July 25, 2017, 10:43 am
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1 Philippine Peso = 0.07443 UAE Dirham
1 Philippine Peso = 2.4017 Albanian Lek
1 Philippine Peso = 0.03628 Neth Antilles Guilder
1 Philippine Peso = 0.32436 Argentine Peso
1 Philippine Peso = 0.02723 Australian Dollar
1 Philippine Peso = 0.03626 Aruba Florin
1 Philippine Peso = 0.04054 Barbados Dollar
1 Philippine Peso = 1.63579 Bangladesh Taka
1 Philippine Peso = 0.03534 Bulgarian Lev
1 Philippine Peso = 0.00763 Bahraini Dinar
1 Philippine Peso = 34.60377 Burundi Franc
1 Philippine Peso = 0.02027 Bermuda Dollar
1 Philippine Peso = 0.02797 Brunei Dollar
1 Philippine Peso = 0.13904 Bolivian Boliviano
1 Philippine Peso = 0.06579 Brazilian Real
1 Philippine Peso = 0.02027 Bahamian Dollar
1 Philippine Peso = 1.30624 Bhutan Ngultrum
1 Philippine Peso = 0.20692 Botswana Pula
1 Philippine Peso = 405.75598 Belarus Ruble
1 Philippine Peso = 0.04049 Belize Dollar
1 Philippine Peso = 0.02733 Canadian Dollar
1 Philippine Peso = 0.01952 Swiss Franc
1 Philippine Peso = 13.57175 Chilean Peso
1 Philippine Peso = 0.13799 Chinese Yuan
1 Philippine Peso = 58.59343 Colombian Peso
1 Philippine Peso = 11.43535 Costa Rica Colon
1 Philippine Peso = 0.02027 Cuban Peso
1 Philippine Peso = 1.98075 Cape Verde Escudo
1 Philippine Peso = 0.47231 Czech Koruna
1 Philippine Peso = 3.59951 Djibouti Franc
1 Philippine Peso = 0.13357 Danish Krone
1 Philippine Peso = 0.95278 Dominican Peso
1 Philippine Peso = 2.19181 Algerian Dinar
1 Philippine Peso = 0.28109 Estonian Kroon
1 Philippine Peso = 0.36583 Egyptian Pound
1 Philippine Peso = 0.46433 Ethiopian Birr
1 Philippine Peso = 0.01797 Euro
1 Philippine Peso = 0.04244 Fiji Dollar
1 Philippine Peso = 0.01573 Falkland Islands Pound
1 Philippine Peso = 0.01572 British Pound
1 Philippine Peso = 0.08685 Ghanaian Cedi
1 Philippine Peso = 0.91021 Gambian Dalasi
1 Philippine Peso = 182.75233 Guinea Franc
1 Philippine Peso = 0.1491 Guatemala Quetzal
1 Philippine Peso = 4.14512 Guyana Dollar
1 Philippine Peso = 0.15784 Hong Kong Dollar
1 Philippine Peso = 0.47422 Honduras Lempira
1 Philippine Peso = 0.13229 Croatian Kuna
1 Philippine Peso = 1.24625 Haiti Gourde
1 Philippine Peso = 5.54195 Hungarian Forint
1 Philippine Peso = 269.57844 Indonesian Rupiah
1 Philippine Peso = 0.07211 Israeli Shekel
1 Philippine Peso = 1.30521 Indian Rupee
1 Philippine Peso = 23.93595 Iraqi Dinar
1 Philippine Peso = 657.62059 Iran Rial
1 Philippine Peso = 1.9771 Iceland Krona
1 Philippine Peso = 2.6139 Jamaican Dollar
1 Philippine Peso = 0.01433 Jordanian Dinar
1 Philippine Peso = 2.23666 Japanese Yen
1 Philippine Peso = 2.0906 Kenyan Shilling
1 Philippine Peso = 1.38113 Kyrgyzstan Som
1 Philippine Peso = 81.57681 Cambodia Riel
1 Philippine Peso = 9.12404 Comoros Franc
1 Philippine Peso = 18.24078 North Korean Won
1 Philippine Peso = 22.6366 Korean Won
1 Philippine Peso = 0.00614 Kuwaiti Dinar
1 Philippine Peso = 0.01662 Cayman Islands Dollar
1 Philippine Peso = 6.364 Kazakhstan Tenge
1 Philippine Peso = 166.08836 Lao Kip
1 Philippine Peso = 30.51277 Lebanese Pound
1 Philippine Peso = 3.08877 Sri Lanka Rupee
1 Philippine Peso = 1.84435 Liberian Dollar
1 Philippine Peso = 0.25922 Lesotho Loti
1 Philippine Peso = 0.06179 Lithuanian Lita
1 Philippine Peso = 0.01258 Latvian Lat
1 Philippine Peso = 0.02821 Libyan Dinar
1 Philippine Peso = 0.19642 Moroccan Dirham
1 Philippine Peso = 0.36735 Moldovan Leu
1 Philippine Peso = 1.09972 Macedonian Denar
1 Philippine Peso = 27.52331 Myanmar Kyat
1 Philippine Peso = 48.27726 Mongolian Tugrik
1 Philippine Peso = 0.16258 Macau Pataca
1 Philippine Peso = 7.25578 Mauritania Ougulya
1 Philippine Peso = 0.70024 Mauritius Rupee
1 Philippine Peso = 0.31394 Maldives Rufiyaa
1 Philippine Peso = 14.54094 Malawi Kwacha
1 Philippine Peso = 0.37863 Mexican Peso
1 Philippine Peso = 0.08672 Malaysian Ringgit
1 Philippine Peso = 0.2604 Namibian Dollar
1 Philippine Peso = 6.52615 Nigerian Naira
1 Philippine Peso = 0.59972 Nicaragua Cordoba
1 Philippine Peso = 0.17055 Norwegian Krone
1 Philippine Peso = 2.08654 Nepalese Rupee
1 Philippine Peso = 0.02835 New Zealand Dollar
1 Philippine Peso = 0.00779 Omani Rial
1 Philippine Peso = 0.02027 Panama Balboa
1 Philippine Peso = 0.06622 Peruvian Nuevo Sol
1 Philippine Peso = 0.06654 Papua New Guinea Kina
1 Philippine Peso = 1 Philippine Peso
1 Philippine Peso = 2.11897 Pakistani Rupee
1 Philippine Peso = 0.0753 Polish Zloty
1 Philippine Peso = 112.82935 Paraguayan Guarani
1 Philippine Peso = 0.0738 Qatar Rial
1 Philippine Peso = 0.08196 Romanian New Leu
1 Philippine Peso = 1.14766 Russian Rouble
1 Philippine Peso = 16.61897 Rwanda Franc
1 Philippine Peso = 0.076 Saudi Arabian Riyal
1 Philippine Peso = 0.16004 Solomon Islands Dollar
1 Philippine Peso = 0.26836 Seychelles Rupee
1 Philippine Peso = 0.13498 Sudanese Pound
1 Philippine Peso = 0.17451 Swedish Krona
1 Philippine Peso = 0.02797 Singapore Dollar
1 Philippine Peso = 0.01573 St Helena Pound
1 Philippine Peso = 0.45006 Slovak Koruna
1 Philippine Peso = 152.00649 Sierra Leone Leone
1 Philippine Peso = 11.08634 Somali Shilling
1 Philippine Peso = 435.85326 Sao Tome Dobra
1 Philippine Peso = 0.17678 El Salvador Colon
1 Philippine Peso = 10.43737 Syrian Pound
1 Philippine Peso = 0.26014 Swaziland Lilageni
1 Philippine Peso = 0.6897 Thai Baht
1 Philippine Peso = 0.04917 Tunisian Dinar
1 Philippine Peso = 0.04647 Tongan paʻanga
1 Philippine Peso = 0.0711 Turkish Lira
1 Philippine Peso = 0.13537 Trinidad Tobago Dollar
1 Philippine Peso = 0.61011 Taiwan Dollar
1 Philippine Peso = 45.17633 Tanzanian Shilling
1 Philippine Peso = 0.53223 Ukraine Hryvnia
1 Philippine Peso = 72.78071 Ugandan Shilling
1 Philippine Peso = 0.02027 United States Dollar
1 Philippine Peso = 0.57377 Uruguayan New Peso
1 Philippine Peso = 77.82732 Uzbekistan Sum
1 Philippine Peso = 0.20216 Venezuelan Bolivar
1 Philippine Peso = 459.54601 Vietnam Dong
1 Philippine Peso = 2.18241 Vanuatu Vatu
1 Philippine Peso = 0.05201 Samoa Tala
1 Philippine Peso = 11.77483 CFA Franc (BEAC)
1 Philippine Peso = 0.05472 East Caribbean Dollar
1 Philippine Peso = 11.82205 CFA Franc (BCEAO)
1 Philippine Peso = 2.13174 Pacific Franc
1 Philippine Peso = 5.06546 Yemen Riyal
1 Philippine Peso = 0.25921 South African Rand
1 Philippine Peso = 105.17835 Zambian Kwacha
1 Philippine Peso = 7.33482 Zimbabwe dollar

Usury less usurious

Maybe it was another campaign promise. Let us now get rid of the 5-6 lenders. If it were a verbalized commitment, is it part of the three-fifths they say should not be taken seriously of every five too often blurted out from the presidential mouth?

The Executive command was to kill the spread of usurious lenders and effectively roll out a less predatory system of financial inclusion for those unable to access credit. Although the latter phraseology was not explicitly detailed in the prose we remember, somewhere buried in the crude and crass colloquialisms the word “usury” permeates.

Usury is a technical term. Three syllables long it encompasses complex issues from desperation to greed.  It has to do with credit as well as the abuse of credit. When the economy still had the Usury Law in effect, the word bore parameters delineating what was unconscionable against what was not.

Allow us to delve into the simplistic colloquialisms conjured that represent the popular definition of usury arrayed against the technical so that we might understand recent government initiatives ridding ourselves of it. 

This is especially important. One reason is the Duterte budget and the amount of taxpayer money within either as capital for inclusive growth or, as the previous administration’s concept of financial inclusion, a slush fund earmarked for controversial dole outs more politically motivated than developmental.

The cliche imagery of the usurious creditor is the eastern Indian national lending money to the desperate at a ratio of five is to six where for every P5 of principal, by the following day P6 is collected. 

Debtors are either too desperate, arithmetically-challenged, ignorant or plainly do not care that the nominal interest is actually 20 percent applied on a daily basis. Annualized and employing the Banker’s Rule of 360 days that’s effectively 7,200 percent.

In no universe can an interest charge of 7,200 percent be considered fair. If we pare the compounding periods down to a monthly basis the effective interest drastically falls to 240 percent. Still usurious by any standard. 

Those astronomical rates however matter little to desperate debtors. Never mind the arithmetic. The simplistic household economics is understandable where borrowers focus on cashflows instead. It is the maturity value that concerns them. Can they afford it? 

Unfortunately, under such shortcomings predatory creditors take liberties.

In contrast, loans granted by banks and financial intermediaries now charge less than 8 percent per annum and even less than half of that for prime borrowers depending on credit ratings, collateral business, securities pledged and a whole lot of other factors that operate between debtor, creditor and regulators. On these the requisite due diligence and documentation alone can easily overwhelm and effectively disenfranchise micro-, small and medium-scale borrowers from mainstream banking.

The gaps in financial inclusion are filled in by private lenders who provide expensive funds ranging from 12 percent to 15 percent. Interest reflects risk. The latter is however mitigated by a whole new set of criteria essentially skewed towards repayment. Lenders develop close relationships with borrowers albeit maintaining these ties as professional as possible. The success of this holistic approach is further enhanced by critical and aggressive collection systems that larger lenders cannot or do not engage in.

Soon in Tacloban the government will embark on an experiment hoping to kill the usurious 5-6 lending industry. The Department of Trade and Industry initially budgeted P1 billion to seed a government-sponsored funding program reportedly based on credit extended to the most needy at a monthly rate of 2 percent or 24 percent per annum.

Hopefully government has done its homework and has shed the curse of corruption and ineptitude. Note that 24 percent per annum is only a sliver below the 2.5 percent monthly interest charged on credit cards issued by global credit card companies that enjoy economies of scale.. 

Under the government program debtors charged those rates are far from prime. There lies the danger. Requisite documentation and securities likely to be foregone need to be replaced by in-depth, almost intrusive, due diligence efforts, the matching of capital with the requisites of borrowers and, perhaps most important, extremely critical and highly efficient collection systems. Unfortunately, depth and efficiency are alien concepts in the bureaucracy.

In the past 21 percent to 24 percent were once considered unconscionable although eventually these were adjudged reasonable by the Supreme Court in at least two jurisprudential instances, once in 1988 and again in 2006. While the usury laws are no longer in effect, in 2000 in a case involving a state lender, after considering the absolute amount of the principal relative to its  exponential and compound interest, the courts ordered reducing a rate of 18 percent down to 10 percent.

From the foregoing, do the math. High cost state-granted debt may still cause repayment defaults eventually inflicted on the taxpayer that provides the debt capital. Nearly double of the interest charged by small to medium scale private creditors, government’s 24 percent might still be prohibitive albeit a tad less usurious.
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