Academic literature on the topic 'Shipping law'

Given the importance of the position of fund's credit in the development process, it has been supposed to be the giver and the recipient of the credit and other related parties are protected through a rights institutions, strong guarantee and also be able to provide legal certainty for all parties concerned in the various sectors of the trade of Indonesia, including the shipping sector. To encourage the shipping industry, the Government has undertaken various legal actions including through deregulation in the field of sea transport issued Law No. 17 in 2008 about voyage, the President’s Instruction Number 5 in 2005 concerning Empowerment National Shipping Industry and the regulation of President No. 44 in 2005 about ratification of the International Convention on Maritime Receivable and Mortgage with this ratification, particularly the field of shipping, the Indonesian shipping industry may participate empower and strengthen national and international efforts to prepare Legislation in the draft of Law on the Maritime Claim Prior and Mortgages on Ships. The regulations of ship mortgage, among others, are still adopting colonial rule both the Book of the Law of Civil Law (Civil Code) and the Book of the Law of Commercial Law (Commercial code) and Indonesia legislation, namely Law No. 17 in 2008 about Shipping. Regarding the distribution of these regulations will be further discussed in Chapter II.

Purpose The occurrence and unpredictability of speculative bubbles on financial markets, and their accompanying crashes, have confounded economists and economic historians worldwide. The purpose of this paper is to diagnose and detect the bursting of shipping bubbles ex ante, and to qualify the patterns of shipping price dynamics and the bubble mechanics, so that appropriate counter measures can be taken in advance to reduce side effects arising from bubbles. Design/methodology/approach Log periodic power law (LPPL) model, developed in the past decade, is used to detect large market falls or “crashes” through modeling of the shipping price dynamics on a selection of three historical shipping bubbles over the period of 1985 to 2016. The method is based on a nonlinear least squares estimation that yields predictions of the most probable time of the regime switching. Findings It could be concluded that predictions by the LPPL model are quite dependent on the time at which they are conducted. Interestingly, the LPPL model could have predicted the substantial fall in the Baltic Dry Index during the recent global downturn, but not all crashes in the past. It is also found that the key ingredient that sets off an unsustainable growth process for shipping prices is the positive feedback. When the positive feedback starts, the burst of bubbles in shipping would be influenced by both endogenous and exogenous factors, which are crucial for the advanced warning of the market conversion. Originality/value The LPPL model has been first applied into the dry bulk shipping market to test a couple of shipping bubbles. The authors not only assess the predictability and robustness of the LPPL model but also expand the understanding of the model and explain patterns of shipping price dynamics and bubble mechanics.

Since Legislative Assembly approved Law No. 7 of 1983 on Income Tax, as last amended by the Law No. 36 of 2008 (so there are four time changes, namely by the Law No. 7 of 1991, then No. 10 of 1994, furthermore No. 17 of 2000 and the last No. 36 of 2008), but the base of the domestic and overseas shipping company taxation which apply Special Calculation Norm of Net Income (deemed profit) for the national and overseas shipping companies taxpayers with the application of Article 15 of the Income Tax (Final Tax) did not change either in the tax rates and the tax bases, whereas the corporate tax rate (Article 17 paragraph 1) has changed from the Law No. 7 of 1983 with progressive rates levying at the rate of 10% -35% with the last change to a flat rate of 25% in the Law No. 36 of 2008. Similarly, the Tax Base used appear to have been unreasonable to overseas shipping Net Income amounted to 6%. Tax Base which reflects the rate of return the company is used as a base taxation income tax shipping company seems too low, compared with the rate of profit (net profit after tax) obtained by shipping companies at home and abroad. These conditions certainly result in low tax revenue from the shipping sector, and on the other aspects of the fulfillment of tax fairness rules also disrupted due to the shipping company suffered a loss nonetheless pay a final tax (VAT Article 15).

This thesis analyses the Uniform Customs and Practice for Documentary Credits (UCP) against the backdrop of the question: ‘what documents must a beneficiary, acting as seller under an international sale of goods carried by sea, present to a bank, and how must he present them, in order for the presentation to be considered compliant?’. It interprets the rules through the answer to this question by looking at national law but also the range of supporting material published by the International Chamber of Commerce. This includes the International Standard Banking Practice, Banking Commission Opinions and Recommendations and DOCDEX decisions. It is unique, because it is one of the few pieces of academic research to place emphasis on these documents and argue that they provide clarification and addition to the UCP. The result of the analysis is a list of proposals for amendments and additions, specifically to UCP but also in some cases to letter of credit law generally. It is these proposals and the arguments for them that are the original contribution to research. Perhaps the most daring submission, never made before in another piece of legal writing, is the proposal that the location of the Fraud Exception to the Autonomy Principle of letters of credit, and indeed all exceptions to the principle, are to be found in the UCP themselves. Where past research has adamantly held that the UCP do not deal with fraud, I submit that they do, and the analysis of the corresponding articles evidence this. The law is stated as at 1 September 2011.

This research is contextualised in the maritime domain, where since the introduction of legislation mandating the carriage of Electronic Chart Display and Information Systems (ECDIS) by merchant vessels, evidence has emerged of unintended consequences of this legislation – which threaten the safety of navigation. The real-time presentation of information displayed by ECDIS should improve deck officers’ cognitive assessment of their navigational situation, yet the terms ‘ECDIS-assisted accidents’ and ‘ECDIS-assisted groundings’ have of late become part of maritime terminology. This dissertation presents an analysis of the factors inhibiting ECDIS from effectually achieving its intended primary function of contributing to safe navigation. Applicable legislation is identified and case studies are used to scrutinise the efficacy of the current legal framework regulating the use of ECDIS. The potentially unsafe technical operational aspects and limitations of ECDIS are analysed and the human factor and human error in the use of ECDIS are critically evaluated. Current industry initiatives to improve the safety of navigation with ECDIS are outlined and additional measures to mitigate unsafe practices in the use of ECDIS by deck officers are considered. This research finds that despite an apparently robust legal framework regulating the use of ECDIS, the current legislative provisions do not appear to be effective in preventing ECDIS-assisted accidents, particularly vessel groundings. It is found that ECDIS training has not been sufficiently integrated into the STCW Code and express provisions mandating how ECDIS should be used as an aid to navigation are inadequate. Overreliance is identified as a primary risk in the use of ECDIS, as it significantly reduces navigational safety. ECDIS is an aid to navigation and must be used in conjunction with traditional watchkeeping skills and the practices of good seamanship. Given that most maritime casualties are caused by human error, measures to address the human factor should be embedded into ECDIS pedagogy. Instead of fulfilling its primary function of improving the safety of navigation, the use of ECDIS can in fact reduce situational awareness by distracting navigators from looking out of the bridge windows. This research concludes that in the case of ECDIS, the introduction of technology intended to reduce human error in shipboard operations has inadvertently created new error sources. Improved training methods are required to address these types of technologically-generated error pathways.

While the identification of the carrier under a contract for the carriage of goods by sea, whether as unimodal transport or as a leg of a multimodal transport, for the purposes of determining the person liable for the loss or the damage to goods carried, does not generally present a cargo interest with difficulties, there are instances in which it may do so. This minor dissertation evaluates the solutions provided by the Rotterdam Rules to certain 'identity of the carrier problems'.

Includes bibliographical references.
The question this dissertation aims to answer is how developing countries can be better included in the IMOs decision-making process in order to make the process more efficient regarding time efficiency and the enforcement of decisions. It will be shown that the decision-making process of the IMO lacks efficiency regarding time-efficiency, which leads to a delay in finalising, adopting and implementing IMO decisions. Furthermore, the implementation and enforcement of decisions is inefficient. It will be demonstrated that the IMO would work more efficiently if developing countries would be better included in the decision making process. In order to point out ways to increase the IMOs efficiency and to improve the participation of developing countries in the process, seven suggestions on how to improve the efficiency of the IMO will be analysed. However, it will be shown that only a few of them have the double effect of improving the effectiveness of IMO´s decision-making process and strengthening the participation of developing countries. Out of the seven proposals for strengthening the efficiency of the IMOs decision-making process that are to be examined in this work only a change to the structure of the IMO to open up the “rich man´s club” and the expansion of the IMOs efforts to strengthen the member states implementation willingness achieve both objectives at the same time. However, there is not just one way to improve the IMOs decision-making process and the participation of developing countries in it. For achieving the best results, a few of the proposals should be combined.

Includes bibliographical references.
The test for remoteness of damages laid down in Hadley v Baxendale has survived more than a century and a half with comparatively little meddling from the English courts. That is not to say there has been no attempt at refinement or clarification. The recent decision in The Achilleas saw five Law Lords coming to the same conclusion as to the rule’s effect but for very different reasons. This dissertation will consider the historical development of the Hadley v Baxendale rule, its rationale, its application in the later English cases of Nettleship, Victoria Laundry and The Heron II, the approaches adopted by the House of Lords in The Achilleas, its subsequent effect in The Amer Energy and The Sylvia, the difference in approach adopted in tort and finally will conclude with a comparison of the approaches to assessing remoteness of damages in English and South African law.

The carrier identity problem is one that may arise in the context of the international carriage of goods by sea. This problem may arise in a variety of ways particularly when the carriage arrangements are complex or where there is no clear documentary evidence that may assist in the identification of the contractual carrier. The identification of the carrier is a question of fact that can be drawn from the circumstances surrounding the carriage contract and the transport documents issued in relation to the carriage of goods by sea. The core question in solving this problem is to ask is which party assumed responsibility for the carriage and delivery of the goods. There are various ways in which the carrier may be identified, however, it must be understood that the solution to the carrier identity problem is not so straightforward. The carrier identity problem can stem from the way in which these methods of identifying the carrier are executed in practice. The dissertation argues that the relevant provisions of the Rotterdam Rules relating to the identity of the carrier are an improvement on the relevant provisions in the Hague-Visby Rules and the Hamburg Rules in that they provide a more coherent and clearer solution to the carrier identity problem than the previous carriage regimes did as well as providing solutions where the previous dispensations did not. The dissertation does not address all manifestations of the carrier identity problem, instead three specific examples are used to highlight the various aspects of the fundamental problem in order to assess whether the Rotterdam Rules have been an improvement on the previous carriage regimes. These specific instances are; when there is insufficient information to identify person or entity that is the contractual carrier; when there are different contractual and performing parties and; the carrier identity problem in the context of multimodal transportation. The Rotterdam Rules aim to be more an extensive and uniform set of Rules attempting to be a reflection of modern commercial practice in tune with the current trends and practices. The Rotterdam Rules provide what can be labelled as pre-emptive and reactive measures which seek to prevent the carrier identity problem from arising as well as providing solutions for situations when the carrier identity problems arise. This dissertation assesses whether the Rotterdam Rules, as compared to the previous dispensations do provide solutions to the carrier identity problems as well as whether such solutions are adequate to fully address these identified problems.

In the 55th meeting of the International Maritime Organisation's (IMO) Marine Environment Protection Committee (MEPC) in October 2006, the Committee noted that the impact of greenhouse gas emissions from the burning of marine fuel oil on climate change is a serious concern and even though shipping is considered an environmentally friendly mode of transport, it too must change with the times and take action to reduce its own greenhouse gas emissions. If it does not, then shipping will fall behind other industries and become one of the largest producers of greenhouse gas emissions in the future.

The report examines the legal nature of the Marine Insurance Contract as one of the legal institutions forming the shape of the Maritime Commercial Law. The essential importance of a merchant shipping contract is illustrated by an example from the English Case Law, which is leading worldwide.

Foreign transport structures are currently interested in transit and fuel transportation in the North. However this direction doesn’t get the development due to imperfection of the normative-legal base regulating this process and insufficient state support of the mainline work. Another important obstacle is the lack of consistency of domestic norms with the standards of international maritime law and low level of shipping safety, typical of our country.

This Coastal and Hydraulics Engineering Technical Note (CHETN) documents the development through verification and validation of three instability-suppressing mechanisms in FUNWAVE-TVD, a Boussinesq-type numerical wave model, when modeling deep-draft vessels with a low under-keel clearance (UKC). Many large commercial ports and channels (e.g., Houston Ship Channel, Galveston, US Army Corps of Engineers [USACE]) are traveled and affected by tens of thousands of commercial vessel passages per year. In a series of recent projects undertaken for the Galveston District (USACE), it was discovered that when deep-draft vessels are modeled using pressure-source mechanisms, they can suffer from model instabilities when low UKC is employed (e.g., vessel draft of 12 m¹ in a channel of 15 m or less of depth), rendering a simulation unstable and obsolete. As an increasingly large number of deep-draft vessels are put into service, this problem is becoming more severe. This presents an operational challenge when modeling large container-type vessels in busy shipping channels, as these often will come as close as 1 m to the bottom of the channel, or even touch the bottom. This behavior would subsequently exhibit a numerical discontinuity in a given model and could severely limit the sample size of modeled vessels. This CHETN outlines a robust approach to suppressing such instability without compromising the integrity of the far-field vessel wave/wake solution. The three methods developed in this study aim to suppress high-frequency spikes generated nearfield of a vessel. They are a shock-capturing method, a friction method, and a viscosity method, respectively. The tests show that the combined shock-capturing and friction method is the most effective method to suppress the local high-frequency noises, while not affecting the far-field solution. A strong test, in which the target draft is larger than the channel depth, shows that there are no high-frequency noises generated in the case of ship squat as long as the shock-capturing method is used.

1.1 Macroeconomic summary Economic recovery has consistently outperformed the technical staff’s expectations following a steep decline in activity in the second quarter of 2020. At the same time, total and core inflation rates have fallen and remain at low levels, suggesting that a significant element of the reactivation of Colombia’s economy has been related to recovery in potential GDP. This would support the technical staff’s diagnosis of weak aggregate demand and ample excess capacity. The most recently available data on 2020 growth suggests a contraction in economic activity of 6.8%, lower than estimates from January’s Monetary Policy Report (-7.2%). High-frequency indicators suggest that economic performance was significantly more dynamic than expected in January, despite mobility restrictions and quarantine measures. This has also come amid declines in total and core inflation, the latter of which was below January projections if controlling for certain relative price changes. This suggests that the unexpected strength of recent growth contains elements of demand, and that excess capacity, while significant, could be lower than previously estimated. Nevertheless, uncertainty over the measurement of excess capacity continues to be unusually high and marked both by variations in the way different economic sectors and spending components have been affected by the pandemic, and by uneven price behavior. The size of excess capacity, and in particular the evolution of the pandemic in forthcoming quarters, constitute substantial risks to the macroeconomic forecast presented in this report. Despite the unexpected strength of the recovery, the technical staff continues to project ample excess capacity that is expected to remain on the forecast horizon, alongside core inflation that will likely remain below the target. Domestic demand remains below 2019 levels amid unusually significant uncertainty over the size of excess capacity in the economy. High national unemployment (14.6% for February 2021) reflects a loose labor market, while observed total and core inflation continue to be below 2%. Inflationary pressures from the exchange rate are expected to continue to be low, with relatively little pass-through on inflation. This would be compatible with a negative output gap. Excess productive capacity and the expectation of core inflation below the 3% target on the forecast horizon provide a basis for an expansive monetary policy posture. The technical staff’s assessment of certain shocks and their expected effects on the economy, as well as the presence of several sources of uncertainty and related assumptions about their potential macroeconomic impacts, remain a feature of this report. The coronavirus pandemic, in particular, continues to affect the public health environment, and the reopening of Colombia’s economy remains incomplete. The technical staff’s assessment is that the COVID-19 shock has affected both aggregate demand and supply, but that the impact on demand has been deeper and more persistent. Given this persistence, the central forecast accounts for a gradual tightening of the output gap in the absence of new waves of contagion, and as vaccination campaigns progress. The central forecast continues to include an expected increase of total and core inflation rates in the second quarter of 2021, alongside the lapse of the temporary price relief measures put in place in 2020. Additional COVID-19 outbreaks (of uncertain duration and intensity) represent a significant risk factor that could affect these projections. Additionally, the forecast continues to include an upward trend in sovereign risk premiums, reflected by higher levels of public debt that in the wake of the pandemic are likely to persist on the forecast horizon, even in the context of a fiscal adjustment. At the same time, the projection accounts for the shortterm effects on private domestic demand from a fiscal adjustment along the lines of the one currently being proposed by the national government. This would be compatible with a gradual recovery of private domestic demand in 2022. The size and characteristics of the fiscal adjustment that is ultimately implemented, as well as the corresponding market response, represent another source of forecast uncertainty. Newly available information offers evidence of the potential for significant changes to the macroeconomic scenario, though without altering the general diagnosis described above. The most recent data on inflation, growth, fiscal policy, and international financial conditions suggests a more dynamic economy than previously expected. However, a third wave of the pandemic has delayed the re-opening of Colombia’s economy and brought with it a deceleration in economic activity. Detailed descriptions of these considerations and subsequent changes to the macroeconomic forecast are presented below. The expected annual decline in GDP (-0.3%) in the first quarter of 2021 appears to have been less pronounced than projected in January (-4.8%). Partial closures in January to address a second wave of COVID-19 appear to have had a less significant negative impact on the economy than previously estimated. This is reflected in figures related to mobility, energy demand, industry and retail sales, foreign trade, commercial transactions from selected banks, and the national statistics agency’s (DANE) economic tracking indicator (ISE). Output is now expected to have declined annually in the first quarter by 0.3%. Private consumption likely continued to recover, registering levels somewhat above those from the previous year, while public consumption likely increased significantly. While a recovery in investment in both housing and in other buildings and structures is expected, overall investment levels in this case likely continued to be low, and gross fixed capital formation is expected to continue to show significant annual declines. Imports likely recovered to again outpace exports, though both are expected to register significant annual declines. Economic activity that outpaced projections, an increase in oil prices and other export products, and an expected increase in public spending this year account for the upward revision to the 2021 growth forecast (from 4.6% with a range between 2% and 6% in January, to 6.0% with a range between 3% and 7% in April). As a result, the output gap is expected to be smaller and to tighten more rapidly than projected in the previous report, though it is still expected to remain in negative territory on the forecast horizon. Wide forecast intervals reflect the fact that the future evolution of the COVID-19 pandemic remains a significant source of uncertainty on these projections. The delay in the recovery of economic activity as a result of the resurgence of COVID-19 in the first quarter appears to have been less significant than projected in the January report. The central forecast scenario expects this improved performance to continue in 2021 alongside increased consumer and business confidence. Low real interest rates and an active credit supply would also support this dynamic, and the overall conditions would be expected to spur a recovery in consumption and investment. Increased growth in public spending and public works based on the national government’s spending plan (Plan Financiero del Gobierno) are other factors to consider. Additionally, an expected recovery in global demand and higher projected prices for oil and coffee would further contribute to improved external revenues and would favor investment, in particular in the oil sector. Given the above, the technical staff’s 2021 growth forecast has been revised upward from 4.6% in January (range from 2% to 6%) to 6.0% in April (range from 3% to 7%). These projections account for the potential for the third wave of COVID-19 to have a larger and more persistent effect on the economy than the previous wave, while also supposing that there will not be any additional significant waves of the pandemic and that mobility restrictions will be relaxed as a result. Economic growth in 2022 is expected to be 3%, with a range between 1% and 5%. This figure would be lower than projected in the January report (3.6% with a range between 2% and 6%), due to a higher base of comparison given the upward revision to expected GDP in 2021. This forecast also takes into account the likely effects on private demand of a fiscal adjustment of the size currently being proposed by the national government, and which would come into effect in 2022. Excess in productive capacity is now expected to be lower than estimated in January but continues to be significant and affected by high levels of uncertainty, as reflected in the wide forecast intervals. The possibility of new waves of the virus (of uncertain intensity and duration) represents a significant downward risk to projected GDP growth, and is signaled by the lower limits of the ranges provided in this report. Inflation (1.51%) and inflation excluding food and regulated items (0.94%) declined in March compared to December, continuing below the 3% target. The decline in inflation in this period was below projections, explained in large part by unanticipated increases in the costs of certain foods (3.92%) and regulated items (1.52%). An increase in international food and shipping prices, increased foreign demand for beef, and specific upward pressures on perishable food supplies appear to explain a lower-than-expected deceleration in the consumer price index (CPI) for foods. An unexpected increase in regulated items prices came amid unanticipated increases in international fuel prices, on some utilities rates, and for regulated education prices. The decline in annual inflation excluding food and regulated items between December and March was in line with projections from January, though this included downward pressure from a significant reduction in telecommunications rates due to the imminent entry of a new operator. When controlling for the effects of this relative price change, inflation excluding food and regulated items exceeds levels forecast in the previous report. Within this indicator of core inflation, the CPI for goods (1.05%) accelerated due to a reversion of the effects of the VAT-free day in November, which was largely accounted for in February, and possibly by the transmission of a recent depreciation of the peso on domestic prices for certain items (electric and household appliances). For their part, services prices decelerated and showed the lowest rate of annual growth (0.89%) among the large consumer baskets in the CPI. Within the services basket, the annual change in rental prices continued to decline, while those services that continue to experience the most significant restrictions on returning to normal operations (tourism, cinemas, nightlife, etc.) continued to register significant price declines. As previously mentioned, telephone rates also fell significantly due to increased competition in the market. Total inflation is expected to continue to be affected by ample excesses in productive capacity for the remainder of 2021 and 2022, though less so than projected in January. As a result, convergence to the inflation target is now expected to be somewhat faster than estimated in the previous report, assuming the absence of significant additional outbreaks of COVID-19. The technical staff’s year-end inflation projections for 2021 and 2022 have increased, suggesting figures around 3% due largely to variation in food and regulated items prices. The projection for inflation excluding food and regulated items also increased, but remains below 3%. Price relief measures on indirect taxes implemented in 2020 are expected to lapse in the second quarter of 2021, generating a one-off effect on prices and temporarily affecting inflation excluding food and regulated items. However, indexation to low levels of past inflation, weak demand, and ample excess productive capacity are expected to keep core inflation below the target, near 2.3% at the end of 2021 (previously 2.1%). The reversion in 2021 of the effects of some price relief measures on utility rates from 2020 should lead to an increase in the CPI for regulated items in the second half of this year. Annual price changes are now expected to be higher than estimated in the January report due to an increased expected path for fuel prices and unanticipated increases in regulated education prices. The projection for the CPI for foods has increased compared to the previous report, taking into account certain factors that were not anticipated in January (a less favorable agricultural cycle, increased pressure from international prices, and transport costs). Given the above, year-end annual inflation for 2021 and 2022 is now expected to be 3% and 2.8%, respectively, which would be above projections from January (2.3% and 2,7%). For its part, expected inflation based on analyst surveys suggests year-end inflation in 2021 and 2022 of 2.8% and 3.1%, respectively. There remains significant uncertainty surrounding the inflation forecasts included in this report due to several factors: 1) the evolution of the pandemic; 2) the difficulty in evaluating the size and persistence of excess productive capacity; 3) the timing and manner in which price relief measures will lapse; and 4) the future behavior of food prices. Projected 2021 growth in foreign demand (4.4% to 5.2%) and the supposed average oil price (USD 53 to USD 61 per Brent benchmark barrel) were both revised upward. An increase in long-term international interest rates has been reflected in a depreciation of the peso and could result in relatively tighter external financial conditions for emerging market economies, including Colombia. Average growth among Colombia’s trade partners was greater than expected in the fourth quarter of 2020. This, together with a sizable fiscal stimulus approved in the United States and the onset of a massive global vaccination campaign, largely explains the projected increase in foreign demand growth in 2021. The resilience of the goods market in the face of global crisis and an expected normalization in international trade are additional factors. These considerations and the expected continuation of a gradual reduction of mobility restrictions abroad suggest that Colombia’s trade partners could grow on average by 5.2% in 2021 and around 3.4% in 2022. The improved prospects for global economic growth have led to an increase in current and expected oil prices. Production interruptions due to a heavy winter, reduced inventories, and increased supply restrictions instituted by producing countries have also contributed to the increase. Meanwhile, market forecasts and recent Federal Reserve pronouncements suggest that the benchmark interest rate in the U.S. will remain stable for the next two years. Nevertheless, a significant increase in public spending in the country has fostered expectations for greater growth and inflation, as well as increased uncertainty over the moment in which a normalization of monetary policy might begin. This has been reflected in an increase in long-term interest rates. In this context, emerging market economies in the region, including Colombia, have registered increases in sovereign risk premiums and long-term domestic interest rates, and a depreciation of local currencies against the dollar. Recent outbreaks of COVID-19 in several of these economies; limits on vaccine supply and the slow pace of immunization campaigns in some countries; a significant increase in public debt; and tensions between the United States and China, among other factors, all add to a high level of uncertainty surrounding interest rate spreads, external financing conditions, and the future performance of risk premiums. The impact that this environment could have on the exchange rate and on domestic financing conditions represent risks to the macroeconomic and monetary policy forecasts. Domestic financial conditions continue to favor recovery in economic activity. The transmission of reductions to the policy interest rate on credit rates has been significant. The banking portfolio continues to recover amid circumstances that have affected both the supply and demand for loans, and in which some credit risks have materialized. Preferential and ordinary commercial interest rates have fallen to a similar degree as the benchmark interest rate. As is generally the case, this transmission has come at a slower pace for consumer credit rates, and has been further delayed in the case of mortgage rates. Commercial credit levels stabilized above pre-pandemic levels in March, following an increase resulting from significant liquidity requirements for businesses in the second quarter of 2020. The consumer credit portfolio continued to recover and has now surpassed February 2020 levels, though overall growth in the portfolio remains low. At the same time, portfolio projections and default indicators have increased, and credit establishment earnings have come down. Despite this, credit disbursements continue to recover and solvency indicators remain well above regulatory minimums. 1.2 Monetary policy decision In its meetings in March and April the BDBR left the benchmark interest rate unchanged at 1.75%.