Chances for riel to go peso style ?
Yeah. Invest in land and buildings. They never get effected when an economy goes tits up.
pew, pew, pew, pew!
Don't agree on this being general, but more in the minority.spitthedog wrote:Bongs,
Morals aside, isn't the reality of MFI's basically that they take advantage of the poorest most vulnerable and ignorant of society who are likely already up to their ears in debt , and before you know it the mega compounding interest of the MFI lender really fucks the borrower in the end ?
They have many extra charges brought in to maintain their 3% per month, even though it was recently capped at 1.5% per month.YaTingPom wrote:Kachang wrote:
[I would like a link to this information, I had heard they might do it but I have not heard anyone get these extra fees charged.Kachang wrote: Even though there's a law is place maximizing the yearly interest rate, MFI's have covered that by introducing all kind of extra costs like service charges to remain their high revenues, effectively charging over 30% per year, and that's for loans with a collateral. If I compare the 4% savers get for their buck with the money the MFI charge for the buck I think most MFI's have a decent business model, until land becomes worthless in Cambodia.
I ran a topic on this a few months ago, but received little feedback.
In the long term correct, but not in the short term. There have been many property crashes this last 30 years, where property has fallen by up to 50%. It recovers again, but takes time.YaTingPom wrote:Yeah. Invest in land and buildings. They never get effected when an economy goes tits up.
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Stop taking everything YTP posts so literally.DF wrote:In the long term correct, but not in the short term. There have been many property crashes this last 30 years, where property has fallen by up to 50%. It recovers again, but takes time.YaTingPom wrote:Yeah. Invest in land and buildings. They never get effected when an economy goes tits up.
Am I gagged now or what?ផោមក្លិនស្អុយ wrote:Stop taking everything YTP posts so literally.DF wrote:In the long term correct, but not in the short term. There have been many property crashes this last 30 years, where property has fallen by up to 50%. It recovers again, but takes time.YaTingPom wrote:Yeah. Invest in land and buildings. They never get effected when an economy goes tits up.
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How would I know? What you do in your own time is up to you.DF wrote:Am I gagged now or what?ផោមក្លិនស្អុយ wrote:Stop taking everything YTP posts so literally.DF wrote:In the long term correct, but not in the short term. There have been many property crashes this last 30 years, where property has fallen by up to 50%. It recovers again, but takes time.YaTingPom wrote:Yeah. Invest in land and buildings. They never get effected when an economy goes tits up.
Bazinga!ផោមក្លិនស្អុយ wrote:How would I know? What you do in your own time is up to you.DF wrote:Am I gagged now or what?ផោមក្លិនស្អុយ wrote:Stop taking everything YTP posts so literally.DF wrote:In the long term correct, but not in the short term. There have been many property crashes this last 30 years, where property has fallen by up to 50%. It recovers again, but takes time.YaTingPom wrote:Yeah. Invest in land and buildings. They never get effected when an economy goes tits up.
pew, pew, pew, pew!
Germany 15% pa cap (2015)YaTingPom wrote:What you mean the cap on payday loans of up to 4000% in the UK and probably most western countries?Kachang wrote:Did you also tell him on the other en of the spectrum MFI's and banks can charge crazy interest rates for loans, easily making 15% or more per year, even with a collateral. Most Western countries have a cap, but Cambodia doesn't have an effective cap even though a new law is in place.Barang_doa_slae wrote:I was speaking on the phone yesterday with a Luxembourg private banker who was astonished to hear about the interest rates offered by KH MFIs and banks on the dollar.
He reminded me how the Argentina financial crisis unfolded; simply put all dollars libeled investments were converted to peso and peso was devalued to a quarter of it's former pegged value overnight.
While he agreed that it would probably take a major global crisis for this to happen again, I am interested to read forums members thoughts about chances of such an economic tsunami happening to Cambodia.
High risk = high interest no matter where you are in the world.
Cambodia does have a cap which is what all the fuss was about earlier this year, although it is still 30% which is quite high, and has been mentioned already the default rate is much lower than you would expect in the west.
Yes but also there exist in most towns and villages elders that loan money at little or no interest.Kachang wrote: And FYI, on the black market interest rates up to 10% per month are common for short term loans without collateral....[
France: 15% pa cap (2016)
Netherlands 14% pa cap (2017)
Too lazy to look any further. No interest is allowed over these numbers for any institution holding a license given out by the respective national governments.
Look up "default rates".
You failed to answer the fact payday loans charge up to 4000% in the UK, don't know (or care) about those Euros.
I forgot what the original point was. Don't care.
You failed to answer the fact payday loans charge up to 4000% in the UK, don't know (or care) about those Euros.
I forgot what the original point was. Don't care.
pew, pew, pew, pew!
I meant the cap on yearly interest rates, similar to the cap introduced in Cambodia.YaTingPom wrote:Look up "default rates".
You failed to answer the fact payday loans charge up to 4000% in the UK, don't know (or care) about those Euros.
I forgot what the original point was. Don't care.
Yeah, because everyone pays off their visa balance monthly.Kachang wrote:I meant the cap on yearly interest rates, similar to the cap introduced in Cambodia.YaTingPom wrote:Look up "default rates".
You failed to answer the fact payday loans charge up to 4000% in the UK, don't know (or care) about those Euros.
I forgot what the original point was. Don't care.
If you think Cambodia is the only country where the "vulnerable or stupid" get ripped off then you're a blinkered fool.
pew, pew, pew, pew!
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