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| Africa North |
| Cancellation of the interest on loans for youth |
| 2011-02-15 |
| [Ennahar] The government has decided to cancel the interest on loans for young people wishing to establish small and medium enterprises (SMEs), through mechanisms for the support of youth employment. Banks will have to finance a hundred thousand records per year. The government also decided to lower the rate of personal involvement for young people wishing to start small businesses, as part of mechanisms to support the employment of young people or those of ANSEJ and ANGEM programs at 1% instead of 5% previously. The treasury will pay the interest rate of 1% and this, in order to encourage investment and strengthen the national economy. Statutory instruments to these new measures will be ready in the coming days. A presentation on the new measures will be presented to the government council by the Minister of Labour, Employment and Social Security. These measures tend to improve the modes of public support for youth involved in micro-credit. |
| Posted by:Fred |
| #2 Interest-free loans a good idea? The interest collected on a loan must match the rate of inflation for the loan to not lose value. But this is a government program so who cares right, other than it is business which would go to real banks. Where does the government get its capital for such loans, who approves those loans on what basis - are these SMEs green enough, connected enough, community organizing enough - and so what if they never repay the loan. This is 5 minutes, imagine those who are out to game such a system. Millions laundered out the government coffers and no trace. College is expensive, and really not for everyone especially right out of High School. Colleges could cut their expenses by cutting their bloated administration and quit fielding high profile semi-pro sport teams. |
| Posted by: swksvolFF 2011-02-15 22:02 |
| #1 There may be something to this idea. So many of our own students have foolishly accumulated student loan debt they can never pay nor discharge and are caught in limbo where continuing to be a student and continuing to borrow is the most 'practical' path. |
| Posted by: Glenmore 2011-02-15 08:09 |