O/T Coronavirus Thread (3)

[CAMiller]

New week - new beginnings (as the last one breached the 1000 post barrier)

[ragingpup]

Ding Dinggg. Round 3.

[animallittle3]

@ Wanchai

I've no problem with the people of China , I've not met that many but several years ago the company who I worked for had a good number of young Chinese lads working during the summer unloading containers , students earning a crust in the summer holidays .

They were a privilege to work with , polite , hardworking and worked together on the job as a team .

The Chinese Communist Party is another matter .

[gm_gm]

Update on CBILs changes ... please remember the Govts 80% garuantee is second ranking

The maximum value of a facility provided under the scheme is £5 million, available on repayment terms of up to six years.
For term loans and asset finance facilities: up to six years.

For overdrafts and invoice finance facilities: up to three years.

The scheme provides the lender with a government-backed, partial guarantee against the outstanding balance of the finance.

The borrower remains 100% liable for the debt.

If a lender can offer finance on normal commercial terms without making use of the scheme, it will do so.

The lender can choose to use the scheme for unsecured lending for facilities of £250,000 and under.

The Big Four banks have agreed that they will not take personal guarantees as security for lending below £250,000.

For facilities above £250,000, it must establish that the borrower is unable to provide security, before it uses CBILS.

Primary residential property cannot be taken as security under the scheme.

The Government will make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied charges

There are no guarantee fees for SMEs. Lenders pay a fee to access the scheme.

[howdydoo]

gm gm

Thanks for the update. Afraid it falls on deaf ears around these parts.

The usual suspects have never run a bath, never mind a business.

[WanChaiMiller]

Gm. Spot on, exactly as I understanding it. But the terms of how to apply for the loan is clearly not the point Im making.

[gm_gm]

Gm. Spot on, exactly as I understanding it. But the terms of how to apply for the loan is clearly not the point Im making.

Sorry Wan, thought id covered your liquidity crisis point on the basle 3 accord.

I did say theres no liquidity crisis YET. If you are familiar with the "Cobra" effect which relates to the East India offering locals money for the heads of cobras in the 1600s, some enterprising Indians started to breed Cobras which became a business! When the EIC realised their mistakes and abandoned the plan, in turn the locals released the cobras back into the wild and India now had more cobras than before!

Basle 3 is similar in so much that the banks have to hold capital and asset ratios of rough 2:1 for most borrowings, so the moneys there....it may well be that the regulators may have to revisit Basle 3 to allow the banks to lend more

Edit...lend more but cautiously with further risk based criteria

[Brin]

Liverpool v Athletico Madrid....virus links an 'interesting hypothesis'

http://www.bbc.co.uk/sport/football/52362099

[WanChaiMiller]

Gm. If there is no liquidity crisis why did Sunak make a mind boggling £300bn available to business?

Why has USA made £1.7trillion available.

Why did TUI need a £1.7bn bailout from the German Gov.

Why is Branson out with his begging bowl and willing to remortgage his Island to put cash in his business.

Please think outside your banking bubble.

[Lasterman]

Interesting figures from ONS this morning for week ending 10th April. There were 10,000 more deaths than would be expected for that week, but only 6,000 were connected to Coronavirus in any way. So an extra 4,000 deaths not connected to Coronavirus. Can think of a lot of possible reasons, but this will take a long time to unpick.