online games, multiplayer games
Simcountry is an Online Digital World where you are the President of a country.
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Tom, PLEASE READ.....Re: Loan Market (White Giant)

Simcountry: Simcountry Bulletin Board  Tom, PLEASE READ.....Re: Loan Market (White Giant)

Vicious (Little Upsilon)

Thursday, June 12, 2008 - 11:54 pm Click here to edit this post
The premise of the original post is questionable: that there are unpaid loans outstanding to "closed corporations." I looked at my own loan portfolio and didn't see anything like that.

It's been a long custom that the World Bank pays back the loans of closed corps, and of abandoned countries and CEOs. That way players don't lose money by lending it. I haven't seen any data indicating a change in that practice.

Lending money is not a significant source of income anymore. Lenders used to earn 1% per game year. With new loans, lenders now earn 30% per real year, which is about .005% per game year on LU.

But if a country has $20T or more in cash, then it pays .2% per game year as a financial services fee. That fee can consume much of the profits from lending once loans are repaid.

Considering the minuscule interest rate and the larger financial services fee, lending is not a viable business.

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