Anonymous ID: eebfa3 Dec. 13, 2020, 7:52 a.m. No.23060   ๐Ÿ—„๏ธ.is ๐Ÿ”—kun   >>3131 >>3204 >>3209

Bank of Israel to offer non-bank credit deals (i.e. REPO transactions) to COVID-hit small businesses

 

The Bank of Israel said on Sunday it would start offering repo transactions with supervised non-bank credit providers to increase the supply of credit to very small businesses struggling to borrow due to the COVID-19 crisis. It said the new monetary tool would begin operating in the first week of January, with the objective of boosting credit supply to these businesses beyond what is issued by banks.

This is nothing new the FRBNY started this in Oct 2002

 

These non-bank providers, such as credit card companies and institutions, would be supervised by the Bank of Israel or the Finance Ministryโ€™s capital markets division. โ€œIn view of the crisis, lowering the cost of the financing source for non-bank credit providers will create an incentive for them and contribute to the pass-through from the general interest rate in the economy to the interest paid by small and micro businesses for the credit issued to them,โ€ the central bank said.

 

Throughout the coronavirus pandemic the central bank has attempted to help small businesses by way of very low interest rate loans to banks, while allowing loan repayment deferments.

 

As part of the repo transactions, the Bank of Israel will receive tradable collateral from the credit card and other providers, including government bills and bonds and corporate bonds under certain criteria. The interest rate will be set at 0.1% percent and subject to the provision of credit to small and micro businesses at interest of up to prime plus 1.3% percent and fixed at a rate of -0.1%.

 

The transactions will be for 6 months, with the possibility of an additional 6-month period under the same terms, the bank central bank said.

https://www.reuters.com/article/israel-cenbank-policy/update-1-bank-of-israel-to-offer-non-bank-credit-deals-to-covid-hit-small-businesses-idUSL8N2IT06N

Anonymous ID: eebfa3 Dec. 13, 2020, 8:53 a.m. No.23089   ๐Ÿ—„๏ธ.is ๐Ÿ”—kun   >>3131 >>3204 >>3209

Britons told not to stockpile food ahead of January

 

Households have been warned not to stockpile food and toilet roll ahead of 1 January when the UK stops trading under EU rules. On Sunday, the UK and the EU agreed to extend a deadline aimed at reaching a deal on post-Brexit trade.

 

The British Retail Consortium (BRC) said ongoing uncertainty made it harder for firms to prepare for the New Year. But it said shops had plenty of supplies and shoppers must not buy more food than usual. "Retailers are doing everything they can to prepare for all eventualities on 1 January - increasing the stock of tins, toilet rolls and other longer life products so there will be sufficient supply of essential products," said BRC chief executive Helen Dickinson. "While no amount of preparation by retailers can entirely prevent disruption there is no need for the public to buy more food than usual as the main impact will be on imported fresh produce, such as fresh fruit and vegetables, which cannot be stored for long periods by either retailers or consumers."

 

Supermarkets are now used to dealing with anxious shoppers. During the first lockdown earlier this year to stop the spread of the coronavirus, grocers introduced limits on goods such as toilet roll, dried pasta and UHT milk after panic buying by Britons.

 

There are fears shoppers might think disruption at ports after 31 December could lead to shortages in shops as the UK transitions to new trading rules with the EU.

 

The UK and the EU have agreed to carry on trade talks past Sunday's deadline.

moar

https://www.bbc.com/news/business-55293595