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BUSINESS FINANCE II (İŞLETME FİNANSI II) - (İNGİLİZCE) Dersi Medium and LongTerm Financing soru cevapları
BUSINESS FINANCE II (İŞLETME FİNANSI II) - (İNGİLİZCE) Dersi Medium and LongTerm Financing soru detayı:
SORU: The main medium and long term funding provided by banks are in the form of Project Finance. What is Project Finance?
The main medium and long term funding provided by banks are in the form of Project Finance. What is Project Finance?
CEVAP: Project finance is the process of financing a specific economic unit that the sponsors create, in which creditors share much of the venture’s business risk and funding is obtained strictly for the project itself. Project finance creates value by reducing the costs of funding, maintaining the sponsor’s financial flexibility, increasing the leverage ratios, avoiding contamination risk, reducing corporate taxes, improving risk management, and reducing the costs associated with market imperfections.
Project finance is the process of financing a specific economic unit that the sponsors create, in which creditors share much of the venture’s business risk and funding is obtained strictly for the project itself. Project finance creates value by reducing the costs of funding, maintaining the sponsor’s financial flexibility, increasing the leverage ratios, avoiding contamination risk, reducing corporate taxes, improving risk management, and reducing the costs associated with market imperfections.