Saudi- Personal bank loans skyrocket 20 times to SR219 billion in 13 years

(MENAFN – Arab News) There has been a tremendous increase in the total value of personal loans extended by Saudi local banks in recent years. It shot up nearly 20 times within the last 13 years reaching SR219 billion in 2011 from SR11 billion in 1998, according to a report in Al-Eqtisadiah business daily.
This was mainly attributed to a huge increase in the number of banking customers and their reliance on local lenders to meet most of their personal requirements. Subsequently, almost all local banks have expanded their base of personal lending substantially even without taking into account the solvency of customers. Several financial and legal experts warned customers against relying heavily on banks to meet their financial requirements but most of them ignore such warnings.
Earlier, the number of customers who took out personal bank loans was very limited. In 1998, the volume of personal loans extended by local banks was merely SR11.2 billion. However it jumped three times to SR38.4 billion in 2001. The total value of personal loans was SR178.4 billion and SR198.8 billion in 2007 and 2010 respectively.
During Q3, 2011, the volume of personal loans extended by banks rose to SR218.9 billion. These included SR27.7 billion for real estate financing, SR46.2 billion for financing purchase of vehicles and equipment, and SR144.8 billion for other purposes, while credit card loans account for SR8.65 billion.
The huge increase in personal loans attributed mainly to the remarkable growth in the number of bank customers in recent years and their increased dependence on banks to meet most of their financial requirements. A number of Saudi financial and legal experts recently noted that Saudi banks had adopted a more cautious approach while extending personal loans in the past. Before 2000, the local banks concentrated mainly in extending loans only to companies and firms rather than individuals.
However, now the situation has been changed tremendously and almost all banks are competing each other to exploit this situation and resorting to the practice of receiving personal loan repayments directly from the salaries of borrowers. This practice served as a motivation for local banks to extend more personal loans to employees without taking into account their solvency.
The Saudi Arabian Monetary Agency (SAMA) introduced regulations for consumer financing and made them binding for the local banks effective Jan. 1, 2006. Banks are able to solve all the problems related to personal loans following the regulations issued by the central bank. There was also a SAMA directive that allows banks to treat the salaries of borrowers as security if they take out personal loans. This has helped banks to expand their base of personal lending substantially.
Some financial experts stressed that consumers must take utmost care and caution while taking personal loans so as not to affect their solvency as well as to prevent them from falling into a debt trap. They noted that consumers should take loans only if they are sure that they can make their prompt repayment. Loans be taken to fulfill only basic needs and not for any unnecessary requirements. There should be precise calculations and well thought out planning before taking loans, and there should not be any hasty decisions to take a loan. Precaution is to be taken against taking loans from illegal and unauthorized financial firms so as to avert becoming victims of fraudulent means and cheating.
Also, the monthly amount of repayment must be affordable to the consumer. There should also be proper balance between spending, borrowing and savings of the consumer. The consumer must have obtained all the relevant information with regard to the terms and conditions of borrowing and be fully aware of his ability to make repayments without affecting his solvency. The experts also cautioned against the habit of taking personal loans at regular intervals.
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Nuclear Energy Quarterly Deals Analysis – M&A and Investment Trends, Q4 2011

NEW YORK, Feb. 14, 2012 /PRNewswire/ — Reportlinker.com announces that a new market research report is available in its catalogue:
Nuclear Energy Quarterly Deals Analysis – M&A and Investment Trends, Q4 2011
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Nuclear Energy Quarterly Deals Analysis – M&A and Investment Trends, Q4 2011
SummaryGlobalData’s “Nuclear Energy Quarterly Deals Analysis – M&A and Investment Trends, Q4 2011″ report is an essential source of data and trend analysis on Mergers and Acquisitions (M&As) and financings in the nuclear energy market. The report provides detailed information on M&As, equity and debt offerings, private equity and venture capital (PE/VC) and partnership transactions recorded in the nuclear energy industry in Q4 2011. The report provides detailed comparative data on the number of deals and their value in the last five quarters, categorized by deal types, segments and geographies. The report also provides information on the top advisory firms in the nuclear energy industry.
Data presented in this report is derived from GlobalData’s proprietary in-house Nuclear Energy eTrack deals database and primary and secondary research.
Scope
- Analyze market trends for the nuclear energy market in the global arena- Review of deal trends in uranium mining & processing, equipment and services, and power generation markets- Analysis of M&A, Equity/Debt Offerings, Private Equity, Venture Financing and Partnerships in the nuclear energy industry-
Summary
of nuclear energy deals globally in the last five quarters- Information on top deals happened in the nuclear energy industry- Geographies covered include – North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa- League Tables of financial advisors in M&A and equity/debt offerings. This includes key advisors such as Morgan Stanley, Credit Suisse, and Goldman Sachs
Reasons to buy
- Enhance your decision making capability in a more rapid and time sensitive manner- Find out the major deal performing segments for investments in your industry- Evaluate type of companies divesting / acquiring and ways to raise capital in the market- Do deals with an understanding of how competitors are financed, and the mergers and partnerships that have shaped the nuclear energy market- Identify major private equity/venture capital firms that are providing finance in the nuclear energy market- Identify growth segments and opportunities in each region within the industry- Look for key financial advisors where you are planning to raise capital from the market or for acquisitions within the industry- Identify top deals makers in the nuclear energy market1 Table of contents1 Table of contents 21.1 List of Tables 31.2 List of Figures 42 Nuclear Energy Industry, Global, Deals Summary 52.1 Nuclear Energy Industry, Global, Deals Analysis, Q4 2011 52.2 Nuclear Energy Industry, Global, Number of Deals by Type, Q4 2011 72.3 Nuclear Energy Industry, Global, Top Deals, Q4 2011 83 Nuclear Energy Industry, Global, Top Deal Makers, Q4 2011 94 Nuclear Energy Industry, Global, Deals Summary, by Type 104.1 Nuclear Energy Industry, Global, Mergers and Acquisitions, Q4 2011 104.1.1 Top M&As in Q4 2011 114.2 Nuclear Energy Industry, Global, Asset Transactions, Q4 2011 124.2.1 Top Asset Transactions in Q4 2011 134.3 Nuclear Energy Industry, Global, Equity Offerings, Q4 2011 144.3.1 Top Equity Offerings in Q4 2011 154.4 Nuclear Energy Industry, Global, Debt Offerings, Q4 2011 164.4.1 Top Debt Offerings in Q4 2011 174.5 Nuclear Energy Industry, Global, Partnerships, Q4 2011 184.5.1 Partnership Deals in Q4 2011 195 Nuclear Energy Industry, Global, Deals Summary, by Sector 205.1 Nuclear Energy Industry, Global, Uranium Mining and Processing Deals, Q4 2011 205.1.1 Uranium Mining and Processing – Deals of the Quarter 215.2 Nuclear Energy Industry, Global, Power Generation Deals, Q4 2011 225.2.1 Power Generation – Deals of the Quarter 235.3 Nuclear Energy Industry, Global, Equipment and Services Deals, Q4 2011 245.3.1 Equipment and Services – Deals of the Quarter 256 Nuclear Energy Industry, Deal Summary, by Geography 266.1 Nuclear Energy Industry, North America Deals, Q4 2011 266.1.1 North America – Deals of the Quarter 276.2 Nuclear Energy Industry, Europe Deals, Q4 2011 286.2.1 Europe – Deals of the Quarter 296.3 Nuclear Energy Industry, Asia-Pacific Deals, Q4 2011 306.3.1 Asia-Pacific – Deals of the Quarter 316.4 Nuclear Energy Industry, Rest of the World Deals, Q4 2011 326.4.1 Rest of the World – Deals of the Quarter 337 Nuclear Energy Industry, Global, Top Advisors 347.1 Nuclear Energy Industry, Global, Top Financial Advisors, M&A, Q1 2011-Q4 2011 347.2 Nuclear Energy Industry, Global, Top Financial Advisors, Equity Offerings, Q1 2011-Q4 2011 357.3 Nuclear Energy Industry, Global, Top Financial Advisors, Debt Offerings, Q1 2011-Q4 2011 368 Further Information 378.1 Methodology 378.2 About GlobalData 378.3 Contact Us 388.4 Disclosure information 388.5 Disclaimer 38
List of Tables
Table 1: Nuclear Energy Industry, Global, Deals Summary, Number of Deals and Deal Value (US$m), Q4 2010-Q4 2011 6Table 2: Nuclear Energy Industry, Global, Deals by Type, Number and %, Q4 2011 7Table 3: Nuclear Energy Industry, Global, Top Deals, Q4 2011 8Table 4: Nuclear Energy Industry, Global, Top Deal Makers, Number of Deals and Deal Value (US$m), Q4 2011 9Table 5: Nuclear Energy Industry, Global, Mergers and Acquisitions, Deal Summary, Number of Deals and Deal Value (US$m), Q4 2010-Q4 2011 10Table 6: Nuclear Energy Industry, Global, Top M&As, Q4 2011 11Table 7: Nuclear Energy Industry, Global, Asset Transactions, Deals Summary, Number of Deals and Deal Value (US$m), Q4 2010-Q4 2011 12Table 8: Nuclear Energy Industry, Global, Top Asset Transactions, Q4 2011 13Table 9: Nuclear Energy Industry, Global, Equity Offerings, Deals Summary, Number of Deals and Deal Value (US$m), Q4 2010-Q4 2011 14Table 10: Nuclear Energy Industry, Global, Top Equity Offerings, Q4 2011 15Table 11: Nuclear Energy Industry, Global, Debt Offerings, Deals Summary, Number of Deals and Deal Value (US$m), Q4 2010-Q4 2011 16Table 12: Nuclear Energy Industry, Global, Top Debt Offerings, Q4 2011 17Table 13: Nuclear Energy Industry, Global, Partnerships, Deals Summary, Number of Deals, Q4 2010-Q4 2011 18Table 14: Nuclear Energy Industry, Global, Uranium Mining and Processing Segment, Deals Summary, Number of Deals and Deal Value (US$m), Q4 2010-Q4 2011 21Table 15: Nuclear Energy Industry, Global, Power Generation Segment, Deals Summary, Number of Deals and Deal Value (US$m), Q4 2010-Q4 2011 22Table 16: Nuclear Energy Industry, Global, Equipment and Services Segment, Deals Summary, Number of Deals and Deal Value (US$m), Q4 2010-Q4 2011 24Table 17: Nuclear Energy Industry, North America, Deals Summary, Number of Deals and Deal Value (US$m), Q4 2010-Q4 2011 27Table 18: Nuclear Energy Industry, Europe, Deals Summary, Number of Deals and Deal Value (US$m), Q4 2010-Q4 2011 28Table 19: Nuclear Energy Industry, Asia-Pacific, Deals Summary, Number of Deals and Deal Value (US$m), Q4 2010-Q4 2011 30Table 20: Nuclear Energy Industry, Rest of the World, Deals Summary, Number of Deals and Deal Value (US$m), Q4 2010-Q4 2011 32Table 21: Nuclear Energy Industry, Global, Top Financial Advisors, Mergers and Acquisitions, Number of Deals and Deal Value (US$m), Q1 2010-Q4 2011 34Table 22: Nuclear Energy Industry, Global, Top Financial Advisors, Equity Offerings, Number of Deals and Deal Value (US$m), Q1 2011-Q4 2011 35Table 23: Nuclear Energy Industry, Global Top Financial Advisors, Debt Offerings, Number of Deals and Deal Value (US$m), Q1 2011-Q4 2011 36
List of Figures
Figure 1: Nuclear Energy Industry, Global, Number of Deals and Deal Value (US$m), Q4 2010-Q4 2011 5Figure 2: Nuclear Energy Industry, Global, Number of Deals by Type (%), Q4 2011 7Figure 3: Nuclear Energy Industry, Global, Mergers and Acquisitions, Number of Deals and Deal Value (US$m), Q4 2010-Q4 2011 10Figure 4: Nuclear Energy Industry, Global, Asset Transactions, Number of Deals and Deal Value (US$m), Q4 2010-Q4 2011 12Figure 5: Nuclear Energy Industry, Global, Equity Offerings, Number of Deals and Deal Value (US$m), Q4 2010-Q4 2011 14Figure 6: Nuclear Energy Industry, Global, Debt Offerings, Number of Deals and Deal Value (US$m), Q4 2010-Q4 2011 16Figure 7: Nuclear Energy Industry, Global, Partnerships, Number of Deals, Q4 2010-Q4 2011 18Figure 8: Nuclear Energy Industry, Global, Uranium Mining and Processing Segment, Number of Deals and Deal Value (US$m), Q4 2010-Q4 2011 20Figure 9: Nuclear Energy Industry, Global, Power Generation Segment, Number of Deals and Deal Value (US$m), Q4 2010-Q4 2011 22Figure 10: Nuclear Energy Industry, Global, Equipment and Services Segment, Number of Deals and Deal Values (US$m), Q4 2010-Q4 2011 24Figure 11: Nuclear Energy Industry, North America, Number of Deals and Deal Value (US$m), Q4 2010-Q4 2011 26Figure 12: Nuclear Energy Industry, Europe, Number of Deals and Deal Value (US$m), Q4 2010-Q4 2011 28Figure 13: Nuclear Energy Industry, Asia-Pacific, Number of Deals and Deal Value (US$m), Q4 2010-Q4 2011 30Figure 14: Nuclear Energy Industry, Rest of the World, Number of Deals and Deal Value (US$m), Q4 2010-Q4 2011 32Figure 15: Nuclear Energy Industry, Global, Top Financial Advisors, Mergers and Acquisitions, Number of Deals and Deal Value (US$m), Q1 2011-Q4 2011 34Figure 16: Nuclear Energy Industry, Global, Top Financial Advisors, Equity Offerings, Number of Deals and Deal Value (US$m), Q1 2011-Q4 2011 35Figure 17: Nuclear Energy Industry, Global, Top Financial Advisors, Debt Offerings, Number of Deals and Deal Value (US$m), Q1 2011-Q4 2011 36
To order this report:Nuclear energy Industry: Nuclear Energy Quarterly Deals Analysis – M&A and Investment Trends, Q4 2011
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Student loans always are due, no matter how long overdue

By  Kathy Lynn Gray
The Columbus Dispatch Monday February 13, 2012 5:24 AM

If you think the student loan you took out years ago but never repaid won’t come back to haunt you, think again.
The debt could land you in federal court, pleading your case before a U.S. district judge.
“There’s no statute of limitations on student loans,” warned Assistant U.S. Attorney Deborah F. Sanders. “That debt is growing, and you still owe it.”
Sanders handles the student-loan default cases that come through the U.S. attorney’s office for the southern half of Ohio. Her office is pursuing about 400 cases.
“We get them because the (federal) Education Department has not been able to collect after many, many attempts,” Sanders said. “If it comes to our office, borrowers have had a lot of chances to pay.”
Defendants fall into two camps: those who don’t pay, and those who can’t, she said.
Usually the loans are years overdue, sometimes as long as 20 years. By that time, a large chunk of the money owed is interest that has accrued and compounded over the years.
In one case filed last year, the defendant owed $160,000, including nearly $25,000 in accrued interest on the 10-year-old loan. On another 10-year-old loan, nearly $40,000 of the $101,000 owed was interest.
If federal lawyers obtain a judgment against a debtor, the government can collect the money in a variety of ways. Wages and savings and checking accounts can be garnisheed, and tax refunds can be diverted, Sanders said. “We have a pretty good rate of collection.”
The court also can set up payment plans once a judgment has been made.
Unlike many other types of debt, student loans cannot be dismissed through bankruptcy except in rare situations, said Stephanie Dailey, a Columbus lawyer who specializes in bankruptcies.
“It’s almost impossible to get out of student-loan debt,” Dailey said. A debtor has to have a dire hardship, such as being completely disabled, she said.
About half the people who come to her with financial difficulties have student-loan debt, Dailey said. She advises them to approach the lender and try to get on a payment plan so that interest doesn’t continue to pile up.
“A lot of people will just stick their head in the sand and hope it’ll go away,” she said. “ Instead, they should let the creditor know they’re having trouble paying and ask for help.”
Dailey herself has nearly $100,000 in student-loan debt from law school. She has deferred her loans — postponed paying them with the blessing of the lender — when paychecks were lean. Interest continues to accrue during a deferral, but the lender won’t turn the loan over to collectors.
The number of student-loan defaults that went to federal court rose significantly in the late 1990s as the Justice Department pushed for collection. Nationwide, 1,142 default cases were filed in 1995; that number surged to 24,404 by 2000. But the number has fallen back since then as the Education Department has set up other ways to collect the debts, Sanders said.
At the same time, students are taking on more debt to attend college. In 2010, the average was $25,250, up 5 percent from the previous year, according to a study by the Project on Student Debt. The average in Ohio was $27,713. An estimated $1 trillion in total student loans is outstanding nationwide.
The default rate in 2009, the most-recent data available, was 8.8 percent. That includes borrowers with loan repayments due between Oct. 1, 2008, and Sept. 30, 2009. An estimate of the total amount of loan money in default is not available.
A survey released last week by the National Association of Consumer Bankruptcy Attorneys found that 81 percent of bankruptcy lawyers said the number of potential clients with student-loan debt has increased “significantly” or “somewhat” in the past three or four years.
The association thinks that student-loan debt could create an economic threat to the country as serious as the home-mortgage crisis did in the late 2000s.
kgray@dispatch.com

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Private equity players, venture capitalists cautious about 2012

Private equity players and venture capitalists are cautiously optimistic about the prospects of their businesses, yet are hopeful of clinching more deals in the New Year, say industry experts.
“We are cautiously optimistic about 2012 as global uncertainty still looms large. However, the number of deals is likely to be higher as valuation looks attractive,” IDG Ventures vice-president Ranjith Menon said.
He also said global PE players may invest less in 2012 due to the risk aversion of foreign investors to emerging markets.
In 2011, there was an increase in private equity investments as companies found rise in cost of borrowing due to repeated rate hikes by the Reserve Bank. Even some sectors found debt flow drying up from commercial banks as financial institutions deliberately cut exposure to certain sectors fearing rising delinquency.
According to a KPMG India [ Images ] report on PE investments, it is estimated that PE deals marginally rose and touched USD 8.6 billion in 2011 up from USD 8.2 billion in 2010.
Similarly, according to a Grant Thorton report, the top sectors for PE investments in 2011 were realty, infrastructure, automotive, power and energy, banking and financial services and information technology, contributing to around 67 percent of the total investment during the year.
While about 22 per cent of the total private equity investments were in the real state and infrastructure sectors, 13 per cent was in the automotive, and 12 percent in the power and energy sector during 2011, the report added.
“In 2012, total investment will be similar or higher than 2011 by PE players as a number of players are likely to take pre-IPO exposure in companies, which was nearly absent last year,” Fire Capital chief executive Om Chaudhry said.
As domestic economy does better, there is a line up of good IPOs that are expected to hit the market and they will provide good investment opportunities for PEs, he added. Even industry experts said that the number of PIPE (private investment in public equities) are also likely to be higher in the new year.
“Promoters are more realistic about valuations these days after the bad performance of equity market. So, there should be higher deals in the form of PIPE in 2012,” he said.
Referring to sectors, Chaudhry said real estate, financial services, education, and private sector healthcare would see higher PE fund inflows during 2012.

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