Search for other papers by International Monetary Fund in
Current site
Google Scholar
Abstract
In contrast to the resurgence of flows through securities markets, commercial bank lending to most developing countries, especially those which have had debt-servicing difficulties, has remained limited in recent years. In the main, it continues to be concentrated on more secure, transactions-based business, such as trade and project financing. While short-term trade finance has by its nature been a relatively safe business, medium- and long-term trade and project financing has increasingly been structured in nontraditional forms to provide additional security. This so-called structured finance has aimed to shift more of the financing risk from the lenders to other parties, through an application of a variety of techniques, including collateralization, securitization, innovative uses of export credit agency guarantees, and cofinancing involvement with multilateral agencies.
International Monetary Fund Copyright © 2010-2021. All Rights Reserved.