The financial matches of the season

One of the tactics of the authorities, which has now been well demonstrated, is to pit sections of the population against each other: patients against hospitals, consumers against businesses, parents of students against schools … And, cherry blossom field on the cake, depositors against banks.

How do they do it? It’s easy. Above, no problems caused by the crisis are solved and the situation is left to rot. Since these authorities have never fixed anything and rot is one of their specialties, their tactic was born quite naturally.

The great duel

We will focus in a few lines on the last category of this duel, from a purely financial point of view: who, between depositors and banks, is the financial winner and who is the loser of this daily confrontation, through the usual transactions? Another way to break these prejudices which, with the help of social networks, are taking root in popular consciousness.

In a first series of transactions, depositors can withdraw their bank dollars at the rate of 8,000 according to Circular 151, or 12,000 LL (plus $ 400 cash) according to 158. As for inflation (around 1000% from the end of 2019) according to the latest data available), the former lose on the stock market, while the latter gain a little. The banks, for their part, lose in both cases because in their accounts one dollar is always equal to 1,500 LL. The balance of this first game is therefore 2 to 1, in favor of depositors.

Another series of transactions concerns LL debtors, particularly those who have taken out home loans. They continue to repay the same monthly amount. Except that these 2 million, for example, initial monthly drafts no longer weigh anything now. Hardly a family dinner in town. It is also sufficient that the loan was taken out shortly before the crisis for the housing of this depositary, obviously very angry with the banks, to be bought almost free of charge. And the gain of one is equivalent to the deficit of the other (nothing is lost, nothing is created …), the banks lose enormously on this operation. Result of the match: 1 to zero, in favor of the depositors.

Dollar (individual) debtors are even more favored. They can still repay their debt in dollars, but in LL at the rate of 1,500. More losses for the “enemy”. Additionally, some borrowers offer to pay $ 20,000 in cash, for example to repay a $ 100,000 loan. And some banks accept the deal at the service of customers who benefit from 158. Balance of the game: 1 to zero, in favor of depositors.

The baby and the bathwater

Faced with these accusations that therefore weigh on the balance sheets of banks (almost always negative), the epidermal reaction of the majority would then be: “It is good for them”. An understandable reaction and, all in all, logically justified, since the banks have a certain responsibility for the outbreak of the crisis (variable part according to analysts), while the depositors have none.

However, one factor is overlooked. It is because no one has an interest in seeing banks fail. With dramatic consequences therefore for all depositors.

Then, in all recovery plans, the banking sector should help absorb the country’s financial losses, caused, let us remember, by the incurable corruption of the state. If, in the meantime, the banks are bled, their contribution will be reduced accordingly.

And it will not be the State that will be able to compensate, but the poor depositary, always him. Because the state is already bankrupt and, strangely enough, happy to be. Above, we have never been so peaceful.

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