The credit squeeze to SMEs is a deliberate effort by commercial banks to sabotage the economy so that the government may influence Parliament to remove the interest rate caps
," Mr Njomo said.
Commonwealth legislation introduced a cap on payday loans in July 2013 which supersedes the state and territory-based interest rate caps
, and together with further Regulations in June 2014, make it clear that broker costs do not sit outside the small amount loan cap.
In an example of the legalistic nature of the accounting rules, Manufacturing could have avoided derivative accounting entirely if the loan and interest rate cap
were structured differently.
The TRA '97 retains the key-person exception and the interest rate caps
He pointed out that the interest rate cap
has made it difficult for persons running SMEs to access loans from banks.
Lynch thinks that the interest rates charged by the payday loan industry ate "outrageous" and plans to sign the interest rate cap
into law, Manning told New Hampshire Business Review shortly after the Senate vote.
An interest rate cap
is a contract that grants a company certain payments if the interest index exceeds the cap rate.
Eliminating the interest rate cap
, passed by parliament despite opposition from the government and central bank, will also be tricky, according to Anzetse Were, an independent economist.
In January, the Legislature will take up House Bill 267, a bill placing an interest rate cap
of 36 percent APR on payday and auto title loans.
This is in the wake of the now functional IFRS 9 accounting standards topping of on the already existing interest rate cap
regime which have seen the banking sector shun small businesses and households on account of their high risk profiles.