A record number of Mount Vema passports could be issued, more than a 100 as business opportunities increases demand. The highest number since records began and up 100% this year, with interest from business people continuing to rise, the Mount Vema government has announced.
According to data released by the Royal Mount Vema Department of Foreign Affairs yesterday, no more than 30 passports were issued since the creation of the Kingdom of Mount Vema, and mostly were diplomatic passports issued to Mount Vema officials.
“The interests expressed this month is the highest number ever”, said the department for foreign affairs. The interest received mostly in private were from business people from countries specially in Europe that allow for dual citizenship, according to the department, seeking to get a second passport.
The scramble for Mount Vema passports has been widely linked to business opportunities, since a Mount Vema passport enables people to do business and work in Mount Vema without visa.
Demand for Mount Vema passports also comes after intense but highly secrete negotiations between Mount Vema and more than five countries to enable Mount Vema nationals to travel visa free and to facilitate investments from Mount Vema, as the purchasing power of Mount Vema currency is expected to increase.
The Vema Seamount Territory is expected to spend more than 5 billion golles in the next five years for access to foreign market and at the same time ensure that its passport holders can travel anywhere in the world free to explore investment opportunities.
Mount Vema passport cards cost 65 golles and the book 455 golles. Applicants must first hold a Mount Vema Certificate of Citizenship to apply. The passport card allows bearers to travel using it alone to all countries added to a list to be updated regularly by the Royal Mount Vema Department of Foreign Affairs.
The Royal Mount Vema Reserve Bank has authorized the Bank of Mount Vema to engage in reciprocal currency arrangements (central bank liquidity swap lines) with foreign central banks to help provide liquidity in golles to overseas markets and foreign currency to the Mount Vema market.
When requested, swap lines will be opened for deals with the U.S. Federal Reserve, the Swiss National Bank, the Reserve Bank of Australia, the Banco Central do Brazil, the Bank of Canada, the Bank of England, the European Central Bank, the Bank of Japan, the Bank of Korea, the Monetary Authority of Singapore, and including the Bank of China, with other central banks to be listed on as needed bases, at lower interest rates.
The swaps will involve two transactions. When a foreign central bank draws on its swap line with the Bank of Mount Vema, the foreign central bank sells a specified amount of its currency to the Bank of Mount Vema in exchange for golles at the prevailing market exchange rate. The Bank of Mount Vema holds the foreign currency in an account at the foreign central bank. The golles that the Bank of Mount Vema provides are deposited in an account that the foreign central bank maintains at the Bank of Mount Vema.
At the same time, the Bank of Mount Vema and the foreign central bank enter into a binding agreement for a second transaction that obligates the foreign central bank to buy back its currency on a specified future date at the same exchange rate. The second transaction unwinds the first. At the end of the second transaction, the foreign central bank pays interest, at a market-based rate, to the Bank of Mount Vema.
When the foreign central bank lends the golles it obtained by drawing on its swap line to institutions in its jurisdiction, the golles are transferred from the foreign central bank's account at the Bank of Mount Vema to the account of the bank that the borrowing institution uses to clear its golle transactions. The foreign central bank remains obligated to return the golles to the Bank of Mount Vema under the terms of the agreement, and the Bank of Mount Vema is not a counterparty to the loan extended by the foreign central bank. The foreign central bank bears the credit risk associated with the loans it makes to institutions in its jurisdiction.
The foreign currency that the Bank of Mount Vema acquires is an asset on the Bank of Mount Vema's balance sheet. The golle value of amounts that the foreign central banks have drawn but not yet repaid is reported as "Central bank liquidity swaps”. Because the swap will be unwound at the same exchange rate that was used in the initial draw, the golle value of the asset is not affected by changes in the market exchange rate. The golle funds deposited in the accounts that foreign central banks maintain at the Bank of Mount Vema are a Mount Vema Reserve Bank liability. In principle, draws would initially appear as "foreign and official" deposits. However, the foreign central banks generally lend the golles shortly after drawing on the swap line. At that point, the funds shift to the line "deposits of depository institutions”.
When a foreign central bank draws on its swap line to fund its golle tender operations, it pays interest to the Bank of Mount Vema in an amount equal to the interest the foreign central bank earns on its tender operations. The Bank of Mount Vema holds the foreign currency that it acquires in the swap transaction at the foreign central bank (rather than lending it or investing it in private markets) and does not pay interest.
Demand for agriculture products such grain including rice, wheat, corn and oats, during the construction of the City of Mount Vema and after, will see the government opening another front to secure a reliable supply of grain.
Mount Vema will need to import initially 250,000 metric tons of a variety of grains, which is expected to cost the government about 125million golles per year. So, concessions are expected to be made to balance expenditures with other sector, as the government works hard to build a diverse economy.
Talks with foreign governments could start as early as next week. Rice could be imported from India, Thailand or the United States where wheat, corn and oats can be imported from. Other exporters to be approached are Australia, Canada, Russia, Brazil, the European Union and Chile.
The government is first looking into imports for most of its grain from the United States, because the USA is one of the few exporters that can supply all the listed grains in a single deal although, it seems unlikely considering how complicated it is to secure reciprocal trade deals, when Mount Vema has only fish and fish related products to trade at present, or facilities such as lease berths that can be used by foreign navies once the City of Mount Vema is completed.
Nevertheless, Mount Vema is already training would be inspectors to examine the quality of grains in many countries before concluding trade deals and begin imports, specially rice from the USA which has a long history of rice production, the bulk of which is grown in Arkansas, California, Louisiana, Mississippi, Missouri and Texas.
The Mount Vema customs and excise bill was submitted today to the Sovereign, His Mount Vema Majesty King Peter Goldishman for approval, to regulate the collection and management of the revenues of customs and excise of Vema Seamount.
If Peter Goldishman grants the Mount Vema Royal Seal of Approval, the bill, will become the customs and excise law of the territory, and will deal with areas of floating or reclaimed land or water designed, equipped, set apart for affording facilities for the landing and departure of ships and aircraft.
It will also deal with boarding stations, Mount Vema ships within the meaning of the Merchant Marine and Shipping Act, Mount Vema 2017; restricted goods, excise licence trade, export and imports, and including transit or transhipment - in relation to the entry of goods transiting through the Kingdom of Mount Vema or transhipment with a view to the re-exportation of the goods in question or transhipment of goods for use as stores.
The government has published a new guideline to help investors trade Mount Vema properties, as the Vema Seamount Territory earns the reputation amongst City of Mount Vema investors as the ultimate place for property investment in the South Atlantic.
Buying a property which doesn't yet exist is not for the faint-hearted, but after the territory saw a growth in the property market by approximately 10% in the first half of 2018, buyers and investors are reaping the rewards for their bravery.
The concept is to buy a property off-plan at current prices and when the development is completed a year or so later, the capital appreciation will have made it worth much more. In some strong markets, as the City of Mount Vema off-plan, profits of between 10 per cent and 100 per cent can be made from an initial 1 and up to 10 per cent deposit.
Demand for off-plan property from investors remains strong, because the number of properties to be built will be very limited and demand will always exceed supply. Mount Vema, is currently giving opportunities to large investment companies to buy a number of units for a discounted price. The opportunity is also opened out to individual investors. Agents may also apply for homes to sell and, may try to sell these to serious investors already on their database.
The earlier you get access to the property for sale, the greater the chance of securing one of the better units and of getting a discount on the price. If you are planning to sell the property-plans before completion, you are already in business, the island is small, so property even just a plan is a valued commodity.
However, if you plan to let or sell the property on completion, you should establish the target market for the type of property you're planning to buy. To understand where the demand is likely to be coming from, you only need to look into where the migrant workers will live - those who will travel to seek employment in the island, and then consider the limited number of properties that might be available to house the residents, traders, service providers, off duty seamen and more.
Buying off-plan in a market where prices are depreciating can put your investment at a greater risk. However, get it right and buying a property off-plan can be extremely rewarding. The key is to be one step ahead of the market and identify the opportunities before the market catches up.
The following points illustrate the steps you are likely to need to follow when buying a property off-plan in Mount Vema:
Find the right development that suits your needs. The Mount Vema off-plan market is well regulated. Property plans are advertised regularly usually by private owner buying and selling for profit. Property-Plans owned by the government are advertised gradually, usually at discount to raise capital.
Reserve the property. If you like the advertised property-plan reserve it first, then arrange the appropriate finance for the purchase well in advance, or you can secure a mortgage deal with a Mount Vema bank such as the RBMV – Royal Bank of Mount Vema.
Make sure all the mortgage paperwork is complete and ready to go. This is usually done through an online form.
Exchange legal contracts and pay the deposit (usually between 5 per cent and 10 per cent) or sometimes free, depending on the seller.
Conduct a survey about two weeks before final completion and check the property for any defects.
Be ready for completion (there are usually two dates, a 'short stop' and a 'long stop') the former is the date by which the developers expect to have finished the building works, the latter is the date by which they must have done so).