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Specialised Forms of Lending

  • T. H. Donaldson
Part of the International Banking Series book series

Abstract

This phrase describes loans where the main or only source of repayment is the project being financed, in which banks consider two separate types of risk — pre completion and post completion. The post completion risk is analagous to the risk of lending to a one product company, except that there is no historical record and market analysis is more speculative since production will not start for several years. Before that point, however, the bank has to consider the risk that the project will never be completed.

Keywords

Cash Flow Balance Sheet Debt Service Cost Overrun Firm Buyer 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© T. H. Donaldson 1988

Authors and Affiliations

  • T. H. Donaldson

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