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"project finance"?

Project finance is exactly what Jake described, and you actually could not get project finance in Algeria for a big investment project like he describes but based on local demand, because project financiers want to see high probability cash flows to be in a position to lend, and for some reason (European oppression, probably, they don't trust the locals to pay them back, and require export contracts backed by creditable parties to provide these.

Wind power

by Jerome a Paris (etg@eurotrib.com) on Tue Aug 24th, 2010 at 06:08:11 PM EST
[ Parent ]
That and the fact that they usually demand €-denominated loans, which means that the project had damn well better have a €-denominated cash flow sufficient to retire those loans on schedule. Otherwise, you're setting yourself up for a currency crisis and the accompanying IMF euthanasia of your economy and political sovereignty structural adjustment program.

Unless, of course, one thinks that it's a brilliant idea to deliver developing countries into the waiting arms of an economic hit man.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Tue Aug 24th, 2010 at 06:15:30 PM EST
[ Parent ]


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