Open Discussion | Crisis and Emergency Fund

The Crisis and Emerbency Fund, or CEF for short, is simple to understand. In events of any crisis or emergency such as pandemic outbreak, disaster-related events and rebuilding efforts, CEF wil provide long-term loans to the affected regions. The country will then pay back the money including the interest rate depending on how much was loaned. CEF will get its funding from the :AINERO: 3 trillion budget allocated to DESH. All figures are yet to be determined.

Here's a scenario:
Simland was hit by Hurricane Mis, causing damages of :AINERO: 1 billion.
Simland borrows a loan of :AINERO: 1 billion from CEF in year 2010, which includes a 1% interest rate.
Simland must pay back :AINERO: 1.01 billion.
Simland must pay it's first payment of at least 5% of the loan taken plus interest ( :AINERO: 50.5 million) within six months time.
For every six months, Simland must pay back 5% of the loan taken plus interest ( :AINERO: 50.5 million).
Based on calculations, Simland must pay back by 2020.
Delay in payment will only be allowed on case-by-case basis.

Everytime a loan is taken, the interest rate and the duration of the payment will be determine by the country's GDP. The higher the GDP, the higher the interest rate and the shorter the duration of payment. These move will prevent richer countries from abusing the CEF.

Here's a scenario:
Richland have a higher GDP than Poorland
Richland and Poorland borrows :AINERO: 100 million from CEF.
Richland's loan will include a 10% interest rate and must pay back every 1 month.
Poorland's loan will include a 1% interest rate and must pay back every 6 month.

What do you guys think? Should CEF work on a loan-based system? Or should it work on a give-when-ask system?

^^^Read first post^^^

I like this, kinda like the IMF or World Bank, isn't it?

looks like it, this seems like a HTP knock off

Thomas: I'm not sure how World Bank and IMF works. Must read up more.
Forthwall: Partially.

World Bank is a term used to describe an international financial institution that provides leveraged loans to developing countries for capital programs. The World Bank has a stated goal of reducing poverty. By law, all of its decisions must be guided by a commitment to promote foreign investment, international trade and facilitate capital investment.

Looks like it