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Once Uber can accept local credit and debit cards, it will be able to recoup what it is owed, the company said. Drivers, however, say the current Argentine growth rate may be temporary, tied to the lack of a commission charge. “What’s going on is that there are too many drivers currently and so there’s less work for us,” said Jorge, a 62-year old Uber driver who requested anonymity. “Everyone’s coming to Uber because they don’t charge a commission.”.
Uber says that in the last three months, it has had 55,000 active drivers and 1 million active users in Buenos Aires, Each day, the company said it adds between 300 and 400 new drivers and 7,000 new users, There’s also attrition in the mix, “The average lifespan for a driver in Latin America is about three to four months, It means they use Uber as something temporary,” Fernandez Aramburu said, Uber’s recruitment success reflects a wider trend within Argentina, where a rising tie and cufflink set jobless rate has hit full-time jobs with benefits in particular, economists say..
“We are going through a process that is making labor rights more precarious, and formal employment is dwindling,” said Hernan Letcher, director of the Center for Argentine Economic Policy. Uber has been operating in Argentina since 2016, when it faced aggressive resistance from taxi drivers and government authorities, including legal disputes that led to the ban on credit card payments that is still in place. There is no regulatory framework for Uber in Buenos Aires, including no way for the government to collect sales tax on the rides.
COPENHAGEN (Reuters) - Denmark has bolstered defenses against shocks to its financial system after a risk-assessment body said the sector’s stability could be threatened by the Danske Bank (DANSKE.CO) money laundering scandal, Danske Bank’s CEO resigned last week after an inquiry revealed that 200 billion euros ($235 billion) of payments had been moved through its Estonian branch over a period of tie and cufflink set eight years, many of which the bank said were suspicious, The case is a risk for Denmark’s entire financial sector, the Systemic Risk Council, which monitors threats to the stability of the country’s financial system, said on Tuesday..
It advised the government to double the cash cushion financial firms must hold to protect against economic shocks, to 1 percent of risk-weighted exposure, partly because of the Danske Bank case and partly because of increasing risks in banks’ overall lending. “The Danish financial system is highly affected by developments and risk perception in international markets. That is why the Danske Bank money laundering case poses a risk to the entire sector and to Denmark’s international reputation,” the council said.
The warning was heeded by the Government, which tie and cufflink set raised the buffer to 1 percent with effect from Sept, 30, 2019, giving the banks a year to meet a requirement that the Systemic Risk Council says adds 7 billion crowns ($1.1 billion) to their existing regulatory equity requirements, The “vast majority” of banks will be able to comply with the new requirement, given the sector’s excess capital adequacy was 129 billion crowns in mid-2018, the council said, Business minister Rasmus Jarlov, meanwhile, said that Denmark’s Financial Services Authority (FSA) could have been more critical in its examination of Danske Bank..
“I don’t understand that the authorities in Denmark and in Estonia have not reacted stronger to the many warnings that there have been,” Jarlov told an open parliament committee meeting on Tuesday. He said that the FSA’s reopened investigation of the case would look at whether the bank could be held responsible for having given wrong information to the regulator and that he is ready to assign the resources necessary to get to the bottom of the case. GRAPHIC: Danske Bank credibility falls - reut.rs/2xB4RiX.
The bank’s management was on Tuesday invited by parliament’s business committee to explain its actions to an open hearing, Under Danish law no one is obliged to participate in public hearings or comment under oath at them, The bank has yet to decide whether it will participate, a spokesman said, The money laundering scandal has also hit Danske Bank’s credibility among Danes, figures from polling firm Voxmeter showed on Tuesday, The percentage of Danes who find the bank credible fell tie and cufflink set to 46 percent last week, by far the lowest level since recordings began in 2008 and much lower than peers Jyske Bank (JYSK.CO) and Nordea NDA.ST at 80 percent and 64 percent respectively, Voxmeter said..