KommentareBefundePerspektivenErklärstücke
Thema
Blended Finance
3 Beiträge
Beiträge
- KommentarDevelopment Finance
A development institution should give up the senior position and hold the first loss
The United States ran a current account deficit in every year from 2020 to 2025, averaging 147 billion dollars a quarter at the start of that window and 294 at the end, exactly twice as wide. An institution that gives up the senior position will report a smaller book and a worse loss record, and both are the point.
- KommentarDevelopment Finance
Mobilised volume is the wrong test of a development finance institution
Mobilised volume counts the private dollars that closed alongside a public commitment, and it can be audited on the day the deal signs. Additionality asks whether those dollars would have moved anyway, which nobody can observe, and an institution that adopts the harder standard will report a smaller number for more difficult work.
- ErklärstückDevelopment Finance
What a development finance institution does with public money
Development finance institutions lend, insure and buy stakes in private businesses abroad using capital they are expected to get back. By the end you should be able to tell which instrument an announcement is describing, and what the private market would have done without it.