Treasury last week promised the IMF that the interest rate caps
would be removed in the next budget to allow the Central Bank more flexibility in directing the economy.
In response to ASIC's concerns, Fast Easy has agreed to refund all affected consumers in Queensland, New South Wales and the Australian Capital Territory any amounts paid in brokerage fees above the state-based interest rate caps
of 48% by November 2014.
The guidance pertaining to the transferability of the interest rate cap
is not included in SFAS 133, but rather in interpretative guidance.
In addition, the amount of interest expense would be subject to the interest rate caps
based on Moody averages.
We have expressed the concern about the interest rate caps
and the impact it has on the overall economy and the SMEs.
While the two bills still have to be reconciled, the interest rate now looks likely to become law, which should put an end to an industry that has proliferated since New Hampshire repealed its usury laws in 2000, making it the only state in New England with no interest rate cap
Previously DEF had purchased an interest rate cap
of 10% on the $1,000,000 principal.
Originally, the colonies imported English law, which included an interest rate cap
statute called the Statute of Anne.
Coupling IFRS 9 with the impact the interest rate cap
has had, I think the two will probably curtail growth in specific segments.
Though important, the reversal of the interest rate cap
, will not be sufficient to improve access to credit,' the World Bank said in its economic update.
Global Banking News-January 11, 2013--Bank of Spain suggests interest rate cap
on deposit to rein in price war(C)2013 ENPublishing - http://www.