الأربعاء، 2 أبريل 2014

Dubai Debt recovery & service

like us on facebook
https://www.facebook.com/dubaidebtrecovery

The Senate voted 55 to 43 Wednesday to raise the debt ceiling more than two weeks ahead of the deadline, marking an end to a string of budget battles that have paralyzed Washington over the last three years. Democratic and Republican leaders voted in unison, ensuring the country didn't default on its debt, but it may be one of the last times Congress comes together this year.

The nail-biting vote hung in the balance for nearly an hour as Republican lawmakers clambered over who among them would provide the votes needed to overcome a procedural hurdle. Most notably, Republican Sens. John Cornyn of Texas and Mitch McConnell of Kentucky, both facing re-election with primary challengers in 2014, helped move the vote forward.

[READ: Republicans Give Up Fight on Debt Ceiling]

When President Barack Obama signs the bill to increase the country’s borrowing limit this week, it will mark a victory for Democrats on a major economic battle. After rounds of debt ceiling showdowns, the president is left standing firm in his promise that he would not negotiate over the “full faith and credit of the United States.”

He didn't get there alone, however. House Democrats provided the bulk of the votes ensuring passage in the lower body Tuesday, after House Speaker John Boehner decided to forge ahead on a clean vote despite conservative groups' objections. Before the vote. House Minority Leader Nancy Pelosi, D-Calif., promised Boehner she’d put up a large enough volume of Democratic votes to protect his right flank and embattled Republican rank-and file from having to be on record increasing the debt ceiling, a vote conservative campaign groups hammer against in primary elections. Pelosi got all but two of her members to vote ‘yes’ so Boehner could let all but 28 of his members vote ‘no.’

Republican leaders stepped up to move the president’s request forward and ensure efficiency in an era of divided government this time, but don’t expect it to last. even though Democrats have a long list of agenda items they would like to tackle before the midterm election. The wish list includes:  increasing the minimum wage to $10.10, extending long-term unemployment insurance and sending a comprehensive immigration bill to the president’s desk before November. But even after Democrats managed to pass a  debt ceiling bill without any policy strings attached, they aren’t in a stronger position to lobby for their legislation. Congress remains in an election cycle, which typically slows the body's appetite for passing new laws and hinders bipartisan cooperation. House aides confirmed Boehner won’t be adopting the debt ceiling strategy to pass a comprehensive immigration bill anytime soon.

“This doesn’t create any real political capital for Democrats,” says Sarah Binder, a congressional expert at the Brookings Institution. “It simply needed to be done.”

[OPINION: Boehner Gets the Debt Ceiling 'Monkey' Off the GOP's Back]

If anything, the lack of drama over the debt ceiling could be a political liability for Democrats. With the debt ceiling vote out of the way, Republicans have more room to attack Democrats on the campaign trail for their support of the unpopular Affordable Care Act and stagnant growth in the economy.

“This was the last deadline bill, the last drop dead bill. Now we can focus on whatever bills Republicans want to bring up,” says Rep. Peter King, R-N.Y.

King argues that by forcing Democrats to put up the majority of the votes, some of the tea party Republicans are the ones who are walking away with the political capital. They avoided the calamity of a debt default without being held accountable for raising the debt ceiling in primaries back home. While Boehner gave many Republicans the option to tie the debt ceiling vote to a policy item, Republicans didn't want to vote for anything that forced them to vote in support of increasing the country's borrowing limit.

“All these great geniuses who came to Washington to vote to reduce the deficit and cut spending were begging John Boehner to have this go to a clean vote,” King said. “It was total hypocrisy.”

Adding to the Democrats' woes is that the debt ceiling vote is likely to fall low on the list of items voters are paying attention to. Experts observe the public notices if the country defaults, but most voters are not tuned in enough to know that Democrats won any debate.

“No one wants to talk about debt,” says Binder.

الثلاثاء، 1 أبريل 2014

Dubai Debt recovery & services

like us on facebook
https://www.facebook.com/dubaidebtrecovery

On Friday, America’s debt limit extension expires and Congress is expected to renew its legal $16.7 trillion debt cap. If the debt limit isn’t raised, the US could burn through its cash as soon as February 28, Secretary Treasurer Jacob Lew warns.

“Time is short. Congress needs to act to extend the nation’s borrowing authority, and it needs to act now,” Lew told an audience at the Bipartisan Policy Center, a Washington DC think tank.

On Friday, February 7, Congress will vote to increase the statutory debt limit, which will enable the government to pay for spending bills it has already passed.

"Without borrowing authority, at some point very soon, it would not be possible to meet all of the obligations of the federal government," Lew said.

The Bipartisan Policy Center has also calculated if policymakers don’t act, the Treasury won’t have enough cash-on-hand to pay for government programs, but estimates the ‘X date’ – when the US runs out of money- will fall between February 28 and March 25, with a high probably it will occur on or before March 14.

Image from Bipartisan Policy CenterImage from Bipartisan Policy Center

Spring tax season makes the maneuver all the more tricky. This is the time of year the federal government is sending out tax refund checks, an additional drain on the country’s cash pile. Spending in just one day in March could exceed $10 billion.

Because the next months will be cash-tight, Lew and other policymakers strongly urge Congress to raise the public borrowing limit.

الاثنين، 31 مارس 2014

Dubai Debt Recovery and services

like us on facebook
https://www.facebook.com/dubaidebtrecovery

Jan 4 (Reuters) - Dubai developer Nakheel plans to repay up to 4 billion dirhams ($1.1 billion) of bank debt due in 2015 this year, with around 2.35 billion dirhams earmarked for payment in the first quarter of this year, its chairman said on Saturday.

Nakheel was taken over by the government as part of a $16 billion rescue plan completed in 2011, following the bursting of a real estate bubble in the emirate in 2009.

However, the property market rebounded in 2013, with prices up around 22 percent versus 2012. They had plummeted more than 50 percent from their 2008 peak when the sector crashed.

As a result of the bounce back, Nakheel will not require further government support and is targeting annual profit growth of 15 percent, Ali Rashid Lootah told reporters at a press conference.

Nakheel will also have no problems repaying an Islamic bond, due in 2016, which it issued to trade creditors as part of its restructuring plan due in 2016, Lootah said. The bank debt it is repaying early is part of a $2.2 billion loan facility due next year. (Reporting by Praveen Menon; Writing by David French; Editing by)

الأحد، 30 مارس 2014

dubai debt collection & services

like us on facebook
https://www.facebook.com/dubaidebtrecovery

 The U.S. is in the midst of a private debt crisis.

As of March 2014, American consumers owe $11.52 trillion in debt, an increase of 1.6% from last year. The average household owes $7,115 on their credit cards and the average indebted household owes $15,252. Americans owe $8.05 trillion in mortgages (the average mortgage debt being $152,209) and $1.08 trillion in student loan debt. When combined with corporate debts the U.S. collectively owes about $28 trillion in private debt.

Related: China heading toward a debt crisis with global ramifications: Banking vet

“Every major crisis of our lifetime has been caused by a rapid increase of our private debt,” says Richard Vague, chair of the Governor’s Woods Foundation. “They all were a function of runaway private lending.”

People focus too much on government debt, argues Vague, when they should be attempting to quell private debt.

Related: Exploding student loan debt threatens the housing recovery

“There’s reputed to be 10 million mortgages that are still underwater,” he says. “There’s perhaps a half or ¾ of a trillion in second-lean loans that are still a problem and haven’t been dealt with. Those to us are logical candidates for restructuring programs.”

Restructuring loans is a controversial issue and there’s little incentive for banks to do so. Vague suggests allowing banks to spread the losses over a very extended period of time with a one-time dispensation that says "you can spread your losses over 30 years if today you go to the borrower and restructure with them’ they would get rid a problem and get to clean things up.” 

السبت، 29 مارس 2014

dubai debt collection & services

like us on facebook
https://www.facebook.com/dubaidebtrecovery

The amount of debt globally has soared more than 40 percent to $100 trillion since the first signs of the financial crisis as governments borrowed to pull their economies out of recession and companies took advantage of record low interest rates.

The $30 trillion increase from $70 trillion between mid-2007 and mid-2013 compares with a $3.86 trillion decline in the value of equities to $53.8 trillion, according to the Bank for International Settlements and data compiled by Bloomberg. The jump in debt as measured by the Basel, Switzerland-based BIS in its quarterly review is almost twice the U.S. economy.

Borrowing has soared as central banks suppress benchmark interest rates to spur growth after the U.S. subprime mortgage market collapsed and Lehman Brothers Holdings Inc.’s bankruptcy sent the world into its worst financial crisis since the Great Depression. Yields on all types of bonds, from governments to corporates and mortgages, average about 2 percent, down from more than 4.8 percent in 2007, according to the Bank of America Merrill Lynch Global Broad Market Index.

الأربعاء، 26 مارس 2014

Dubai Debt Collection & Services

like us on facebook
https://www.facebook.com/dubaidebtrecovery


Mpilo Hospital has hired Wellcash Debt Collectors to attach and auction property of resi

dents with outstanding debts. The debt collectors have been sending letters threatening to attach residents’ properties within 48 hours.

In one notice to a Nkulumane resident who owes Mpilo $577, Wellcash Debt Collectors wrote: “A penalty fee based on the prevailing rate will be charged if you do not pay within the stipulated period.

“Note that you shall pay the overdue amount plus summons costs as court fees and interest thereof as well as further costs incurred by engaging the Messenger of Court in pursuit of the debt. Civil imprisonment proceedings shall be taken against you if you do not have enough assets to clear the debt.”

In a petition, Bpra advocacy and programmes manager Emmanuel Ndlovu described the move as evil and asked for the Health ministry and Parliament to intervene and protect residents from having their property seized.

“Bpra believes that it is immoral, insensitive and cruel for public institutions such as Mpilo Hospital to go to the extent of issuing summons to residents in arrears and seizing their properties in the name of recovering debts,” Ndlovu’s petition reads.

“The association believes that the institution is missing the point by assuming that residents do not want to pay, yet the reality is that they cannot afford to pay due to Zimbabwe’s rundown economy which has an unemployment level of over 80% and where most workers earn salaries way below the poverty datum line of about $540.

“It is the association’s contention that issuing summons against residents and getting court orders to seize their belongings effectively erodes the social contract between residents and public service providers, leading to a failure by such institutions to meet their obligations to provide services as a human right.

“The association would like to remind these institutions that Zimbabwe’s new Constitution recognises access to healthcare as a human right, with Chapter 2 Section (29) (1) obliging the State to ‘take all practical measures to ensure the provision of basic, accessible and adequate health services throughout Zimbabwe’.”

Mpilo Hospital chief executive officer Lawrence Mantiziba has defended the attachment of residents’ properties as necessary to recover money owed by former patients.

الثلاثاء، 25 مارس 2014

dubai debt collection & services

like us on facebook
https://www.facebook.com/dubaidebtrecovery



WED, MARCH 26, 2014 - 12:00 AM

GOVERNMENT SENATOR Jepter Ince disputes the Owen Arthur administration's stated reason for selling the Barbados National Bank (BNB) 11 years ago as a response to low foreign reserves citing instead a debt problem.

Ince, Parliamentary Secretary in the Ministry of Economic Affairs, was speaking on Monday in the Senate during debate on the 2014 Appropriation Bill, of which the Estimates - approved last Friday by the House of Assembly - is the Schedule.

He insisted that the sale of the then state-owned bank had nothing to do with the foreign reserves or that the shares would fetch the highest price, "but because of the debt that was owed".

He insisted that in 2003, the Barbados Labour Party sold 57 per cent of the BNB shares to Republic Bank of Trinidad and Tobago, giving it a controlling interest.

"They said it was the result of low foreign reserves and that they needed the foreign exchange," he recalled.

But Ince pointed out that the foreign reserves in 2003 increased by $ 374.3 million.

The economy recovered from the difficulties in 2002, he said, strengthened in 2003 with gross domestic product (GDP) expanding by 2.2 per cent mainly due to tourism.

"And you are going to say to the public that is why you sold the BNB because you needed the foreign exchange and the economy was in trouble?

"Total Government revenue grew by 7.7 per cent. There was a deficit at the time of $ 165.4 million. How did they finance the deficit? $ 45.7 million out of National Insurance and [they] borrowed on the international market $ 63.9 million. "

He said when that amount was converted by 2.0388, "you will get approximately $ 132 million and then you add that to $ 45.7 and you would see that it outstrips the deficit".

"So when you sold the BNB shares for $ 189 million, your economy grew by 7.7 per cent, and your foreign reserves increased by $ 374 million as a result of Government revenues.

"The reason why they sold it was because of the debt; you know, creative accounting, the monies that were borrowed by letters of comfort. They borrowed from the BNB. They had the National Insurance Scheme (NIS)

at their disposal and the BNB at their disposal; at that time, they controlled

57 per cent. They were indebted to BNB in ​​2002 by $ 385.03 million;

by 2003, that indebtedness went to $ 413.3 million

and they borrowed additional loans. "

He said once the letters of comfort expired, the Government had to go

to Parliament to seek guarantees and Barbadians would then have been made aware

of all of that debt with the BNB and that was the reason the bank was sold.

"I tell them to challenge me on that," Ince declared.

The 2014 Estimates,

he added, was not about destabilising the economy but about protecting the economic resources.

He said the Appropriation Bill identified what were the challenges facing the economy - a persistent, hostile, speculative global environment in which the island functioned - and contained what the Government intended

to do to make sure the country remained economically viable. (AB)