Academic literature on the topic 'Sales of goods act'

Price reduction is one of the civil law remedies incorporated in the Vienna sales convention. On the other hand, Pakistan is neither the signatory of the convention nor its national sales law posses this remedy. Therefore a research is highly required to fill this vacuum and find out a solution for international buyer who is involved in trade with parties in Pakistan. Thus the study aims to investigate the suitability of price reduction in compatibility with existing legal regime. The study reveals the raison d'être in contract making via relative analysis of the existence of price reduction as an assurance for performance and certainty. The results depict that adding price reduction as remedy will be a good legal cover to the buyer's claims and a better response to the business practices in Pakistan. Especially, where the buyer is facing difficulties to prove his loss he may simply opt to reduce the price. Hence, study recommends that introducing the 'price reduction' as a remedy in the local legal system will enhance the confidence of a commercial buyer from the international community. Keywords: Sale of Goods, CISG, Price Reduction, Remedy.

Abstract The sales market requires both the highest quality of offered goods and satisfactory prices for the buyer. In addition to the reliability of the important aspects are also the time of order fulfillment, reliability, readiness to act around the clock, and service of sold goods after their sale. In the production and confection of conveyor belts, the priority is a customer who, having strictly defined product requirements, also has individually focused goals. To meet these aspects, you need to look after the product both during its production and after. The products of this industry are specific, so that they can be used, after sales service is often required to be installed at the customer and possible actions to maintain their good condition during operation. The article analyzes selected production processes of transmission belts to identify disturbances. The analysis uses the value stream mapping method. Then, improvement methods were proposed.

The implementation of the Consumer Protection Act 68 of 2008 (CPA) has great implications for the South African common law of sale. In this contribution the influence of the CPA on the seller’s common law duty to warrant the buyer against eviction is investigated. Upon evaluation of the relevant provisions of the CPA, the legal position in the United Kingdom – specifically the provisions of the Sales of Goods Act of 1979 – is investigated.

The features of the mechanism of using the tools of the marketing complex in the sales process are investigated in this paper. It is proved that in market economy, the given concept of «4P» does not completely reveal the essence of marketing activities and should be supplemented by several components. This approach promotes the use of three more components that form appropriate standards for service enterprises. The concept of «sale», which is considered as oral exchange between the buyer and the seller, during which the seller makes the presentation of the goods for the purpose of concluding transaction is considered and supplemented. It is analyzed that the interpretation of the sales process only as a sphere of personal communication between seller and buyer does not take into account the preparation and organization of sales, physical movement of goods to the point of sale, but only establishes and maintains contacts with consumers. In this case, sales act as one of the tools of communication with the consumer and is aimed to find a buyer, convince him to buy the product and provide necessary sales. It is proved that it is the communication component of the sales process that distinguishes it from other concepts – sales and distribution and expands the scope, focusing on the end result and taking care of meeting the needs of consumers. Communication in this case plays the role of the tool by which the sales process is performed. In addition, it is also one of the sources for collecting information about the target consumer and formation of the company’s image, which aims to increase the number of loyal customers. It is proved that the purpose of formation of sales complex at the enterprise is the delivery of finished goods to the consumer and its effective realization for balance establishment between market demand and goods offer. The effectiveness of sales in this case is that the cost of relevant marketing activities of the enterprise must be recouped and give a direct and indirect effects, presented in the form of meeting consumer needs and increasing their loyalty to the company and its products, or in the form of profit growth per hryvnia of sales budget.

This article suggests that New Zealand should overhaul the remedies available for breach of sale of goods contracts. It argues that the Sale of Goods Act 1908 should be repealed and the principles and provisions of the United Nations Convention on Contracts for the International Sale of Goods 1980 (CISG) should be adopted in its place. This would have the effect of eliminating the unnecessary distinction currently made between domestic and international sale of goods, and finally ridding the law of the condition-warranty distinction which has become out of date and leads to uncertainty and injustice. It is argued that the provisions of the CISG better respond to the transportation and communication costs and distances involved in international sales, considerations which are not insignificant in trade within New Zealand and, consequently, justify a similar approach domestically.

Abstract - CV Gypsum Griya Indah is a market leader distributor company in the industry of gypsum and mild steel raw materials. The sales system at this company is still manually felt to be less effective in attracting customers. By implementing information systems at Griya Indah CV Gypsum which is engaged in sales and wants to expand its marketing area through an E-commerce website. Aside from being a means of promotion, E-commerce websites can simplify the process of ordering and purchasing goods. E-commerce websites do not only act as information media but can also expand sales areas to reach all of Indonesia and internationally. For consumers, websites simplify the process of purchasing goods needed. In this study the method used is the waterfall method which describes a systematic and sequential approach to software development, starting with the specification of user needs and then continuing through several stages as follows planning, modeling, construction, and the delivery of the system to customers / users, then end with complete software support generated. By using webset as a media. Keywords: E-commerce Website, Gypsum Raw Material, Light Steel

Disparities in national laws are likely to result in uncertainty which, in turn, creates obstacles to international commerce. It is acknowledged that strong investment flows cannot be achieved without a secure legal and commercial environment. Mindful of such a need, states decided to harmonise sales law internationally. To this end, in 1980 they adopted the United Nations Convention on Contracts for the International Sale of Goods known as the Vienna Sales Convention or the CISG. The CISG has led a number of countries, including the Organisation for the Harmonisation of Business Law in Africa (OHADA) law states, to modernise their local sales law. However, only three of 17 countries that constitute the OHADA community have ratified the CISG. OHADA law countries give the impression of favouring a more regional approach to the unification of sales law rather than the CISG’s global approach by implementing a local Commercial Uniform Act. Their indifference towards the CISG is not without consequences for commerce in the OHADA region. This article seeks to demonstrate that the lack of ratification of a universal convention, as for example the CISG, poses a danger to commercial dealings. It also intends to show that the CISG is not hostile to regional uniform sales laws of the OHADA Commercial Uniform Act type. It concludes that OHADA countries do not need to be afraid of their acceptance of the CISG and recommends that it be ratified.

The sale of luxury goods during the 1930s represents an incongruous aspect of American business that has been largely ignored by historians. This essay focuses on the efforts of one manufacturer of high-quality, elegant glassware, A. H. Heisey & Company of Newark, Ohio, to survive the Great Depression. Heisey created successful new sales strategies and product designs to meet the changing tastes of its customers. Although difficult to gauge with precision, Heisey's business also benefited from the overlapping influence of several New Deal measures: the Beer–Wine Revenue Act, the National Recovery Act, and the National Housing Act. Paradoxically, Heisey was most hampered by President Roosevelt's adoption of fiscal restraint in 1937, a policy that the company's Republican executives strongly advocated.

There are ten consumer cooperatives in Qatar, and they do not differ in any substantial way from any ordinary grocery stores. However, the profit-sharing scheme is an element which differentiates cooperatives from such stores. Since 1976 until the present, the role of the government is noticeable. The government provides financial and moral support to cooperatives. In spite of this, membership is very limited in numbers, and the return to members is low relative to that earned by members of boards of management who contribute very little to the cooperatives. With respect to their relations with the private sector, cooperatives have reduced the sales of the privately-owned shops, and, at the same time depend on wholesales for their supplies of goods. The effects of cooperatives in the Qatari society may be summed up as an introduction of an alternative to the privately-owned shops, although their contribution to the national output is unimportant. This is a valid argument despite of their relative large sales and assets, because they act as retailers, and not producers of goods or services.

The purpose of this research is to assess the compliance of the selling procedures for unredeemed pawn goods (Marhun) in accordance to the National Sharia Council’s Fatwa No:25/DSN-MUI/III/2002 in Bank Jatim Syariah. The selling of unredeemed pawn goods (marhun) is analyzed from 4 aspects : (1) Maturity, (2) the execution of sale, (3) the result of the sale and (4) the excess or deficit from the result of the sale. This research adopts a qualitative approach with a case study methodology. The result of this research suggests that there is incompliance to the National Sharia Council’s Fatwa No:25/DSN-MUI/III/2002 in the act of selling unredeemed pawn goods (marhun) by Bank Jatim Syariah, however this incompliance does not indicate any breach to the sharia rulings on sales and purchase.

This thesis attempts to critically and comparatively analyse the issues relating to the passing of property and risk under the United Nations Convention on the Contract for International Sale of Goods (CISG) and English Law (SGA). The passing of property and risk plays a central role in the area of international legislation in relation to sales contracts. These elements can be the most significant components in contracts of sale between parties, whether in the international or domestic field. The reason is founded on their legal nature and the close relationship between them. The passing of property and risk has been a central issue for practitioners, judges and lawyers dating back to the Roman period and several ideas have been proposed to resolve it. Where the situation is different for contracts of sale in relation to the passing of property and risk, whether in the domestic or international field, it still creates many unresolved problems, because of ongoing changes in the field of modern commerce, which may contribute to unfair implications between the parties. It has been observed in this thesis that both English law and the CISG adopt the party autonomy principle, where the intention of the parties - whether in relation to the passing of property or risk - is the basic rule. However, the difference lies in the default rules. While English law involves default substitutional rules, which apply in cases where there is an absence of an expressed or implied indication regarding the intention between the parties, the CISG lacks such default rules regarding the transfer of property, which could be viewed as its main weakness, although the CISG does involve such provisions with respect to the transfer of risk. This thesis willdiscusses, the legal nature of the rules in relation to the passing of property and risk, and the role of the party autonomy principle, and the impacts and legal difficulties that might arise through the application of these rules, whether they are default rules or based on the party autonomy principle. It will also examine the legal gaps and weaknesses of both legal systems in an attempt to identify such legal difficulties and to find appropriate solutions and remedies.

This thesis attempts to critically and comparatively analyse the doctrine of exemption/frustration /force majeure under the United Nations Convention on the Contract for International Sale of Goods (CISG) the UNIDRIOT Principles of International Commercial Contracts (UNIDROIT) and the English Law. The doctrine of exemption/frustration/force majeure is very important in the area of contract and commercial law, it is a doctrine deeply rooted in fairness and allows a party to be excused from performing an obligation in a contract if at the conclusion of the contract an inhibition beyond the foreseeable control of the party happens to render the performance of the contract impossible. However, it is not easy to effectively streamline this doctrine and properly determine its applications. It has been observed in this thesis that, the doctrines of exemption/frustration /force majeure are not exactly the same; this thesis explores in details severally and jointly the various differences and similarities in the interpretations and applications of these impossibility doctrines. For instance, the open and flexible use of words in the definition of this doctrine under the CISG and the UNIDROIT Principles left much to be desired. Thus, it is one of the succinct arguments of this thesis that couching international law in loose words will work against the uniformity of application of this law, due to the different interpretations national law courts will be subjecting it to. This among other issues retarded the growth and development of the doctrine of exemption and force majeure. Furthermore, English law stance on the doctrine of frustration which can be gleaned from both the Sale of Goods Act of 1979 and the Common law are far from being adequate and need to be updated. This thesis therefore incisively laid bare the applications, interpretations and way forward for the doctrine of exemption/frustration/force majeure under the legal instruments of focus of this work. The thesis also comparatively compares the relationship between the doctrine of frustration/force majeure/exemption and other related doctrines like mistake, termination, avoidance, risk, and hardship. The thesis is concluded with a Draft Model Frustration Clause (DMFC) which is an attempt to rise above the status quo doctrine of frustration in the extant laws and develop a frustration clause that will be able to provide answers to the many flaws that trail these laws.

This thesis deals with how ownership is transferred in connection with international sale contracts. It shows what stumbling blocks might be avoided by observing peculiarities of the law applicable to an international sales contract and especially to the transfer of ownership. Thereby, the following legal systems will be taken into consideration: Lex Mercatoria, Swiss Law, South African Law and English Law. The aim of every domestic and international sales contract is to pass the property of goods from one contract party to the other contract party against the payment of a certain price. Contracts of sales whether written, oral or simple because of a conclusive behaviour are always the basis for transfer of ownership. Every international sales contract is governed by a particular national law or by the so called Lex Mercatoria. Since it is in the parties' autonomy to choose the law governing the contract (freedom of choice) it is critical to know what consequence this choice has on transferring the property, or whether this choice has a consequence at all. International sales contracts mean contracts where parties of different countries are involved. Internationality is defined in Article 1 (1) of the United Nations Convention on Contracts for the International Sale of Goods (hereinafter: CISG) as: "This convention applies to contract of sales of goods between parties whose places of business are in different states" . The obligations of the seller and the buyer are stated in Article 30 and 53 CISG. "The seller must deliver the goods, hand over any documents relating to them and transfer the property as required by the contract and this Convention." "The buyer must pay the price for the goods and take delivery of them as required by the contract and this Convention". Section 2 (1) of the English Sale of Goods Act 1979 defines a contract for the sale of goods as: " a contract by which the seller transfers or agrees to transfer the property in goods to the buyer for a money consideration, called the price." Article 184 Section 1 of the Swiss Code of Obligations (CO) states the following: "A contract of sale is a contract whereby the seller obligates himself to deliver to the buyer the object of purchase and to transfer title thereto to the buyer, and the buyer obligates himself to pay the purchase price to the seller". In South Africa there is obviously no specific act on the sales of goods. Therefore, the requirements for a valid contract have to be derived from common law. Hackwill states that a sales contract is a mutual contract for the transfer of possession of an object in exchange for a price. As mentioned above the contract between seller and buyer is always the basis for the transfer of ownership. However, how the ownership finally transfers in the mentioned legal systems will be established below. All of the mentioned systems of law are more or less based on Roman Law which established the parameters/rules for property law. South African's law of property, sales, and contracts as well as English and Swiss Law can be traced back to Roman Law. Examining this common background by tracing the conceptualization of transfer of ownership in the Roman Property Law will illustrate the extent to which the rules on the transfer of property have evolved since the classical era in order to meet changing needs of modern legal systems.

The rules governing risk to goods in transit contained in the British Columbia Sale of Goods Act are based on a statute enacted in 1893. Although the method of transport as well as the types of goods being transported have changed significantly since that time, the rules have not been modified. The hypothesis explored in this thesis is whether rules governing risk to goods in transit drafted in the late nineteenth century represent efficient rules in the late twentieth century. The thesis applied economic analysis to the rules to test their efficiency. The rules were tested in the ocean transit environment. It was concluded that the rules were not efficient and required substantial modification. An efficient set of rules governing risk to goods in transit was advanced.
Law, Peter A. Allard School of
Graduate

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management, 2013.
Cataloged from PDF version of thesis.
Includes bibliographical references (p. 133-138).
This thesis proposes a framework to help managers facing growth challenges or commoditization problems in business to business, particularly with capital goods. The framework is based on the proposition that strategy, marketing and sales are cycles that happen with different durations. Strategy defines perspective, plans, position and patterns. It encompasses several marketing cycles where offerings are defined; pricing policies are declared; channels are chosen and promotions are deployed. Several cycles of sales will happen within a marketing cycle with respect to the timing of deals in the specific industry in which the firm operates. The framework proposes the use of strategy-based analysis to identify whether problems and the need for change or adjustment are in the strategy, marketing or sales dimension. Various aspects of strategy, marketing and sales that are relevant for capital goods are presented, drawing on parallels from practical examples based on companies or evidence from the literature. Specific propositions of strategy related to platforms, services and integrated services are presented. Four companies (ABB, GE, Voith Hydro and Rockwell) have been studied to illustrate the thesis. A collection of practices for the implementation and adaptation of changes in the organization are discussed. The thesis concludes that there is no right or wrong approach, and that it is important that managers ensure consistency within these dimensions and with other areas of the firm. Finally, some ideas for the next steps are discussed.
by Tadeu Rezende de Azevedo.
M.B.A.

This chapter discusses the common law rule of caveat emptor, which today has been largely eroded by the original Sale of Goods Act 1893 (SGA 1893) that introduced the statutory implied terms of quality and fitness for purpose. It is shown here that the principle of caveat emptor is still alive and well in relation to purely private sales because the terms implied by the Sale of Goods Act 1979 (SGA 1979) in relation to the quality and fitness for purpose of the goods only apply to sales made in the course of a business. Sale of goods contracts are still, therefore, governed by the principle of caveat emptor to some extent, although this is subject to other enactments. This chapter also discusses the Consumer Rights Act 2015 (CRA 2015) which came into force on 1 October 2015.

This chapter serves as an introduction to the English law governing sale of goods, along with relevant definitions. Prior to 1893, the domestic sales law was almost entirely based on case law. There were a few statutory provisions, the two most important being the Factors Acts and s 17 of the Statute of Frauds 1677. In 1888 Sir Mackenzie Chalmers was commissioned to draft the bill that became the Sale of Goods Act 1893. This chapter discusses the relevant provisions of the Sale of Goods Act 1893 in relation to the general law, as well as its application to contracts for the sale of all types of goods. It also considers some key definitions relating to sale of goods and how sale of goods differs from other transactions such as barter or exchange, bailment, agency, and hire-purchase. Finally, it explains how a contract of sale is formed.

Processes are one of key elements of each organization, so their analysis and constant improvement is essential for developing and maintaining competitive advantage. Business process mapping represents the initial step in process optimization. Another important aspect of good market position and business success is customer satisfaction. Organizations that are customer-oriented have much higher chance for satisfying and retaining their customers. Steel production industry is specific for extremely large and expensive orders on one hand, and production limits in terms of dimensions and quality on the other hand. In this industry clients are expected to accept certain adoptions of their demands in cases of production to order, or to adapt to predefined portfolio in cases of production in advance. Production to order in steel industry is more difficult to organize and increases production costs, but this approach improves customer orientation and eliminates the risk of unsold goods. However, order optimization is the step that can endanger customer satisfaction within sales and negotiation process in such production. This paper will show how process mapping and analysis as a tool in organizational design can represent a base for process flow optimization that increases process efficiency but also improves customer orientation, leading to competitive advantage.

Avoidance the Contract is a kind of legal system arrangement which is adopted as a private law enforcement applied effortlessly, in the context of not to be performed delivery of goods in accordance with the contract. Merely, International Tendency in 20th century have fronted that avoidance of the contract is the “ultimum remedium” in the case of any breach of the contract. In several of modern sale law systems, for instance in German Law and Scandinavian Law systems, avoidance of the contract is a process which should be applied in the case of other enforcements are inadequate. The “Convention on International Sale of Goods (CISG)” which has stipulated the same solution way, has an important role in the formation of this modern tendency mentioned below. In accordance with the CISG enforcement of avoidance of the contract shall be exercised in the case of essential breach of the contract. Besides, In case of insubstantial breaches, the buyer is enabled to refer a possibility “the avoidance of the contract” as if the breach is a kind of material breach of the contract by giving additional period to the seller who the party in breach. Despite the additional period of time fixed him, in the case of the seller does not perform delivery of the goods the buyer shall have the right to avoidance of the contract.

Intendment of the paper herein, to evaluate of new provisions regarding sales and commercial sales amended by new Turkish Code of Obligations numbered 6098 in the context of Vienna Convention on Contracts for the International Sale of Goods which is effective since 01 January 1988. It has a significance to be able to understand why the provisions of the convention have not been completely quoted to Turkish Code of Obligations. Turkish Code of Obligations' numbered 6098, Vienna Convention on Contracts for the International Sale of Goods and Provisions of Vienna Convention on Contract for the International Sale of Goods (CISG/United Nations Convention), Comparing of civil law, common law, and combinations of these (especially Sales contracts in civil law and sales contracts in common law).During the legislation process of Turkish Code of Obligations' provisions regarding sales, both Vienna Convention on Contracts for the International Sale of Goods (CISG/United Nations Convention) and Swiss law has been constituted a source. The Vienna Convention is effective since 01 January 1988 and Turkey has participated to (CISG) on 01 August 2011 and it has been a part of domestic law. The aim of (CISG) is to eliminate the differences among the countries' laws regarding sales; i.e. it constitutes a linking rule and the rules of sales. Since the Convention has been legislated with the effect of various law families and systems, provisions of the convention have not been completely adopted to code of obligations.

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%.

With its annual Payment Systems Report, Banco de la República offers a complete overview of the infrastructure of Colombia’s financial market. Each edition of the report has four objectives: 1) to publicize a consolidated account of how the figures for payment infrastructures have evolved with respect to both financial assets and goods and services; 2) to summarize the issues that are being debated internationally and are of interest to the industry that provides payment clearing and settlement services; 3) to offer the public an explanation of the ideas and concepts behind retail-value payment processes and the trends in retail payments within the circuit of individuals and companies; and 4) to familiarize the public, the industry, and all other financial authorities with the methodological progress that has been achieved through applied research to analyze the stability of payment systems. This edition introduces changes that have been made in the structure of the report, which are intended to make it easier and more enjoyable to read. The initial sections in this edition, which is the eleventh, contain an analysis of the statistics on the evolution and performance of financial market infrastructures. These are understood as multilateral systems wherein the participating entities clear, settle and register payments, securities, derivatives and other financial assets. The large-value payment system (CUD) saw less momentum in 2019 than it did the year before, mainly because of a decline in the amount of secondary market operations for government bonds, both in cash and sell/buy-backs, which was offset by an increase in operations with collective investment funds (CIFs) and Banco de la República’s operations to increase the money supply (repos). Consequently, the Central Securities Depository (DCV) registered less activity, due to fewer negotiations on the secondary market for public debt. This trend was also observed in the private debt market, as evidenced by the decline in the average amounts cleared and settled through the Central Securities Depository of Colombia (Deceval) and in the value of operations with financial derivatives cleared and settled through the Central Counterparty of Colombia (CRCC). Section three offers a comprehensive look at the market for retail-value payments; that is, transactions made by individuals and companies. During 2019, electronic transfers increased, and payments made with debit and credit cards continued to trend upward. In contrast, payments by check continued to decline, although the average daily value was almost four times the value of debit and credit card purchases. The same section contains the results of the fourth survey on how the use of retail-value payment instruments (for usual payments) is perceived. Conducted at the end of 2019, the main purpose of the survey was to identify the availability of these payment instruments, the public’s preferences for them, and their acceptance by merchants. It is worth noting that cash continues to be the instrument most used by the population for usual monthly payments (88.1% with respect to the number of payments and 87.4% in value). However, its use in terms of value has declined, having registered 89.6% in the 2017 survey. In turn, the level of acceptance by merchants of payment instruments other than cash is 14.1% for debit cards, 13.4% for credit cards, 8.2% for electronic transfers of funds and 1.8% for checks. The main reason for the use of cash is the absence of point-of-sale terminals at commercial establishments. Considering that the retail-payment market worldwide is influenced by constant innovation in payment services, by the modernization of clearing and settlement systems, and by the efforts of regulators to redefine the payment industry for the future, these trends are addressed in the fourth section of the report. There is an account of how innovations in technology-based financial payment services have developed, and it shows that while this topic is not new, it has evolved, particularly in terms of origin and vocation. One of the boxes that accompanies the fourth section deals with certain payment aspects of open banking and international experience in that regard, which has given the customers of a financial entity sovereignty over their data, allowing them, under transparent and secure conditions, to authorize a third party, other than their financial entity, to request information on their accounts with financial entities, thus enabling the third party to offer various financial services or initiate payments. Innovation also has sparked interest among international organizations, central banks, and research groups concerning the creation of digital currencies. Accordingly, the last box deals with the recent international debate on issuance of central bank digital currencies. In terms of the methodological progress that has been made, it is important to underscore the work that has been done on the role of central counterparties (CCPs) in mitigating liquidity and counterparty risk. The fifth section of the report offers an explanation of a document in which the work of CCPs in financial markets is analyzed and corroborated through an exercise that was built around the Central Counterparty of Colombia (CRCC) in the Colombian market for non-delivery peso-dollar forward exchange transactions, using the methodology of network topology. The results provide empirical support for the different theoretical models developed to study the effect of CCPs on financial markets. Finally, the results of research using artificial intelligence with information from the large-value payment system are presented. Based on the payments made among financial institutions in the large-value payment system, a methodology is used to compare different payment networks, as well as to determine which ones can be considered abnormal. The methodology shows signs that indicate when a network moves away from its historical trend, so it can be studied and monitored. A methodology similar to the one applied to classify images is used to make this comparison, the idea being to extract the main characteristics of the networks and use them as a parameter for comparison. Juan José Echavarría Governor