Private loans

Since common stock (or equity) costs more than bonds, why do companies issue stock This is because a company is only able to borrow money at a good rate if the lender is 100% sure he can get his money back plus interest. The less sure he is that he can get his investment back, the higher the interest rate. When a bank is asked to finance the building of a private home it will rarely lend more than 85% of the cost of construction. It also insists that the house be insured, with the bank having the first lien. This means that in case of a catastrophe the bank loan is repaid first. Then the other creditors and the owners receive what is left. A lien s significance is that it takes precedence over all other debts. Even under this arrangement an individual is... 

Government loans to allies, etc. GCm.) Government borrowing abroad ( m.) Net decrease (+) or increase (—) in private investment abroad ( m.) Net export (+) or import (-) of gold and silver GCm.) Net decrease (+) or increase (—) in short-term credits ( m.)... 

The professional staff at ESCOE consists of approximately ten engineers in residence. Each of these residents is on loan for a two-year period from a company or, in a couple of cases, a university. These people, while they are on load to ESCOE, are one hundred percent supported by ESCOE. By design, ESCOE provides the perspective of the private sector but, because the engineers come from many individual companies, ESCOE does not have the bias of an individual company. 

See J. Paul Forrester, et al.. Securitization of Project Finance Loans and Other Private Sector Infrastructure Loans, The Financier ACMT, 1994, at 7. 

Under Mr. Khodorkovsky s leadership, YUKOS completely repaid its debts (accumulated while it was a government-owned company) to the Russian federal and regional governments. In the first year following its privatization, YUKOS received 1 billion US in loans and investments primarily due to the efforts of the company s new modem management team. 

The effect of these concerns about liabilities had wide potential impacts. Fears about residual liabilities were acting as a significant break on private sector investment in brownfield redevelopment projects. There were also threatening severe dislocations in the property market more generally. A further issue was the potential impact on credit-worthiness of small businesses, which might have bank overdrafts and other loans secured against land assets whose value was potentially compromised. 

The median UIC of subjects grouped in categories of the SchSTAS at the public school they attended are shown in Figure 128.4a, b. No ratings were provided for the private schools in the surveys. There is no apparent trend in UIC with an increasing percentage of children on loan issue. Lower school SES does not appear to indicate lower UIC. 

In Germany, a privately placed loan instrnment, a Schuldschein, has mnch more acceptance than an investment in note format. By structuring a Schnldschein, German insnrance companies, for instance, can tap the larger pools for investment available in their general accounts rather than from the more limited fnnds otherwise available for CDO equity. 

Getting loans from financial institutions and banks (government/private)— the promoters are generally required to invest their own funds to the extent of 20-25 % of the project cost as seed money. 

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