King
Chapter 1218 - 1218 204 Unsung Hero

1218: Chapter 204: Unsung Hero 1218: Chapter 204: Unsung Hero Interests are the best balm for wounds, regardless of whether the Near East Development Bank has stepped on a mine, the appreciation of assets is real after all.

The reason for everyone’s belief is very simple, a Major Noble would not stake their reputation to fabricate lies—it’s simply not worth it!

Investing involves risks, and it is understandable to inadvertently step on a mine in an emerging industry.

Even if the shareholders have doubts, at most they would request to send someone over for oversight.

In fact, this is of no use at all.

To bamboozle a bunch of laymen who know nothing, Hudson has plenty of ways.

To be involved in the actual operation is just wishful thinking.

Compared with the banks they set up on their own, the Near East Development Bank is a model student.

“Marshal, we have no intention of questioning your management.

But with so many assets already on the books of the Near East Development Bank, is there really a need to raise more funds?”

Samantha asked with a furrowed brow.

Judging from the asset appreciation, the development of the Near East Development Bank is indeed not bad, but the thought of raising funds again makes everyone think twice.

No other reason but that, having occupied most of the market in Alpha Kingdom, the development of the Near East Development Bank is already in the middle and late stages.

If it hadn’t been for the new market in Moxi Duchy, one couldn’t continue the story.

Instead of seeing the return on investment, they are once again extending their hands to ask the shareholders for money.

“There’s no way around it, the loan from Moxi Duchy could be collected, but the time cycle it requires is too long, severely monopolizing the bank’s cash flow.

In order to develop better, we must replenish the cash flow.

Don’t worry, everyone, as the major shareholder of the bank, I will also invest funds in proportion to my share of stocks just like the rest of you!”

Hudson said with feigned generosity.

The Near East Development Bank indeed lacks cash flow, but the reason is not the fake account from Moxi Duchy, but the aftermath of the currency crisis on the Northern Continent.

Gold Tickets have replaced Gold Coins in circulation, but essentially, they are not currency but the bank’s debt.

An entity with mere thirty million in net assets, yet bearing over two hundred million in operational debt, is strikingly reminiscent of the banks from a past life.

The problem lies in the current speed of capital turnover, which is far slower than in the past.

If a major event occurs, the Near East Development Bank’s ability to withstand risks is still very low.

Financing to supplement cash flow is undoubtedly the best solution.

The most critical thing is that Hudson has a huge interest-free loan on hand, and nobody knows where to use it.

Taking it out is impossible as it would empty the bank’s cash flow.

Keeping it circulating on the books and doing nothing with it is simply a waste.

Seeing that the mentality of the group of shareholders is good, Hudson once again proposed the financing plan.

Regardless of whether others are willing to follow or not, he is certainly going to invest in the bank.

Taking advantage of the bank’s interest-free Lifelong Series loans to buy back bank shares is bound to be profitable.

Originally, to develop the bank, he had given up quite a few shares, and now Hudson also wanted to buy some back.

Who could blame him when the Near East Development Bank has developed so well?

The anticipated wave of defaults did not occur.

Instead, quite a bit of capital cost has been recovered.

The cycles of development for agriculture and animal husbandry are usually short.

The earliest batch of Noble Lords who took out loans are now starting to repay their debts.

Especially the business in Southeastern Province is already reaping rewards.

Nobles do not have the habit of being in long-term debt; after taking a breather, many Noble Lords have come over to repay their loans early.

Since Hudson didn’t bundle the loans into financial capital to sell off, naturally, he isn’t afraid of everyone paying back early.

After a good start, Hudson was surprised to find that as long as there’s no upheaval in the Kingdom, the Near East Development Bank would soon enter a healthy cycle.

As long as the loans from the hinterlands of the Kingdom can be normally recovered, even if debts from the Near East region are rotten, the bank can still stand firm.

Theoretically, under conditions where credibility doesn’t collapse, the Near East Development Bank can handle a bad debt rate of 10%.

Converted to the two high-risk markets of the Near East and Northern Border, as long as 20% of the local debts can be recovered normally and 30% at least the principal is recovered, the bank can operate normally.

Considering the current strength ratio between the Kingdom and Orcs, Hudson believes that even if a defeat occurs, it wouldn’t result in half of the Noble Lords’ lands being without an heir.

Since there’s a “money path”, it makes sense to buy back shares.

If it weren’t for the fact that there are too few wealthy patrons these days, making it hard to fake identities, he would have wanted to create a few ghost accounts to join the financing fray to buy back bank shares.

“Marshal, isn’t the amount of capital being raised this time too high?

Twenty million Gold Coins, that’s equivalent to the entire annual fiscal revenue of Your country.

Does the Near East Development Bank really need so much money?”

Count Powell couldn’t help but question from the side.

The affair in Moxi Duchy had just ended, and he had hurried over to attend the shareholders’ meeting.

Originally, he came to show disapproval, but he was somehow cajoled by Hudson into discussing another round of financing.

As soon as these words left his mouth, Powell realized something was amiss.

Wasn’t he supposed to oppose financing?

Why did he unintentionally join in the discussion about the amount of financing?

Knowing full well that he was being led by the narrative, but with the words already spoken, there was no taking them back.

“The specific financing amount can be discussed!

Twenty million is just an ideal figure, and we have to consider everyone’s bearing capacity.

By the way, Count Powell, your data just now was not accurate.

Along with the economic recovery of the Kingdom, our fiscal revenue has already exceeded twenty million Gold Coins.”