of resources would be given with the intention of contributing to maintaining the more than 500,000 direct and indirect jobs what generates Avianca with its operation, which represents about 14.6 billion pesos a year for the Colombian economy.

The details of the government loan to Avianca

According to the weather, if the judge handling the airline’s case in the Southern District Court of New York does not endorse the restructuring process, the credit offered by the Ministry of Finance would not be awarded.

Key points:

  1. The loan, which will be under the figure of debtor in possession (DIP), has as guarantees the participation in Lifemiles, Avianca Cargo and cash accounts, among others.
  2. The Government has priority and preference in the payment, over other airline lenders, by being part of Chapter 11 of the Bankruptcy Code of the United States.
  3. The money that the Government of Colombia will lend will not go to the coffers of the company’s partners, but to the firm as such.
  4. In the event that the restructuring process is approved, the judge will be in charge of monitoring what the money will be invested in.
  5. The government loan to Avianca is not convertible into shares.

Colombia has not been the only country to reach out to a company in the air transport sector in the midst of the crisis to avoid bankruptcies; depending on the medium, 39 governments around the world have reached into their pockets to help companies. The United States, for example, has given more than $ 29 billion; Spain 1,400 million dollars and Germany more than 12,600 million dollars.

The government loan would come to mean, as highlighted by Valora Analitik, 30% of the total silver (1,200 million dollars) obtained by Avianca to resume operations, and it would be paid at the same interest rates as other lenders.

“The loan does not give the power (to the Government) to have a position on the Board of Directors of Avianca because it is only short-term financing in an amount that is marginal,” said a source from the airline to the media.

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US banks are in spasm. Their profits fell by 70 percent

The profit of banks in the United States in the second quarter of this year fell by seventy percent year on year to $ 18.8 billion, about 415.4 billion crowns. The results respond to the continuing uncertainty caused by the coronary crisis and low interest rates, the agency writes Reuters.

U.S. financial institutions continued to build up reserves to cover future expected loan losses in the second quarter, according to the Federal Deposit Insurance Corporation (FDIC). They set aside 382 percent more money than last year in the same period. The number of loans that banks call non-performing has risen by 16 percent. These are the ones that have delays of more than ninety days.

At the same time, however, savers’ deposits have risen sharply, thanks to which banks are sufficiently liquid, according to the FDIC. The “unprecedented” inflow of funds even led to bank deposit insurance falling below the statutory level of 1.35 percent. However, FDIC President Jelena McWilliams expects the level of insured deposits to return to the required level in the coming months.

The results of US banks would be even worse if the government did not approve the wage protection program. Under it, the Trump administration provided a $ 480 billion package to small and medium-sized businesses. As these were loans and banks received a fee for their intermediation, government support also had a positive effect on financial houses.

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New rule for condominium insurance in force

The Court of Appeals did not stop the enforcement of the Normative Letter on condominium policies promulgated by the Office of the Insurance Commissioner (OCS), but it has not yet expressed itself on the request for a challenge filed by a citizen and a group of agents insurance.

The new Normative Letter 2020-281-D entered into force on August 1 and established that the councils of owners will no longer be able to buy “full value” policies, which are those that provide protection for the private parts of each owner, and will have to limit yourself to acquiring “bare wall” policies, which insure only common and communal elements of the condominium.

However, insurance producers continue to warn of the danger posed by this change ordered by the OCS at the last minute at the beginning of the hurricane season.

In fact, Senator José Nadal Power yesterday filed joint Senate resolution 591, to order the Insurance Commissioner to nullify said Normative Letter 2020-281-D.

“It is extremely worrying that in the middle of the hurricane season the Office of the Insurance Commissioner has decided to implement changes that would take effect as of August 1, 2020. This will cause apartment owners to start looking for new policies to insure their properties, without granting them a reasonable period of consultations and orientation, and they may even remain uncovered, ”said Nadal Power.

In an interview with this newspaper, the senator indicated that he filed the resolution “at the request of many people who have called me who are in the condominium meetings asking me to do something.” He said there is little he can do, since there is no more ordinary session in the four-year period. Unless the governor does not call an extraordinary session and include the issue, the Legislature can do nothing.

For his part, Richard Dunnam, adjuster, insurance educator and one of the plaintiffs in the case, questioned why the OCS approved the aforementioned Ruling Letter without first investigating whether the insurers are offering the HO-06 policies, which are the policies for condo holders. The Ruling Letter states that the HO-06 policy will be used by the apartment owners to cover the original private elements attached to the structure and their alterations and improvements in condominiums and multi-family walk-ups.

“One would think that the sensible thing is that before approving it, they would have inquired if the market offers it. Why didn’t the Commissioner’s Office check the market earlier? Why is there no actuarial study to support the need to impose this guideline? We would like to see some transparency in how this regulation was implementedDunnam said.

An insurance broker agreed with him separately, who preferred not to be identified, pointing out that almost no insurer, with the exception of Mapfre, is offering HO-06, and this does so on a conditional basis.

“The Normative Charter has a gross deficiency. The commissioner should have told the insurers that if they are going to sell the bare wall policies they have to accompany them with a HO-06 policy. What the industry is offering is the DP1, and in general terms, that is a poor policy, inexpensive, but one that is not going to help mitigate losses“, Held.

A DP1 policy (“dwelling policy”) covers the private elements, but subtracts the depreciation when calculating the amount to be paid in the claim, so if the condominium was built 15 or 20 years ago, it will be very little what you will charge the owner of the apartment. The Ruling Letter says that the DP will be eligible for condos and walk-ups with four or fewer apartment units attached.

On the contrary, in the HO-06 policy, the replacement cost is calculated, that is, the insurer will replace what it costs now in the market, without subtracting the depreciation cost.

“This guideline of the Commissioner who only benefits is the insurers that will maximize the obtaining of premiums and to minimize annual claims, “said the producer.

On the other hand, he pointed out that a few months ago Pentagon told a client of his that it did not accept the DP1 policy as part of the financing requirements, since those policies do not cover the replacement cost.

Both Dunnam and the producer indicated that the OCS should have left both policies – the “bare wall” and the “full value” – as options for condominium owners and that it was each one who decided which they preferred, as had been the norm until the moment.

The “bare wall” policy had its boom in the United States in the second half of the 2000s when the real estate bubble burst, this as a measure to lower maintenance and insurance costs in condominiums.

High-cost condominiums with high-net-worth owners often purchase the bare wall policy for the condominium, and each owner individually insures their apartment, improvements, and contents. But in low-cost condominiums, where elderly people live with few economic resources, they have generally opted for the “full value” policy that covers the original private elements of their property.

The fear that homeowners and insurance producers have is that, if a storm or hurricane occurs this season, many will not have the “full value” coverage that they had before and therefore, they will be left without protection.

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US Federal Reserve makes it easier for banks to access short-term loans

Fed chief Jerome Powell

In contrast to the financial crisis, the Fed boss now wants to show more transparency from the start.


(Photo: dpa)

Washington The US Federal Reserve makes it easier for commercial banks to access their loans in the corona crisis. To this end, the requirements for short-term so-called intraday loans would be relaxed, she announced on Thursday. This is to ensure that lending will continue during the coronavirus pandemic. To this end, it temporarily waives the limits on unsecured loans and overdraft fees for banks that are eligible for this program.

This measure, which will initially apply until September, will not “significantly” increase the credit risk for the central bank. It should encourage banks to rely on the Fed for all their daily credit needs in a turbulent time. Some money houses could be exposed to “unforeseen intraday liquidity constraints” as a result of the corona virus pandemic and the resulting economic disruptions.

In addition, the Fed wants to play with open cards in the allocation of its multi-billion dollar loan aid in the fight against the corona crisis. For this purpose, details should be published at least once a month, who borrowed how much, announced them on Thursday. The Fed is for “transparency and accountability,” said President Jerome Powell. The central bank had announced a $ 2.3 trillion program that companies, states, and counties could access to help deal with the pandemic.

The now announced transparency offensive marks a departure from the secrecy that the Fed had operated during the 2007-2009 financial crisis. At that time, she refused to give the names of the borrowers – for fear of scaring shareholders. Details were only released after the so-called Dodd-Frank Act of 2010 obliged the central bank to publish it.

In some areas, however, the Fed wants to continue to maintain confidentiality, such as certain money market transactions. This should avoid stigmatization that could prevent companies from doing business when needed, the Fed said.

More: Fed launches multi-billion dollar Corona aid.

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According to Nicastro, Italian companies need even more money

Rome Italy is deeply in crisis: the country that is most severely affected by the corona virus in Europe with more than 23,000 deaths is experiencing a hard recession due to the lockdown and the fact that production has been stopped for more than a month.

The International Monetary Fund has just estimated a slump in growth of 9.1 percent, significantly more than the forecast for the euro zone of 7.5 percent. Italy also has large debts and therefore less financial scope. “The collapse is violent,” says top banker Roberto Nicastro. “The crisis can be overcome at the beginning of 2021 at the earliest.”

Nicastro is one of the most renowned bankers in Italy. He used to be director general of Unicredit, today he is Vice President of UBI Banca and also a European advisor to the financial investor Cerberus.

The top banker warns: Now Italy has the choice. “Either we can get the relief measures started quickly, then we can classify the crisis as temporary. Or we wait. ”But that is the worse alternative. Then there would be irreparable damage to the country.

The government’s first aid package for the real economy in early April has a volume of EUR 400 billion and is designed to bring liquidity to companies. Since then, there has been a flood of applications for emergency loans and credit deferrals at the banks. But the transmission has problems. So much so that the central bank Banca d’Italia had to specifically write to the financial sector to “intensify efforts” to facilitate access to credit in this phase of the national emergency.

Italian banks in a dilemma

The risk of default is too great for many banks. Credit losses are impending, even though the state takes over a large part of the guarantees. Because these are limited to 2020, as Nicastro explains. In addition, the state only guarantees 100 percent for smaller companies with loans of up to EUR 25,000. “With the larger ones, the bank is involved and will be careful not to give the money to those who cannot repay it.”

Nicastro sees the domestic banks in a dilemma: “If we give the money quickly so that the companies can start again quickly, we risk criminal problems. Or we take the strict regulations into account and accept a time delay. ”

The banks would at least need the opportunity to identify attempts at deception, the Milan financial expert says. After all, there are at least 1.5 million customers who have requested loans and around one million customers who have asked their bank for an advance payment for short-time benefits.

In March, the ECB’s banking regulator approved changes to the equity guidelines to help banks. This should help in particular the money houses in the southern European countries, many of which are still groaning under bad credit from the 2008 financial crisis.

“Of course, the banks know very well that this and the postponement of the stress tests are only temporary help,” Nicastro puts into perspective. “Everyone is aware that there is now a buffer until the crisis is over.” The rules themselves would not be changed, it was about provisional measures.

Nicastro, however, does not see the danger of a systemic banking crisis in Italy due to growing loan defaults and melting yields. The financial industry could survive the corona pandemic and its effects.

Recapitalization and reduction of contaminated sites

This also applies to problem houses like Monte dei Paschi or Banca Carige. The banks have been recapitalized. The domestic institutes have also made good progress in dismantling the contaminated sites. “The non-performing loans fell from the peak in 2015/16, when they were at twelve, thirteen percent, to four percent, which is a significant improvement.” In addition, there are around 50,000 employees downsizing in the industry to date, and without Redundancies.

Nicastro does not consider mergers or acquisitions to be urgent, not even in the face of the corona crisis. Because size is not the decisive factor. “What matters is technology and competence.”

In Italy, the most innovative bank is not one of the big ones, but Banca Sella, an old private bank, number 16 in Italy. And the greatest profitability is achieved by Credito Emiliano, the country’s 12th largest bank. “It’s about good management. But that also applies in Germany, I think of N26 and on the other side ING-Diba. These are not big banks, but they grew fastest. ”

Nicastro is skeptical about the EU summit on Thursday. “The logic should lead to success, we are constructive and optimistic, but I don’t know whether that will be enough.” The use of the European Security Mechanism EWS “without troika” and the introduction of corona bonds, which are now being disputed Elements for political rhetoric in Italy with a view to voters.

“What we need is a small Marshall Plan, so we share the cost,” says Nicastro. Like others in Italy, he calls for uniform aid programs and not just emergency loans. “I believe that there is an objective interest in the Europe system to ensure that the necessary investments are made to deal with the crisis.”

A country like Italy cannot get out of the emergency alone and quickly. “It is clear that the aid packages are not enough for Italian companies, that more money is needed.” Because Italy cannot raise five percent of the gross domestic product like Germany or like the USA eleven percent, but only 1.3 percent.

According to Nicastro, the more closed the European Union is to the corona crisis, the better the second virus can be combated: the growth of populist forces. “We cannot afford a delay.”

More: Italian Prime Minister Conte continues to insist on euro bonds.

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Limited amount of loans for COVID-19 to Puerto Rico



Although generally nothing is free, seldom does a country print money and place it in the hands of its constituents without asking many questions.

That was basically what happened in the United States during the past 13 days with the emergency loans that the federal government granted – through the Small Business Administration (SBA) – in the financial aid package for the COVID-19.

But this time, from a fund that exceeded $ 349,000 million, it could be said that Puerto Rico did not even look at the distribution.

This is because until last April 13, according to SBA data, in Puerto Rico —an economy with more population than almost 20 states and over 30,000 SMEs— barely 1,001 loans were processed, for a total of about $ 319 million, but the Figures offered yesterday by Popular and FirstBank would increase that amount to about $ 603 million.

Yesterday, SBA stopped requests from the Payment Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) for running out of funds.

As a result, until there is an agreement with Congress, none of those grants will be available to entrepreneurs.

Between the most recent SBA report and yesterday, the amount of loans granted on the island could increase, because last night, Banco Popular reported that the institution processed about $ 494 million. Some $ 398 million in PPP was approved in Puerto Rico and another $ 96 million through Popular Bank, the subsidiary in the United States.

“The program has undoubtedly been very beneficial for small and medium-sized businesses at these challenging times,” said Popular chief executive officer Ignacio Álvarez in written statements.

Meanwhile, FirstBank reported that even though the process established by the Federal Government for the granting of these loans had multiple challenges —including constant changes in the SBA guidelines and situations with the technology provided for the processing of cases—, the bank managed to Support 921 clients with the approval of $ 209 million, representing 80% of the money requested by their clients.

“Key to this performance was a substantial investment in a digital platform (FINTECH) with direct integration to the SBA portal, which increased agility in the processing of cases,” said in written statements Aurelio Alemán, president and chief executive officer of FirstBank. .

But even if Puerto Rico reached $ 500 million in these loans, the figure would be very low in relation to other states with populations similar to the island.

“Puerto Rico was completely left behind,” said Aida Escribano, a partner at the BDO accounting firm, referring to the PPP.

“Here we are used to federal funds being allocated for a region in a disaster or program, but in this case, it was a program available throughout the United States. It was clear that we could not sleep because the funds were going to run out, ”said Luis Torres Llompart, also a partner of BDO and who stated that, clearly, business organizations did not put their batteries to guide their members on both programs.

Under the PPP, the employer can receive up to $ 10 million to pay up to eight weeks’ payroll and expenses such as rent or basic utilities. Under the EIDL, companies received a $ 10,000 cash advance that did not have to be returned to the SBA.

“I am very concerned about the effect that businessmen may have if Puerto Rico does not receive all the aid available on time,” said Francisco Uriarte, managing partner of ESP Advisers and chief financial officer (CFO) of Burea. .

Bulk pitfalls

The also vice president of the directors of Grupo Guayacán, reported that the companies he advised settled the EIDL loan on March 30, but beyond a confirmation number, they have received no response. The same, he said, has happened with the Economic Reinforcement incentive from the Department of Economic Development and Commerce (DDEC) and with PPP loans.

Other businessmen interviewed by El Nuevo Día reported that they received approval for their loans, but were told that they would not receive the money until they opened a business account at the banking institution. At least two businessmen indicated that they had to fill out the aid application on two separate occasions. A fourth businessman reported that the institution asked him for multiple documents about the company’s operations and evidence of its assets, even though the loans are guaranteed by the SBA.

In Puerto Rico, only Banco Popular, FirstBank and Oriental have processed loans. This is because the nine SBA-authorized credit unions never received access passwords in time to help their members and clients.

Now, it only remains to wait for Congress to allocate additional funds to the PPP and the EIDL. In this, President Donald Trump and Republican and Democratic federal legislative leaders agree, but there is still no agreement.

Marian Díaz collaborated with this story.

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How will the delivery of microcredits be for those affected by Covid-19?

The Ministry of Economy (SE) adjusted the operating rules of the Microcredit Program for Wellbeing 2020, known as Tandas del Bienestar, to make the delivery of loans to small businesses affected by the health crisis of the Covid-19 coronavirus more agile and flexible. .

The government of Andrés Manuel López Obrador announced a few days ago the delivery of a million credits to the floor and without interest as part of its plan for economic recovery in the face of the pandemic.

The credits that have been granted since last year as “tandas” are for women and men who have a micro-business. The loans range from 6,000 to 20,000 pesos and the beneficiaries have one year to repay them.

With the adjustment published this Wednesday in the Official Gazette of the Federation (DOF) the grace period is extended from one to three months to start paying the loan. For example, those who obtain a loan today would have to make their first payment until July 15 and not on May 15 as originally established.

What does this benefit mean?

If a beneficiary receives the support on May 4, which is the date established for the supports to begin, they will start paying it until the beginning of September and not in July, as the program established in principle.

Said benefit applies to people who receive their first financing for the year 2020, which consists of six thousand pesos to be paid in up to ten monthly reimbursements of 600 pesos each, as well as to those who are up to date in the payment of a credit. granted last year and obtain a second financing, this one of 10,000 pesos to be repaid in 10 monthly installments of 1,000 pesos each.

Who can access this support?

The beneficiaries of the microcredit program will be selected through the database of the Ministry of Welfare and among the requirements that will be taken into account are that they are between 30 and 67 years old, as well as stating that they have a micro-business with more than six months of operation whose activity is not agricultural.

Can other supports be accessed?

The operating rules maintain the possibility of obtaining a third and fourth financing, of 15 thousand and 20 thousand pesos, respectively, which will also be settled in 10 payments without interest, although in these cases the grace period for the initial payment was maintained at a month.

What about the credits for 25 thousand pesos that the President announced?

The president affirmed in recent days that these supports will begin to be delivered as of May 4 and, as established by the SE in the agreement published this Wednesday, once the data from the registry is verified and the requirements are met, it will be communicated to the eligible person a payment order number so that they can collect their support.

In addition to the benefit of microcredit, the federal government will grant one million loans for 25 thousand pesos each to small businesses, both formal and informal, as a support measure in the face of the impact of the Covid-19 epidemic.

To whom is this support directed?

The benefit will be for family businesses such as inns, shoe stores, stores and workshops, which will be chosen by the federal administration based on the Wellbeing Census.

The beneficiaries will be contacted by phone and they must determine if they accept or reject the loan.

How will the benefit be paid?

If the financing is accepted, the beneficiary agrees to make a monthly payment of 850 pesos for 36 months, which includes the 6.5 percent annual interest rate established by Banco de México (Banxico).

The supports will be delivered through the banks Banorte, Banco Azteca and Santander.

How can a micro entrepreneur who is not contacted request help?

The Ministry of Economy (SE) is the agency that heads the program, but responded to this newspaper that the procedure has not yet been defined and will be announced soon.

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