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Loans

Simcountry: Simcountry Bulletin Board  Loans

Erehwon

Monday, November 10, 2003 - 06:31 pm Click here to edit this post
It would be interesting to make loans into a two- or three-tiered system. While I know that real countries don't earn interest on loans the way it is played in SC, perhaps the following would serve to add an element of risk and reward while allowing savings to add an element of profit that compensates for high savings rates.

All cash on hand in a country would earn interest at a very low rate, perhaps just 1% or 2%. Loans actually made would earn 3% or 4% if made to countries and 5% or 6% if made to corporations.

If a country is conquered, then the conquerer would have the right to take on or repudiate all loans, with repudiated loans disappearing and a significant penalty being given to the conquering empire (reduced score? increased rebel attacks on corps? decreased welfare? inability to build corps? or take loans? or some combination or other penalty). Loans made to corporations that are destroyed or go bankrupt would disappear (hence the higher interest rate on such loans).

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