The Nature of Credit Risk in Project Finance

12 Pages Posted: 5 Sep 2012 Last revised: 29 Sep 2013

Marco Sorge

World Bank Group - International Finance Corporation

Date Written: December 1, 2011

Abstract

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

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

Marco Sorge (Contact Author)

World Bank Group - International Finance Corporation ( email )

2121 Pennsylvania Avenue, NW
Washington, DC 20433
United States

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