There was a time the priest at church sermon was about Jesus encountered money changers in the temple. Enraged by their usury and sacrilege, he went on a tear–overturning their tables, physically driving them out, and chastising them for converting the temple into a “den of robbers.”
The Bible doesn’t say where these bloodsucking lenders went, but now we know: They have re-emerged in recent years to set up their tables right inside the Department of Justice of Arroyo government, moonlighting in a dark alley of market fish vendors called the “Five-Six market.” The what? Don’t be deterred by the finance industry’s jargon in the Philippines (which is intended to numb your brain and keep regular folks from even trying to figure out what’s going on). At its core, this is a classically simple story of banker greed and outright sleaze. And the astonishing part is that nearly all of the rank injustice perpetrated by today’s money changers is considered legal and is practiced by supposedly reputable government officials.
But what I’d really like to talk about are this week’s news, columns and opinion pieces, which are a strange lot. I mean, what’s with this piece about Proscecutor Resado from DOJ who deposited 800,000 pesos on 5% inetrest his wife collected on their roving capital business short of infecting himself of operating a “Shark Loan” business with chances of getting the job aren’t looking too good.
If small vendors in the different public markets of the province will be given the chance to access easy-to-avail and collateral-free loans from rural banks, this will invigorate economic activity in the rural areas and will also contribute to economic growth of the entire nation not the the fat milking cow of Prosecutor Resado. Thereby enhancing livelihood and economic opportunities among small entrepreneurs by way of available credit facilities in the rural areas.
I know first-hand that loan sharks can seem like a good option for small businesses, but prove harmful in the long run, the high interest rates placed a heavy burden on small business,The loan shark offered 10 loan with weekly payment 0f 12, the loan unaware of the burden that the weekly interest rate would cause—if charged annually, the rate would have topped 150 percent almost!( I’m not sure with my accounting) became unable for them to keep up with payments.
The five/six business disingenuously hurts the poor vendor people who receive these loan for they have nowhere else to turn for fishball vending financing. What self-serving hogwash! There could be five/six loans–from individual administered with deceit. They target lower-income families as suckers to be had, packaging their dreams into investment playthings for speculators and tax dodgers, let’s view these folks as assets to the larger community and realize that market vending for them is only a source of living and while they’re at it, this shark loan is driven by their low-wage/no-benefit economy and by our country’s growing scarcity of expensive goods.
Rolling money in Five-Six is a strategy among borrowers in their desperate bids to manage their debts..Sometimes people who need money to pay off moneylenders who had lent them money earlier. They keep on rolling and rolling their debt until it gets bigger and bigger, The hole they are in gets bigger and bigger until they simply cannot cover.
This five/six loan system must be fixed–our leaders’ pursuit of a low-income people must be stopped.