Loans and Bonds

Post by **Balthagor** » Jun 20 2002

If you lend your ally 10 billion in loans, and he suddenly begins to default the payments, what actions should you be able to take?

Reddemon · Post by **Reddemon** » Jun 20 2002

send out the REPO MAN to take back a city or two I say.

Dont pay your loans then lose a city

tkobo · Post by **tkobo** » Jun 20 2002

Hmm, i dont know.Doesnt the US just loan them more money when they can't pay a loan P ?

How does it work in real life anyway

??

Empier4552 · Post by **Empier4552** » Jun 20 2002

When countries and debt are concerned its...complex i'd guess but as you said it seems the US just shells out more money in hopes it'll finally boost up the economy and let them pay it bck.

Industry wise etc eithre one declares a bankruptcy or is taken over by some other corp...

Post by **Balthagor** » Jun 24 2002

The idea of lending more money will actually be a good sign in the game. That means you have that player dependant on you. National debt will have a strong effect on domestic approval ratings and will mean your non-military take over is under way.

But I was more suggesting, what if a player took out a loan a while back, has built up a strong economy, and stops repaying his loan because you're allied with his enemy, because you attacked his ally or, simply because "I don't wanna!"

Then, what actions would you take...

Empier4552 · Post by **Empier4552** » Jun 24 2002

I'd say that world trade orginization of yours would step in and begin giving embargos and sanctions?

Post by **Balthagor** » Jun 25 2002

Actually, that would require a world market vote. Each player can chose to be a world market member by paying for their membership. Also, the Market isn't likely to do anything in a dispute between 2 players without a good reason, though if the World Market watches you default on a loan that would affect your credit rating with them. So in this case, you would request a vote for sanctions against that player and depending on your allies and the World Market's opinion of you would determine the outcome of the vote.

What other measures would you want to have available?

tkobo · Post by **tkobo** » Jun 25 2002

How about a renegotiate diplomatic option ?
You know like a 2nd morgage or refinance thing.
For cases where they want to pay but can't afford to.

For cases where they simply "don't wanna" pay you back how about a seizure of trade goods option.You could do this as a regular trade deal with the country only you take their goods and instead of paying for them,deduct their cost from the amount they owe you.

Oh and if you really want to get nasty with them, you could invade them with an army of lawyers P !

On the other side of this, could a region who owes money to someone else simply have a change of government equal to declaring bankruptcy ?
Kinda like a "get out of debt free card" based on the creation of a new government ?

<font size=-1>[ This Message was edited by: tkobo on 2002-06-25 09:00 ]</font>

Post by **George Geczy** » Jun 25 2002

Certainly if a region forfeits on its debts, for whatever reason (ie change of government type etc), then its credit rating and world approval rating will plummet.

This makes future borrowing difficult, and would also effect assitance by the World Market toward your region (or it might encourage them to assist your enemies more).

I'll ask Chris if he wants to create a lawyer battalion for the equipment list. It would certainly be fun to see them die on the battlefield!

-- George.

BulMaster · Post by **BulMaster** » Mar 06 2004

What about if you give the guy a loand and pays it, but goes to war with you. If at the end he is still allive does he continue to repay the loan or well tough luck

Post by **BattleGoat** » Mar 07 2004

If you go to war with a region that you are receiving payments from (either money or goods), they will of course cut off those payments.

Steelsky · Post by **Steelsky** » Mar 08 2004

I think that if someone neglegts to pay a debt to you a number of options should be presented, I have thought up a few examples below.

1: Forgive and forget.
If you really want to you should be able to just let it slide, take a slight hit in approval at home depending on how good your own economy is and be more popular with them if they are defaulting because they are nearing bankrupcy.

2: Remortgage.
If they want to pay but can't handle the yearly dues it should be possible to negosiate news terms for repayment. Maybe payments with goods and labour can be worked in here as an option if it's not available as part of the default terms?

3: Cassus Belli
Nice little phrase I learned from the devs of MoO3, if people just will not pay up it should go towards building a legitimate reason to go to war, if I understand the World Market idea right they should approve of the war as in the open market there are few things worse than not paying your debt.

4: Pay with land and cities.
I am not sure I like this one as no nation should willingly give up land for any reason but I'm including it for rejection anyway.
Idea would be that if they default on payments they can offer up either a small chunk of land to cover this payment in the hope that it will be better next time of a large chunk if they just want to get rid of the debt.

/Steelsky

BulMaster · Post by **BulMaster** » Mar 08 2004

On 2004-03-07 00:09, BattleGoat wrote:
If you go to war with a region that you are receiving payments from (either money or goods), they will of course cut off those payments.

no but i mean after that will he resume his payments?

//Causu Beli actualy is more of a dead word now days. It existed in the last centuries mainly because countries started to have permanent dip relations and had to justify their wars infron of the other great powers, who at the slightes change in balance of power would usualy react in a unpleasent way. So basicly it justified one country's action to the other countries and was used as propaganda at home//

<font size=-1>[ This Message was edited by: BulMaster on 2004-03-08 11:23 ]</font>

Post by **BattleGoat** » Mar 09 2004

No... Unless you renegotiated it as part of a Peace Settlement, any previous debts were wiped out. Whoever wins a conflict would likely get "Reparations" from the loser.

BulMaster · Post by **BulMaster** » Mar 09 2004

So technicaly i can get a hugh loan and go to war with the guy:) hopefuly win and yay no more debt

i know i make it sound easier but in the end the sole going to war will repay the debt