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Corporation Debt Status: Will be added

Detailed Description:

I propose a change to the way corporations pick their loans.

Currently corporations just pick the lowest possible interest rate loan but I think this hardly reflects the right way in which corporations should be choosing loans. For instance a corporation that is just starting up will need a longer term loan and a older corporation that is just buying its materials should get shorter term loans.

E.g. Why is a corporation that is getting 6 months worth of supplies getting a 10 year loan?

The loan term should reflect the time it will take to get the return on the money invested from the loan. The best way to probably do this would be to have it based on the current assets of the corporation, if its negative then a longer term loan will be needed but if the corporation has over 50B in assets its likely they could repay the loan in 6 months once the materials are used.

Ultimately this will help in getting rid of those pesky little 20-40B loans in fully developed, hugely profitable corporations and will simulate a more realistic loans structure.

36 gamers voted for the proposal.
9 gamers voted against the proposal.

The proposal has been ACCEPTED.

W3Creative reaction:

This problem needs to be solved and the solution will be the introduction of a real money market with offers that vary in interest rates, loan period and risk. Different countries, corporations and enterprises have different needs and different failure risk. At this moment, loans are guaranteed and always paid back. In the real market, high risk loans will carry a higher interest rate but might be lost if the corporation, or country bankrupt.

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