12 Pages Posted: 5 Sep 2012 Last revised: 29 Sep 2013
Date Written: December 1, 2011
In project finance, credit risk tends to be relatively high at project inception and to diminish over the life of the project. Hence, longer-maturity loans would be cheaper than shorter-term credits.
JEL Classification: F34, G12, G28, G32
Suggested Citation: Suggested Citation
Sorge, Marco, The Nature of Credit Risk in Project Finance (December 1, 2011). BIS Quarterly Review, December 2011. Available at SSRN: https://ssrn.com/abstract=1967464