Join the new world

The following is still in its draft form. Comments are welcome.
The project details are now finalized.

Edits:
21 Aug 2012:
* Changed simple to compound interest
* Changed medal requirement from any medal to either Hard Worker or Super Soldier medals
* Changed gold deposit from 1g to 25% of the amount to be borrowed
* Credit goes to Destroyer S87 and Vincenzo Roque for their above contributions

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Philippine Loans Program (PLP)

I. Preliminaries

The Philippine Loans Program is started in the 39th Congress, under the
leadership of Jon873. It aims to help new or low-leveled players be self-
sustaining by giving them access to capital from government funds. It also
aims to provide the government a small income through an interest rate
that is equitable for both parties, especially making it possible for individuals
to eventually pay off their loans.

II. Project budget, roles and responsibilities

The project will have a starting budget of PHP 20,000. It will be handled in a
separate government organization account. The Minister of Finance and his/her
helpers will be given access to the organization account to manage the program.
The project managers will maintain a publicly viewable document that includes
all the transactions. The project manager/s will publish a weekly report on the
status of the project as well. The weekly report should include individuals who
have missed entirely their payment schedules.

III. Execution details

1. Loan eligibility
Citizens who meet the following criteria are eligible to *apply*:

* Has at least 1 medal
* Is at least level 20
* Has no outstanding loans

The above criteria were chosen as indicators of in-game activeness and could be
weakly correlated to capacity and willingness to pay off the loaned amount.

2. Application requirements
Any citizen who meets the above criteria can apply by sending the following
details:

* Screenshot of your whole My Places view (including the gold and currency)
with Date/Time when the screenshot was sent.
* Answer to the questionnaire:

a. What is your in-game name and link to profile?
b. How do you earn in game?
c. How much do you want to borrow?
d. What will you use the borrowed money for?
e. What is your preferred payment schedule? Daily or weekly?
f. How do you plan to pay the borrowed money?

3. Criteria for acceptance
Any loan application will be subject to delibation of the project panel. Factors to be
considered will be:

* In-game activeness (participation in discourse whether via publishing or
commenting in newspapers)
* Meta-game activeness (IRC or forums)

4. Loan disbursement
Once a loan application has been approved, we shall require a gold deposit as
collateral. The gold deposit amount will be worth 25% of the amount to be
borrowed using the offer on top of page 2 of the monetary market [1] at the
moment of the loan approval. The borrower will be issued a screenshot of the
monetary market from which the gold exchange rate will be based on. Once
the deposit has been made, the borrowed amount shall be transferred to the
borrower's account within 24 hours.

Loanable amounts will be in multiples of PHP 1,500, up to a maximum of
PHP 9,000, subject to availability of funds.

5. Payment schedule and interest rate
The interest rate will be announced at the official launch of the project and
may be revised by the project managers with consultation from the cabinet.
The interest rate will be applied weekly on the capital (compound interest).

For illustration purposes, consider the following loan details:
5,000 PHP for 1% weekly interest

Week 0: 5,000 PHP
Week 1: 5,000 PHP + 1% of 5,000 (50 PHP) = 5,050 PHP
Week 2: 5,050 PHP + 1% of 5,050 (50.50 PHP) = 5,100.50 PHP
Week 3 (assuming borrower paid 1,000 PHP):
5,100.50 PHP - 1,000 PHP = 4,100.50 PHP -> remaining capital
4,100.50 PHP + 1% of 4,100.50 PHP (41.005PHP) = 4,141.51 PHP (4,141.505 PHP, rounded up)

The borrower is encouraged to pay off part of the capital every week to minimize
interest accrual.

6. Failure to pay upon agreed schedule
In the event that the borrower is unable to pay according to schedule, s/he will be
given a stern warning and will be called out on in the weekly report. They should
be ashamed.

Notes:
[1] We're using the page 2 of the monetary market so as to minimize the very large
fluctuations in pricing in the first page of the monetary market.

Contributors:
Jon873: http://www.erepublik.com/en/citizen/profile/4267647
DragoonXRyu: http://www.erepublik.com/en/citizen/profile/1405662
Destroyer S87: http://www.erepublik.com/en/citizen/profile/4405660
Vincenzo Roque: http://www.erepublik.com/en/citizen/profile/2285968