Government/Private Loans

I feel that is probably right to take this debate into another thread, currently with our massive surplus of products most notably on the Guns and Food market is getting big and lowering prices. Now on the food market the vast majority of the Surplus is at Q1 with some at higher qualities. This thread is going to go over the idea of government/private loans to help us aid the economy.


Goals of these Loans
The goals of these loans are:
1. Make eBelgium have a stronger and more independent economy
2. Help local business owners with Financial Aid
3. Lower Market Surplus

Loans

Government Loans/Private Loans would be provided from either the NBB-BNB or a commercial Belgian Bank which I might actually make if this idea goes over well. The idea would be to give loans to Belgian Business owners to either A. Buy Export Licenses (they need approval from us on Country) or B. Upgrade the quality of their company(s). The interest rate would be fairly low just enough to make a little profit. They would need to be trusted citizens even with contracts in the late future as they can still scam you.

Funding

If government funded then funds from the national bank would be used with additional efforts. Another idea is to use Federal Backed Bonds with either a commercial bank or a government bank. Citizens purchase Bonds at 1g each and every two weeks they receive 1.25 BEF per bond purchased. After 1 month they can ask for their money back and receive it.

Type of Loans
1. Financial Relief - Small loans used to buy Raw materials or pay employees while you wait for your products to sell, usually 3-8g at 7.5% interest
2. Export License Loan - A loan at a value of anything from X up to 20g to purchase a license. A full business plan is needed to apply for these and with a payback. A term of 40 days applies to this loan at an interest of 9% so you need to have an income of .545g daily if you needed 20g to pay off the loan.
3. Company Upgrade Loan - Now these loans are more costlier and unless the bank had enormous funds then the max cap would be around 35g for upgrading your company. The term and interest depends on the Borrower.

Risk
The risk of this is that people can scam us due to the admins unwillingness to support Player contracts anymore. We would have to give out to trusted individuals who we know will pay out the loan and need a sort of leverage in tricky situations. An idea would be for the company owner to put up a company in a Bank owned Organization that he manages. If he changes the password the bank can get it back as they set the email. This would require trust with the bank and once the loan is paid off they move the company.


Anyone like the idea of this?

nice idea you got my support

whups, had to edit a few errors...

don't have time to read it but questions :

1 - How do you intend to inforce this loans, like : hey I request a loan? but then never pay back? You give an idea but this is quite limited as possibility and the risks are BIG

2 - how do you qualify : Trustable players? You are around since less then a month. Does this make you trustable?

Otherwise the idea it good on paper, but we have only very limited funds in Belgium and this involves a lot of risks. Also, you need to find someone trustable to follow everything up. That is the main problem right now : the time it all takes to manage at a daily basis. Your ideas or not bad but it would take several hours a week checking everything.

Like an investment fund : this requires HOURS a week and is by this barely doable as good as it sounds...

Everything has a risk to it, but we would have to determine some sort of Criteria for Determining a Trusted Player and yes length of stay in eBelgium will have an effect and I have only been here for less then a month but there are other factors. V2 is coming out in awhile and I am pretty sure Admins are going to reinstate a rule of contracts then. So until then all loans would have to be to trusted people and Trusted would need to be Defined.

Basic Criteria
- Citizenship of eBelgium required
- Activeness helps
- Government Official?
- RL Belgian?
- Has ties to the community?
- Owns a multitude of Companies in eBelgium
- Other friends say that he/she is trustable

I know it takes hours weekly but I would be willing to run this bank...

With no official contracts anymore it is impossible to enforce loans.
There is no way to guarantee that the government will get the money back.
Personally I would think that is a too big of a risk.
I wouldn't want my government spending money on high risk things like this

Fhaemita Malodorous wrote:With no official contracts anymore it is impossible to enforce loans.
There is no way to guarantee that the government will get the money back.
Personally I would think that is a too big of a risk.
I wouldn't want my government spending money on high risk things like this

+1

on paper it is good and the day that admins will reinstate contracts this will be done, but right now... But if you are willing to manage the administrative part, would you be willing to do it for an investment fund?

We have an idea, but the administrative part is just so time taking that we are looking into other options.

Exactly. No because you won't get your money back if you lend out money.

i say that u shouldnt do this as government.
In the UNL i have spoken about using some gold for an investmentgroup (that means that unl just gets a piece of multiple q5 companies who all make profit or otherwise will be sold), this has way less risk then a bank.
But my proposal got voted down because it had to much risk and the government should allways have some cash around for emergency.
I would strongly suggest to not start this, because it has to much risk and u might need the gold.
For example if the BEF starts shooting the other way (lets say to 0.013) then u want that the government takes action and buy everything up to an certain amount (like 0.018). if u dont have gold to do that then u are screwed and u can do alot of damage to the economy.

It was optional for a government use and I do understand that there are risks involved but the day V2 comes out as that is when Admins will most likely reinstate contracts you will see this coming out blazing. I offered to do it as a private institution and it would have been nice if the eBelgian Government would back bonds up to 5-10g.

On the investment fund I would be glad to help out with that as I waste hours on here doing nothing. Rather have something to fill in the gap.

imho the only thing that government can invest in is some sort of investment fund that is not taking any risks, but just buys companies and runs them for profit.
This investmentfund should be a bit big because then the belgian govenrment can be there to only be investor and not the one running the companies.
But keep in mind that u want a stock that is away from all of this, u need to stockpile some BEF and gold first before u think about this.
In the UNL we are storing 2k gold and 50k nlg, just so that all changes at the MM can be stabilised.
I think its more important for belgium to also focus on that first and if u have much money left then, then u should do stuff like this.

i don't think the government should loan out money,
but perhaps some rules of conduct would be a good idea
to prevent loan sharks

oXyTeC wrote:i don't think the government should loan out money,
but perhaps some rules of conduct would be a good idea
to prevent loan sharks

It doesnt have to be the government... It can be a private institution.

It doesnt have to be the government... It can be a private institution.

Then they can without asking permission to us =P

Apotygma wrote:

It doesnt have to be the government... It can be a private institution.

Then they can without asking permission to us =P

Well if you ask me Banks for local affairs should be chartered by their Government.

Well if you ask me Banks for local affairs should be chartered by their Government.

Given through? That would be given a kind of backing to them...

Apotygma wrote:

Well if you ask me Banks for local affairs should be chartered by their Government.

Given through? That would be given a kind of backing to them...

? Banks in RL need to be chartered by their Country's government before they can operate as the Government audits them and hears their purpose. The idea of a bank for eBelgium is closed until Contracts get reinstated if you ask me.

Its sad how inactive this section is =(..

I got a 10 for economy, so please

Sammy Tanghe wrote:I got a 10 for economy, so please

I got a 12 last semester! The whole frigging book was filled with neoliberal Reaganistic crap. I hated it soooo much.
There was a chapter: "Arguments against free trade." It was 3 pages long in a book of 600 pages and all the arguments we're turned down with silly counter-arguments.

Reaussou wrote:

Sammy Tanghe wrote:I got a 10 for economy, so please

I got a 12 last semester! The whole frigging book was filled with neoliberal Reaganistic crap. I hated it soooo much.
There was a chapter: "Arguments against free trade." It was 3 pages long in a book of 600 pages and all the arguments we're turned down with silly counter-arguments.

it was an introdution class for us, so very basic lessons for us. Still, for me a poor historian hard enough.

supply and demand, oh noes!

16/20 and I am studying it daily. LOVE IT !

Are you guys all college students?

Well... yes. Political scientist!

Velitia wrote:Are you guys all college students?

yep Handelsingenieur

lol my medicine study has nothing to do with it, but in highschool i was allways one of the best in economy and its doesnt really matter.
The question is if u understand the game mechanisms.
but lol on all the college guys here

You guys are way off topic
spam spam spam

Velitia wrote:Are you guys all college students?

history ^^

on topic


I agree with most comments here, admins won't enforce anything and even if you meet all the requirements they can still easily rip you off.


We (me and some other ppl in eUK who started a big buissiness coorperation named "Aurum" in the past) used to have a bank too and it's something very hard to manage. First of all, contracts aren't enforceable so they have become uselless. Secondly, even if they where, money tends to be gone on payment day with no signs of donations (oldest trick in the book: laundrying via the MM, which admins can't track) and if you don't have anything, admins can't take anything. Basically you lose more money then you receive.

We had to close it since most ppl took advantage of it.


also

Velitia wrote: V2 is coming out in awhile and I am pretty sure Admins are going to reinstate a rule of contracts then

Are you familiar with Valve time ? Admins are

Velitia wrote:Are you guys all college students?

high school: economie and human sciences
college: 2 years of teacher economics and currently surveyor

counterstriker wrote:

Velitia wrote:Are you guys all college students?

high school: economie and human sciences
college: 2 years of teacher economics and currently surveyor

shit... you don't go to Artesis Mechelen, do you?

I found a fix to the risk thing, they transfer the company to an Organization that is owned by the Bank and the bank purchases the license and gives them back the company when they have gotten the full terms of the loan back...

Velitia wrote:I found a fix to the risk thing, they transfer the company to an Organization that is owned by the Bank and the bank purchases the license and gives them back the company when they have gotten the full terms of the loan back...

And how are they going to run the company? Would require them to have the password and then they can transfer it back, or would take a lot of time from the government =S

I know, it was just a solution...

Is 5 Gold really that much of a sum? I'm not a country, and I do have 5 Gold to spare for something that could be a potential investment

No it was about if we were to loan out 20g to get an export license..... but it would take too much time on our behalf to make it work.