Borrowing cost – Sharewared http://sharewared.com/ Tue, 11 Jan 2022 15:14:06 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://sharewared.com/wp-content/uploads/2021/06/icon-2021-06-29T134115.656-138x136.png Borrowing cost – Sharewared http://sharewared.com/ 32 32 Fast, Flexible, and No-Fee: How Investment-Backed Loans Can Help You When the Opportunity Arises https://sharewared.com/fast-flexible-and-no-fee-how-investment-backed-loans-can-help-you-when-the-opportunity-arises/ Tue, 11 Jan 2022 15:14:06 +0000 https://sharewared.com/fast-flexible-and-no-fee-how-investment-backed-loans-can-help-you-when-the-opportunity-arises/ If you have invested for your future but also need the extra cash much sooner, it is possible to have both with Investment Backed Lending (IBL). Whether you want to buy something that just went on sale or just need the extra cash, IBL could give you access to extra funds when you need it […]]]>

If you have invested for your future but also need the extra cash much sooner, it is possible to have both with Investment Backed Lending (IBL).

Whether you want to buy something that just went on sale or just need the extra cash, IBL could give you access to extra funds when you need it most, without disrupting what you’ve put in. side for your future.

What is an investment backed loan?

IBL can be considered an overdraft. It is a form of financing that allows eligible clients to borrow against their investments without having to withdraw money from their existing portfolio.

As you are borrowing against your investment, tedious asset valuations are not necessary. So the process can be relatively quick – everything is agreed and set up in less than two weeks, rather than months.

This is not its only advantage however. The service has many potential benefits, including:

  • no fees – you pay no legal, appraisal or arrangement fees
  • no fixed term repayment
  • multi-currency availability – IBL is available in five currencies: British Pound, Euros, US Dollars, Swiss Francs and Japanese Yen
  • flexibility – you can borrow a single lump sum at one time or part of it over time, and you only have to pay the interest once you start using it
  • cost effective – IBL offers favorable rates, so costs may be more favorable than other forms of borrowing

However, there are certain conditions to be eligible for the IBL.

“You need to have a sufficient level of investment managed by Coutts, at least £ 500,000, and you need to have a sufficient level of expertise and professional knowledge to get into this type of product,” said Travis Millyard, Director of Coutts International. Private Bank.

“It starts with a conversation with your private banker to see if you are eligible. If you qualify, IBL could be a versatile fundraising tool for you to take advantage of personal or business opportunities as they arise.”

FINANCING THE NEXT BIG THING OF YOUR LIFE

At Coutts, we’ve had clients who use IBL for everything from buying a classic car to buying investment property.

For a client, a hedge fund manager, this was the perfect way to diversify his portfolio. They wanted to explore alternative investments and were looking for opportunities in the area of ​​private equity.

The client saw IBL as an efficient way to do this as it leaves their existing investments intact, but gives them the cash to invest in a project as the right one emerges.

Some of our clients have also used IBL to borrow from their existing portfolio and invest in the UK Enterprise Fund – which we launched last year with leading UK growth investor BGF to help innovative UK companies grow.

Find out about loans secured by investments at COUTTS.

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Infra high cost, sliding industry https://sharewared.com/infra-high-cost-sliding-industry/ Sun, 09 Jan 2022 18:33:10 +0000 https://sharewared.com/infra-high-cost-sliding-industry/ High inflation exacerbates the budget situation riddled with high debt, causing imbalances The government has the daunting task of delivering a low cost, high growth, debt sustainability extraordinary budget even as it faces the third wave of the pandemic. It is a challenge to meet Prime Minister Narendra Modi’s stated GDP target of an economy […]]]>

High inflation exacerbates the budget situation riddled with high debt, causing imbalances

The government has the daunting task of delivering a low cost, high growth, debt sustainability extraordinary budget even as it faces the third wave of the pandemic. It is a challenge to meet Prime Minister Narendra Modi’s stated GDP target of an economy of $ 5,000 billion by 2025, and to adjust, if not control, high inflation of 14.2 %. Now the estimates are for a budget of around $ 2.6 trillion by 2025. The pandemic has certainly reduced achievements by around $ 200 million to $ 300 million. The high inflation exacerbates the fiscal position of the government saddled with high debt and causing imbalances, affecting growth. The IMF observes that the central government deficit fell to 8.6% and that of the States to 12.8% in 2020-21 mainly due to Covid-19. Bank credit is also moderate. The government must build up a provision of Rs 4.38 trillion due to the delays of 470 projects. With offline mode and other restrictions impacting the economy, this in itself is a challenge. It must also take into account the increasing pressure on the health sector and control public debt vulnerabilities. It is not easy to mend. He must abandon the many expensive and worn-out infrastructure investments. The not-so-well-planned road network has resulted in additional costs to the rural system as the neighborhood moves further away and people are forced to pay higher fees and tolls. Some small and medium-sized towns and townships are inundated with overflights and subways affecting their functionality, aesthetics and ability to maintain high-cost infrastructure. Singer the west is not paying. He calls for a reduction in imports of products that could be made locally, such as cement railway ties, to save forex. The 2021-22 Economic Survey does not see high debt as an issue in India’s situation, but it certainly raises debt service issues. The ES believes that since interest rates are low, the country would be able to maintain them. A sustained rate hike could threaten the RBI’s arguments to keep borrowing costs lower for longer to support the economy, given its mandate to keep consumer price inflation within range. target of 2 to 6%.

The biggest concern is that private final consumption expenditure (CCTB) still did not reach pre-pandemic levels in the September quarter. The CCTB is the largest component of India’s GDP and its weakness suggests that the recovery is still not widespread and is being driven by the rich. During the pandemic, the large unorganized labor sector is paying the price. The Indian Economic Watch Center estimated that more than 130 million daily bets in urban centers were left jobless and homeless. The Indian economy has been struggling for most of the last decade – 2011-21. Exports are stuck at around $ 300 billion for almost a decade. The 68-day global lockdown has prevented India from rebounding on manufacturing or exports. The country is losing market share to smaller competitors like Bangladesh, whose remarkable growth relies on exports. Revenue projections remain moderate. India’s Economic Advisory Board to the Prime Minister expects the country to experience real growth of 7.7-7.5%. Revenues collected may be moderately higher. But the country that needs higher doses of cash injections may not find it easy to manage its finances. The major problem is that the industry which contributed 26.5% in 2019 is declining and agriculture with 15.6% is supporting growth. The future trend could remain inflationary and the trajectory towards 2022-2023 would remain bumpy but should stabilize if the pandemic abates.

(The writer is a seasoned journalist. The opinions expressed are personal.)


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Second homes will become more expensive despite low interest rates https://sharewared.com/second-homes-will-become-more-expensive-despite-low-interest-rates/ Fri, 07 Jan 2022 23:51:42 +0000 https://sharewared.com/second-homes-will-become-more-expensive-despite-low-interest-rates/ It becomes a little more expensive to take out a mortgage. This week, Freddie Mac said the average interest on a 30-year fixed-rate mortgage has climbed to 3.22%, which is still very low. But around the same time last year, that rate was at an all-time high of 2.65%. For those who are looking for […]]]>

It becomes a little more expensive to take out a mortgage. This week, Freddie Mac said the average interest on a 30-year fixed-rate mortgage has climbed to 3.22%, which is still very low. But around the same time last year, that rate was at an all-time high of 2.65%.

For those who are looking for a second home, the costs increase even more, thanks to higher fees coming in a few months.

Demand for second homes has exploded over the past two years as new remote workers seek more space and better landscapes.

It’s not just the pandemic, said Daryl Fairweather, chief economist at Redfin.

“We have seen a long term trend of increasing second home purchases,” she said. “I think part of it goes with the inequality of wealth among the rich who get richer and can buy more second homes.”

Soon they will have to pay a little more for these houses. This week, the Federal Housing Finance Agency announced that it was increasing the upfront fees for second home loans sold to Fannie Mae and Freddie Mac by about 3.9% from April.

Redfin estimates that it will cost a typical buyer $ 13,500 more for a $ 400,000 home. Fairweather said regulators could try to figure out what could be an emerging housing bubble.

“If a lot of people buy second homes with the belief that it is a great investment because the value will only increase, it can turn into bubble behavior,” she said.

Fees will also increase on some high balance loans, except for first-time buyers. Fannie and Freddie are on a mission to make home ownership more affordable, said Guy Cecala of Inside Mortgage Finance.

Supporting the second home market doesn’t really help.

“They should be focusing their resources on low and moderate income borrowers, and that’s the reason they’re doing it,” he said.

Demand for second homes is expected to remain high, according to Dean Tucker, mortgage broker in Boise, Idaho.

“I don’t think it’s going to slow this market down. Buyers of a second home are generally better off, ”he said. “And if it’s the cost of a second home, it’s the cost.”

Buyers can still borrow in the private market. And a lot of them don’t even need a mortgage – they pay cash.


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Debt service swallows up 76% of income, experts say Buhari disagrees on borrowing https://sharewared.com/debt-service-swallows-up-76-of-income-experts-say-buhari-disagrees-on-borrowing/ Wed, 05 Jan 2022 23:35:35 +0000 https://sharewared.com/debt-service-swallows-up-76-of-income-experts-say-buhari-disagrees-on-borrowing/ Amarachi Orjiude and Sami Olatunji Posted January 6, 2022 The federal government revealed on Wednesday that it spent 4.2 billion naira on debt service between January and November 2021. This represents 76.2 percent of the 5.51 billion naira revenue generated during the period under review. Finance, Budget and National Planning Minister Zainab Ahmed revealed this […]]]>

The federal government revealed on Wednesday that it spent 4.2 billion naira on debt service between January and November 2021.

This represents 76.2 percent of the 5.51 billion naira revenue generated during the period under review.

Finance, Budget and National Planning Minister Zainab Ahmed revealed this in Abuja during the public presentation of the details of the 2022 Appropriations Bill, signed by the President, Major General Muhammadu Buhari (at retirement) on December 31, 2021.

The presentation, which included an overview of the 2021 budget execution, found that oil revenues contributed to N970.3 billion in total revenue generated during the period, while non-oil taxes contributed to 1.6 billion naira. Other income amounted to 2.8 billion naira.

Ahmed said: “In November 2021, aggregate income was 5.51 billion naira, which is 74% of the target. Of this, the share of oil revenue was N970.3 billion, which is 53% of the performance of the prorated sum in the 2021 budget while the share of non-oil tax revenue was 1.62 billion. naira, or about 118.8% above target.

“Corporate income tax and value added tax collections were N718.58 billion and N360.56 billion, or 115% and 165%, respectively, of the prorated targets. for the period. Customs collections amounted to N 542.11 billion, or 104 percent of the target.

“Other income amounted to 2.80 billion naira, of which independent income was 1.10 billion naira and retained income from state-owned enterprises was 1.20 billion naira.”

On expenditure, the Minister noted that the government spent N12.56tn on the budget pro rata N13.57tn, during the review period.

She added that the performance included estimates of GOE spending but excluded project-related loans.

Total expenditure represents 4.20 billion naira on debt service, 3.02 billion naira in personnel costs including pensions, and 3.2 billion naira spent on investment projects.

She stressed, however, that the figures for 2021 were provisional and, as such, subject to updates and reconciliations.

Meanwhile, Ahmed also said the government ran a budget deficit of 7.1 billion naira between January and November 2021.

She revealed that the total revenue generated by the government during the 11-month period was 5.51 billion naira while the expenditure amounted to 12.56 billion naira.

This resulted in a budget deficit of 7.1 billion naira, which is 1.14 billion naira higher than the prorated budget of 5.9 billion naira for the period under review.

She also revealed items used by the federal government to fund the 2021 budget, including multilateral and bilateral loans valued at N369.93 billion and new borrowing of N668 billion.

Ahmed said the N6.68tn was N1.65tn higher than the N5.05tn allocated to new loans in the 2021 budget.

While defending government borrowing and the country’s debt level, the minister insisted that the country had an income problem and not a debt problem, adding that the debt level remained within limits. sustainable.

She said: “This is to reaffirm that the federal government debt level is still within sustainable limits. Borrowing is primarily intended for capital expenditure and human development, as specified in section 41 (1) a of the 2007 Fiscal Responsibility Act.

“After witnessing two economic recessions, we had to spend to get out of the recession, which contributed significantly to the growth of public debt.

“It is unlikely that our recovery from each of the two recessions would have been so rapid without the sustained public spending financed in part by debt.

“To make matters worse, the country is technically at war with the pervasive security concerns across the country.

“This required massive expenditure on equipment and security operations, contributing to the budget deficit; the defense and security sector represents 22% of the 2023 budget.

It revealed that Nigeria’s budget deficit to gross domestic product stood at -4.3%, while the debt-to-GDP ratio stood at 30% in November 2021, one of the lowest in Africa.

Conversely, Nigeria’s debt service-to-income ratio rose to 76 percent in November 2021, the highest among Africa’s major economies, she said.

“This is proof that what we have is not a classic debt sustainability problem, but an income challenge,” she added.

However, experts on Wednesday criticized the government for the high debt service-to-income ratio, which made borrowing costly for the country.

SD&D Capital Management Managing Director Idakolo Gbolade said: “The Minister is just trying to cover up the Nigeria problem. I am very happy that she recognizes that we have a revenue problem.

“The issue of not having a debt problem can be established because they use the debt / GDP benchmark. But our debt-to-income service is abysmal. “

According to him, the borrowing rate is unsustainable and the government must make the necessary adjustments before the country finds itself in a serious debt problem.

“Our loan is not sustainable. If we do not increase our income, we will get to a point where we will use all of our payable income to pay down debt. Nigeria is heading towards this if something does not happen urgently.

“What we need to do is cut our fabric to fit our coat. We need to reduce borrowing and ensure that we fund essential projects. If we don’t, we are going to run into a serious problem in the future. ”

The World Bank had said Nigeria’s debt was vulnerable and expensive.

He added that the country’s debt risked becoming unsustainable in the event of macro-fiscal shocks.

However, the president, Major General Muhammadu Buhari (retired), stressed that the country takes loans according to need, adding that the loans are necessary to boost infrastructure development in the country.

He said this during an interview with Channels Television on Wednesday.

He said, “Well, we take loans where it’s needed. You know what was between Lagos and Ibadan only, not to mention the rest of the country. We had the Chinese to help us on the rails and the roads. How do we tie this up? If we have linked this now, maybe between Lagos and Ibadan now, we have to walk. So, Chinese are welcome. Anyone willing to come and help us with our infrastructure (roads, rail and electricity) will be welcome.

“We’ve had success and people have to measure success against the problems when we started. We need to build infrastructure and we have identified the infrastructure we need. We have to make the railroads work. We have to make the roads.

President added that Nigerians need to appreciate what his regime has done

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The total of first-time buyers “exceeded 400,000 last year for the first time since 2006” https://sharewared.com/the-total-of-first-time-buyers-exceeded-400000-last-year-for-the-first-time-since-2006/ Tue, 04 Jan 2022 00:01:00 +0000 https://sharewared.com/the-total-of-first-time-buyers-exceeded-400000-last-year-for-the-first-time-since-2006/ The number of people who took their first steps on the real estate ladder with a mortgage last year is estimated to have exceeded 400,000 for the first time since 2006. But the Yorkshire Building Society (YBS), which carried out the calculations, said the number of first-time buyers was unlikely to continue to be seen […]]]>

The number of people who took their first steps on the real estate ladder with a mortgage last year is estimated to have exceeded 400,000 for the first time since 2006.

But the Yorkshire Building Society (YBS), which carried out the calculations, said the number of first-time buyers was unlikely to continue to be seen at that level in 2022 and beyond.

First-time buyers accounted for half (50%) of home purchases with a mortgage in 2021, up from just over a third (36%) in 2007, according to the YBS.

Across the UK, he estimates there were 408,379 first-time buyers with mortgages in 2021.

This is the first time that the total has exceeded the 400,000 mark since the 400,900 first-time buyers recorded in 2006.

The analysis was based on the UK Finance trade association’s loan figures up to October 2021, with the YBS making estimates for November and December of last year.

The total of first-time buyers in 2021 was a 35% increase from 2020, when it was 303,000.

The YBS said a previous record for first-time buyers was set in 2002, when 531,800 took their first step on the housing ladder.

Last year’s total is more than double the number in the aftermath of the 2008 financial crisis, when the figure was 191,000.

House prices have generally reached new highs over the past year, posing a barrier for those trying to climb the real estate ladder. Some people may find that the prices have increased more than what they have earned in the past year.

Low mortgage rates help keep mortgage payments relatively affordable.

The Yorkshire Building Society said the price of a typical home for a first-time buyer rose 9% to £ 222,997 in the year through October.

A year earlier, the average first-time buyer home had cost £ 204,230 – £ 18,767 less.



We are unlikely to continue to see a number of first-time buyers at this level in 2022 and beyond

Nitesh Patel, Yorkshire Construction Company

Nitesh Patel, Strategic Economist at YBS, said: “The performance of the first-time buyers market in 2021 has been extraordinary, especially against the backdrop of uncertainties caused by the foreclosure of the first months of the year.

“There are strong demand drivers behind the increase in volumes. Low borrowing costs are an important factor and the increased availability of more low deposit mortgages has also been a catalyst, mainly for first-time buyers.

“Unemployment has also fallen over the past year and the labor market has strengthened since the gradual reopening in April.”

He added: “In the short term, the demand for housing will continue to exceed supply; however, with prices at a high level relative to local incomes, this should dampen activity. Therefore, it is unlikely that we will continue to see a number of first-time buyers at this level in 2022 and beyond. “


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Economist and private sector leaders predict crisis in Trinidad and Tobago https://sharewared.com/economist-and-private-sector-leaders-predict-crisis-in-trinidad-and-tobago/ Sun, 02 Jan 2022 05:42:53 +0000 https://sharewared.com/economist-and-private-sector-leaders-predict-crisis-in-trinidad-and-tobago/ News Ria chaitram 2 hours ago A line of Kiss bread for sale at Benefit The People supermarket in San Juan. Bread prices will increase in early January. – PHOTO BY SUREASH CHOLAI Several leaders from various sectors of the economy believe Trinidad and Tobago will experience significant declines in 2022, as the pandemic persists […]]]>

News



A line of Kiss bread for sale at Benefit The People supermarket in San Juan. Bread prices will increase in early January. – PHOTO BY SUREASH CHOLAI

Several leaders from various sectors of the economy believe Trinidad and Tobago will experience significant declines in 2022, as the pandemic persists and uncertainty looms.

Their comments came after the central bank released its final monetary policy announcement (MAP) for 2021 on Friday, which indicated there would be further increases in food and base inflation.

“Food inflation jumped to 7.6% from 5.8% in September and is expected to increase further given the situation on world grain markets,” he said.

The Central Bank pointed out that headline inflation in October rose to 3.9% year-on-year from 2.4% in September. Core inflation, which excluded food, doubled to 2.9% and the building materials price index rose 12.6% in the third quarter of 2021.

Economist Dr Vaalmikki Arjoon told Newsday on Sunday that rising wheat prices had triggered a chain reaction that would further worsen an already high cost of living.

Although some agri-food importers and distributors are looking for closer suppliers, such as in Latin America, Arjoon explained that supply chain issues persist due to global demand and supply parameters.

He said: “Everyone including business owners and their households will be faced with this increased cost of living due to the increase in flour prices – they will pass this higher cost on again. on consumers, which will further inflate prices, not only for the items for which flour is used to produce but also for other consumables that are used daily.

“The supply chain problems may last at least until the end of 2022, despite some increases in production at factories from Asia. Going forward, local manufacturers, especially food processors, should consider using hedging strategies to lock in specific prices from suppliers of raw materials, such as agricultural products used in the food industry, etc., thus protecting themselves from having to pay higher prices in the future if there are further price increases in the world market. At the end of 2021, the main flour suppliers, National Flour Mills and Nutrimix, announced price increases, effective in early January, which range from 10 to 22%. This had the ripple effect of announcements by Kiss Baking Company and Linda’s Bakery Ltd of impending price increases for its bread products.

Antoniana Clarke sources her flour from the Better Deal supermarket in Aranguez on December 29, 2021. Flour prices will be increased in early January. – PHOTO BY SUREASH CHOLAI

The price increases, Arjoon pointed out, will be made worse by shortages caused by delays at major international ports, high freight charges from China, higher black market exchange fees for importers who cannot access adequate foreign exchange from authorized dealers, higher energy prices and additional customs and port rental charges.

He said the US Federal Reserve’s decision to stop injecting liquidity through bond purchases, which would likely raise interest rates next year, may also hurt TT.

“This means that investments in the United States will provide a higher return and encourage some capital flight from TT, where several entities will invest in American securities and assets to benefit from those higher returns.

“Although the Central Bank keeps the repo rate at 3.5%, future rate hikes in the United States could at some point cause the Central Bank to raise our repo rate to prevent part of the repo rate. this capital flight, but it could also drive up interest on future commercial bank loans, making borrowing more expensive.

Supermarket Association (SATT) President Rajiv Diptee said the pandemic left the government with an element of uncertainty in planning, especially when framing an expansionary monetary policy coupled with an economic recovery. .

He said major territories such as the United States and the United Kingdom continued to experience high inflation which spilled over to smaller economies such as TT.

“The mechanism used is rising interest rates with the commonly held view that money available at higher rates means less borrowing translating into less expense, thus limiting demand and lowering prices over time. time.

“As businesses reopen and seek access to the bag of budget goodies accessible and available starting this year, it really behooves banks to work with their customers especially as many don’t tick certain boxes when they do. is about audited accounts etc. ”Diptee mentioned.

Food price inflation in a covid19 environment, he said, with the emergence of vaccine variants and reluctance, was not going to be temporary, as major food producers not only have incurred increased costs of inventory and raw materials, parts and machinery, but other factors beyond the price of inputs.

TT Chamber CEO Gabriel Faria said the economic impacts of covid19 crippled micro, small and medium enterprises (MSMEs) and the self-employed, and despite the recovery trend, a significant proportion continued to struggle.

“It is clear that the crisis is far from over. Large companies, especially the financial sector with stronger balance sheets, liquidity and assets, have been able to hold up.

“Other specific sectors, mainly food, beverage, pharmaceutical distribution and retail, actually improved their performance as consumers spent much less and focused on discretionary purchases such as essentials. and health, ”he said.

Faria stressed that continued declines or slowdown in the economy were expected for the first six months of 2022, which would be influenced by vaxx levels and workplace vaccine mandates that would create some disruption in the delivery. services, especially in the public sector.

Referring to an Inter-American Development Bank quarterly bulletin from August 2021, he said, the continued deterioration in the fiscal balance puts TT in a worse position before covid 19 and that was expected for another four years.

“In the case of Barbados and the TT, this deterioration exceeded eight percentage points of gross domestic product, and it could take years to return to pre-crisis levels. For TT, budget balances are expected to remain worse than before covid19 until 2026. This forecast could deteriorate further with recent increases in cases and deaths.

“I hope the government will take action to provide meaningful support to vulnerable people in our society, both citizens and small businesses. This could include the use of funds from the Heritage and Stabilization Fund, but there must be full transparency on how this money is used, ideally with an external body made up of civil society and government with fiscal oversight. appropriate on the use of these funds, ”Faria explained.

In addition, he called for mobilizing excess liquidity through tax incentives for investment in the MSME sector, which will provide capital and mentorship.

The finance ministry issued a statement on Friday recalling tax relief measures, several of which target technology and digitization, which came into effect on January 1. They include for SMEs a reduction in the tax rate of five percent for three years for companies whose main activity is technological solutions and digitization, as well as a tax holiday during the first period of five years for those companies. new SMEs listed on the TT stock exchange.

Measures for large companies include a five percent reduction in the tax rate for large exporters of goods for three years and a five percent reduction in the tax rate for the manufacturing sector for two years on projects. eligible.


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TD SYNNEX CORP: Signing Significant Final Agreement, Financial Statements and Supporting Documents (Form 8-K) https://sharewared.com/td-synnex-corp-signing-significant-final-agreement-financial-statements-and-supporting-documents-form-8-k/ Wed, 29 Dec 2021 21:22:04 +0000 https://sharewared.com/td-synnex-corp-signing-significant-final-agreement-financial-statements-and-supporting-documents-form-8-k/ Item 1.01 Conclusion of a Material Definitive Agreement. At 22 December 2021, SYNNEX TD Company (“TD SYNNEX”), its subsidiaries which are the initiators and its subsidiary – SIT finance company (“SIT”) – who is the Borrower hereunder, has amended TD SYNNEX’s accounts receivable securitization program (the “Trade Receivables Securitization”) by entering into (i) a Fifth […]]]>

Item 1.01 Conclusion of a Material Definitive Agreement.

At 22 December 2021, SYNNEX TD Company (“TD SYNNEX”), its subsidiaries which are the initiators and its subsidiary – SIT finance company (“SIT”) – who is the Borrower hereunder, has amended TD SYNNEX’s accounts receivable securitization program (the “Trade Receivables Securitization”) by entering into (i) a Fifth Financing Agreement and Amended and Restated Debt Administration (the “New Financing Agreement”) with the financial institutions party to it as lenders and managing agents and The Toronto-Dominion Bank, as administrative agent (the ‘”Agent”), and (ii) the Twentieth Amendment to the Third Amended and Updated Sales and Receivables Management Agreement with the institutions which are parties thereto as Lenders and Managing Agents (collectively, the ” securitization amendment ”). The new financing agreement modifies and reformulates the fourth modified and updated financing and receivables administration agreement of the company dated November 12, 2010 between SIT, the financial institutions which are parties to it as lenders and managing agents, and the administrative agent who is a party to it.

Among others, the changes brought about by the securitization amendment include the extension of the due date of the trade receivables securitization to
20 December 2024 and fixing the loan commitment of the lenders to the SIT at
$ 1,500 million. The actual cost of borrowing for the securitization of trade receivables has also been modified by adjustments to (i) program fees payable on the used portion of the lenders’ commitment, which will now accumulate at 0.75 % per annum and (ii) the facility fees payable on the adjusted lender commitment, which will now accumulate at different levels ranging from 0.30% per annum to 0.40% per annum depending on the amount of the advances unpaid from time to time.

The foregoing description of the securitization amendment is qualified in its entirety by reference to the securitization amendment which is attached hereto and filed as Exhibits 10.1 and 10.2 of this current report on Form 8-K and is incorporated herein by reference.

Item 9.01 Financial statements and supporting documents.


(d) Exhibits.



Exhibit No.   Description

10.1            Fifth Amended and Restated Receivables Funding and Administration
              Agreement, dated as of December 22, 2021, by and among SIT Funding
              Corporation, TD SYNNEX Corporation, the lenders party thereto and
              The Toronto-Dominion Bank, as agent.
10.2            Twentieth Amendment to Third Amended and Restated Receivables Sale
              and Servicing Agreement, dated as of December 22, 2021, by and among
              TD SYNNEX Corporation, SIT Funding Corporation, Westcon Group North
              America, Inc., the originators party thereto, the lenders party
              thereto, and The Toronto-Dominion Bank, as agent.
104           Cover Page Interactive Data File (embedded within the Inline XBRL
              document).




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FG predicts new borrowing of N12tn and public debt will reach N50tn by 2023 https://sharewared.com/fg-predicts-new-borrowing-of-n12tn-and-public-debt-will-reach-n50tn-by-2023/ Tue, 28 Dec 2021 01:32:12 +0000 https://sharewared.com/fg-predicts-new-borrowing-of-n12tn-and-public-debt-will-reach-n50tn-by-2023/ Amarachi Orjiude and Sami Olatunji Posted December 28, 2021 Government borrowing plan focuses on domestic bonds and concessional external loans The federal government hopes to raise its stock of public debt to N50.22 billion by 2023, with domestic debt of N28.75 billion and external debt of N21.47 billion. This is according to the projections of […]]]>

Government borrowing plan focuses on domestic bonds and concessional external loans

The federal government hopes to raise its stock of public debt to N50.22 billion by 2023, with domestic debt of N28.75 billion and external debt of N21.47 billion.

This is according to the projections of the National Development Plan 2021-2025.

The Debt Management Office had revealed that Nigeria’s public debt stood at 38 billion naira at the end of the third quarter of 2021, with the total stock of debt increasing by 2.540 billion naira in three months from July to September 2021.

This shows that the regime of the president, Major General Muhammadu Buhari (retired), plans to accumulate around 12 billion naira in debt in two years, from 2021 to 2023.

However, based on the plan, the government is aiming for a reduction in total public debt by 2025.

A tabular illustration of the document shows that the government targets debt stock of 39.59 tn for 2021, 46.63 tn for 2022, 50.22 tn for 2023, 50.53 tn for 2024 and 45.96 tn by 2025.

The government also reveals that it needs money to finance the N348.1 billion plan, and the borrowing framework in the plan is 45 percent each for foreign and domestic borrowing.

The plan read in part, “The plan will require an investment of around 348.1 billion naira to achieve the plan’s targets during the period 2021-2025. It is estimated that the government capital expenditure during the period will be 49.7 billion naira (14%) while the balance of 298.3 billion naira (86%) will be incurred by the private sector. Of the 14 percent of the government’s contribution, the capital expenditure of the FGN will be N29.6 billion (9 percent), while the population of subnational governments

“The borrowing framework in the plan is 45 percent each for foreign and domestic borrowing, while other sources of finance represent 10 percent. Domestic bonds and concessional external debt financing, among others, will drive the plan’s borrowing strategies. Thus, the government will improve current debt management strategies to ensure sustainability. ”

Assets must be created to justify debt, infrastructure needs critical, analyst says

An investment analyst, Omosuyi Temitope, said that while the debt service-to-income ratio will exceed even by 2022, the government appears to be borrowing for obvious reasons.

He said: “In fact, the debt service-to-revenue ratio would remain above 80% in 2022, but there are obvious reasons why the government needs to take out more loans.

“First, no nation can achieve sustainable development without certain forms of borrowing to finance projects and programs conducive to growth. Nigeria’s infrastructure needs are essential for its sustainable and inclusive growth.

“Anyone can clearly deduce the negative impact of poor infrastructure on the country’s growth, ranging from the high cost of doing business to the high cost of living in unimpressive general living conditions, to name but a few. -a. “

However, he stressed the need for debt to be sustainable through the creation of assets and value that justify debt.

“Nonetheless, it is imperative that the government ensure that debt obligations are sustainable by creating assets and value that justify soaring debt,” he said.

The current debt ratio is worrying, the borrowing rate is not sustainable – Tella

For his part, an economics professor at Olabisi Onabanjo University, Ago-Iwoye, Ogun State, Professor Sheriffdeen Tella, said the level of debt was concerning and the government should not consider borrow more, urging the government to consider other means of generating income. .

He said: “Even at the level where we are now, it is worrying not to talk about planning to borrow more. It is unfortunate that the government is always thinking about borrowing instead of thinking about other ways to generate income.

“They can ensure that public-private partnership projects are built, once operational and producing capital, although whoever implemented it can generate their money plus interest, then the project becomes ours and we can generate income from them. There are projects that we can scale down until we have enough funds to implement and there are projects that can generate money on their own.

Go after the rich Nigerians, who owe the country instead of borrowing – Economist

“Instead of always thinking about borrowing, the government can go after those who owe the country. funds.”

He added that the pace of government borrowing was not sustainable as the revenues generated would be used for debt service.

“In addition, our borrowing rate is not sustainable, because almost all the revenue generated by the country is used to pay off the current debt and this is why the government does not have enough to pay off a large part of its expenses, ”he added.

Rising debt profile raises sustainability issues – CPPE

An economist and director general of the Center for the Promotion of Private Enterprise, Dr Muda Yusuf, said the government’s growing debt profile raised sustainability concerns.

Yusuf, former director general of the Lagos Chamber of Commerce and Industry, said: “The government’s growing debt profile raises serious sustainability issues. Although the government tends to argue that the condition is not a debt issue, but an income issue. But the truth is, debt becomes a problem if the income base is not strong enough to service the debt on a sustainable basis. It invariably becomes a debt problem.

He also stressed the need to cut spending and implement reforms that can reduce governance costs and lighten the tax burden.

“What is needed is the political will to cut spending and undertake reforms that could reduce the size of government, lower governance costs and ease the government’s tax burden.

“It is imperative that the country functions as the real federation that it claims to be. The unitary character of the country makes it difficult to exploit the economic potential of sub-nationals. It perpetuates the culture of dependence on the federal government.

“There is a need to reduce the size of government and the cost of governance. Fiscal sustainability is determined by both costs and revenues. It is therefore imperative to manage the main cost and revenue drivers. To the extent possible, the government should push back those sectors or areas of activity where the private sector has the capacity to produce the desired results. We should see more concessions and privatizations at all levels of government, ”he said.

He added that the debts, which should be concessional, should be used to strictly finance investment projects that would increase the productive capacity of the economy.

“It is important to ensure that debt is used strictly to finance investment projects that would strengthen the productive capacity of the economy. This is the position of the law on fiscal responsibility.

“In addition, the focus should be on concessional financing, as opposed to commercial debt which is usually very expensive,” he added.

FG Borrowed Irresponsibly – Moghalu

A former vice-governor of the Central Bank of Nigeria and former presidential candidate Kingsley Moghalu condemned the federal government’s constant borrowing, saying it was irresponsible.

He said, “I condemn the borrowing plan in its entirety. I think the Federal Government of Nigeria has irresponsibly borrowed and mortgaged the future of the youth of Nigeria.

“It should stop. The damage will be very difficult to repair. Nigeria does not need to borrow at the rate it borrows and the huge sums it borrows.

“There is an element of insensitivity to that. They go out of their way to borrow before 2023, then walk away and turn it over to someone else.

FG becomes reckless in borrowing – CACOL

The executive director of the Center for Anti-Corruption Open Leadership, Mr. Debo Adeniran, said the government was getting reckless in borrowing at a rapid pace.

He said: “The government is quickly becoming reckless in the way it borrows, yes it could have its reasons for resorting to borrowing due to the infrastructure deficit and collapse that existed before the arrival of this administration. but this administration needed to understand that it could not solve all the problems of over 50 years overnight.

He added that taking out loans at interest is likely to enslave citizens and future generations.

“And taking out loans at interest is likely to enslave us and generations to come. Most of the countries that give us loans trap us like China. All the infrastructures for which we use their loans to build are very sensitive and if they want to take them back, the Nigerians will suffer ”, he added.

He advised the government to recover the looted funds, which would be useful in financing infrastructure projects.

“What I think the government could have done is recover the looted funds and what the looters bought with the proceeds of their crime, that will go a long way in closing some of the infrastructure gaps that we are filling with. loans, ”he said. noted.

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What is the Fed Cone? Here’s how the Federal Reserve withdraws its stimulus https://sharewared.com/what-is-the-fed-cone-heres-how-the-federal-reserve-withdraws-its-stimulus/ Sun, 26 Dec 2021 11:00:00 +0000 https://sharewared.com/what-is-the-fed-cone-heres-how-the-federal-reserve-withdraws-its-stimulus/ Source: Adobe / Muhammad Syafiq Edouard Wemy, Assistant Professor of Economics, Clark University._____ Tapering refers to the Federal Reserve’s (Fed) policy of unwinding the massive purchases of Treasury bonds and mortgage-backed securities it made to support the economy during the pandemic. Unconventional asset purchase monetary policy is commonly known as quantitative easing. The Fed first […]]]>
Source: Adobe / Muhammad Syafiq

Edouard Wemy, Assistant Professor of Economics, Clark University.
_____

Tapering refers to the Federal Reserve’s (Fed) policy of unwinding the massive purchases of Treasury bonds and mortgage-backed securities it made to support the economy during the pandemic.

Unconventional asset purchase monetary policy is commonly known as quantitative easing. The Fed first adopted this policy during the 2008 financial crisis.

Normally, when a central bank wants to reduce the cost of borrowing for businesses and consumers, it lowers its target short-term interest rate. But with its target rate at zero during the 2008 crisis – when there was no inflation and the economy was still suffering – the Fed was no longer in a position to cut rates further. The Fed therefore turned to quantitative easing to further reduce borrowing costs. When the government buys assets, their prices go up, lowering their yield or interest rate.

The Fed adopted this policy again in March 2020 after the COVID-19 pandemic led to a nationwide lockdown. As of November 2021, the Fed had bought more than $ 4 trillion in treasury bills and other securities.

The U.S. central bank began to shrink in November 2021, reducing total purchases by $ 15 billion per month, from $ 120 billion to $ 105 billion. The Fed decided to double the pace of its decline on December 15. Instead of $ 15 billion, the Fed will cut its purchases by $ 30 billion each month. At this rate, it will no longer buy new assets by early 2022.

Why is this important

Growing concerns among economists that rising inflation could hurt the economy are likely a big part of what led the Fed to start cutting back.

Inflation is the rate of change in the price of goods and services. The Consumer Price Index, which includes several categories of everyday items that a typical American might buy, is the most frequently reported measure of inflation in the media. In November 2021, it was up 6.8% from the previous year.

Regardless of the measure, inflation is above the Fed’s target of 2%. By cutting back on asset purchases, the Fed can help reduce inflation – or at least slow its rise – because it withdraws some of the monetary stimulus that fuel economic growth.

The reason the Fed decided to speed up the process is probably because it now believes inflation may be less transient than it had hoped, at the same time as the labor market looks strong.

What this means for you

Americans have enjoyed lowest interest rates for most of the past 13 years, which has made it cheaper to borrow money to buy cars and homes and start businesses.

[Over 140,000 readers rely on The Conversation’s newsletters to understand the world. Sign up today.]

Consumers and businesses are already starting to see slightly higher rates on mortgages, business loans, and other types of borrowing.

In other words, the era of cheap money may finally be coming to an end. Enjoy as it lasts.

The conversation

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Learn more:
– Inflation is the biggest test to date for central bank independence
– Bitcoin, Ethereum jump as Fed doubles cut, signals rate hikes, talks crypto

– How the global economy could affect Bitcoin, Ethereum and Crypto in 2022
– Arthur Hayes tells crypto traders ‘It pays to wait’, stronger USD to come

– Eurozone Fiat is plunging – and unlikely to rebound anytime soon
– “Paper Money” hits record high compared to Bitcoin and other sustainable assets – CEO of Pantera


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Burning Questions: Is Ottawa Finally About To Take Real Estate Bubbles Seriously? https://sharewared.com/burning-questions-is-ottawa-finally-about-to-take-real-estate-bubbles-seriously/ Fri, 24 Dec 2021 11:04:51 +0000 https://sharewared.com/burning-questions-is-ottawa-finally-about-to-take-real-estate-bubbles-seriously/ Christopher Ragan, founding director of McGill University’s Max Bell School of Public Policy and former central bank adviser, said in an essay published this week by this Hub that perhaps Freeland and Macklem disagree on how the central bank should conduct policy, rather than forming a united front which they presented to the public. “Perhaps […]]]>

Christopher Ragan, founding director of McGill University’s Max Bell School of Public Policy and former central bank adviser, said in an essay published this week by this Hub that perhaps Freeland and Macklem disagree on how the central bank should conduct policy, rather than forming a united front which they presented to the public.

“Perhaps that is why the joint statement is so much longer than the previous ones, with these various other topics mentioned,” he said. “Perhaps their inclusion was insisted by the minister as a ‘shot’ through the arc ‘of the bank, a warning that if it doesn’t change its ways, the government may be ready to step in.”

Stephen Poloz, the former governor, said in 2014 that too many people had come to view the central bank’s inflation target as a cap, not the midpoint of a comfort zone of 1 % to 3%. It tended to favor growth, leaving interest rates low even as the unemployment rate fell below six percent, a rating that was now associated with “fair” economic growth. An unemployment rate below this was seen as a harbinger of price spikes.

The unemployment rate would drop to 5.4% and was still comfortably below 6% when the COVID-19 pandemic changed everything in March 2020. Some economists have insisted Poloz is playing with fire, but inflation remained under control. A narrow reading of his mandate could have resulted in higher interest rates. But Poloz used the flexibility he had to take a calculated risk. As a result, he broadened the definition of what was possible, at least under the right conditions.

“The bank has learned something from this,” Macklem said during the interview, which took place at the central bank’s headquarters in Ottawa on December 15.

Poloz and Macklem both contributed to the research that persuaded Brian Mulroney’s government to endorse an inflation target three decades ago. Both were senior economists at Western University in London, Ont., Who earned their doctorates amid the double-digit inflation of the late 1970s and early 1980s. This period informed the early emphasis on removing the cost of goods and services.

But as the threat of chronic inflation receded, the central bank focused on maintaining a narrow “output gap,” the difference between real gross domestic product and the Bank of Canada’s estimate. the non-inflationary speed limit of the Canadian economy.

“Inflation targeting has never been a mechanical exercise,” Macklem said. “It was never just about inflation. Employment, the output gap have always been an important part of the framework. This new mandate spells it out clearly. It ratifies what we have done.

The Great Recession was a game-changer

If the Bank of Canada’s new five-year term is more chaotic, it’s because the world is more chaotic than it was a few decades ago, when central bankers bragged about designing the Great Moderation and that political scientists were seriously talking about the end of history.

Central bankers believed in a “divine coincidence,” the statistically strong, but somewhat mysterious, correlation between low inflation and low unemployment. Politicians have come to accept that central bankers are left alone, like judges, to do what they need to do without interference. Central bankers have protected themselves against interference by being careful about what they say and sticking to their mandates.

The Great Recession was a game changer. He showed that by focusing on inflation, policymakers brought into play other important variables, including much of what happens in financial markets. The political response to the financial crisis of 2008 and 2009 was weak, forcing central banks to play an inordinate role, which exposed them to political pressures that have not abated.

Many of the rules of thumb on which inflation targeting is based no longer hold, while new research suggests that variables such as inequality play an important role in economic stability and, therefore, the policies needed to achieve this. expensive balance between inflation and growth. When it comes to climate change, every major economy has signaled its intention to take a holistic approach to what most see as an existential threat.

Given all of this, it is unrealistic to think that the Bank of Canada would be left alone to monitor the Consumer Price Index. There are a lot of topics in the mandate because central banks are central players in a lot of the pending discussions. It is better to be honest about it than to pretend otherwise.

“It is important that the goals of monetary policy have political legitimacy, that they reflect the will of the people as reflected in their elected governments,” Macklem said. “It is precisely by agreeing on a clear mandate that it makes it easier for the Bank of Canada to preserve its independence and pursue its objectives.”

Financial imbalances

Rather than the promise to probe full employment, the new mandate commitment warranting further discussion is this: “The government and the bank recognize that a low interest rate environment may be more conducive to financial imbalances. In this context, the government will continue to work with all relevant federal agencies to ensure that Canada’s provisions for financial regulation and supervision are fit for purpose and will consider changes where necessary. “

Macklem’s margin of error is small here. The Bank of Canada’s benchmark interest rate was 2.75% when the Consumer Price Index last tested 5% in early 2003. It raised interest rates by half a point to slow growth. A few months later, when it realized that it was ahead of itself, the central bank lowered interest rates to 2.75%.

The target rate is currently 0.25% and was only 1.75% at the start of the pandemic. Economic and financial conditions have changed so much over the past two decades that the ceiling on borrowing costs is likely to remain uncomfortably close to zero.

This means that the controversial central bank bond-buying program will almost certainly be back when the economy goes into recession, as cutting the benchmark interest rate from an already low level will not provide enough support. stimulus to turn the economy around. As a result, the housing market will remain dangerously foamy unless policymakers offset the effects of ultra-low borrowing costs.


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