Category: National and International

Europe is shutting its doors on migrants, numbers prove that

Europe is shutting its doors on migrants, numbers prove that

Europe is shutting its doors on migrants, numbers prove that

The International Organization for Migration (IOM), the United Nations migration agency, in its most recent publication that the number of immigrants and refugees who have entered Europe by sea has experienced a drastic reduction in the year.

Data collected by the agency up to June 11 indicate that 73,189 migrants and refugees have entered Europe by sea in 2017. The corresponding figure for January-June 11 of last year was 2.11 434 – nearly three times the number of this year.

The deepening of anti-immigrant sentiments and refugees after the terrorist attacks in many European countries can be attributed to the drastic reduction.

Britain has seen three terrorist attacks in the past four months, killing dozens of people. There have been two major terrorist attacks in France and Sweden in 2017.

The series of terrorist attacks in Europe, which began with the Charlie Hebdo attack in Paris in January 2015, continued unabated in France, Britain, Germany, Belgium and other European countries. And in many of these attacks, migrants, refugees and their dependents were involved.

2015: year of crisis
In terms of movement of migrants and refugees, 2015 was a year of crisis that has seen more than a million countries like Syria, Afghanistan, Iraq and Nigeria, are trying to enter Europe. According to the European Union (EU), there were 13,211,560 asylum applications in 2015.

The wave of immigrants and refugees in 2015 said that the biggest wave of human crisis since World War II creates pressure in many European countries, especially the smaller and economically weaker.

Although hostile signs were initially visible, such as Hungary, Poland, Romania, Slovakia and the Czech Republic great reluctance, the European Commission has established a plan to distribute and to move refugees from Member States and sets the deadline of September 2017.

But so far only 21 000 asylum seekers have been relocated, although the EU threatens legal action against countries in difficulty.

Reported numbers
Combined with the terrorist incidents attributed to migrants and refugees and a long increase in hostility, 2016 experienced a sharp decline with 3,64,000 asylum seekers in Europe.

Many European countries have erected fences to prevent migrants. The Balkan route was closed. The EU has made an agreement with Turkey to control and block the road to the Aegean Sea, the main route taken by asylum seekers to reach Europe through Greece.

Turkey, which was the gateway of Syrian immigrants to enter Europe, has sealed its border with Syria.

2017, it seems, following the trend of last year. During the first six months of the year, just over 70 000 asylum seekers arrive in Europe via the sea and in this case the number for the whole year is likely not to exceed 1 50 000.

The emergence of leaders of the right and extreme right in several European countries and governments hostile to migrants and refugees has aggravated the crisis.

France’s far-right politician Marine Le Pen has become the leading political opposition in the country with 34% of the votes in the last presidential election. In particular, the far right in France was almost non-existent until a few years ago.

Le Pen is a strong critic of immigration. Germany’s extreme right-wing leaders called compost asylum seekers, while British PM Theresa May has shown no particular interest in the welfare of refugees.

Similarly, across the Atlantic, President Donald Trump has always had a strong anti-immigration voices and tried to detain migrants and refugees who come to the United States.

Bank Audit Loss assets should be written off

If loss assets are permitted to remain in the books for any reason, 100% of the outstanding should be provided for.

brought by them should be a minimum of 20% of banks’ sacrifice or 2% of restructured debt whichever is higher. The term bank’s sacrifice’ means the amount of “erosion in the fair value of the advance”. The additional funds required to be brought in by the promoter should be brought up front and not be phased over a period of time.

  1. Promoter’s contribution need not necessarily be brought in cash and can be brought in the form of de-rating of equity, conversion of unsecured loan brought by the promoter into equity and interest free loans.
  2. The restructuring under consideration is not a ‘repeated restructuring’
  • Promoter’s personal guarantee should be obtained in all cases of restructuring. Corporate guarantee cannot be accepted as a substitute for personal guarantee. However, the same can be accepted in cases where promoters of a company are not individuals.
  1. Provisioning Norms
  • Substandard assets

A general provision of 15% on total outstanding should be made without making any allowance for ECGC guarantee cover and securities available.

The ‘unsecured exposures’ which are identified as ‘substandard’ would attract additional provision of 10%, i.e., a total of 25% on the outstanding balance! However, in view of certain safeguards such as escrow accounts available in respect of infrastructure lending, infrastructure loan accounts which are classified as sub-standard will attract a provisioning of 20% instead of the aforesaid prescription of 25%.

  • Doubtful assets
  1. a) 100% of the extent to which the advance is not covered by the realisable value of the security to which the bank has a valid

recourse and the realisable value is estimated on a realistic basis (unsecured portion), b) In regard to the secured portion, provision may be made on the following basis, at the rates ranging from 25% to 100% of the secured portion depending upon the period for which the asset has remained doubtful:

Period for which the advance has remained in ‘doubtful’ category Provision requirement (%)
Up to 1 year 25
1 to 3 years 40
More than 3 years 100



  • Loss assets

Loss assets should be written off. If loss assets are permitted to remain in the books for any reason, 100 percent of the outstanding should be provided for.

  • Standard assets
  1. Direct advances to agricultural and SME sectors at 0.25%;
  2. Advances to Commercial Real Estate (CRE) Sector at 1%;
  3. Advance to commercial Real Estate – Residential Housing Sector at 0.75%
  4. Housing loan at teaser rates 2% and 0.40% after 1 year from the date on which the rates are reset at higher rates
  5. All other loans and advances not included in (a), (b), (c) and (d) above at 0.40%
  6. Restructured account classified as standard would attract higher provision. Para of Master Circular may be referred for the same.
  • Valuation of security for provisioning


  1. There are specific guidelines in para 5.4(iii) of the Master Circular for consideration of security in respect of infrastructure projects. The same may be referred.

In cases of NPAs with balance of ^ 5 crore and above stock audit at annual intervals by external agencies appointed as per the guidelines approved by the board of the bank would be mandatory. Collaterals such as immovable properties charged in favour of the bank should be got valued once in three years by valuers appointed as per the guidelines approved by the Board of Directors.